Overlooked Alpha

Overlooked Alpha

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Overlooked Alpha
Overlooked Alpha
This Struggling Auto Company Looks Like A Short
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This Struggling Auto Company Looks Like A Short

Investors betting on a turnaround are likely to be disappointed

Overlooked Alpha
Apr 23, 2023
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Overlooked Alpha
Overlooked Alpha
This Struggling Auto Company Looks Like A Short
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⚡ Highlights:

  • MNRO stock looks overvalued. But there is a bull case based on free cash flow and weakening inflation.

  • But looking closer, both pillars of the bull case fall apart.

  • More broadly, Monro as a business has disappointed for years now.

  • Multiple compression alone can drive nearly 20% downside in the stock. Profit declines and a changing narrative suggest an even larger pullback.

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