# Monro (MNRO): Its Own Goodwill Test Values the Business Above Book, but the Stock Trades at $11.63 > Monro ran a goodwill test after its share price fell and found the business worth more than its carrying value, about $18.32 a share of book. The stock closed at $11.63 on November 3, 2026. Kingdom Capital reads that as a sign of credible bids. We check the filing, the negative tangible book, the CFO remarks and the November 6 rights plan expiry. By MCAFax · Published November 4, 2026 Section: Markets & Main Street › From Wall Street · Series: Market Calls, Investigated (https://mcafax.com/notebook/series/market-calls-investigated) Canonical: https://mcafax.com/notebook/mnro-monro-goodwill-test-fair-value-above-book Source: MCAFax, The Broker's Notebook (https://mcafax.com/notebook). MCAFax is not a lender or a law firm. --- Monro, Inc. (Nasdaq: MNRO) says in its latest quarterly filing that a goodwill test, run because its share price had fallen, found the business worth more than its carrying value as of September 26, 2026. That carrying value works out to about $18.32 a share of book value. The stock closed at $11.63 on November 3. Kingdom Capital, a small-cap fund that has argued for months that Monro will be sold, reads the gap as a sign of credible bids. Monro's rights plan expires on November 6. *This is journalism and commentary, not investment advice. We hold no position unless stated.* ## Key facts - **Price:** $11.63 at the November 3, 2026 close, down 5.4% from $12.30 on October 29 and down 18.7% from $14.30 before the second-quarter report. - **Market value:** about $364 million on 31,326,927 shares outstanding, by our math from the [10-Q](https://www.sec.gov/Archives/edgar/data/876427/000087642726000012/mnro-20260926x10q.htm) share counts. - **Book value:** shareholders' equity of $573.9 million at September 26, 2026, or about $18.32 a share, so the stock trades near 0.63 times book. - **Goodwill:** $736.4 million, more than total equity. Tangible book value is negative, about -$169 million by our math. - **The test:** Monro treated the sustained fall in its market value as a triggering event and found the fair value of its single reporting unit exceeded its carrying value, including goodwill. It recorded no impairment. - **Calendar:** Icahn Enterprises owns about 16.9%. The 17.5% rights plan expires November 6, 2026, per the 10-Q. - **Dividend:** $0.28 a quarter, or about 9.6% a year at $11.63. ## What did Monro's goodwill test find? The filing says the second-quarter decline in market capitalization was "sustained throughout the quarter," so Monro ran a quantitative test. The estimated fair value of the company's single reporting unit came out above its carrying value, including goodwill, and no impairment was required. Monro added that if its growth and profitability plans fail, goodwill "could be subject to impairment." In plain terms, the company's own valuation came out above book while the market priced the stock about 37% below book. ## Is MNRO a good bet at $11.63? It depends on whether anyone pays a price closer to the accounting value. The test does not set a price. It relies on management forecasts and valuation assumptions, and impairment tests often include a control premium a buyer might pay. The business itself is weak: second-quarter sales fell 1.8% to $283.6 million and Monro posted a net loss of $1.6 million, per the [results release](https://www.sec.gov/Archives/edgar/data/876427/000119312526437009/d12848dex991.htm). ## Who's making this call and why? Kingdom Capital Advisors, posting as @kingdomcapadv, has been long Monro since early October. On November 2 it [quoted the 10-Q passage](https://x.com/kingdomcapadv/status/2117296301935042932) and noted that book value is over $18. When another investor noted that the company's test and the market disagreed, it [replied](https://x.com/kingdomcapadv/status/2117331184602484862): "The straightforward read is 'we have credible bids on the table in excess of book we don't need to impair.'" It added that this was an auditor discussion, not a board one. That reading is Kingdom's; the filing mentions no bids. **Track record.** In our tracking, Kingdom Capital is 4-14 (a .222 win rate) on 18 calls scored at 180 days against the S&P 500, with an average edge of -17.3 points. Its last 10 scored calls went 2-8. Its Monro calls are provisional and, through the November 3 close, trail the index by about 12 to 16 points. See the [scoreboard](https://mcafax.com/notebook/market-calls-scoreboard). **Other supporters:** Colin King (@valuedontlie), who disclosed a small position on October 29, [wrote](https://x.com/valuedontlie/status/2117318611660673373) of the disclosure: "Don't see this often (ever?)." DOMO Capital (@DOMOCAPITAL) posted remarks it attributed to Monro's chief financial officer at a Gabelli conference on November 3, including that the Ares loan provides "flexibility for us to explore a wide range of the alternatives that we're currently evaluating." DOMO's [summary](https://x.com/DOMOCAPITAL/status/2117992405852913954): "They are selling the company soon." We have not reviewed a recording; Tom (@tomcvegas), who listened live, [said](https://x.com/tomcvegas/status/2118010740833731075) it matched what he heard. ## Who disagrees? - **Negative tangible book.