# Metro (MRU.TO)

Canonical: https://gigainvestors.com/s/MRU.TO

Analysis as of: 2026-10-16T07:35:16.763Z. Financial observations: FY1996–FY2025.

Listing currency: CAD. Reporting currency: CAD.

## 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: CAD 95.09 per share; close as of 2026-10-15.

Estimated value: low CAD 41.83 per share, central CAD 53.79 per share, high CAD 62.87 per share. Buy at or below the central value CAD 53.79 per share. Valuation as of 2026-10-16T07:35:16.763Z; scenarios are not confidence intervals.

Expected annual return: 7.0% at the stated quote. About 7.0% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CA 10-year bond 3.8% + 4 points).

## Checklist

### understandable: pass

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

- Financial history: 10 years

- Years with declining revenue: 0

- Years with a net loss: 0

- Operating margin variation: 0.07×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.06×

- FY2017: 0.06×

- FY2018: 0.06×

- FY2019: 0.06×

- FY2020: 0.07×

- FY2021: 0.07×

- FY2022: 0.07×

- FY2023: 0.07×

- FY2024: 0.07×

- FY2025: 0.07×

### moat: fail

- ROIC median below threshold

- ROIC, median of available years: 14.1%

- ROIC, second-lowest year: 12.8%

- Typical minus recent gross margin: 0.1 pp

- Typical gross margin (annual median): 19.8%

- Recent gross margin (lower of latest and 3-year median): 19.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 2.4%

- ROIC including acquisitions, ten-year median: 6.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 28.9%

- FY2017: 26.0%

- FY2018: 14.2%

- FY2019: 15.6%

- FY2020: 12.8%

- FY2021: 12.7%

- FY2022: 13.1%

- FY2023: 14.3%

- FY2024: 13.2%

- FY2025: 13.9%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.67×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: CAD 3.1B

- Net income, five-year total: CAD 4.6B

- Return on incremental invested capital: 58.4%

- Working capital / revenue, annual change: 0.3 pp

- Working capital / revenue, change between three-year averages: 1.9 pp

- Working capital / revenue, final three-year average: 3.5%

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

- FY2021: 0.53×

- FY2022: 0.58×

- FY2023: 0.67×

- FY2024: 0.72×

- FY2025: 0.82×

### management: pass

- Historical market-dollar context (not the management verdict): 2017 to 2025 (8 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 26.0% vs 13.9%

- Per-share earnings: 2.44 to 4.43 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -1.2%

- Ordinary dilution, 5-year annual growth: -3.1%

- Market cap gain: CAD 10B

- Cumulative retained earnings: CAD 3.1B

- Diluted shares, 10-year annual growth: -1.2%

- Diluted shares, 5-year annual growth: -3.1%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 7.7%

- Per-share value change: CAD 1.99

- Per-share value, starting three-year median: CAD 2.44

- Per-share value, ending three-year median: CAD 4.43

- Buybacks concentrated in cheaper years (correlation): 0.22

- Average buyback yield: 2.4%

- Buyback history: 9 years

- Debt-funded buybacks: No

- Acquisition spending: CAD 3.9B

- Cumulative net income, 10 years: CAD 9.0B

- ROIC, first three-year median: 26.0%

- ROIC, last three-year median: 13.9%

Chart: Earnings per share; fiscal year observations.

- FY2016: CAD 2.44

- FY2017: CAD 2.59

- FY2018: CAD 6.68

- FY2019: CAD 2.79

- FY2020: CAD 3.17

- FY2021: CAD 3.39

- FY2022: CAD 3.58

- FY2023: CAD 4.43

- FY2024: CAD 4.17

- FY2025: CAD 4.74

### accounting: pass

- Sloan accruals: -4.1%

- Receivables to sales index (DSRI): 1.02×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.9%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.59×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.85×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -2.6%

- FY2017: -1.9%

- FY2018: 8.8%

- FY2019: 0.2%

- FY2020: -4.4%

- FY2021: -4.9%

- FY2022: -3.9%

- FY2023: -4.0%

- FY2024: -4.5%

- FY2025: -4.1%

## Holders

## Price story

Price needs cash profits to grow 11.1% a year for ten years · "Price-conscious Canadians drive sales at Metro discount stores, outpacing conventional grocery" (ca.finance.yahoo.com, Nov 2025) · sales +3.7%

Story as of 2026-10-16T10:00:04.259Z; price observation 2026-10-15.

