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Monro Inc

Monro Inc

MNRO
$16.96USD↓-2.86%-0.50 today

MARKET CAP

529.9M

P/E (TTM)

39.4x

FWD P/E

53.4x

DAY RANGE

$17 – $18

52W RANGE

$12
$24

AI Summary

Stalk
Buy NowMedium

Despite the Stage 4 decline, mean-reversion conditions at cycle lows and forward P/E near historical lows support a tactical long entry. Price has cleared and is tightly tracking above the 9EMA and 20EMA, providing a short-term bullish edge. Under a Speculative approach, we participate now on continuation, with pullbacks into the short-term EMA zone serving as optimal entry opportunities.

  • ↑Closed 145 underperforming stores, limited sales impact, profit uplift.
  • ↑Gross margin improved 90bps to 33.9% through labor productivity.
  • ↓Net loss $6.6M in FY26, improving from $21.3M but still unprofitable.
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The case for & against

Bull & Bear analysis

Bearish

Monro Inc. (NASDAQ: MNRO) is a specialized retailer within the automotive aftermarket, focusing primarily on tire sales and maintenance services. With a broad network of service locations across the United States, Monro is positioned to capitalize on the increasing demand for vehicle maintenance driven by the aging vehicle fleet and rising automotive complexity. Their strategic initiatives aim to enhance customer experience and operational efficiency while addressing the challenges presented by a fluctuating economy.

Bull says

  • ↑Closed 145 underperforming stores, limited sales impact, profit uplift.
  • ↑Gross margin improved 90bps to 33.9% through labor productivity.
  • ↑Higher-margin service categories remain resilient amid sales headwinds.
  • ↑Generated $132M cash flow in FY25, funding $35M dividend.
  • ↑Sequential comp sales growth expected in FY26 via marketing efficiency.
  • ↑High book-to-price ratio (~2.03) and 2.06% yield imply undervaluation.

Bear says

  • ↓Net loss $6.6M in FY26, improving from $21.3M but still unprofitable.
  • ↓Comparable-store sales down 2%, tire unit sales off 5% YoY.
  • ↓Analysts forecast EPS growth below dividend coverage needs.
  • ↓Consensus $28 price target with 'Reduce' rating signals skepticism.
  • ↓Inflationary labor and material costs continue to pressure margins.
  • ↓Weak profitability and growth metrics deter long-term investor support.

Investment themes with MNRO

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Earnings Call · Q4 2025 · Mgmt. Guidance

Updated 05-27-2026neutral

Transcript signals

Bull points

  • I think we feel, you know, a little bit encouraged there in terms of the bending of the traffic trends in the recent months.
  • this business has shown impressive durability through business cycles. We are positioned as one of the leading players in a highly fragmented industry. Monroe has significant scale that gives us important competitive advantages over smaller players in our industry.
  • we can successfully execute on and accelerate the pace of the company's improvement plan as well as better capitalize on positive industry trends to unlock Monroe's full potential.

Bear points

  • There was 160 basis points of the 250 related to material costs. And that due to trade down within the tire category as well as the self-funded tire promotions we discussed earlier. About 80 basis points of technician labor costs, primarily driven by year-over-year wage inflation.
  • Monroe sales have declined sequentially for the past three fiscal years.
  • Sales decreased 4.9% to $295 million in the fourth quarter, primarily driven by six fewer selling days compared to the fourth quarter of fiscal 2024, resulting in a sales decrease of $18.9 million.
Read full transcript analysis ›