Martinrea International (MRE) AI Stock Analysis

• Market Cap: $622.34M
• Dividend Yield: 2.19%
• Average Volume (3M): 213.42K
• Price to Earnings (P/E): 5.7
• Beta (1Y): 1.12
• Revenue Growth: -9.36%
• EPS Growth: -145.18%
• Country: CA
• Employees: 17,000
• Sector: Consumer Cyclical
• Sector Strength: 57
• Industry: Auto - Parts
• EPS (TTM): 0.41
• Shares Outstanding: 72,787,850
• 10 Day Avg. Volume: 336,533
• 30 Day Avg. Volume: 213,418
• PEG Ratio: 0.03
• Price to Book (P/B): 0.66
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.77
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $10.69
• Price Target Upside: 21.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4

• Rating: 65 Neutral
• Price Target: C$9.50 ▲(7.95%Upside)

Martinrea International's overall stock score reflects a balance of operational strengths and significant financial challenges. While technical indicators suggest short-term momentum, financial and valuation concerns weigh heavily. The company's strategic initiatives and shareholder support are positives, yet the impact of tariffs and negative cash flow cannot be ignored.

Positive Factors

Stock Stability

There is likely limited downside in the stock, suggesting some stability in MRE shares.

Stock Valuation

MRE's shares are trading at just under 3x forward EBITDA, which is at the lower end of its historical valuation range.

Negative Factors

Analyst Downgrade

Analyst is downgrading Martinrea International Inc. to Market Perform from Outperform, indicating less confidence in the stock's potential.

Industry Production

Flat industry production in North America is expected in 2025, which could limit Martinrea International Inc.'s growth.

Market Performance

MRE's performance is expected to largely trend with industry production, offering less margin improvement compared to competitors.

Martinrea International Business Overview & Revenue Model

Company Description

Martinrea International Inc. is a leading Canadian automotive supplier, headquartered in Vaughan, Ontario. The company operates in the automotive and industrial sectors, specializing in the production of quality metal parts, assemblies, and modules, as well as fluid management systems and aluminum products. Martinrea serves a global clientele, largely consisting of major automotive manufacturers, by providing innovative and efficient solutions that meet the ever-evolving demands of the industry.

How the Company Makes Money

Martinrea International generates revenue primarily through the manufacture and sale of automotive parts and assemblies. Its key revenue streams include the production of lightweight structures, chassis, suspension systems, and fluid management products, which are integral components for vehicles. The company partners with major automotive original equipment manufacturers (OEMs), securing long-term contracts that provide a steady stream of income. Additionally, Martinrea invests in research and development to innovate and enhance its product offerings, ensuring it remains competitive and meets the stringent requirements of its clients. Factors such as advancements in automotive technology, fuel efficiency demands, and global expansion efforts also contribute to its earnings.

Martinrea International Financial Statement Overview

Summary

Martinrea International's financial performance is mixed. Positive operational efficiency is seen in positive EBIT and EBITDA margins, but the negative net income and declining revenue are concerning. The balance sheet is stable but with decreasing equity and assets. Cash flow shows operational efficiency, yet declining free cash flow poses risks.

Income Statement

The company has shown a volatile performance with revenue fluctuations. The gross profit margin is positive at approximately 12.8% TTM but has decreased from previous years. The net profit margin is negative TTM, indicating losses, which is a concern. Revenue growth has been inconsistent, with a decline most recently TTM. The EBIT and EBITDA margins are positive, which suggests some level of operational efficiency, though EBIT margin has declined.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio around 0.85, showing manageable leverage. The equity ratio is around 38% TTM, indicating a stable capital structure. However, a decrease in stockholders' equity and assets over the periods is a concern. Return on equity has turned negative TTM, driven by net losses.

