Latest news with #MetroInc
Business Insider
2 days ago
- Business
- Business Insider
National Bank Keeps Their Hold Rating on Metro Inc. (MRU)
National Bank analyst maintained a Hold rating on Metro Inc. today and set a price target of C$110.00. The company's shares closed today at C$98.39. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. In addition to National Bank, Metro Inc. also received a Hold from RBC Capital's Irene Nattel in a report issued yesterday. However, today, TR | OpenAI – 4o reiterated a Buy rating on Metro Inc. (TSX: MRU). MRU market cap is currently C$23.12B and has a P/E ratio of 23.74. Based on the recent corporate insider activity of 52 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of MRU in relation to earlier this year.
Global News
2 days ago
- Business
- Global News
Metro CEO says 20% of grocer's suppliers raising prices due to tariffs
Metro says about a fifth of its grocery store suppliers have begun raising prices as a direct result of tariffs and counter-tariff measures from the trade war sparked by United States President Donald Trump. The company said that although it is working to keep prices relatively stable, customers may still start to see sticker prices rise. 'The introduced tariffs and counter-tariffs are a contributing factor to food inflation as we continue to receive price increase requests from our vendor partners,' CEO Eric R. La Flèche at Metro Inc. said Wednesday on an investor conference call. 'Teams continue to negotiate to minimize the impact on consumers, and for now, the effects remain manageable.' The trade war means there are tariffs imposed by the United States on some food and drug products imported from Canada, and there are also counter-tariffs in place that would make prices for some U.S. goods higher once they cross the border into Canada. Story continues below advertisement This means some suppliers are now starting to increase the prices they charge to outlets like Metro Inc. before their products are sold directly to customers. These price increases, however, do not apply to goods that fall under the terms of the current free trade agreement, known as the Canada-United States-Mexico Agreement (CUSMA). 3:42 Tariff impacts on Canadian food exporters Prime Minister Mark Carney is still working on a more permanent trade deal with the United States that removes or minimizes the impacts from tariffs, and Carney has said he will only accept a deal that is 'good for Canada.' Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy To maintain customer loyalty without having to raise prices, many Canadian business owners have been 'absorbing' these tariff increases, which may sacrifice profits. This may not be sustainable long-term as businesses need to remain profitable to thrive, and so increases for customers could happen the longer the trade war goes on. Story continues below advertisement 'We (Metro) negotiate as best we can (with suppliers) to minimize the impact on our customers in this environment where everybody's searching for value and everybody's more price-sensitive,' La Flèche said. La Flèche also told investors on the conference call that in its latest fiscal quarter, or three-month period, Metro did see price increases that were in line with the May food inflation reading of 3.1 per cent from Statistics Canada. This suggests that price increases in the past few months have been under normal economic circumstances — not directly tied to tariffs. Still, Metro did not rule out price increases for customers now that the company has confirmed suppliers are already raising prices. A Global News request sent to Metro Inc. asking exactly how the company plans on keeping costs stable for customers as tariffs create more pressure to raise prices did not receive a response by publication time. 5:45 Tariffs set to push grocery prices higher Meanwhile, Metro says the 'Buy Canadian' movement remains strong as customers look to support Canadian businesses in the face of the trade war and a soured sentiment about the United States. Story continues below advertisement 'Customers are responding well. Sales of Canadian products are outpacing total sales and the gap has accelerated over the past few weeks,' said La Flèche, who adds that Metro continues to seek alternative suppliers to the U.S., where possible, in order to minimize tariff impacts. Meanwhile, customers may still be prioritizing value and lower prices as inflationary pressures and affordability concerns continue to weigh on household budgets. La Flèche said in the earnings call to analysts that sales growth at the company's discount-branded stores like Food Basics continues to outpace that of its flagship Metro stores, and that the trend has been consistent 'for the past few years.' In its latest reporting quarter, Metro says its sales totalled almost $5 billion, which was an increase of 5.5 per cent compared with a year prior. The company saw a net profit of $220 million in its second fiscal quarter compared with $187.1 million in 2024. La Flèche said these latest numbers are 'solid results.'
