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Metro Inc
TSX:MRU

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Metro Inc
TSX:MRU
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Price: 90.79 CAD 1.01% Market Closed
Market Cap: CA$19.2B

P/OCF

10.2
Current
9%
Cheaper
vs 3-y average of 11.3

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
10.2
=
Market Cap
CA$19B
/
Operating Cash Flow
CA$1.9B

Price to Operating Cash Flow (P/OCF) ratio compares a company`s market value to the cash it generates from its core operations.

P/OCF
10.2
=
Market Cap
CA$19B
/
Operating Cash Flow
CA$1.9B

Valuation Scenarios

Metro Inc is trading below its 3-year average

If P/OCF returns to its 3-Year Average (11.3), the stock would be worth CA$100.32 (10% upside from current price).

Statistics
Positive Scenarios
3/4
Maximum Downside
-5%
Maximum Upside
+10%
Average Upside
5%
Scenario P/OCF Value Implied Price Upside/Downside
Current Multiple 10.2 CA$90.79
0%
3-Year Average 11.3 CA$100.32
+10%
5-Year Average 11 CA$97.45
+7%
Industry Average 9.7 CA$86.37
-5%
Country Average 10.9 CA$97.2
+7%

Forward P/OCF
Today’s price vs future operating cash flow

Not enough data available to calculate forward P/OCF

Peer Comparison

All Multiples
P/OCF
P/E
All Countries
Close
Market Cap P/OCF P/E
CA
Metro Inc
TSX:MRU
19B CAD 10.2 18.8
ZA
Shoprite Holdings Ltd
JSE:SHP
153.7B ZAR 7.5 20.3
CA
Loblaw Companies Ltd
TSX:L
72.7B CAD 11.7 27.4
CA
Alimentation Couche-Tard Inc
TSX:ATD
71.7B CAD 9 18.4
US
Kroger Co
NYSE:KR
43.2B USD 5.9 42.8
UK
Tesco PLC
LSE:TSCO
33.1B GBP 8.5 18.5
NL
Koninklijke Ahold Delhaize NV
AEX:AD
36.6B EUR 5.2 16.2
AU
Woolworths Group Ltd
ASX:WOW
46.3B AUD 9.3 76.7
IN
Avenue Supermarts Ltd
NSE:DMART
2.9T INR 101.8 100.4
JP
Seven & i Holdings Co Ltd
TSE:3382
5T JPY 7.5 17
US
Caseys General Stores Inc
NASDAQ:CASY
29.6B USD 22.5 45.5

Market Distribution

In line with most companies in Canada
Percentile
47th
Based on 1 917 companies
47th percentile
10.2
Low
0.1 — 7.2
Typical Range
7.2 — 17
High
17 —
Distribution Statistics
Canada
Min 0.1
30th Percentile 7.2
Median 10.9
70th Percentile 17
Max 26 053.9

Metro Inc
Glance View

Metro Inc., a stalwart in the Canadian retail landscape, navigates the competitive corridors of the grocery and pharmaceutical sectors with precision and acumen. Founded in 1947, Metro has grown from a humble beginning in Quebec to a significant force across the provinces, marking its presence with an expansive network of supermarkets, discount stores, and pharmacy outlets. The company's operations are neatly divided into two main segments: food and pharmaceuticals. Metro's grocery segment operates under well-recognized banners such as Metro, Super C, and Food Basics, offering a diverse array of products ranging from fresh produce and meats to private-label merchandise. This segment’s success hinges on Metro’s ability to adapt to consumer tastes and utilize data-driven strategies for inventory management, thereby optimizing both the customer shopping experience and logistical efficiency. Parallel to its grocery operations, Metro has built a robust pharmaceutical division through its affiliation with Jean Coutu and other pharmacy brands. This segment provides not only prescription medications but also a comprehensive suite of health, beauty, and wellness products. The synergy between the food and pharmaceutical divisions allows Metro to leverage cross-category shopping trends and customer loyalty programs, fostering a one-stop-shop format that resonates with its clientele. Revenue generation is anchored in the company's strategic pricing models, high-volume sales, and the continuous enhancement of private-label offerings, all orchestrated to maintain a balance between competitive pricing and profit margins. Through thoughtful expansions and acquisitions, Metro Inc. has crafted a diversified yet cohesive portfolio that drives sustainable growth and strengthens its positioning in the ever-evolving retail marketplace.

MRU Intrinsic Value
103.85 CAD
Undervaluation 13%
Intrinsic Value
Price CA$90.79
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