Martinrea International Inc.

TSX:MRE Stock Report

Market Cap: CA$865.4m

Martinrea International Valuation

Is MRE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MRE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MRE (CA$11.27) is trading below our estimate of fair value (CA$27.02)

Significantly Below Fair Value: MRE is trading below fair value by more than 20%.


Key Valuation Metric

Which metric is best to use when looking at relative valuation for MRE?

Other financial metrics that can be useful for relative valuation.

MRE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA3.4x
PEG Ratio0.3x

Price to Earnings Ratio vs Peers

How does MRE's PE Ratio compare to its peers?

The above table shows the PE ratio for MRE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average11.8x
XTC Exco Technologies
10.2xn/aCA$279.9m
LNR Linamar
8.2xn/aCA$4.1b
MG Magna International
11.8x19.5%CA$19.7b
SSA Spectra Products
16.9xn/aCA$3.5m
MRE Martinrea International
5.6x22.2%CA$865.4m

Price-To-Earnings vs Peers: MRE is good value based on its Price-To-Earnings Ratio (5.6x) compared to the peer average (11.8x).


Price to Earnings Ratio vs Industry

How does MRE's PE Ratio compare vs other companies in the North American Auto Components Industry?

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.1%
n/an/an/a
No. of CompaniesPE048121620

Fetching data

0 CompaniesPrice / EarningsEstimated GrowthMarket Cap
Industry Avg.n/a19.1%
n/an/an/a
No more companies

Price-To-Earnings vs Industry: MRE is good value based on its Price-To-Earnings Ratio (5.6x) compared to the North American Auto Components industry average (16.8x).


Price to Earnings Ratio vs Fair Ratio

What is MRE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MRE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio5.6x
Fair PE Ratio7.7x

Price-To-Earnings vs Fair Ratio: MRE is good value based on its Price-To-Earnings Ratio (5.6x) compared to the estimated Fair Price-To-Earnings Ratio (7.7x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MRE forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$11.27
CA$17.75
+57.5%
10.3%CA$21.50CA$15.00n/a8
Apr ’25CA$11.87
CA$17.75
+49.5%
10.3%CA$21.50CA$15.00n/a8
Mar ’25CA$12.20
CA$17.83
+46.2%
9.8%CA$21.50CA$15.00n/a9
Feb ’25CA$14.29
CA$19.33
+35.3%
7.8%CA$21.50CA$17.00n/a9
Jan ’25CA$14.34
CA$19.00
+32.5%
10.2%CA$21.50CA$15.50n/a9
Dec ’24CA$12.32
CA$18.42
+49.5%
12.5%CA$21.50CA$14.75n/a9
Nov ’24CA$11.49
CA$19.08
+66.1%
14.6%CA$24.00CA$14.75n/a9
Oct ’24CA$12.51
CA$19.22
+53.7%
13.4%CA$24.00CA$16.00n/a9
Sep ’24CA$13.58
CA$19.22
+41.5%
13.4%CA$24.00CA$16.00n/a9
Aug ’24CA$14.99
CA$19.38
+29.3%
12.6%CA$24.00CA$16.00n/a8
Jul ’24CA$13.25
CA$19.38
+46.2%
12.6%CA$24.00CA$16.00n/a8
Jun ’24CA$11.22
CA$19.38
+72.7%
12.6%CA$24.00CA$16.00n/a8
May ’24CA$14.31
CA$19.38
+35.4%
12.1%CA$24.00CA$16.00n/a8
Apr ’24CA$14.57
CA$19.38
+33.0%
12.1%CA$24.00CA$16.00CA$11.878
Mar ’24CA$14.16
CA$16.06
+13.4%
12.4%CA$20.50CA$13.00CA$12.208
Feb ’24CA$13.77
CA$15.81
+14.8%
14.0%CA$20.50CA$13.00CA$14.298
Jan ’24CA$11.26
CA$14.89
+32.2%
18.0%CA$20.50CA$10.50CA$14.349
Dec ’23CA$11.98
CA$14.33
+19.6%
20.3%CA$20.50CA$10.50CA$12.329
Nov ’23CA$8.86
CA$14.17
+59.9%
22.6%CA$20.50CA$10.00CA$11.499
Oct ’23CA$8.55
CA$14.33
+67.6%
20.9%CA$20.50CA$10.50CA$12.519
Sep ’23CA$10.22
CA$14.50
+41.9%
20.2%CA$20.50CA$10.50CA$13.589
Aug ’23CA$9.34
CA$13.50
+44.5%
24.1%CA$20.50CA$9.00CA$14.999
Jul ’23CA$8.31
CA$13.53
+62.8%
23.9%CA$20.50CA$9.00CA$13.259
Jun ’23CA$9.92
CA$13.75
+38.6%
22.1%CA$20.50CA$9.00CA$11.229
May ’23CA$7.67
CA$13.81
+80.0%
22.5%CA$20.50CA$9.00CA$14.319
Apr ’23CA$8.79
CA$14.14
+60.9%
21.3%CA$20.50CA$10.00CA$14.579

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


Discover undervalued companies

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Price

7D

1Y

Mkt cap

PS

E.Growth

Analysts Target

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.