Price needs cash profits to grow 11.1% a year for ten years

- 2025-11-19: Price-conscious Canadians drive sales at Metro discount stores, outpacing conventional grocery ([ca.finance.yahoo.com](https://ca.finance.yahoo.com/news/price-conscious-canadians-drive-sales-211041699.html))

### Sales · FY2024–2025

sales +3.7%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: CAD 13B 

- FY2017: CAD 13B 

- FY2018: CAD 14B 

- FY2019: CAD 17B 

- FY2020: CAD 18B 

- FY2021: CAD 18B 

- FY2022: CAD 19B 

- FY2023: CAD 21B 

- FY2024: CAD 21B 

- FY2025: CAD 22B 

### Gross margin · FY2025

gross margin 19.9%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 19.7% 

- FY2017: 19.7% 

- FY2018: 19.7% 

- FY2019: 19.9% 

- FY2020: 19.9% 

- FY2021: 20.0% 

- FY2022: 20.0% 

- FY2023: 19.7% 

- FY2024: 19.7% 

- FY2025: 19.9% 

## Owner memo

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

### How it makes money

Operates in grocery stores; annual sales are CAD 22 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); FY2025: revenue 22006700000; grossProfit 4370300000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MRU.TO: Metro Inc., through its subsidiaries, operates as a retailer, franchisor, distributor, and manufacturer in the food and pharmaceutical sectors in Canada. The company operates supermarkets, discount stores, neighbourhood stores, specialized stores, and pharmacies that provide fresh and grocery products, baked goods, prepared food products, meats, dairy products, fruits and vegetables, frozen food products, bakery products, prepared meals, delicatessen items, fruits and vegetables, frozen products and pastries. It also manufactures ready-to-eat meals, salads, dips, pastries, pies, breads, and cakes; generic drugs under Pro Doc trademark; and provides online grocery shopping services. In addition, the company offers its private label food products under Irresistibles, Selection, Harvest Best, Lucky Koi, Life Smart, Adonis, Phoenicia, and Premiere Moisson brands; and private label drug products comprising beauty and cosmetic products, over-the-counter medications, health & beauty, cosmetics, and baby categories sold under the Personnelle brand name. It operates a network of food stores under various banners, including Metro, Metro Plus, Adonis, Super C, Marché Richelieu, Marché Ami, Première Moisson, Les 5 Saisons, and Food Basics, as well as pharmacies primarily under the PJC Jean Coutu, PJC Santé, PJC Santé Beauté, Brunet, Brunet Plus, Brunet Clinique, Clini Plus, Metro Pharmacy, and Food Basics Pharmacy banners. The company was founded in 1947 and is headquartered in Montreal, Canada.

