MARTINREA INTERNATIONAL INC (MRE.CA) Stock Fundamental Analysis
TSX:MRE - Toronto Stock Exchange - CA5734591046 - Common Stock - Currency: CAD
MRE gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 4 industry peers in the Automobile Components industry. MRE may be in some trouble as it scores bad on both profitability and health. MRE is valued quite cheap, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MRE was profitable.
In the past year MRE had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: MRE reported negative net income in multiple years.
In the past 5 years MRE always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MRE (-1.56%) is worse than 75.00% of its industry peers.
MRE's Return On Equity of -4.10% is on the low side compared to the rest of the industry. MRE is outperformed by 75.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.61%, MRE is in line with its industry, outperforming 50.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MRE is in line with the industry average of 7.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.56% | ||
| ROE | -4.1% | ||
| ROIC | 6.61% |
ROA(3y)2.05%
ROA(5y)1.27%
ROE(3y)5.93%
ROE(5y)3.71%
ROIC(3y)6.88%
ROIC(5y)5.19%
1.3 Margins
MRE has a Operating Margin of 5.16%. This is comparable to the rest of the industry: MRE outperforms 50.00% of its industry peers.
MRE's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 12.92%, MRE is doing worse than 75.00% of the companies in the same industry.
MRE's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.16% | ||
| PM (TTM) | N/A | ||
| GM | 12.92% |
OM growth 3Y60.02%
OM growth 5Y-6.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y14.36%
GM growth 5Y-3.14%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MRE is destroying value.
The number of shares outstanding for MRE has been reduced compared to 1 year ago.
Compared to 5 years ago, MRE has less shares outstanding
MRE has a worse debt/assets ratio than last year.
2.2 Solvency
MRE has an Altman-Z score of 1.92. This is not the best score and indicates that MRE is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.92, MRE is doing worse than 75.00% of the companies in the same industry.
MRE has a debt to FCF ratio of 9.28. This is a negative value and a sign of low solvency as MRE would need 9.28 years to pay back of all of its debts.
MRE has a worse Debt to FCF ratio (9.28) than 75.00% of its industry peers.
MRE has a Debt/Equity ratio of 0.80. This is a neutral value indicating MRE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.80, MRE is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 9.28 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.79
WACC8.32%
2.3 Liquidity
MRE has a Current Ratio of 1.24. This is a normal value and indicates that MRE is financially healthy and should not expect problems in meeting its short term obligations.
MRE has a Current ratio (1.24) which is comparable to the rest of the industry.
MRE has a Quick Ratio of 1.24. This is a bad value and indicates that MRE is not financially healthy enough and could expect problems in meeting its short term obligations.
MRE has a Quick ratio (0.79) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
MRE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -57.64%.
Measured over the past years, MRE shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -12.34% on average per year.
MRE shows a decrease in Revenue. In the last year, the revenue decreased by -9.36%.
MRE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.35% yearly.
EPS 1Y (TTM)-57.64%
EPS 3Y41.11%
EPS 5Y-12.34%
EPS Q2Q%-33.87%
Revenue 1Y (TTM)-9.36%
Revenue growth 3Y9.84%
Revenue growth 5Y5.35%
Sales Q2Q%-11.76%
3.2 Future
Based on estimates for the next years, MRE will show a very strong growth in Earnings Per Share. The EPS will grow by 36.79% on average per year.
The Revenue is expected to decrease by -0.28% on average over the next years.
EPS Next Y59.03%
EPS Next 2Y36.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-4.14%
Revenue Next 2Y-0.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 8.77, which indicates a very decent valuation of MRE.
MRE's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.69, MRE is valued rather cheaply.
The Price/Forward Earnings ratio is 3.85, which indicates a rather cheap valuation of MRE.
100.00% of the companies in the same industry are more expensive than MRE, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MRE to the average of the S&P500 Index (21.29), we can say MRE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 3.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRE is valued cheaper than 100.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MRE is valued cheaper than 100.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.58 | ||
| EV/EBITDA | 2.91 |
4.3 Compensation for Growth
MRE's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MRE's earnings are expected to grow with 36.79% in the coming years.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y36.79%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.40%, MRE has a reasonable but not impressive dividend return.
MRE's Dividend Yield is comparable with the industry average which is at 3.78.
Compared to an average S&P500 Dividend Yield of 2.43, MRE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
5.2 History
The dividend of MRE has a limited annual growth rate of 1.94%.
MRE has paid a dividend for at least 10 years, which is a reliable track record.
