Metro Inc. (MRU.TO) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+25.2%

CA$122.99

vs CA$98.25 price

Levered DCF

CA$117.17

After debt service

Piotroski score

7 / 9

Strong

Altman Z-score

4.03

Safe zone

Rating

Overall 3 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	20.1×	20.7×	16.18×	19.59×	18.53×	20.28×	20.91×	5.55×
P/B	2.91×	2.74×	2.41×	2.51×	2.38×	2.62×	2.5×	1.69×
P/S	0.93×	0.91×	0.79×	0.88×	0.83×	0.89×	0.89×	0.66×
EV / EBITDA	12.14×	11.96×	10.36×	11.57×	11.09×	12.04×	12.66×	4.94×
Gross margin	19.9%	19.7%	19.7%	20.0%	20.0%	19.9%	19.9%	19.7%
Operating margin	6.8%	6.6%	6.9%	7.0%	6.9%	6.8%	6.4%	5.7%
Net margin	4.6%	4.4%	4.9%	4.5%	4.5%	4.4%	4.2%	11.9%
Current ratio	1.3×	1.08×	1.23×	1.12×	1.12×	1.34×	1.11×	1.17×
Debt / equity	0.65×	0.61×	0.64×	0.62×	0.71×	0.77×	0.45×	0.47×
Interest coverage	10.35×	9.68×	9.51×	9.81×	8.76×	8.54×	9.74×	7.78×
Dividend yield	1.5%	1.5%	1.7%	1.6%	1.6%	1.4%	1.3%	1.7%
Payout ratio	31.2%	31.7%	27.1%	30.5%	29.2%	27.8%	28.0%	9.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	14.5%	13.2%	14.9%	12.8%	12.9%	12.9%	11.9%	30.4%
Return on invested capital	9.0%	8.4%	9.1%	8.3%	7.7%	7.6%	8.2%	7.3%
Return on assets	7.0%	6.6%	7.3%	6.3%	6.1%	5.9%	6.4%	15.7%
Free cash flow yield	5.7%	5.5%	5.3%	5.1%	6.4%	5.7%	2.2%	4.9%
Earnings yield	5.0%	4.8%	6.2%	5.1%	5.4%	4.9%	4.8%	18.0%
Enterprise value	CA$25B	CA$23.5B	CA$20.7B	CA$20.7B	CA$19.4B	CA$20.4B	CA$17.3B	CA$11.9B
Net debt / EBITDA	2.2×	2.18×	2.15×	2.3×	2.36×	2.52×	1.76×	1×
Cash conversion cycle (days)	14	12	11	9	7	10	9	9