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Metro Inc
TSX:MRU

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Metro Inc
TSX:MRU
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Price: 89.88 CAD -0.52% Market Closed
Market Cap: CA$19B

EV/OCF

14
Current
1%
More Expensive
vs 3-y average of 13.9

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
14
=
Enterprise Value
CA$25.5B
/
Operating Cash Flow
CA$1.7B

Enterprise Value to Operating Cash Flow (EV/OCF) ratio compares a company`s total enterprise value to its operating cash flow. It shows how much investors are paying for each dollar of the company`s operating cash flow, including both equity and debt.

EV/OCF
14
=
Enterprise Value
CA$25.5B
/
Operating Cash Flow
CA$1.7B

Valuation Scenarios

Metro Inc is trading above its 3-year average

If EV/OCF returns to its 3-Year Average (13.9), the stock would be worth CA$88.77 (1% downside from current price).

Statistics
Positive Scenarios
1/4
Maximum Downside
-15%
Maximum Upside
+8%
Average Downside
3%
Scenario EV/OCF Value Implied Price Upside/Downside
Current Multiple 14 CA$89.88
0%
3-Year Average 13.9 CA$88.77
-1%
5-Year Average 13.5 CA$86.34
-4%
Industry Average 15.2 CA$97.52
+8%
Country Average 11.9 CA$76.42
-15%

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

Not enough data available to calculate forward EV/OCF

Peer Comparison

All Multiples
EV/OCF
P/E
All Countries
Close
Market Cap EV/OCF P/E
CA
Metro Inc
TSX:MRU
19.3B CAD 14 19.5
ZA
Shoprite Holdings Ltd
JSE:SHP
153.7B ZAR 9.3 20.3
CA
Loblaw Companies Ltd
TSX:L
72.6B CAD 13.7 27.2
CA
Alimentation Couche-Tard Inc
TSX:ATD
72B CAD 11.5 18.7
UK
Tesco PLC
LSE:TSCO
32.8B GBP 10.6 18.6
US
Kroger Co
NYSE:KR
44.4B USD 7.5 44
NL
Koninklijke Ahold Delhaize NV
AEX:AD
36.7B EUR 7 16.3
AU
Woolworths Group Ltd
ASX:WOW
46.3B AUD 12.1 76.8
IN
Avenue Supermarts Ltd
NSE:DMART
2.9T INR 102.6 100.4
JP
Seven & i Holdings Co Ltd
TSE:3382
5T JPY 11.6 17
US
Caseys General Stores Inc
NASDAQ:CASY
29.2B USD 23.7 44.9

Market Distribution

In line with most companies in Canada
Percentile
57th
Based on 1 926 companies
57th percentile
14
Low
0 — 7.9
Typical Range
7.9 — 19.5
High
19.5 —
Distribution Statistics
Canada
Min 0
30th Percentile 7.9
Median 11.9
70th Percentile 19.5
Max 22 577.3

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
104.77 CAD
Undervaluation 14%
Intrinsic Value
Price CA$89.88
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