Cash Flow

The cash flow statement shows a decline in free cash flow from the previous year, with a negative growth rate. The operating cash flow to net income ratio is positive, indicating operational cash efficiency despite net losses. However, the negative free cash flow to net income ratio highlights challenges in generating cash relative to earnings.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.86B	5.01B	5.34B	4.76B	3.78B	3.38B
	Gross Profit
620.84M	648.56M	675.40M	559.26M	345.62M	415.10M
	EBIT
103.25M	124.61M	269.11M	217.78M	62.92M	120.15M
	EBITDA
436.41M	475.17M	601.48M	516.59M	332.32M	263.75M
	Net Income Common Stockholders
-60.72M	-34.55M	153.66M	132.84M	35.88M	-27.32M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
148.55M	167.95M	186.80M	161.66M	153.29M	152.79M
	Total Assets
3.90B	3.82B	3.99B	4.14B	3.61B	3.37B
	Total Debt
1.26B	1.22B	1.23B	1.34B	1.25B	1.05B
	Net Debt
1.11B	1.06B	1.04B	1.18B	1.10B	894.25M
	Total Liabilities
2.42B	2.35B	2.52B	2.77B	2.44B	2.19B
	Stockholders Equity
1.48B	1.47B	1.47B	1.38B	1.17B	1.18B
Cash Flow		Free Cash Flow
135.33M	150.54M	207.57M	53.96M	-118.73M	54.13M
	Operating Cash Flow
422.65M	433.29M	511.09M	437.78M	180.03M	355.02M
	Investing Cash Flow
-283.94M	-285.50M	-303.75M	-381.27M	-305.86M	-331.95M
	Financing Cash Flow
-164.42M	-167.43M	-180.72M	-41.72M	129.93M	10.56M

Martinrea International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 8.8 is above the 20-day moving average (MA) of 8.29, above the 50-day MA of 7.60, and below the 200-day MA of 9.07, indicating a neutral trend. The MACD of 0.26 indicates Negative momentum. The RSI at 64.48 is Neutral, neither overbought nor oversold. The STOCH value of 84.62 is Negative, 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
XTC	79 Outperform	$263.21M	9.97	6.86%	5.82%	-2.84%	-8.22%
MG	73 Outperform	$14.84B	9.53	9.85%	5.05%	0.36%	15.87%
LNR	71 Outperform	$3.89B	15.40	4.66%	1.80%	2.26%	-54.00%
MRE	65 Neutral	$622.34M	5.65	-3.98%	2.19%	-9.36%	-145.18%
ACQ	63 Neutral	C$513.47M	―	9.31%	―	-18.16%	-275.09%
Sector *	63 Neutral	$6.94B	11.34	2.80%	4.26%	2.68%	-24.70%
NFI	59 Neutral	C$1.87B	―	-0.03%	―	15.99%	99.83%

Martinrea International Corporate Events

Martinrea International Inc. Reports Strong Shareholder Support at Annual Meeting

Martinrea International Inc. held its annual general meeting where shareholders showed strong support, voting in favor of all business items, including the election of directors. The company, despite facing tariff and trade challenges, continues to perform well and maintains a positive outlook, emphasizing its sustainable competitive advantage and commitment to delivering positive results for 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.

Martinrea International Reports Strong Q1 Results and New Business Wins

Martinrea International Inc. reported improved financial results for the first quarter of 2025, with total sales reaching $1,168.2 million and a notable improvement in adjusted operating income margin to 5.3%. The company declared a quarterly cash dividend of $0.05 per share and announced new business awards totaling approximately $60 million in annualized sales. Despite challenges such as U.S. tariffs on automotive imports and weak demand for EV platforms, Martinrea is focusing on operational improvements, cost reductions, and maintaining a strong balance sheet to navigate the current market conditions.

Martinrea International Reports Strong Q1 2025 Results Amid Industry Challenges

Martinrea International Inc. reported improved financial results for the first quarter of 2025, with total sales reaching $1,168.2 million and an increase in adjusted operating income margin to 5.3%. Despite challenges from U.S. tariffs and weak demand for EV platforms, the company secured new business awards totaling $60 million in annualized sales, demonstrating resilience and strategic focus on operational improvements and cost reductions.

Martinrea International to Release Q1 2025 Financial Results on May 1

Martinrea International Inc. announced it will release its first-quarter financial results for 2025 on May 1, after market close, followed by a conference call to discuss the results. This announcement is crucial for stakeholders as it provides insights into the company’s financial health and operational performance in the automotive industry, potentially impacting investor decisions and market positioning.