Martinrea International (MRE) AI Stock Analysis

• Market Cap: $735.16M
• Dividend Yield: 1.96%
• Average Volume (3M): 163.22K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.44
• Revenue Growth: -8.84%
• EPS Growth: -148.15%
• Country: CA
• Employees: 17,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.66
• Shares Outstanding: 72,787,850
• 10 Day Avg. Volume: 179,970
• 30 Day Avg. Volume: 163,224
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 2.22
• Enterprise Value/Revenue: 0.34
• Enterprise Value/Gross Profit: 2.60
• Enterprise Value/Ebitda: 3.85
• 1Y Price Target: $11.93
• Price Target Upside: 16.98% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: C$10.00 ▼(-1.96% Downside)

Martinrea International's overall stock score is driven by a challenging financial performance with profitability issues and bearish technical indicators. However, the positive sentiment from the recent earnings call and operational improvements provide some optimism. Valuation concerns remain due to negative earnings, but the company's strategic initiatives and guidance offer potential for future growth.

Positive Factors

Negative Factors

Martinrea International Business Overview & Revenue Model

Company Description

Martinrea International Inc. designs, develops, manufactures, and sells metal parts, assemblies and modules, fluid management systems, and aluminum products primarily to the automotive industry in North America, Europe, and internationally. It offers engine blocks, transmissions, cases, housings, oil coolers, hoses, tube assemblies, oil fillers, tubes, indicators, oil pick-up screens and pipes, heater hose inlets and outlets, and electric motor housings; and front horizontal, rear suspension, and front vertical modules. It also provides evaporator system integrity monitors, DPS lines, EGR tubes, air-injection tubes, and exhaust manifold tubes; fuel filler necks, capless refueling systems, fuel tank/sender assemblies, vapor assemblies and canister hoses, fuel line feed/return assembly systems, and fuel lines and hoses; and air-conditioning lines, and heater core inlet and outlet assemblies. In addition, it offers frame rail assemblies, surface stampings, structural BIW components, suspension arms and links, engine cradles, centre and rear crossmembers, suspension twist axles, roof assemblies, door intrusion beams, bumpers, radiator support assemblies, trailer hitches, dash and plenum assemblies, wheelhouse assemblies, roll-formed rockers and headers, appliqués, battery trays and housings, aluminum and steel shock towers, control arms, and knuckles, as well as belt, upper reveal, roof ditch, D-line, and other exterior decorative moldings. Further, it provides brake lines and assemblies, power steering lines and assemblies, power steering oil fillers, and tubes and indicators; and graphene brake lines products. The company was formerly known as Royal Laser Tech Corporation and changed its name to Martinrea International Inc. in June 2002. Martinrea International Inc. was incorporated in 1987 and is headquartered in Vaughan, Canada.

How the Company Makes Money

Martinrea International generates revenue primarily through the sale of automotive components and systems to various original equipment manufacturers (OEMs) and Tier 1 suppliers. Key revenue streams include the production of metal stamping components, welded assemblies, and fluid management systems. The company also benefits from long-term contracts with major automotive players, ensuring a consistent flow of orders. Strategic partnerships with leading automotive manufacturers enhance its market position and provide opportunities for collaborative development of new technologies. Factors contributing to earnings include operational efficiency, investment in advanced manufacturing techniques, and a focus on research and development to meet the evolving needs of the automotive industry.

Martinrea International Financial Statement Overview

Summary

Martinrea International faces profitability challenges with declining revenue and negative net income in the TTM. The balance sheet shows manageable leverage, but the negative return on equity is concerning. Cash flow generation is a positive aspect, with improvements in free cash flow growth.

Income Statement

The income statement shows a challenging period for Martinrea International, with declining revenue and negative net profit margins in the TTM. The gross profit margin remains relatively stable, but the company is struggling with profitability as indicated by negative net income and declining EBIT margins. Revenue growth has been negative, reflecting potential market challenges or operational inefficiencies.

