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    How Investors Are Reacting To Metro (TSX:MRU) Authorizing A New 10 Million Share Buyback Program

    Simply Wall St·12/07/2025 13:19:57
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    • Metro Inc. (TSX: MRU) previously announced a new normal course issuer bid on November 25, 2025, authorizing the repurchase and cancellation of up to 10,000,000 shares, or 4.68% of its 213,800,822 issued and outstanding shares, with the program set to run until November 26, 2026.
    • This buyback plan provides an additional use of excess cash and may influence earnings per share over time by reducing the share count.
    • Next, we’ll explore how Metro’s decision to repurchase and cancel shares fits into its existing investment narrative and outlook.

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    Metro Investment Narrative Recap

    To own Metro, you have to believe in its ability to steadily grow earnings from food and pharmacy while managing tight margins in a very competitive Ontario and Quebec market. The new normal course issuer bid mainly affects capital allocation and is unlikely to change the immediate catalysts, which still hinge on execution in supply chain automation and e-commerce, or the key risk of intensifying discount competition pressuring margins.

    The buyback announcement on 25 November 2025, authorizing the repurchase and cancellation of up to 10,000,000 shares, ties directly into Metro’s recent record of higher earnings and improving net profit margins. For investors, this sits alongside the ongoing dividend at CA$0.37 per share and recent full year 2025 results as part of a broader picture where capital returns coexist with the need to reinvest in automation and online growth, especially as price competition in grocery remains intense.

    But while the share count may fall, investors should also be aware that rising SG&A tied to automated distribution and e commerce...

    Read the full narrative on Metro (it's free!)

    Metro’s narrative projects CA$24.1 billion revenue and CA$1.1 billion earnings by 2028. This requires 3.3% yearly revenue growth and about a CA$0.1 billion earnings increase from CA$1.0 billion today.

    Uncover how Metro's forecasts yield a CA$105.91 fair value, a 6% upside to its current price.

    Exploring Other Perspectives

    TSX:MRU Community Fair Values as at Dec 2025
    TSX:MRU Community Fair Values as at Dec 2025

    Three members of the Simply Wall St Community currently see Metro’s fair value between CA$100.80 and CA$120.22, reflecting a wide span of independent estimates. Against this, the risk that rising SG&A from automation and online expansion could constrain margins gives you a concrete issue to compare across those differing views.

    Explore 3 other fair value estimates on Metro - why the stock might be worth as much as 20% more than the current price!

    Build Your Own Metro Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your Metro research is our analysis highlighting 2 key rewards and 1 important warning sign that could impact your investment decision.
    • Our free Metro research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Metro's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.