This Struggling Auto Company Looks Like A Short

Investors betting on a turnaround are likely to be disappointed

⚡ 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.