DB:03M

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Martinrea International

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.


Snowflake Analysis

Very undervalued with excellent balance sheet.


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: 03M's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.3%

03M

10.6%

DE Auto Components

6.8%

DE Market


1 Year Return

7.4%

03M

-14.8%

DE Auto Components

5.6%

DE Market

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.


Shareholder returns

03MIndustryMarket
7 Day15.3%10.6%6.8%
30 Day30.8%23.2%14.0%
90 Day-1.4%11.3%7.5%
1 Year9.5%7.4%-13.3%-14.8%7.4%5.6%
3 Year-1.2%-5.4%-44.0%-48.1%0.3%-7.3%
5 Year-26.5%-31.4%-45.1%-50.3%12.4%-2.0%

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

Valuation

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

36.4%

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).


Next Steps

Future Growth

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

42.3%

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%).


Next Steps

Past Performance

How has Martinrea International performed over the past 5 years?

16.0%

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.


Next Steps

Financial Health

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).


Balance Sheet


Next Steps

Dividend

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

1.93%

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).


Next Steps

Management

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

5.6yrs

Average management tenure


CEO

Pat D'Eramo (56yo)

5.58yrs

Tenure

CA$4,612,574

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 ($USD3.41M) is above average for companies of similar size in the German market ($USD1.27M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Robert Wildeboer
Executive Chairman of the Board22.75yrsCA$4.52m0.61% CA$3.3m
Frank D'Eramo
President5.58yrsCA$4.61m0.22% CA$1.2m
Fred Di Tosto
Chief Financial Officer9.25yrsCA$1.86m0.089% CA$479.8k
Bruce Johnson
Executive Vice President of Metallicsno dataCA$1.60m0.063% CA$339.2k
Peter Cirulis
Executive Vice President of Aluminum1.75yrsCA$2.10m0.029% CA$158.7k
Ganesh Iyer
Chief Technology Officerno datano data0.020% CA$109.5k
Kerri Pope
General Counsel & Corporate Secretaryno datano data0.040% CA$213.8k
Deanna Lorincz
Global Director of Communications & Marketingno datano datano data
Robert Fairchild
Executive Vice President of Sales & Engineeringno datano data0.036% CA$195.7k
Armando Pagliari
Executive Vice President of Human Resourcesno datano data0.070% CA$377.7k

5.6yrs

Average Tenure

Experienced Management: 03M's management team is seasoned and experienced (5.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Robert Wildeboer
Executive Chairman of the Board22.75yrsCA$4.52m0.61% CA$3.3m
Frank D'Eramo
President5.58yrsCA$4.61m0.22% CA$1.2m
Terrence Lyons
Independent Director6.33yrsCA$233.00k0.015% CA$81.1k
Molly Shoichet
Independent Director1yrCA$105.00kno data
Scott Balfour
Independent Director7yrsCA$214.00kno data
Fred Olson
Lead Independent Directorno dataCA$322.00k0.030% CA$160.2k
Roman Doroniuk
Independent Director6.25yrsCA$233.00k0.023% CA$121.6k
David Schoch
Independent Director1.83yrsCA$214.00k0.029% CA$156.1k
Sandra Pupatello
Independent Director6yrsCA$225.00k0.014% CA$74.3k

6.1yrs

Average Tenure

59yo

Average Age

Experienced Board: 03M'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: 03M 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: 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


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MRETSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1997
03MDB (Deutsche Boerse AG)YesCommon SharesDEEURSep 1997
MRET.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1997

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 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 10:21
End of Day Share Price2020/06/04 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.