# Monro Muffler Brake (MNRO.US)

Canonical: https://gigainvestors.com/s/MNRO

Analysis as of: 2026-10-16T07:30:18.647Z. Financial observations: FY1997–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $14.36 per share; close as of 2026-10-15.

Estimated value: low $24.11 per share, central $27.44 per share, high $31.86 per share. Buy at or below the central value $27.44 per share. Valuation as of 2026-10-16T07:30:18.647Z; scenarios are not confidence intervals.

Expected annual return: 16.7% at the stated quote. About 16.7% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: fail

- 5 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 5

- Years with a net loss: 1

- Operating margin variation: 0.44×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.11×

- FY2018: 0.11×

- FY2019: 0.11×

- FY2020: 0.09×

- FY2021: 0.07×

- FY2022: 0.08×

- FY2023: 0.06×

- FY2024: 0.06×

- FY2025: 0.03×

- FY2026: 0.01×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 10.2%

- ROIC, second-lowest year: 7.1%

- Typical minus recent gross margin: 0.4 pp

- Typical gross margin (annual median): 35.4%

- Recent gross margin (lower of latest and 3-year median): 35.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.2%

- ROIC including acquisitions, ten-year median: 6.2%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 15.7%

- FY2018: 16.6%

- FY2019: 19.2%

- FY2020: 10.5%

- FY2021: 7.1%

- FY2022: 10.7%

- FY2023: 8.8%

- FY2024: 9.9%

- FY2025: 8.1%

- FY2026: 3.3%

### economics: fail

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 2.56×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $346M

- Net income, five-year total: $135M

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -2.5 pp

- Working capital / revenue, change between three-year averages: -16.5 pp

- Working capital / revenue, final three-year average: -7.7%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 1.87×

- FY2023: 1.97×

- FY2024: 2.24×

- FY2025: -7.30×

- FY2026: 14.81×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 16.6% vs 8.1%

- Per-share earnings: 1.92 to 0.07 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- acquisition spending exceeds half of ten-year net income with low and deteriorating ROIC

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.1%

- Ordinary dilution, 5-year annual growth: -2.4%

- Market cap gain: -$1.3B

- Cumulative retained earnings: $83M

- Diluted shares, 10-year annual growth: -1.1%

- Diluted shares, 5-year annual growth: -2.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: -33.6%

- Per-share value change: -$1.85

- Per-share value, starting three-year median: $1.92

- Per-share value, ending three-year median: $0.07

- Buybacks concentrated in cheaper years (correlation): 0.40

- Average buyback yield: 2.7%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: $440M

- Cumulative net income, 10 years: $433M

- ROIC, first three-year median: 16.6%

- ROIC, last three-year median: 8.1%

Chart: Earnings per share; fiscal year observations.

- FY2017: $1.85

- FY2018: $1.92

- FY2019: $2.37

- FY2020: $1.71

- FY2021: $1.01

- FY2022: $1.81

- FY2023: $1.20

- FY2024: $1.18

- FY2025: -$0.17

- FY2026: $0.07

### accounting: pass

- Sloan accruals: -4.4%

- Receivables to sales index (DSRI): 1.33×

- Restructuring years, last five: 1

- Stock compensation / operating cash flow: 5.5%

- Earnings backed by cash: Yes

- Operating cash / earnings: 32.42×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 1.26×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -5.8%

- FY2018: -4.7%

- FY2019: -5.6%

- FY2020: -3.1%

- FY2021: -8.3%

- FY2022: -6.0%

- FY2023: -9.9%

- FY2024: -5.2%

- FY2025: -8.4%

- FY2026: -4.4%

## Holders

- [Carl Icahn](https://gigainvestors.com/ic): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Down 77% since Oct 2021 · sales -3.2%

Story as of 2026-10-16T09:59:11.046Z; price observation 2026-10-15.

Price needs cash profits to shrink 7.3% a year for ten years

### Sales · FY2025–2026

sales -3.2%; source https://www.sec.gov/Archives/edgar/data/876427/000087642726000007/mnro-20260328x10k.htm; observed 2026-05-27.

- FY2017: $1.0B 

- FY2018: $1.1B 

- FY2019: $1.2B 

- FY2020: $1.3B 

- FY2021: $1.1B 

- FY2022: $1.4B 

- FY2023: $1.3B 

- FY2024: $1.3B 

- FY2025: $1.2B 

- FY2026: $1.2B 

### Gross margin · FY2026

gross margin 35%; source https://www.sec.gov/Archives/edgar/data/876427/000087642726000007/mnro-20260328x10k.htm; observed 2026-05-27.

