Metro Inc

I am reviewing this stock today as its annual statement for 2008 has been published. The Metro Inc (TSX-MRU.A) is on Mike Higgs’ list at www.dividendgrowth.org/Report.htm, on the Dividend Achievers list at www.dividendachievers.com/, and on the Dividend Aristocrats list at www.tmxmoney.com/en/individual.html (see indices). I bought this stock first in 2001 and bought more in 2004. Since then I have made an average annual return of 13.3% on this stock. This return includes dividends and I am using November’s month end price of $34.50 in this calculation

When I last reviewed this stock in June 2008, it was not doing so well in the market. I am into stocks for the long term and I do not get discouraged at slight set backs. My faith in this stock is not misplaced as it is currently doing better than the market. It also has great fundamentals.

The Last Annual Statement is dated September 27, 2008. It is mostly all good news as the 5 and 10 years to the last annual statement has seen the Revenue grow by 13 and 11% per year respectively; the Earnings per Share (EPS) grow by 9% and 15% per year, respectively; the Dividends grow by 13% and 17% per year respectively; the Closing Price grow by 12% and 14% per year, respectively; the Cash Flow grow by 14% and 13% per year respectively and the Book Value grow by 19% and 18% per year respectively.

The other positive things are that the Graham Price of $32.89 for September 2008 is not far off the closing price of $31.77; the Asset/Liability Ratio is 1.88 and the Return on Equity (ROE) is 14%. It cannot all be positive, but there are no real negatives for this stock. The Current Asset/Liability Ratio is a little low at 1.02, but at least liabilities are covered. The Accrual Ratio is in a neutral place at .7%.

Metro is a leader in the food and pharmaceutical sectors. It operates a network of close to 600 food stores under the banners Metro, Metro Plus, Super C, A&P, Dominion, Loeb and Food Basics. It has 250 pharmacies under the banners Brunet, Clini Plus, The Pharmacy and Drug Basics. Metro's operations are concentrated in Quebec and Ontario. Its web site is www.metro.ca. See my spreadsheet at www.spbrunner.com/stocks/mru.htm.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. See my website at www.spbrunner.com/stocks.html for a list of the stocks for which I have put up spreadsheets on my web site.