Balance Sheet

The balance sheet indicates moderate leverage with a debt-to-equity ratio below 1, suggesting manageable debt levels. However, the negative return on equity in the TTM highlights profitability issues. The equity ratio is stable, indicating a solid asset base relative to equity.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate in the TTM, suggesting improved cash generation. The operating cash flow to net income ratio is healthy, indicating good cash conversion despite negative net income. However, the free cash flow to net income ratio reflects challenges in translating earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.83B	5.01B	5.34B	4.76B	3.78B	3.38B
Gross Profit	628.52M	648.56M	675.40M	559.26M	345.62M	415.10M
EBITDA	424.38M	475.17M	601.48M	516.59M	332.32M	263.75M
Net Income	-63.61M	-34.55M	153.66M	132.84M	35.88M	-27.32M
Balance Sheet
Total Assets	3.84B	3.82B	3.99B	4.14B	3.61B	3.37B
Cash, Cash Equivalents and Short-Term Investments	160.03M	167.95M	186.80M	161.66M	153.29M	152.79M
Total Debt	1.18B	1.22B	1.23B	1.34B	1.25B	1.05B
Total Liabilities	2.37B	2.35B	2.52B	2.77B	2.44B	2.19B
Stockholders Equity	1.47B	1.47B	1.47B	1.38B	1.17B	1.18B
Cash Flow
Free Cash Flow	149.87M	150.54M	207.57M	53.96M	-118.73M	54.13M
Operating Cash Flow	446.81M	433.29M	511.09M	437.78M	180.03M	355.02M
Investing Cash Flow	-293.34M	-285.50M	-303.75M	-381.27M	-305.86M	-331.95M
Financing Cash Flow	-174.28M	-167.43M	-180.72M	-41.72M	129.93M	10.56M

Martinrea International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.20
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MRE, the sentiment is Positive. The current price of 10.2 is above the 20-day moving average (MA) of 10.13, below the 50-day MA of 10.52, and above the 200-day MA of 8.67, indicating a neutral trend. The MACD of -0.07 indicates Negative momentum. The RSI at 48.75 is Neutral, neither overbought nor oversold. The STOCH value of 44.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MRE.

Martinrea International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MG	76 Outperform	$19.45B	13.56	8.31%	3.93%	0.66%	-0.61%
LNR	68 Neutral	$4.49B	21.39	3.61%	1.44%	-2.60%	-64.22%
XTC	64 Neutral	$245.31M	10.43	6.01%	6.44%	-3.50%	-22.76%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MRE	54 Neutral	$735.16M	―	-4.10%	1.96%	-8.84%	-148.15%
ACQ	44 Neutral	C$579.45M	-32.14	20.23%	―	-20.36%	50.19%
NFI	44 Neutral	C$1.67B	-7.37	-26.25%	―	9.12%	-182.49%

Martinrea International Corporate Events

Martinrea’s Strong Q2 Performance and Positive Outlook

Martinrea International Inc. recently held its earnings call, revealing a robust second quarter performance characterized by significant advancements in machine learning technologies and new business awards. Despite facing challenges from tariffs and anticipated seasonal slowdowns, the overall sentiment of the call was positive, underscoring operational improvements and a promising financial outlook.

Martinrea International Reports Strong Q2 2025 Results

Martinrea International Inc. is a global automotive supplier specializing in the design, development, and manufacturing of lightweight structures and propulsion systems, with a focus on enhancing productivity through innovations like machine learning. The company operates in various countries, including Canada, the United States, and Germany.

Martinrea International Reports Strong Q2 Results and Secures New Business Awards

Martinrea International Inc. reported strong financial results for the second quarter of 2025, with total sales reaching $1,275.5 million and a notable increase in margins. The company also declared a quarterly cash dividend of $0.05 per share. New business awards amounting to approximately $40 million in annualized sales were secured, reflecting Martinrea’s strategic growth and operational improvements. The company is maintaining its 2025 outlook, anticipating total sales between $4.8 to $5.1 billion, driven by operational efficiencies and innovations in machine learning.

The most recent analyst rating on (TSE:MRE) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Martinrea International stock, see the TSE:MRE Stock Forecast page.

Martinrea International to Announce Q2 Financial Results

Martinrea International Inc. announced it will release its second-quarter financial results on August 12, 2025, after market close. The announcement will be followed by a conference call to discuss the results, which indicates the company’s commitment to transparency and engagement with its stakeholders.

The most recent analyst rating on (TSE:MRE) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Martinrea International stock, see the TSE:MRE Stock Forecast page.