- FY2017: 38.9% 

- FY2018: 38.6% 

- FY2019: 38.8% 

- FY2020: 37.9% 

- FY2021: 35.1% 

- FY2022: 35.4% 

- FY2023: 34.4% 

- FY2024: 35.4% 

- FY2025: 34.9% 

- FY2026: 35.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in auto parts; annual sales are USD 1.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/876427/000087642726000007/mnro-20260328x10k.htm (filed 2026-05-27); FY2026: revenue 1157176000; grossProfit 405261000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); MNRO.US: Monro, Inc. engages in the operation of retail tire and automotive repair stores in the United States. The company offers replacement tires and tire related services; automotive undercar repair services; and routine maintenance services primarily to passenger cars, light trucks, and vans. It also provides other products and services for brakes; mufflers and exhaust systems; and steering, drive train, suspension, and wheel alignment. The company operates its stores under the Monro Auto Service and Tire Centers, Tire Choice Auto Service Centers, Mr. Tire Auto Service Centers, Car-X Tire & Auto, Tire Warehouse Tires for Less, Ken Towery's Tire & Auto Care, Mountain View Tire & Auto Service, and Tire Barn Warehouse brand names. Monro, Inc. was founded in 1957 and is based in Fairport, New York.

### Why customers stay

Margins ranged from 34.9% to 35.4% during 2024–26; it earns 10.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2024: grossProfit / revenue = 35.4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2025: grossProfit / revenue = 34.9%.

- Source: https://www.sec.gov/Archives/edgar/data/876427/000087642726000007/mnro-20260328x10k.htm (filed 2026-05-27); FY2026: grossProfit / revenue = 35%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); 10-year return on capital observations [[2017,0.15716980661674881],[2018,0.1661654135338346],[2019,0.19155350942334945],[2020,0.10509747154507097],[2021,0.07055987006009337],[2022,0.10666253769737237],[2023,0.0875114664130874],[2024,0.09856381055194043],[2025,0.08103873562048254],[2026,0.033236715434317395]]; median 0.1018306410485057. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 35% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/876427/000087642726000007/mnro-20260328x10k.htm (filed 2026-05-27); Gross margin observations: [[2021,0.35105945434081803],[2022,0.35446632453682997],[2023,0.34418379003185495]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2017: growth capex 0; upkeep 34640000; cash acquisitions 142567000; owner earnings 71515000. Growth capex plus acquisitions / owner earnings = 1.9935258337411732.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2018: growth capex 0; upkeep 39122000; cash acquisitions 23439000; owner earnings 74148000. Growth capex plus acquisitions / owner earnings = 0.31611102120084156.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2019: growth capex 0; upkeep 44468000; cash acquisitions 62427000; owner earnings 90815000. Growth capex plus acquisitions / owner earnings = 0.6874084677641359.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2020: growth capex 0; upkeep 55918000; cash acquisitions 104436000; owner earnings 67092000. Growth capex plus acquisitions / owner earnings = 1.556608835628689.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2021: growth capex 0; upkeep 51725000; cash acquisitions 17154000; owner earnings 59898000. Growth capex plus acquisitions / owner earnings = 0.28638685765801863.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2022: growth capex 0; upkeep 27830000; cash acquisitions 83333000; owner earnings 114907000. Growth capex plus acquisitions / owner earnings = 0.7252212658932876.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2023: growth capex 0; upkeep 38990000; cash acquisitions 6685000; owner earnings 77095000. Growth capex plus acquisitions / owner earnings = 0.08671120046695635.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2024: growth capex 0; upkeep 25480000; cash acquisitions 0; owner earnings 84295000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); FY2025: growth capex 0; upkeep 26362000; cash acquisitions 0; owner earnings 37828000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://www.sec.gov/Archives/edgar/data/876427/000087642726000007/mnro-20260328x10k.htm (filed 2026-05-27); FY2026: growth capex 0; upkeep 31657000; cash acquisitions 0; owner earnings 32190000. Growth capex plus acquisitions / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); Dividend observations: [[2017,22517000],[2018,23969000],[2019,26814000],[2020,29715000],[2021,29782000],[2022,34674000],[2023,36404000],[2024,35505000],[2025,34882000],[2026,34955000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 5.6% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-05); MNRO.US SharesStats.PercentInsiders = 5.582 percentage points; cache date 2026-10-05.

### What the price says

The price assumes cash profits shrink 7.3% yearly over ten years; actual decline was 6.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-05-27); Ten-year compound average after fade. Initial solved rate -0.11461592998417552. Price 14.36; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 2.0909663298653793 → FY2026 1.0729284714352376. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $55.00 per share

