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.
Very undervalued with excellent balance sheet.
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: 03M's share price has been volatile over the past 3 months.
7 Day Return
DE Auto Components
1 Year Return
DE Auto Components
Return vs Industry: 03M exceeded the German Auto Components industry which returned -19.5% over the past year.
Return vs Market: 03M exceeded the German Market which returned 4.4% over the past year.
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
No news available
Is Martinrea International undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 03M (€6.8) is trading below our estimate of fair value (€10.69)
Significantly Below Fair Value: 03M is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 03M is good value based on its PE Ratio (5.5x) compared to the Auto Components industry average (14.5x).
PE vs Market: 03M is good value based on its PE Ratio (5.5x) compared to the German market (20.1x).
Price to Earnings Growth Ratio
PEG Ratio: 03M is good value based on its PEG Ratio (0.1x)
Price to Book Ratio
PB vs Industry: 03M is good value based on its PB Ratio (0.6x) compared to the DE Auto Components industry average (0.8x).
How is Martinrea International forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: 03M's forecast earnings growth (42.3% per year) is above the savings rate (0.2%).
Earnings vs Market: 03M's earnings (42.3% per year) are forecast to grow faster than the German market (22.5% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: 03M's revenue (9.1% per year) is forecast to grow faster than the German market (5.7% per year).
High Growth Revenue: 03M's revenue (9.1% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: 03M's Return on Equity is forecast to be low in 3 years time (9.2%).
How has Martinrea International performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 03M has high quality earnings.
Growing Profit Margin: 03M's current net profit margins (4.2%) are lower than last year (5%).
Past Earnings Growth Analysis
Earnings Trend: 03M's earnings have grown by 16% per year over the past 5 years.
Accelerating Growth: 03M's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: 03M had negative earnings growth (-16.2%) over the past year, making it difficult to compare to the Auto Components industry average (-24.5%).
Return on Equity
High ROE: 03M's Return on Equity (11.6%) is considered low.
How is Martinrea International's financial position?
Financial Position Analysis
Short Term Liabilities: 03M's short term assets (CA$1.4B) exceed its short term liabilities (CA$998.1M).
Long Term Liabilities: 03M's short term assets (CA$1.4B) exceed its long term liabilities (CA$1.2B).
Debt to Equity History and Analysis
Debt Level: 03M's debt to equity ratio (65.2%) is considered high.
Reducing Debt: 03M's debt to equity ratio has reduced from 115.4% to 65.2% over the past 5 years.
Debt Coverage: 03M's debt is well covered by operating cash flow (48.5%).
Interest Coverage: 03M's interest payments on its debt are well covered by EBIT (6.6x coverage).
What is Martinrea International's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 03M's dividend (1.93%) is higher than the bottom 25% of dividend payers in the German market (1.27%).
High Dividend: 03M's dividend (1.93%) is low compared to the top 25% of dividend payers in the German market (3.75%).
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, 03M has been paying a dividend for less than 10 years.
Growing Dividend: 03M's dividend payments have increased, but the company has only paid a dividend for 7 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (9.8%), 03M's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: 03M's dividends in 3 years are forecast to be thoroughly covered by earnings (11.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Pat D'Eramo (56yo)
Mr. Frank Patrick D'Eramo also known as Pat, has been the Chief Executive Officer and President of Martinrea International Inc. since November 1, 2014. Mr. D'Eramo joined Martinrea on November 1, 2014. Mr. ...
CEO Compensation Analysis
Compensation vs Market: Pat's total compensation ($USD3.41M) is above average for companies of similar size in the German market ($USD1.27M).
Compensation vs Earnings: Pat's compensation has been consistent with company performance over the past year.
|Executive Chairman of the Board||22.75yrs||CA$4.52m||0.61% CA$3.3m|
|Chief Financial Officer||9.25yrs||CA$1.86m||0.089% CA$479.8k|
|Executive Vice President of Metallics||no data||CA$1.60m||0.063% CA$339.2k|
|Executive Vice President of Aluminum||1.75yrs||CA$2.10m||0.029% CA$158.7k|
|Chief Technology Officer||no data||no data||0.020% CA$109.5k|
|General Counsel & Corporate Secretary||no data||no data||0.040% CA$213.8k|
|Global Director of Communications & Marketing||no data||no data||no data|
|Executive Vice President of Sales & Engineering||no data||no data||0.036% CA$195.7k|
|Executive Vice President of Human Resources||no data||no data||0.070% CA$377.7k|
Experienced Management: 03M's management team is seasoned and experienced (5.6 years average tenure).
|Executive Chairman of the Board||22.75yrs||CA$4.52m||0.61% CA$3.3m|
|Independent Director||6.33yrs||CA$233.00k||0.015% CA$81.1k|
|Independent Director||1yr||CA$105.00k||no data|
|Independent Director||7yrs||CA$214.00k||no data|
|Lead Independent Director||no data||CA$322.00k||0.030% CA$160.2k|
|Independent Director||6.25yrs||CA$233.00k||0.023% CA$121.6k|
|Independent Director||1.83yrs||CA$214.00k||0.029% CA$156.1k|
|Independent Director||6yrs||CA$225.00k||0.014% CA$74.3k|
Experienced Board: 03M's board of directors are considered experienced (6.1 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 03M insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Martinrea International Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Martinrea International Inc.
- Ticker: 03M
- Exchange: DB
- Founded: 1987
- Industry: Auto Parts and Equipment
- Sector: Automobiles
- Market Cap: CA$827.595m
- Listing Market Cap: CA$540.325m
- Shares outstanding: 79.96m
- Website: https://www.martinrea.com
Number of Employees
- Martinrea International Inc.
- 3210 Langstaff Road
- L4K 5B2
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|MRE||TSX (The Toronto Stock Exchange)||Yes||Common Shares||CA||CAD||Sep 1997|
|03M||DB (Deutsche Boerse AG)||Yes||Common Shares||DE||EUR||Sep 1997|
|MRET.F||OTCPK (Pink Sheets LLC)||Yes||Common Shares||US||USD||Sep 1997|
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, ladder frames, 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 mufflers, DPS lines, EGR tubes, air-injection tubes, and exhaust manifold tubes; fuel filler necks and pipes, 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 integral and fabricated subframes, exterior trims, bus frame assemblies, structural parts and fabrications, metallic tanks and reservoirs, and thermal management components. 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 founded in 1987 and is headquartered in Vaughan, Canada.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/06/05 10:21|
|End of Day Share Price||2020/06/04 00:00|
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.