Discussion about this post

User's avatar
Antti Leinonen's avatar

I have been scratching my head with Monro too.

It could be argued that the company is already trading close to or below the replacement cost of such a network of shops. Not much value is placed to the business.

The departure of the CEO is a little bit worrisome. Perhaps something is not ok from the perspective of competition and/or internal performance.

Expand full comment
Margin Of Safety's avatar

On TLF, I would discount the inventory, which is especially relevant for retailers.

I haven’t looked at Munro, but just took a quick glance and I would be concerned about them being able to sustain the dividend. The current ratio is .53 and the quick ratio .18.

It looks like they have been paying down debt by closing stores.

I would be more excited if insiders were buying as well.

Expand full comment

No posts