- 2016-11: $59.80 per share

- 2016-12: $57.20 per share

- 2017-01: $59.90 per share

- 2017-02: $57.50 per share

- 2017-03: $52.10 per share

- 2017-04: $51.85 per share

- 2017-05: $49.60 per share

- 2017-06: $41.75 per share

- 2017-07: $46.60 per share

- 2017-08: $47.70 per share

- 2017-09: $56.05 per share

- 2017-10: $49.35 per share

- 2017-11: $50.45 per share

- 2017-12: $56.95 per share

- 2018-01: $56.50 per share

- 2018-02: $50.90 per share

- 2018-03: $53.60 per share

- 2018-04: $55.95 per share

- 2018-05: $56.10 per share

- 2018-06: $58.10 per share

- 2018-07: $67.45 per share

- 2018-08: $70.95 per share

- 2018-09: $69.60 per share

- 2018-10: $74.40 per share

- 2018-11: $81.32 per share

- 2018-12: $68.75 per share

- 2019-01: $71.66 per share

- 2019-02: $76.31 per share

- 2019-03: $86.52 per share

- 2019-04: $83.83 per share

- 2019-05: $79.71 per share

- 2019-06: $85.30 per share

- 2019-07: $84.21 per share

- 2019-08: $77.72 per share

- 2019-09: $79.01 per share

- 2019-10: $70.11 per share

- 2019-11: $73.40 per share

- 2019-12: $78.20 per share

- 2020-01: $62.70 per share

- 2020-02: $56.12 per share

- 2020-03: $43.81 per share

- 2020-04: $55.49 per share

- 2020-05: $55.10 per share

- 2020-06: $54.94 per share

- 2020-07: $56.30 per share

- 2020-08: $46.09 per share

- 2020-09: $40.57 per share

- 2020-10: $42.06 per share

- 2020-11: $47.01 per share

- 2020-12: $53.30 per share

- 2021-01: $58.47 per share

- 2021-02: $61.99 per share

- 2021-03: $65.80 per share

- 2021-04: $70.59 per share

- 2021-05: $62.34 per share

- 2021-06: $63.51 per share

- 2021-07: $58.00 per share

- 2021-08: $56.91 per share

- 2021-09: $57.51 per share

- 2021-10: $61.76 per share

- 2021-11: $56.02 per share

- 2021-12: $58.27 per share

- 2022-01: $49.73 per share

- 2022-02: $46.68 per share

- 2022-03: $44.34 per share

- 2022-04: $45.73 per share

- 2022-05: $47.42 per share

- 2022-06: $42.88 per share

- 2022-07: $50.15 per share

- 2022-08: $46.31 per share

- 2022-09: $43.46 per share

- 2022-10: $47.75 per share

- 2022-11: $45.47 per share

- 2022-12: $45.20 per share

- 2023-01: $50.90 per share

- 2023-02: $50.44 per share

- 2023-03: $49.43 per share

- 2023-04: $48.88 per share

- 2023-05: $41.37 per share

- 2023-06: $40.63 per share

- 2023-07: $36.65 per share

- 2023-08: $32.74 per share

- 2023-09: $27.77 per share

- 2023-10: $24.82 per share

- 2023-11: $28.92 per share

- 2023-12: $29.34 per share

- 2024-01: $31.86 per share

- 2024-02: $33.57 per share

- 2024-03: $31.54 per share

- 2024-04: $27.25 per share

- 2024-05: $23.65 per share

- 2024-06: $23.86 per share

- 2024-07: $30.82 per share

- 2024-08: $27.09 per share

- 2024-09: $28.86 per share

- 2024-10: $27.41 per share

- 2024-11: $28.12 per share

- 2024-12: $24.80 per share

- 2025-01: $19.64 per share

- 2025-02: $17.81 per share

- 2025-03: $14.47 per share

- 2025-04: $13.94 per share

- 2025-05: $15.33 per share

- 2025-06: $14.91 per share

- 2025-07: $14.10 per share

- 2025-08: $16.58 per share

- 2025-09: $17.97 per share

- 2025-10: $14.65 per share

- 2025-11: $18.71 per share

- 2025-12: $20.04 per share

- 2026-01: $18.72 per share

- 2026-02: $21.53 per share

- 2026-03: $16.04 per share

- 2026-04: $17.56 per share

- 2026-05: $16.45 per share

- 2026-06: $17.11 per share

- 2026-07: $12.25 per share

- 2026-08: $12.46 per share

- 2026-09: $13.99 per share

- 2026-10: $14.36 per share

## Annual estimated value (USD per share)

- FY2017: low $25.29 per share, central $31.12 per share, high $36.29 per share

- FY2018: low $27.88 per share, central $34.30 per share, high $40.00 per share

- FY2019: low $29.44 per share, central $36.22 per share, high $42.24 per share

- FY2020: low $41.12 per share, central $49.99 per share, high $56.83 per share

- FY2021: low $24.10 per share, central $27.39 per share, high $31.78 per share

- FY2022: low $28.70 per share, central $32.65 per share, high $37.92 per share

- FY2023: low $25.81 per share, central $29.36 per share, high $34.10 per share

- FY2024: low $25.45 per share, central $28.96 per share, high $33.63 per share

- FY2025: low $25.39 per share, central $28.89 per share, high $33.55 per share

- FY2026: low $24.52 per share, central $27.90 per share, high $32.40 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/876427/000087642726000007/mnro-20260328x10k.htm); period 2026-03-28, filed 2026-05-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.