** Goodwill alone exceeds equity. If a buyer will not pay up for goodwill from past acquisitions, book value overstates what is left for shareholders. - **Buyers can wait.** Mikro Kap David (@david_katunaric), who has no position, [argued](https://x.com/david_katunaric/status/2115882201355092006) after the results that "potential buyers can afford to wait a lot longer than Monro can." - **A bull's own floor.** Tom [said](https://x.com/tomcvegas/status/2115799265180291072) on October 29 that Monro is "a $10-11 stock if no sale." - **No deadline.** Management has given no timetable, and its new secured Ares loan runs to 2030. - **Weak trends.** Full-year comparable sales are guided flat to slightly down, and net interest is expected at $28 million to $32 million a year. ## What are the key facts to verify? - The notes to the [10-Q](https://www.sec.gov/Archives/edgar/data/876427/000087642726000012/mnro-20260926x10q.htm) for the goodwill test wording, and the balance sheet for equity and goodwill. - Note 10 of the 10-Q for the rights plan terms and the November 6 expiry. - The [strategic review announcement](https://corporate.monro.com/news/news-details/2026/Monro-Announces-Strategic-Alternatives-Review-to-Maximize-Shareholder-Value/) and our [earlier Icahn piece](https://mcafax.com/notebook/mnro-monro-icahn-mavis-takeover-candidate). ## What would prove it right or wrong? **Right:** Monro announces a sale of the company or of store groups at a price near book, or Icahn moves after the rights plan lapses on November 6. **Wrong:** the review ends without a deal, comparable sales stay negative, or a later test leads to a goodwill write-down. *This is journalism and commentary, not investment advice. We hold no position unless stated.* ## Questions readers ask **What did Monro's goodwill test show?** Monro, Inc. (Nasdaq: MNRO) said in its 10-Q for the quarter ended September 26, 2026 that a sustained fall in its market capitalization was a triggering event, so it ran a quantitative goodwill test. The estimated fair value of its single reporting unit exceeded its carrying value, including goodwill, and no impairment was required. Shareholders' equity was $573.9 million, or about $18.32 a share, while the stock closed at $11.63 on November 3, 2026. Monro warned that goodwill could be impaired later if its growth and profitability plans fail. The test is an accounting estimate, not an offer price. **What is Monro's book value per share?** By our math, Monro's shareholders' equity of $573.9 million at September 26, 2026, divided by 31,326,927 shares outstanding, is about $18.32 a share. At the November 3, 2026 close of $11.63, the stock traded near 0.63 times book. **Does Monro have positive tangible book value?** No. Monro carried $736.4 million of goodwill and $6.5 million of intangible assets at September 26, 2026, more than its $573.9 million of equity. By our math, tangible book value was about -$169 million. **Does the goodwill test mean Monro has a buyer?** Not necessarily. The filing does not mention any bids. Kingdom Capital reads the test as a sign of credible bids above book, but that is its interpretation. Impairment tests rely on management forecasts and valuation assumptions. **What is Monro's market value?** About $364 million at the November 3, 2026 close of $11.63, based on 31,326,927 shares outstanding from the 10-Q share counts, by our math. **When does Monro's rights plan expire?** Monro's shareholder rights plan, adopted November 9, 2025 with a 17.5% ownership trigger, expires on November 6, 2026, according to the 10-Q. Icahn Enterprises owns about 16.9% of the stock. **What did Monro's CFO say at the Gabelli conference?** DOMO Capital posted remarks it attributed to Monro's chief financial officer at a Gabelli conference on November 3, 2026, saying the Ares loan gives flexibility to explore the alternatives Monro is evaluating. DOMO read that as a sign of a sale soon. We have not reviewed a recording. **Who is Kingdom Capital and what is its record?** Kingdom Capital Advisors is a small-cap fund that posts as @kingdomcapadv and has been long Monro since early October 2026. In our tracking it is 4-14 on 18 calls scored at 180 days against the S&P 500, with an average edge of -17.3 points. Its Monro calls are provisional and trail the index by about 12 to 16 points through November 3, 2026. **Why did Monro stock fall in late October 2026?** Monro fell 14% to $12.30 on October 29, 2026 after a second-quarter loss. Sales fell 1.8% to $283.6 million, it posted a net loss of $1.6 million, and it disclosed a new $375 million Ares loan. It closed at $11.63 on November 3. **Does Monro still pay a dividend?** Yes. Monro pays $0.28 a share each quarter. At the November 3, 2026 close of $11.63, that is a yield of about 9.6%. Management said the new credit agreement permits the December dividend; later payments depend on financial tests. **What would prove the Monro bull case wrong?** The bull case weakens if the strategic review ends without a deal, comparable sales stay negative, or a later goodwill test leads to a write-down.