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Metro (MTRAF) ROE % : 12.73% (As of Sep. 2024)


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What is Metro ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Metro's annualized net income for the quarter that ended in Sep. 2024 was $648 Mil. Metro's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $5,091 Mil. Therefore, Metro's annualized ROE % for the quarter that ended in Sep. 2024 was 12.73%.

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

MTRAF' s ROE % Range Over the Past 10 Years
Min: 12.27   Med: 14.29   Max: 40.13
Current: 13.52

During the past 13 years, Metro's highest ROE % was 40.13%. The lowest was 12.27%. And the median was 14.29%.

MTRAF's ROE % is ranked better than
62.87% of 307 companies
in the Retail - Defensive industry
Industry Median: 10.09 vs MTRAF: 13.52

Metro ROE % Historical Data

The historical data trend for Metro's ROE % 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 ROE % Chart

Metro Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 13.15 13.40 12.68 15.03 13.43

Metro Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % 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 13.00 13.38 10.88 17.14 12.73

Competitive Comparison of Metro's ROE %

For the Grocery Stores subindustry, Metro's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution in the Retail - Defensive Industry

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

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



Metro ROE % Calculation

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

ROE %=Net Income (A: Sep. 2024 )/( (Total Stockholders Equity (A: Sep. 2023 )+Total Stockholders Equity (A: Sep. 2024 ))/ count )
=685.664/( (5026.384+5183.597)/ 2 )
=685.664/5104.9905
=13.43 %

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

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=647.868/( (4998.906+5183.597)/ 2 )
=647.868/5091.2515
=12.73 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Metro  (OTCPK:MTRAF) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=647.868/5091.2515
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(647.868 / 14582.608)*(14582.608 / 10300.9045)*(10300.9045 / 5091.2515)
=Net Margin %*Asset Turnover*Equity Multiplier
=4.44 %*1.4157*2.0233
=ROA %*Equity Multiplier
=6.29 %*2.0233
=12.73 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=647.868/5091.2515
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (647.868 / 859.884) * (859.884 / 955.856) * (955.856 / 14582.608) * (14582.608 / 10300.9045) * (10300.9045 / 5091.2515)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.7534 * 0.8996 * 6.55 % * 1.4157 * 2.0233
=12.73 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Metro ROE % Related Terms

Thank you for viewing the detailed overview of Metro's ROE % 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.

Metro Headlines

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