TSE:MRU

Metro Inc (A) (MRU.TO)

90.05
+0.36 (0.40%)
as of Sep 4, 2026, 8:00:00 pm Market Open.
211 watching
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Investor Insights
star iconSep 5, 2026, 12:00 am

This summary was created by AI, based on 3 opinions in the last 12 months.

Metro Inc (MRU-T) occupies a solid position in the Canadian grocery market, particularly as it grapples with the competitive presence of Costco (COST) and Walmart (WMT). Over the past decade, these larger players have captured significant market growth, prompting Metro and its peers to focus on niche segments, such as discount banners and enhanced private-label offerings. Despite its advantageous positioning, experts suggest that Metro may not experience substantial growth moving forward. The grocery sector is currently facing scrutiny over perceived price gouging, compounded by inflation and escalating energy costs, which has heightened consumer sensitivity to grocery prices. Comparatively, while Metro has favorable properties and niche strategies, experts show a preference for Loblaw, recognizing it as a dominant and resilient market player.

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Consensus
Neutral
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Valuation
Fair Value
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Similar
Loblaw, L-T
BUY ON WEAKNESS
He owns Weston. There is maybe a bit more run in Ontario, where they re-branded Dominion to Metro. Price has built in growth expectations, but if it pulled back 15% or so, he would take a serious look at it.
PAST TOP PICK
(A Top Pick Nov 21/08. Up 16.13%.) Grocers. Likes the management. Beat estimates in the last 2 quarters.
DON'T BUY
Recently has done better than Loblaws (L-T). Cutting costs and bumping margins gives them tremendous leverage. Food inflation has had a positive impact on margins up to 1%. Food inflation is now coming off and Cdn$ is now stronger than 6 months ago. A lot of competition and overcapacity in Ontario. Because of Loblaws real estate and pristine balance sheet, it would be a safer bet.
TOP PICK
Inexpensive.
HOLD
Really likes this one. Has surprised over the years. Very shareholder friendly. Very disciplined management. Trading in line with the industry average at about 13X PE.
TOP PICK
A well-managed defensive name. Doesn't have financial issues. Margins are improving. Not popular with analysts, which has kept it down. Has 20% of Alimentation Couche-Tard (ATD.B-T), which is not included in the valuation and convenience stores have been improving.
PAST TOP PICK
(A Top Pick July 31/07. Down 32.9%.) Grocery store chain. Well regarded management team. Has been partly tarred by Loblaws (L-T) problems. Trades at 10X earnings. Still likes.
COMMENT
Like all the Canadian grocery stores it has Wal-Mart to contend with. To compete, they’ve had to reduce their prices and their margins. Losing market share.
PAST TOP PICK
(A Top Pick Mar 30/07. Down 42%.) Great company and really well run. Reported decent earnings. Dominion store acquisition is integrating very well in central Canada. People are worried about the Wal-Mart (WMT-N) and Loblaw (L-T) experience, but you can't compare the 2 as they have the least amount of exposure. Very reasonable multiples and a great long-term hold. Still a Buy.
BUY
The best supermarket operator in Canada. Doesn't have much competition from Loblaw’s (L-T) in Quebec. Acquired the Dominion stores in Ontario.
TOP PICK
Nice defensive name. Well-managed. Recently acquired Dominion Stores, which has been integrated well. Trades at a low multiple at around 14 X earnings. Strong balance sheet.
WEAK BUY
Looks pretty good. Meets all the characteristics that he is looking for in a stock with one exception. When profit growth is not supported by margin and asset turnover improvement, he's not sure the reason.
TOP PICK
Earnings growth has been 12/13% over the last 5 years. P/E of 13 X forward earnings. Well-managed.
WEAK BUY
Defensive play. The kind of market where a lot of institutions are leaving cyclicals and going into defensive stocks. Numbers were good. Not cheap, but not expensive. Doesn't see many good expectations out of the stock.
BUY
If you want to be in the supermarket business in Canada this or Sobeys (SBY-T) would be the ones, not Loblaws (L-T). A good investment.
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