One-glance verdict
Undervalued
$44.28 our estimate vs market $12.79
Wall Street consensus: $22.00 (-50.3% lower than our fair-value estimate)
71% below our estimate, below the bear case
Fundamentals snapshot
Monro, Inc.
MNRO · NMS · Consumer Cyclical · Auto Parts
Current price
$12.79
52-week range
$11.06 - $23.91
Market cap
$399.87M
Balance sheet
Stretched
1.16x Concerning
Net debt $518.32M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Returns 1.4% on equity, ahead of 20% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Reward Dividend yield is 8.8% with 22-year payout history.
- Risk Operating margin compressed from 6.0% to 0.8% over 3 years.
What this company does
Monro, Inc.
Monro runs a large chain of local auto repair and tire shops across the country, with names like Mr. Tire and Car-X. They make money by selling new tires and performing essential car maintenance, such as brake repairs, oil changes, and alignments. Because people often can't put off fixing their cars, Monro's business can remain steady even when people are spending less on other things.
How the company got here
Monro started in 1957 as a single muffler shop in Rochester, New York. For decades, it grew by purchasing smaller, local car repair chains and adding more services like brake repairs. A major turning point was its expansion into the tire business through these acquisitions (the process of buying other companies). Instead of renaming all the stores it buys, Monro often keeps the local brand names that customers already know and trust, operating them under the main Monro umbrella. The company became publicly traded on the stock market in 1991, allowing anyone to buy a small piece, or share, of the company.
What it actually does
Monro is a large chain of car service and tire centers for regular drivers who want a professional to handle their car needs, often called the 'do-it-for-me' market. You would go to one of their stores, which operate under many different local names like Mr. Tire, Tire Choice, and Car-X, to buy new tires or get your car fixed. They service millions of vehicles a year, performing common tasks like oil changes, brake repairs, wheel alignments, and fixing exhaust systems on passenger cars, vans, and light trucks. The company makes money by selling products like tires and auto parts, and by charging for the labor of its technicians who perform the repairs and maintenance.
Tire Sales and Services
This is a major part of Monro's business and a key way it attracts customers to its stores. The company sells a wide variety of replacement tires from well-known brands. Customers pay for the tires themselves and also for related services like installation, balancing, and wheel alignments (adjusting the angles of the wheels so the car drives straight). While selling tires brings in a lot of customers, it's also very competitive on price, so the profit margin (the portion of the sales price that is actual profit) can be lower than on repair services.
Maintenance and Repair Services
This part of the business involves all the non-tire work that keeps a car running well. This includes routine maintenance like oil changes and state inspections, as well as more complex repairs on brakes, mufflers, steering, and suspension. Customers pay for the parts needed for the repair and the hourly labor of the mechanics. These services are often more profitable for the company than selling tires and are a crucial part of its business model.
Commercial and Fleet Services
This is a smaller but distinct part of Monro's business that focuses on business customers rather than individual drivers. Under names like Monro Commercial Solutions and McGee Commercial Tire & Services, this division provides tire sales, repairs, and maintenance for medium and heavy trucks. The customers are typically companies with a fleet (a group of vehicles) that need regular service to keep their business operations running smoothly. This includes services like 24-hour roadside assistance for trucks.
What management is betting on now
Recently, Monro's leadership has shifted its focus from rapid growth through buying more stores to improving the performance of its existing locations. They are investing in technology, like a digital vehicle inspection platform, to create a more consistent and transparent customer experience. The company is also exploring major strategic changes to maximize shareholder value (the value delivered to people who own the company's stock), which could include selling parts of the business or even the entire company. A key goal is to improve profitability, especially in the competitive tire business, and to make store operations more efficient.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$16.76M
FY2025 Q2
$57.64M
FY2025 Q3
$7.91M
FY2025 Q4
$23.24M
FY2026 Q1
$-9.34M
FY2026 Q2
$26.61M
FY2026 Q3
$9.13M
FY2026 Q4
$12.39M
Revenue
$273.84M
Net income
$-6.58M
Diluted EPS
-0.22
Operating cash flow
$22.22M
Free cash flow
$12.39M
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Sources
Revenue
$293.39M
Net income
$11.14M
Diluted EPS
0.35
Operating cash flow
$17.82M
Free cash flow
$9.13M
Fetching…
Sources
Revenue
$288.91M
Net income
$5.67M
Diluted EPS
0.18
Operating cash flow
$32.34M
Free cash flow
$26.61M
Fetching…
Sources
Revenue
$301.04M
Net income
$-8.05M
Diluted EPS
-0.28
Operating cash flow
$-1.94M
Free cash flow
$-9.34M
Fetching…
Sources
Revenue
$294.99M
Net income
$-21.27M
Diluted EPS
-0.74
Operating cash flow
$28.92M
Free cash flow
$23.24M
Fetching…
Sources
Revenue
$305.77M
Net income
$4.58M
Diluted EPS
0.15
Operating cash flow
$14.79M
Free cash flow
$7.91M
Fetching…
Sources
Revenue
$301.39M
Net income
$5.65M
Diluted EPS
0.18
Operating cash flow
$62.56M
Free cash flow
$57.64M
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Sources
Revenue
$293.18M
Net income
$5.86M
Diluted EPS
0.19
Operating cash flow
$25.64M
Free cash flow
$16.76M
Fetching…
Sources
Is it cheap or expensive?
Fair value $44.28 vs current price $12.79
Wall Street consensus is the average analyst price target: $22.00 (-50.3% lower than our fair-value estimate).
Our most-likely fair value is $44.28 a share — about 246.2% above today's price of $12.79, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Stretched
Net debt $518.3M. Interest coverage 1.2x.
Net debt
$518.32M
Interest coverage
1.16x
Monro, Inc.'s profit covers its interest bill about 1.2 times over.
Stretched
Worse cushion
Baseline
Better cushion
MNRO
BASELINE
Monro, Inc.
Total debt $527.84M Interest coverage 1.16x This is the baseline the peer rows are being compared against.
Total debt $2.22B Interest coverage 2.14x +84% vs MNRO Carries about 1.8x more debt cushion than MNRO.
Total debt $8.21B Interest coverage 1.47x +26% vs MNRO Carries about 1.3x more debt cushion than MNRO.
Total debt $1.98B Interest coverage 5.65x +386% vs MNRO Carries about 4.9x more debt cushion than MNRO.
Total debt $5.63B Interest coverage 1.16x -0% vs MNRO Has roughly the same debt cushion as MNRO.
What you should know
The case for and against MNRO
3 Rewards
1 Risk
Rewards
-
Returns 1.4% on equity, ahead of 20% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Dividend yield is 8.8% with 22-year payout history.
Risks
-
Operating margin compressed from 6.0% to 0.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
55.61x
Forward P/E
31.35x
P/B
0.69x
P/S
0.35x
EV/EBITDA
10.72x
PEG ratio
4.40x
Profitability
How much profit each dollar creates
Gross margin
34.9%
Operating margin
0.8%
Net margin
0.7%
ROE
1.4%
ROA
0.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.91x
Current ratio
0.49x
Quick ratio
0.05x
Total debt
$527.84M
Total cash
$9.53M
Growth
How the business has been compounding
Revenue TTM
$1.16B
Revenue 5Y CAGR
-3.9%
EPS TTM
0.23
EPS 5Y CAGR
-70.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$70.44M
Free CF TTM
$38.78M
FCF margin
3.4%
Dividend
Shareholder payout
Yield
8.8%
Payout ratio
487.0%
Last ex-div date
2026-08-25