Monro, Inc., a leading provider of automotive undercar repair and tire services, has declared a quarterly cash dividend of $.28 per share on the company's outstanding shares of common stock. The dividend, including the shares of common stock to which the holders of the company's class C convertible preferred stock are entitled, is set to be payable on March 22, 2024, to shareholders at the close of business on March 8, 2024.
Felix Veksler, Senior Director of Investor Relations at Monro, Inc., expressed the company's commitment to delivering best-in-class auto care to communities across the country and its focus on sustainable growth, stating, "With a growing market share and a focus on sustainable growth, the company generated approximately $1.3 billion in sales in fiscal 2023 and continues to expand its national presence through strategic acquisitions and the opening of newly constructed stores."
The company's shares have seen a 1.6% increase and are currently trading at a price of $32.55.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $1,128 | $1,200 | $1,257 | $1,126 | $1,359 | $1,325 |
| Revenue Growth | n/a | 6.42% | 4.69% | -10.41% | 20.75% | -2.5% |
| Gross Margins | 39% | 39% | 38% | 35% | 35% | 34% |
| Operating Margins | 11% | 11% | 8% | 6% | 7% | 6% |
| Net Margins | 6% | 7% | 5% | 3% | 5% | 3% |
| Net Income (MM) | $64 | $80 | $58 | $34 | $62 | $39 |
| Net Interest Expense (MM) | -$24 | -$27 | -$28 | -$28 | -$25 | $23 |
| Depreciation & Amort. (MM) | $32 | $36 | $39 | $43 | $43 | $41 |
| Earnings Per Share | $1.92 | $2.37 | $1.71 | $1.01 | $1.81 | $1.21 |
| EPS Growth | n/a | 23.44% | -27.85% | -40.94% | 79.21% | -33.15% |
| Diluted Shares (MM) | 34 | 34 | 34 | 34 | 32 | 32 |
| Free Cash Flow (MM) | $82 | $108 | $65 | $133 | $146 | $176 |
| Capital Expenditures (MM) | $39 | $44 | $56 | $52 | $28 | $39 |
| Current Ratio | 1.05 | 0.93 | 0.86 | 0.8 | 0.63 | 0.52 |
| Total Debt (MM) | $167 | $160 | $222 | $195 | $130 | $55 |
| Net Debt / EBITDA | 1.02 | 0.93 | 1.4 | 1.61 | 0.81 | 0.38 |
Monro has generally positive cash flows, wider gross margins than its peer group, and healthy leverage levels. However, the firm suffers from declining EPS growth and not enough current assets to cover current liabilities because its current ratio is 0.52. Finally, we note that Monro has weak revenue growth and a flat capital expenditure trend and decent operating margins with a negative growth trend.
