Report
Dan Wasiolek
EUR 100.00 For Business Accounts Only

Metro Executing Well Through Ongoing Headwinds, but Shares Are Overvalued

Metro reported solid 3.5% first-quarter sales growth (excluding the Jean Coutu acquisition that closed May 2018), tracking near the 3% organic revenue lift we model for 2019 (fiscal year ending September). Meanwhile, competition, transportation, wage, Jean Coutu mix, and generic drug regulation remain near-term and long-term headwinds, with gross margins dropping 10 basis points to 19.4% (matching our expectation for the current fiscal year) in the quarter. As a result, we don't plan any materia...
Underlying
Metro Inc.

Metro is a food retailer and distributor that operates supermarkets, discount stores and drugstores in Canada. Co. operated 343 supermarkets under the Metro and Metro Plus banners, nine stores under the Adonis banner, and 213 discount stores under the Super C and Food Basics banners. Co. also acts as a distributor for medium-surface food stores and convenience stores. Co. also acts as franchisor and distributor for 181 franchised Brunet Plus, Brunet, Brunet Clinique, and Clini Plus drugstores, owned by independent pharmacists; and operated 73 drugstores under the Metro Pharmacy and Drug Basics banners. Co. also supplies non-franchised drugstores and various health centres.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Dan Wasiolek

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