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MRU:TSXMetro Inc. Analysis

Data as of 2026-03-13 - not real-time

CA$95.00

Latest Price

5/10Risk

Risk Level: Medium

Executive Summary

Metro Inc. is trading at C$95, just below its 20‑day and 50‑day moving averages and comfortably above the identified support level of roughly C$93, indicating a modest cushion against short‑term downside. The RSI sits near the mid‑40s and the MACD has turned bearish, while volume has been tapering, suggesting a neutral to slightly bearish technical backdrop in the near term.
Fundamentally, the company delivers modest revenue growth of about 3% YoY but operates on thin margins (gross margin under 20% and profit margin around 4%). Debt is relatively high at roughly 70% of equity, yet free cash flow remains positive and the dividend payout ratio is a disciplined 33%, supporting the current 1.7% yield. Analysts collectively rate the stock as a "buy" with a median target near C$103, implying roughly an 8% upside from today’s price, while the DCF model appears overly conservative. The defensive grocery sector provides a stable earnings base, and the market sentiment index is in "Greed" territory, underscoring a favorable risk‑reward profile for investors willing to tolerate moderate volatility.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Price hovering just above support with bearish MACD
  • Decreasing volume indicating reduced short‑term enthusiasm
  • Neutral RSI suggesting limited immediate upside

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Analyst consensus target price offering ~8% upside
  • Stable dividend yield and sustainable payout ratio
  • Defensive sector footing with modest revenue growth

Long Term

> 3 years
Neutral
Model confidence: 7/10

Key Factors

  • Consistent cash‑flow generation supporting dividend continuity
  • High debt‑to‑equity ratio warrants cautious monitoring
  • Low beta and defensive consumer staple positioning

Key Metrics & Analysis

Financial Health

Revenue Growth3.30%
Profit Margin4.44%
P/E Ratio21.0
ROE13.92%
ROA6.25%
Debt/Equity69.15
P/B Ratio2.9
Op. Cash FlowCA$1.7B
Free Cash FlowCA$840.8M

Technical Analysis

TrendNeutral
RSI45.5
SupportCA$92.88
ResistanceCA$99.70
MA 20CA$96.61
MA 50CA$96.51
MA 200CA$98.95
MACDBearish
VolumeDecreasing
Fear & Greed Index73.13

Valuation

Fair ValueCA$39.62
Target PriceCA$102.82
Upside/Downside8.23%
GradeUndervalued
TypeValue
Dividend Yield1.74%

Risk Assessment

Beta-0.06
Volatility17.86%
Sector RiskLow
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.