Metro: Digital Transformation And M&A Imply Undervaluation

Marat Musabirov Metro Inc. ( OTCPK:MTRAF ) recently announced the new Terrebonne distribution center, incoming acceleration of the e-commerce platform, and opportunities in M&A. I think that these initiatives along with recent announcements about moderation in food inflation will most likely bring FCF growth and stock demand. Even considering risks from inefficient digital transformation or failed M&A growth, I think that MTRAF does trade a bit undervalued. Metro Metro Inc is a food and pharmaceutical company with operations concentrated in Quebec and Ontario, Canada. The company operates 975 grocery stores through its subsidiaries, including Adonis and Premier Moisson, and performs manufacturing, retail distribution, and franchise management tasks at the regional level. Similarly, Metro operates 645 pharmacies, generating direct or indirect employment for more than 90,000 people. Metro’s operations are divided into two segments, one corresponding to its food business and the other to that of pharmacies. In both cases, the company has the properties for the manufacture, distribution, and marketing of products through its retail locations in Quebec and Ontario. Growing Assets In 2023, investors observed that Metro reported more current assets, more cash, and more inventories. Fixed assets, goodwill, and the total amount of assets also increased. Investors […]

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