Despite Setbacks, Monro Still Deserves To Shine

Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(11min)CommentsSummaryMonro remains a soft 'Buy' despite recent disappointing quarterly results and an 8.2% stock pullback.MNRO's revenue decline was driven by strategic store closures, but comparable store sales rose 1.2%, and cost-cutting initiatives are largely complete.Profitability metrics were mixed, with adjusted net income and EBITDA down, but operating cash flow and asset sales support the balance sheet.With transformation headwinds largely behind and an attractive cash flow-based valuation, I expect MNRO's long-term outlook to remain positive.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » Luis Alvarez/DigitalVision via Getty Images Over the last several months now, I have been very bullish about Monro (MNRO). I find it to be a fascinating business, which might seem peculiar to some investors. After all, it's not some high-growth tech name. It's not really associated with AIThis article was written byDaniel Jones36.73K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.