### Why customers stay

Margins ranged from 19.7% to 19.9% during 2023–25; it earns 14.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); FY2023: grossProfit / revenue = 19.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); FY2024: grossProfit / revenue = 19.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); FY2025: grossProfit / revenue = 19.9%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); 10-year return on capital observations [[2016,0.2885948094691254],[2017,0.2598978645353344],[2018,0.142412189335768],[2019,0.1556695328811551],[2020,0.12794301396966518],[2021,0.12728552514206753],[2022,0.1307513533771257],[2023,0.14252353810308951],[2024,0.13152798613554273],[2025,0.13941624333773034]]; median 0.14091421633674917. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 20% gross margin through 2022 cost inflation.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); Gross margin observations: [[2021,0.19990154788601433],[2022,0.20029223512221464],[2023,0.19697364484718644]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back CAD 801.3 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); FY2016: growth capex 66869610.97984186; upkeep 211130389.02015814; owner earnings 543169610.9798418. Growth capex / owner earnings = 0.12311000031686885.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); FY2017: growth capex 47785413.875546336; upkeep 280514586.12445366; owner earnings 505385413.87554634. Growth capex / owner earnings = 0.09455241992265676.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); FY2018: growth capex 48300000; upkeep 233500000; owner earnings 1716500000. Growth capex / owner earnings = 0.02813865423827556.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); FY2019: growth capex 70400000; upkeep 286400000; owner earnings 709520000. Growth capex / owner earnings = 0.09922200924568722.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); FY2020: growth capex 800000; upkeep 462500000; owner earnings 381320000. Growth capex / owner earnings = 0.0020979754536871917.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); FY2021: growth capex 41700000; upkeep 478300000; owner earnings 437560000. Growth capex / owner earnings = 0.09530121583325715.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); FY2022: growth capex 20100000; upkeep 502800000; owner earnings 490300000. Growth capex / owner earnings = 0.04099530899449317.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); FY2023: growth capex 154700000; upkeep 525200000; owner earnings 683060000. Growth capex / owner earnings = 0.2264808362369338.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); FY2024: growth capex 0; upkeep 499000000; owner earnings 672960000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); FY2025: growth capex 0; upkeep 452500000; owner earnings 829560000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); Dividend observations: [[2016,127100000],[2017,143500000],[2018,164800000],[2019,198900000],[2020,220700000],[2021,240100000],[2022,257899999],[2023,275000000],[2024,294600000],[2025,316800000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); FY2025: cash repurchases 801300000 CAD.

### Are managers owners

Insiders own 0.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MRU.TO SharesStats.PercentInsiders = 0.161 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 11.1% yearly over ten years; actual growth was 6.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:35:16.763Z); Ten-year compound average after fade. Initial solved rate 0.1465543508854359. Price 95.09; FX 1; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.0913223140495867 → FY2025 3.8656104380242313. Closing-price date 2026-10-15.

