Monro, Inc. (MNRO) AI Stock Analysis
MNRO AI stock analysis summary
AI ResearchMonro, Inc. is an automotive service and tire provider operating under multiple regional banners across the United States. The company generated $1.14B in trailing twelve months revenue with an operating margin of 0.8% and net income of $2.2M in FY2026. The stock closed at $13.64 with an enterprise value of $964.8M and a forward dividend yield of 8.21%.
- Market cap
- $426.4M
- Revenue (TTM)
- $1.14B
- P/E
- 62.0x fwd 75.2x
- 1Y return
- -15.2% S&P 500 16.8%
- Avg. target
- $22.00 61.3% vs last close
Bull case
- Analysts maintain a mean price target of $22.00, representing 61.3% upside above the $13.64 closing price.
- Monro has paid consecutive dividends for 22 years and offers a forward dividend yield of 8.21%.
- Quarterly earnings for the period ended June 30, 2026, expanded 161.3% year-over-year.
Bear case
- Annual revenue has declined for four consecutive fiscal years, dropping to $1.16B in FY2026 from $1.36B in FY2022.
- The balance sheet reflects a net debt of $518.3M with cash and short-term investments of only $9.5M and a current ratio of 0.49.
- Operating margin narrowed to 1.3% in FY2026 and stands at 0.8% for the trailing twelve months.
What Monro does
Monro, Inc. provides automotive undercar repair services and tire sales throughout the United States. Its core offerings include replacement tires, routine maintenance for passenger cars, light trucks, and vans, and services for brakes, steering, suspension, exhaust systems, drivetrains, and wheel alignment. The company operates through brands such as Monro Auto Service and Tire Centers, Mr. Tire Auto Service Centers, Tire Choice Auto Service Centers, Car-X Tire & Auto, Tire Warehouse Tires for Less, Ken Towery's Tire & Auto Care, Mountain View Tire & Auto Service, Tire Barn Warehouse, and Free Service Tire & Auto Centers. As of March 26, 2022, its network included 1,304 company-operated stores, 76 Car-X franchised locations, seven wholesale sites, and three retread facilities across 32 states.
Growth and profitability
Monro's revenue declined from $1.36B in FY2022 to $1.16B in FY2026, marking four consecutive years of contraction including a 3.2% drop in FY2026. Over the 5-year period from FY2021 to FY2026, the company posted a revenue CAGR of 0.6%. Operating margin compressed from 7.9% in FY2022 to 1.3% in FY2026, while net income shifted from $61.6M in FY2022 to a net loss of -$5.2M in FY2025 before recovering to $2.2M in FY2026. For the latest quarter ended June 30, 2026, quarterly revenue fell 4.6% year-over-year, while quarterly earnings grew 161.3% year-over-year.
Balance sheet and cash flow
As of June 30, 2026, Monro held $9.5M in cash and short-term investments against total debt of $527.8M, resulting in net debt of $518.3M. Shareholders' equity was $582.5M, giving a debt-to-equity ratio of 0.91, alongside a current ratio of 0.49. In FY2026, operating cash flow was $70.4M and free cash flow was $38.8M. Cash outlays during FY2026 included $31.7M for capital expenditures and $35.0M in dividends paid, while the share count decreased 11.5% over five years.
Valuation and performance
Monro's trailing P/E of 62.0x and forward P/E of 75.2x trade at a premium to the median of its US-listed Consumer Cyclical peers, which stand at 18.0x and 14.1x, respectively. However, its price-to-sales ratio of 0.4x is below the peer median of 0.7x, and its EV-to-EBITDA multiple of 10.5x compares to 11.1x for the peer group. Over the past year, the stock fell 15.2% against a 16.8% return for the S&P 500, and its 5-year return of -70.8% underperformed the S&P 500's 83.0% gain.
MNRO dividend
Monro pays an annual forward dividend of $1.12 per share, representing a dividend yield of 8.21% based on the last close of $13.64. Dividends are distributed quarterly, with the most recent ex-dividend date on August 25, 2026. The company has paid dividends for 22 consecutive years, generating a 5-year annualized dividend growth rate of 4.9% with a payout ratio of 9.3%.
What analysts expect
Five analysts cover Monro, with 2 Strong Buy ratings and 3 Hold ratings. The mean price target is $22.00, which represents 61.3% upside relative to the last close of $13.64. For the fiscal year ending March 31, 2027, consensus estimates project revenue of $1.15B and an EPS of $0.11, down 74.3%. Monro beat EPS estimates in 2 of the last 4 quarters, and its next earnings date is November 4, 2026.
Key risks and what to watch
- Short interest represents 44.0% of the float, indicating significant market skepticism.
- Current ratio stands at 0.49 alongside $527.8M in total debt and $9.5M in cash, presenting potential liquidity constraints.
- EPS is projected to decline 74.3% to $0.11 for the current fiscal year ending March 31, 2027.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this MNRO AI stock analysis
This page is an AI-written research summary of Monro, Inc. (MNRO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: MNRO income statement, MNRO balance sheet, MNRO key metrics, MNRO analyst forecast, MNRO chart. See the MNRO stock overview for the latest quote and news.
MNRO AI stock analysis FAQ
What dividend does Monro pay?
Monro pays a quarterly dividend totaling $1.12 annualized, which equates to a forward yield of 8.21% as of October 16, 2026. The company has sustained dividend payments for 22 consecutive years.
When is Monro's next earnings report?
Monro is scheduled to release its next financial results on November 4, 2026. The company beat EPS expectations in 2 of its last 4 quarters.
What are analysts' price targets for MNRO?
Wall Street analysts have a mean price target of $22.00 on Monro, which is 61.3% above its last close of $13.64. Current ratings include 2 Strong Buys and 3 Holds.
How much debt does Monro carry?
As of June 30, 2026, Monro had $527.8M in total debt and $9.5M in cash and short-term investments, resulting in net debt of $518.3M. Its debt-to-equity ratio was 0.91.