TSX:MRE

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Martinrea International

Market Cap

CA$991.5m

Last Updated

2021/07/28 23:03 UTC

Data Sources

Company Financials +

Executive Summary

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. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Martinrea International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MRE is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MRE's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-0.8%

MRE

-5.3%

CA Auto Components

1.2%

CA Market


1 Year Return

19.4%

MRE

61.1%

CA Auto Components

27.8%

CA Market

Return vs Industry: MRE underperformed the Canadian Auto Components industry which returned 61.1% over the past year.

Return vs Market: MRE underperformed the Canadian Market which returned 27.8% over the past year.


Shareholder returns

MREIndustryMarket
7 Day-0.8%-5.3%1.2%
30 Day-6.0%-11.7%-1.5%
90 Day-10.9%-14.8%2.1%
1 Year21.4%19.4%64.7%61.1%31.7%27.8%
3 Year-7.0%-11.7%36.0%26.0%29.5%17.0%
5 Year58.2%46.9%115.5%92.0%51.9%29.6%

Long-Term Price Volatility Vs. Market

How volatile is Martinrea International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Martinrea International undervalued compared to its fair value and its price relative to the market?

0.84x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: MRE (CA$12.31) is trading above our estimate of fair value (CA$6.9)

Significantly Below Fair Value: MRE is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MRE is unprofitable, so we can't compare its PE Ratio to the North American Auto Components industry average.

PE vs Market: MRE is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MRE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MRE is good value based on its PB Ratio (0.8x) compared to the CA Auto Components industry average (1.8x).


Future Growth

How is Martinrea International forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

53.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MRE is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: MRE is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MRE's is expected to become profitable in the next 3 years.

Revenue vs Market: MRE's revenue (9.6% per year) is forecast to grow faster than the Canadian market (5.5% per year).

High Growth Revenue: MRE's revenue (9.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MRE's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Martinrea International performed over the past 5 years?

-14.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MRE is currently unprofitable.

Growing Profit Margin: MRE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MRE is unprofitable, and losses have increased over the past 5 years at a rate of 14.1% per year.

Accelerating Growth: Unable to compare MRE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MRE is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (39.8%).


Return on Equity

High ROE: MRE has a negative Return on Equity (-1.49%), as it is currently unprofitable.


Financial Health

How is Martinrea International's financial position?


Financial Position Analysis

Short Term Liabilities: MRE's short term assets (CA$1.4B) exceed its short term liabilities (CA$1.1B).

Long Term Liabilities: MRE's short term assets (CA$1.4B) exceed its long term liabilities (CA$1.2B).


Debt to Equity History and Analysis

Debt Level: MRE's debt to equity ratio (73.8%) is considered high.

Reducing Debt: MRE's debt to equity ratio has reduced from 98.1% to 73.8% over the past 5 years.

Debt Coverage: MRE's debt is well covered by operating cash flow (37.9%).

Interest Coverage: MRE's interest payments on its debt are well covered by EBIT (3.5x coverage).


Balance Sheet


Dividend

What is Martinrea International current dividend yield, its reliability and sustainability?

1.62%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MRE's dividend (1.62%) is higher than the bottom 25% of dividend payers in the Canadian market (1.58%).

High Dividend: MRE's dividend (1.62%) is low compared to the top 25% of dividend payers in the Canadian market (4.53%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MRE has been paying a dividend for less than 10 years.

Growing Dividend: MRE's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: MRE is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Pat D'Eramo (58 yo)

6.67yrs

Tenure

CA$3,087,474

Compensation

Mr. Frank Patrick D'Eramo also known as Pat, has been the Chief Executive Officer and President of Martinrea International Inc. since November 1, 2014. Mr. D'Eramo joined Martinrea on November 1, 2014. Mr....


CEO Compensation Analysis

Compensation vs Market: Pat's total compensation ($USD2.46M) is above average for companies of similar size in the Canadian market ($USD1.18M).

Compensation vs Earnings: Pat's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MRE's management team is considered experienced (4.1 years average tenure).


Board Members

Experienced Board: MRE's board of directors are considered experienced (6.1 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MRE insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Martinrea International Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Martinrea International Inc.
  • Ticker: MRE
  • Exchange: TSX
  • Founded: 1987
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: CA$991.545m
  • Shares outstanding: 80.35m
  • Website: https://www.martinrea.com

Number of Employees


Location

  • Martinrea International Inc.
  • 3210 Langstaff Road
  • Vaughan
  • Ontario
  • L4K 5B2
  • Canada

Listings


Biography

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 Am...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/28 23:03
End of Day Share Price2021/07/28 00:00
Earnings2021/03/31
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.