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

- 2016-10: CAD 41.46 per share

- 2016-11: CAD 40.91 per share

- 2016-12: CAD 40.16 per share

- 2017-01: CAD 39.53 per share

- 2017-02: CAD 38.73 per share

- 2017-03: CAD 40.85 per share

- 2017-04: CAD 46.78 per share

- 2017-05: CAD 45.24 per share

- 2017-06: CAD 42.68 per share

- 2017-07: CAD 42.23 per share

- 2017-08: CAD 41.22 per share

- 2017-09: CAD 42.91 per share

- 2017-10: CAD 40.61 per share

- 2017-11: CAD 40.41 per share

- 2017-12: CAD 40.25 per share

- 2018-01: CAD 41.16 per share

- 2018-02: CAD 40.48 per share

- 2018-03: CAD 41.10 per share

- 2018-04: CAD 40.74 per share

- 2018-05: CAD 42.78 per share

- 2018-06: CAD 44.69 per share

- 2018-07: CAD 43.86 per share

- 2018-08: CAD 40.86 per share

- 2018-09: CAD 40.18 per share

- 2018-10: CAD 41.31 per share

- 2018-11: CAD 45.80 per share

- 2018-12: CAD 47.34 per share

- 2019-01: CAD 47.77 per share

- 2019-02: CAD 49.46 per share

- 2019-03: CAD 49.20 per share

- 2019-04: CAD 48.50 per share

- 2019-05: CAD 49.33 per share

- 2019-06: CAD 49.14 per share

- 2019-07: CAD 51.62 per share

- 2019-08: CAD 56.49 per share

- 2019-09: CAD 58.33 per share

- 2019-10: CAD 55.70 per share

- 2019-11: CAD 58.18 per share

- 2019-12: CAD 53.59 per share

- 2020-01: CAD 53.95 per share

- 2020-02: CAD 52.28 per share

- 2020-03: CAD 56.91 per share

- 2020-04: CAD 57.27 per share

- 2020-05: CAD 57.42 per share

- 2020-06: CAD 56.00 per share

- 2020-07: CAD 58.76 per share

- 2020-08: CAD 58.92 per share

- 2020-09: CAD 63.89 per share

- 2020-10: CAD 62.15 per share

- 2020-11: CAD 59.66 per share

- 2020-12: CAD 56.80 per share

- 2021-01: CAD 55.28 per share

- 2021-02: CAD 52.90 per share

- 2021-03: CAD 57.33 per share

- 2021-04: CAD 56.32 per share

- 2021-05: CAD 57.92 per share

- 2021-06: CAD 59.43 per share

- 2021-07: CAD 64.70 per share

- 2021-08: CAD 64.27 per share

- 2021-09: CAD 61.89 per share

- 2021-10: CAD 62.27 per share

- 2021-11: CAD 60.96 per share

- 2021-12: CAD 67.32 per share

- 2022-01: CAD 67.99 per share

- 2022-02: CAD 66.16 per share

- 2022-03: CAD 71.96 per share

- 2022-04: CAD 70.61 per share

- 2022-05: CAD 69.86 per share

- 2022-06: CAD 69.09 per share

- 2022-07: CAD 70.91 per share

- 2022-08: CAD 69.08 per share

- 2022-09: CAD 69.17 per share

- 2022-10: CAD 71.37 per share

- 2022-11: CAD 77.36 per share

- 2022-12: CAD 74.97 per share

- 2023-01: CAD 72.22 per share

- 2023-02: CAD 70.87 per share

- 2023-03: CAD 74.34 per share

- 2023-04: CAD 77.22 per share

- 2023-05: CAD 71.41 per share

- 2023-06: CAD 74.82 per share

- 2023-07: CAD 70.97 per share

- 2023-08: CAD 69.64 per share

- 2023-09: CAD 70.54 per share

- 2023-10: CAD 70.44 per share

- 2023-11: CAD 68.01 per share

- 2023-12: CAD 68.59 per share

- 2024-01: CAD 70.59 per share

- 2024-02: CAD 73.48 per share

- 2024-03: CAD 72.72 per share

- 2024-04: CAD 70.42 per share

- 2024-05: CAD 72.63 per share

- 2024-06: CAD 75.79 per share

- 2024-07: CAD 82.22 per share

- 2024-08: CAD 84.66 per share

- 2024-09: CAD 85.49 per share

- 2024-10: CAD 82.69 per share

- 2024-11: CAD 91.23 per share

- 2024-12: CAD 90.15 per share

- 2025-01: CAD 90.81 per share

- 2025-02: CAD 95.72 per share

- 2025-03: CAD 100.07 per share

- 2025-04: CAD 106.24 per share

- 2025-05: CAD 107.04 per share

- 2025-06: CAD 106.97 per share

- 2025-07: CAD 105.95 per share

- 2025-08: CAD 98.44 per share

- 2025-09: CAD 93.47 per share

- 2025-10: CAD 93.49 per share

- 2025-11: CAD 100.26 per share

- 2025-12: CAD 98.79 per share

- 2026-01: CAD 90.39 per share

- 2026-02: CAD 97.19 per share

- 2026-03: CAD 95.18 per share

- 2026-04: CAD 91.06 per share

- 2026-05: CAD 88.47 per share

- 2026-06: CAD 90.68 per share

- 2026-07: CAD 93.18 per share

- 2026-08: CAD 88.02 per share

- 2026-09: CAD 89.95 per share

- 2026-10: CAD 91.27 per share

## Annual estimated value (CAD per share)

- FY2016: low CAD 27.31 per share, central CAD 34.46 per share, high CAD 40.24 per share

- FY2017: low CAD 29.45 per share, central CAD 38.09 per share, high CAD 44.54 per share

- FY2018: low CAD 26.66 per share, central CAD 32.02 per share, high CAD 37.30 per share

- FY2019: low CAD 32.25 per share, central CAD 39.02 per share, high CAD 45.46 per share

- FY2020: low CAD 34.56 per share, central CAD 40.58 per share, high CAD 47.16 per share

- FY2021: low CAD 34.27 per share, central CAD 41.98 per share, high CAD 48.89 per share

- FY2022: low CAD 24.17 per share, central CAD 29.40 per share, high CAD 34.27 per share

- FY2023: low CAD 27.18 per share, central CAD 32.83 per share, high CAD 38.25 per share

- FY2024: low CAD 30.43 per share, central CAD 39.21 per share, high CAD 45.83 per share

- FY2025: low CAD 39.94 per share, central CAD 51.36 per share, high CAD 60.02 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

Prior published observations retained from 2026-10-15T06:41:02.914Z where newer inputs omit a numeric field or fiscal period.

## Sources

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.