Yahoo
3 days ago
- Business
- Yahoo
Metro's (TSE:MRU) five-year total shareholder returns outpace the underlying earnings growth
If you buy and hold a stock for many years, you'd hope to be making a profit. But more than that, you probably want to see it rise more than the market average. Unfortunately for shareholders, while the Metro Inc. (TSE:MRU) share price is up 64% in the last five years, that's less than the market return. Zooming in, the stock is up a respectable 20% in the last year. In light of the stock dropping 7.9% in the past week, we want to investigate the longer term story, and see if fundamentals have been the driver of the company's positive five-year return. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). During five years of share price growth, Metro achieved compound earnings per share (EPS) growth of 9.5% per year. So the EPS growth rate is rather close to the annualized share price gain of 10% per year. This indicates that investor sentiment towards the company has not changed a great deal. Rather, the share price has approximately tracked EPS growth. The image below shows how EPS has tracked over time (if you click on the image you can see greater detail). It's probably worth noting that the CEO is paid less than the median at similar sized companies. But while CEO remuneration is always worth checking, the really important question is whether the company can grow earnings going forward. This free interactive report on Metro's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock. The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. In the case of Metro, it has a TSR of 79% for the last 5 years. That exceeds its share price return that we previously mentioned. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective Metro provided a TSR of 22% over the year (including dividends). That's fairly close to the broader market return. That gain looks pretty satisfying, and it is even better than the five-year TSR of 12% per year. Even if the share price growth slows down from here, there's a good chance that this is business worth watching in the long term. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. For example, we've discovered 1 warning sign for Metro that you should be aware of before investing here. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Canadian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Toronto Star
4 days ago
- Business
- Toronto Star
Buy Canadian shopping trend starting to lose some steam: Metro CEO
Consumers are still seeking local products, but executives at one of Canada's biggest grocers say the buy Canadian movement is starting to lose some steam. 'It's decelerating somewhat,' Metro Inc. chief executive Eric La Flèche told analysts during a third-quarter earnings conference call on Wednesday.
Yahoo
4 days ago
- Business
- Yahoo
Metro navigates tariff headwinds with supplier deals, posts 9% profit growth
Tariffs and counter tariffs are adding pressure to Metro Inc.'s costs, with 20 per cent of vendor price increase requests being tariff related, but the grocer says it is containing the impact by negotiating with suppliers and sourcing from other countries. 'We negotiate hard to minimize the impact on our consumers in this environment where everybody's more price sensitive,' chief executive Eric La Flèche said on the company's third-quarter earnings call, adding that the effect 'remains manageable' and in line with the current food consumer price index (CPI) of three per cent. He said Metro continues to work with vendors to keep costs down and maintain quality, even as some suppliers have begun imposing increases since Canada's counter tariffs took effect in March. 'We search for other suppliers in other countries just to minimize prices and maintain quality,' he said. 'So, we have been able to navigate and to provide value to our customers despite these tariffs.' La Flèche also said the 'Buy Canadian' trend is 'decelerating,' with consumers still favouring local products but at a reduced pace. Metro posted higher third-quarter profit than a year ago and steady sales growth, driven by gains in its pharmacy and discount food banners, but its results did not exceed analyst expectations. Canada's third-largest grocer had moderate year-over-year improvements across all metrics, including sales, net earnings and gross margin, during its third quarter. RBC Capital Markets analysts said the results were 'consistent with expectations and supportive of (Metro's) hard-earned premium valuation.' They also said the sentiment around the company was 'neutral,' indicating its third-quarter earnings did not surprise industry experts even though it posted better year-over-year results. The grocer said total third-quarter sales were $6.87 billion, up 3.3 per cent from the same quarter a year ago, while net earnings were up nine per cent to $323 million. Operating income was $655.7 million, or 9.5 per cent of sales, up 5.7 per cent from last year. Metro posted an increase in performance across both of its main segments: food and pharmacy. Same-store food sales were up 1.9 per cent from 2024, while online food sales jumped by 14.4 per cent. Pharmacy sales rose 5.5 per cent, with a 6.2 per cent increase in prescription drug sales compared to a year ago. Front-store sales — over-the-counter products such as cosmetics — were up four per cent. Total depreciation and amortization expenses for the third quarter were $184.9 million versus $174 million a year ago. Metro said the increase was due to investments made into its supply chain. 'The increase in depreciation and amortization expense is mainly due to the timing of retail investments and the commissioning of investments in our supply chain, including some automation technology in the pharmacy division and the final phase of our fresh distribution centre in Toronto last summer,' Metro said. It also said a significant portion of Metro's investments into its supply chains was 'behind them' and that the company believes these investments will put them in a better position moving forward. 'The significant investments in the modernization of our supply chain are largely behind us, and we are now focused on realizing efficiency gains,' it said. 'These investments position us well for growth through the expansion of our retail network in the years ahead.' The company said it considers itself to be in a strong financial position. 'We do not anticipate any liquidity risk and consider our financial position at the end of the third quarter of 2025 as very solid. We had an unused authorized revolving credit facility of $594.6 million,' it said. La Flèche said the company was pleased with its performance, pointing out it was marked by solid comparable sales growth in food and pharmacy, and good cost control. 'We successfully opened five new food stores in the quarter, a pace that will continue in the fourth quarter, on track with our plan to accelerate the development of our growing discount banners,' he said in the release. Sale of Canadian products outpacing total sales, says Metro CEO Metro profits were up in pre-Christmas quarter La Flèche also expressed confidence in the investments Metro has made into its supply chain, saying it will continue to fuel the company's growth and 'create long-term shareholder value.'
