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Metro (TSX:MRU) Operating Margin % : 6.55% (As of Sep. 2024)


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What is Metro Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Metro's Operating Income for the three months ended in Sep. 2024 was C$324 Mil. Metro's Revenue for the three months ended in Sep. 2024 was C$4,938 Mil. Therefore, Metro's Operating Margin % for the quarter that ended in Sep. 2024 was 6.55%.

Good Sign:

Metro Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Metro's Operating Margin % or its related term are showing as below:

TSX:MRU' s Operating Margin % Range Over the Past 10 Years
Min: 5.57   Med: 6.5   Max: 6.97
Current: 6.64


TSX:MRU's Operating Margin % is ranked better than
79.68% of 315 companies
in the Retail - Defensive industry
Industry Median: 3.23 vs TSX:MRU: 6.64

Metro's 5-Year Average Operating Margin % Growth Rate was 0.90% per year.

Metro's Operating Income for the three months ended in Sep. 2024 was C$324 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2024 was C$1,410 Mil.


Metro Operating Margin % Historical Data

The historical data trend for Metro's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Metro Operating Margin % Chart

Metro Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.83 6.82 6.97 6.95 6.64

Metro Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.37 6.75 6.50 6.73 6.55

Competitive Comparison of Metro's Operating Margin %

For the Grocery Stores subindustry, Metro's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Metro's Operating Margin % Distribution in the Retail - Defensive Industry

For the Retail - Defensive industry and Consumer Defensive sector, Metro's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Metro's Operating Margin % falls into.



Metro Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Metro's Operating Margin % for the fiscal year that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (A: Sep. 2024 ) / Revenue (A: Sep. 2024 )
=1409.8 / 21219.9
=6.64 %

Metro's Operating Margin % for the quarter that ended in Sep. 2024 is calculated as

Operating Margin %=Operating Income (Q: Sep. 2024 ) / Revenue (Q: Sep. 2024 )
=323.7 / 4938.4
=6.55 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Metro  (TSX:MRU) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Metro Operating Margin % Related Terms

Thank you for viewing the detailed overview of Metro's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Metro Business Description

Traded in Other Exchanges
Address
11011 Maurice-Duplessis, Finances, Montreal, Montreal, QC, CAN, H1C 1V6
Metro is the third-largest grocery retailer in Canada (behind Loblaw and Sobeys) and also owns the top pharmacy chain in Quebec, Jean Coutu, following the 2018 acquisition. Its grocery banners include supermarket chain Metro, discounters Super C and Food Basics, and ethnic food grocer Adonis, while its pharmacies primarily operate under the Jean Coutu and Brunet trademarks. Metro operates both as a food retailer and a franchisor, licensing its trademarks and supplying merchandise to registered pharmacists. The firm also acts as a wholesaler and distributor to serve smaller, neighborhood grocery stores. Unlike peers Loblaw and Sobeys that operate chain stores across Canada, Metro's operations are concentrated in Quebec and Ontario, with no presence in western Canada.
Executives
Eric Richer La FlÈche Director, Senior Officer
Simon Rivet Senior Officer
Carmine Fortino Senior Officer
Geneviève Bich Senior Officer
François Thibault Senior Officer
Dan Gabbard Senior Officer
Marc Giroux Senior Officer
Brian Mcmanus Director
Alain Tadros Senior Officer
Frédéric Legault Senior Officer
Yves Vézina Senior Officer
Karin Jonsson Senior Officer
Marie-claude Bacon Senior Officer
Jean-michel Coutu Senior Officer
Martin Allaire Senior Officer

Metro Headlines

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