MARTINREA INTERNATIONAL INC (MRE.CA) Stock Fundamental Analysis
TSX:MRE - Toronto Stock Exchange - CA5734591046 - Common Stock - Currency: CAD
Overall MRE gets a fundamental rating of 4 out of 10. We evaluated MRE 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 has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
MRE had positive earnings in the past year.
In the past year MRE had a positive cash flow from operations.
In multiple years MRE reported negative net income over the last 5 years.
Each year in the past 5 years MRE had a positive operating cash flow.
1.2 Ratios
MRE's Return On Assets of -1.56% is on the low side compared to the rest of the industry. MRE is outperformed by 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.
With a Return On Invested Capital value of 6.61%, MRE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
MRE had an Average Return On Invested Capital over the past 3 years of 6.88%. This 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
Looking at the Operating Margin, with a value of 5.16%, MRE is in line with its industry, outperforming 50.00% of the companies in the same industry.
In the last couple of years the Operating Margin of MRE has declined.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MRE is destroying value.
The number of shares outstanding for MRE has been reduced compared to 1 year ago.
The number of shares outstanding for MRE has been reduced compared to 5 years ago.
Compared to 1 year ago, MRE has a worse debt to assets ratio.
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.
The Altman-Z score of MRE (1.92) is worse than 75.00% of its industry peers.
The Debt to FCF ratio of MRE is 9.28, which is on the high side as it means it would take MRE, 9.28 years of fcf income to pay off all of its debts.
MRE's Debt to FCF ratio of 9.28 is on the low side compared to the rest of the industry. MRE is outperformed by 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.
MRE's Debt to Equity ratio of 0.80 is on the low side compared to the rest of the industry. MRE is outperformed by 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.8 | ||
| Debt/FCF | 9.28 | ||
| Altman-Z | 1.92 |
ROIC/WACC0.8
WACC8.26%
2.3 Liquidity
A Current Ratio of 1.24 indicates that MRE should not have too much problems paying its short term obligations.
With a Current ratio value of 1.24, MRE perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
A Quick Ratio of 0.79 indicates that MRE may have some problems paying its short term obligations.
MRE has a Quick ratio (0.79) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.24 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
The earnings per share for MRE have decreased strongly by -57.64% in the last year.
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.
Looking at the last year, MRE shows a decrease in Revenue. The Revenue has decreased by -9.36% in the last year.
Measured over the past years, MRE shows a small growth in Revenue. The Revenue has been growing by 5.35% on average per year.
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
MRE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 36.79% yearly.
Based on estimates for the next years, MRE will show a decrease in Revenue. The Revenue will decrease by -0.28% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 8.69, the valuation of MRE can be described as reasonable.
The rest of the industry has a similar Price/Earnings ratio as MRE.
Compared to an average S&P500 Price/Earnings ratio of 26.25, MRE is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.82, the valuation of MRE can be described as very cheap.
MRE's Price/Forward Earnings ratio is rather cheap when compared to the industry. MRE is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MRE to the average of the S&P500 Index (22.15), we can say MRE is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 3.82 |
4.2 Price Multiples
MRE's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MRE is cheaper than 100.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MRE indicates a rather cheap valuation: MRE is cheaper than 100.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.53 | ||
| EV/EBITDA | 2.9 |
4.3 Compensation for Growth
The 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
MRE has a Yearly Dividend Yield of 2.34%.
Compared to an average industry Dividend Yield of 3.84, MRE has a dividend in line with its industry peers.
MRE's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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
The earnings of MRE are negative and hence is the payout ratio. MRE will probably not be able to sustain this dividend level.
MRE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-24.57%
EPS Next 2Y36.79%
EPS Next 3YN/A
TSX:MRE (5/30/2025, 7:00:00 PM)
8.43
-0.1 (-1.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners15.62%
Inst Owner ChangeN/A
Ins Owners1.98%
Ins Owner ChangeN/A
Market Cap613.62M
Analysts80
Price Target11.52 (36.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.34% |
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)-3.56%
PT rev (3m)-25.96%
EPS NQ rev (1m)-6.4%
EPS NQ rev (3m)-10.9%
EPS NY rev (1m)0%
EPS NY rev (3m)-8.92%
Revenue NQ rev (1m)-1.96%
Revenue NQ rev (3m)-5.51%
Revenue NY rev (1m)-2.44%
Revenue NY rev (3m)-6.69%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.69 | ||
| Fwd PE | 3.82 | ||
| P/S | 0.13 | ||
| P/FCF | 4.53 | ||
| P/OCF | 1.45 | ||
| P/B | 0.41 | ||
| P/tB | 0.42 | ||
| EV/EBITDA | 2.9 |
EPS(TTM)0.97
EY11.51%
EPS(NY)2.21
Fwd EY26.19%
FCF(TTM)1.86
FCFY22.05%
OCF(TTM)5.81
OCFY68.88%
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
WACC8.26%
ROIC/WACC0.8
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%