MNROMonro, Inc.
Is the business good?
The checks split: earnings fully cash-backed (2.1×), but margins compressing.
Operating profit is fully backed by cash.
Operating margin has narrowed over the past few years, profitability per dollar of sales is eroding.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MNRO?
Monro, Inc. earns 3.3% on the capital it employs against a 9.0% cost of capital, so growth costs more than it returns.
Return on invested capital · cost of capital 9.0% · 5.7 points below what the capital costs: growth destroys value
- Operating margin
- 2.6%
Operating margin · Auto Parts median 5.8% · 12 months to Q1 2027
- Cash conversion
- 2.06×
Cash conversion · operating cash flow covers the operating profit after tax
- Share count, year on year
- +0.59%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2021 | 6.4% |
| FY2022 | 7.4% |
| FY2023 | 6.0% |
| FY2024 | 5.6% |
| FY2025 | 1.1% |
| FY2026 | 1.7% |
Details›
- Gross margin12 months to Q1 2027
- 35%
- Operating margin12 months to Q1 2027
- 2.6%
- Net margin12 months to Q1 2027
- 0.71%
- Free cash flow margin
- 0.89%
- Revenue, trailing twelve months
- $1.14B
- Free cash flow, trailing twelve months
- $10M
- Net income, trailing twelve months
- $8.1M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 3.3%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.