MRE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)1.94%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
MRE has negative earnings and hence a negative payout ratio. The dividend may be in danger.
The dividend of MRE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP-24.57%
EPS Next 2Y36.79%
EPS Next 3YN/A
TSX:MRE (6/24/2025, 7:00:00 PM)
8.51
+0.09 (+1.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners15.14%
Inst Owner ChangeN/A
Ins Owners2.1%
Ins Owner ChangeN/A
Market Cap619.44M
Analysts78
Price Target11.52 (35.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.4% |
Yearly Dividend0.2
Dividend Growth(5Y)1.94%
DP-24.57%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-82.34%
Min EPS beat(2)-173.21%
Max EPS beat(2)8.54%
EPS beat(4)1
Avg EPS beat(4)-57.71%
Min EPS beat(4)-173.21%
Max EPS beat(4)8.54%
EPS beat(8)4
Avg EPS beat(8)-25.67%
EPS beat(12)7
Avg EPS beat(12)-11.33%
EPS beat(16)8
Avg EPS beat(16)-114.19%
Revenue beat(2)0
Avg Revenue beat(2)-4.47%
Min Revenue beat(2)-6.47%
Max Revenue beat(2)-2.46%
Revenue beat(4)0
Avg Revenue beat(4)-4.53%
Min Revenue beat(4)-6.47%
Max Revenue beat(4)-2.46%
Revenue beat(8)4
Avg Revenue beat(8)1.14%
Revenue beat(12)8
Avg Revenue beat(12)2.55%
Revenue beat(16)10
Avg Revenue beat(16)3.06%
PT rev (1m)0%
PT rev (3m)-25.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-7.33%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.96%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-6.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.77 | ||
| Fwd PE | 3.85 | ||
| P/S | 0.13 | ||
| P/FCF | 4.58 | ||
| P/OCF | 1.47 | ||
| P/B | 0.42 | ||
| P/tB | 0.43 | ||
| EV/EBITDA | 2.91 |
EPS(TTM)0.97
EY11.4%
EPS(NY)2.21
Fwd EY25.94%
FCF(TTM)1.86
FCFY21.85%
OCF(TTM)5.81
OCFY68.23%
SpS66.75
BVpS20.36
TBVpS19.85
PEG (NY)0.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.56% | ||
| ROE | -4.1% | ||
| ROCE | 9.18% | ||
| ROIC | 6.61% | ||
| ROICexc | 6.99% | ||
| ROICexgc | 7.09% | ||
| OM | 5.16% | ||
| PM (TTM) | N/A | ||
| GM | 12.92% | ||
| FCFM | 2.79% |
ROA(3y)2.05%
ROA(5y)1.27%
ROE(3y)5.93%
ROE(5y)3.71%
ROIC(3y)6.88%
ROIC(5y)5.19%
ROICexc(3y)7.36%
ROICexc(5y)5.55%
ROICexgc(3y)7.48%
ROICexgc(5y)5.65%
ROCE(3y)9.55%
ROCE(5y)7.21%
ROICexcg growth 3Y69.12%
ROICexcg growth 5Y-4.67%
ROICexc growth 3Y69.48%
ROICexc growth 5Y-4.48%
OM growth 3Y60.02%
OM growth 5Y-6.65%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y14.36%
GM growth 5Y-3.14%
F-Score5
Asset Turnover1.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 9.28 | ||
| Debt/EBITDA | 2 | ||
| Cap/Depr | 84.02% | ||
| Cap/Sales | 5.91% | ||
| Interest Coverage | 3.01 | ||
| Cash Conversion | 71.29% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.79 | ||
| Altman-Z | 1.92 |
F-Score5
WACC8.32%
ROIC/WACC0.79
Cap/Depr(3y)101.84%
Cap/Depr(5y)108.45%
Cap/Sales(3y)6.36%
Cap/Sales(5y)7.06%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-57.64%
EPS 3Y41.11%
EPS 5Y-12.34%
EPS Q2Q%-33.87%
EPS Next Y59.03%
EPS Next 2Y36.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-9.36%
Revenue growth 3Y9.84%
Revenue growth 5Y5.35%
Sales Q2Q%-11.76%
Revenue Next Year-4.14%
Revenue Next 2Y-0.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-16.45%
EBIT growth 3Y75.76%
EBIT growth 5Y-1.65%
EBIT Next Year108.31%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y50.36%
FCF growth 3YN/A
FCF growth 5Y5.08%
OCF growth 1Y-8.58%
OCF growth 3Y34.01%
OCF growth 5Y1.54%