MARTINREA INTERNATIONAL INC (MRE.CA) Stock Fundamental Analysis
Canada - TSX:MRE - CA5734591046 - Common Stock
9.98 CAD
+0.07 (+0.71%)
We assign a fundamental rating of 4 out of 10 to MRE. MRE was compared to 5 industry peers in the Automobile Components industry. MRE may be in some trouble as it scores bad on both profitability and health. MRE is cheap, but on the other hand it scores bad on growth.
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.
Each year in the past 5 years MRE had a positive operating cash flow.
1.2 Ratios
MRE has a worse Return On Assets (-1.66%) than 80.00% of its industry peers.
MRE has a worse Return On Equity (-4.32%) than 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.90%, MRE is in line with its industry, outperforming 60.00% 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 6.27%.
The 3 year average ROIC (6.88%) for MRE is below the current ROIC(6.90%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.66% | ||
| ROE | -4.32% | ||
| ROIC | 6.9% |
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 5.26%, MRE is doing worse than 60.00% 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 13.01%, MRE is doing worse than 80.00% of the companies in the same industry.
In the last couple of years the Gross Margin of MRE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.26% | ||
| PM (TTM) | N/A | ||
| GM | 13.01% |
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.
MRE has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MRE has been reduced compared to 5 years ago.
The debt/assets ratio for MRE is higher compared to a year ago.
2.2 Solvency
MRE has an Altman-Z score of 1.98. 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.
MRE has a Altman-Z score of 1.98. This is amonst the worse of the industry: MRE underperforms 80.00% of its industry peers.
MRE has a debt to FCF ratio of 7.86. This is a slightly negative value and a sign of low solvency as MRE would need 7.86 years to pay back of all of its debts.
The Debt to FCF ratio of MRE (7.86) is worse than 80.00% of its industry peers.
MRE has a Debt/Equity ratio of 0.75. This is a neutral value indicating MRE is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.75, MRE is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 7.86 | ||
| Altman-Z | 1.98 |
ROIC/WACC0.81
WACC8.53%
2.3 Liquidity
MRE has a Current Ratio of 1.23. This is a normal value and indicates that MRE is financially healthy and should not expect problems in meeting its short term obligations.
MRE's Current ratio of 1.23 is on the low side compared to the rest of the industry. MRE is outperformed by 60.00% of its industry peers.
A Quick Ratio of 0.82 indicates that MRE may have some problems paying its short term obligations.
With a Quick ratio value of 0.82, MRE is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for MRE have decreased strongly by -53.33% 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.
MRE shows a decrease in Revenue. In the last year, the revenue decreased by -8.84%.
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)-53.33%
EPS 3Y41.11%
EPS 5Y-12.34%
EPS Q2Q%13.79%
Revenue 1Y (TTM)-8.84%
Revenue growth 3Y9.84%
Revenue growth 5Y5.35%
Sales Q2Q%-2.02%
3.2 Future
MRE is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.03% yearly.
Based on estimates for the next years, MRE will show a decrease in Revenue. The Revenue will decrease by -0.56% on average per year.
EPS Next Y66.39%
EPS Next 2Y37.41%
EPS Next 3Y29.03%
EPS Next 5YN/A
Revenue Next Year-3.17%
Revenue Next 2Y-0.42%
Revenue Next 3Y-0.56%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 9.50 indicates a reasonable valuation of MRE.
Compared to the rest of the industry, the Price/Earnings ratio of MRE is on the same level as its industry peers.
MRE's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.69.
Based on the Price/Forward Earnings ratio of 4.48, the valuation of MRE can be described as very cheap.
100.00% of the companies in the same industry are more expensive than MRE, based on the Price/Forward Earnings ratio.
MRE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 4.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MRE is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MRE is valued a bit cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.85 | ||
| EV/EBITDA | 2.94 |
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.
MRE's earnings are expected to grow with 29.03% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y37.41%
EPS Next 3Y29.03%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.03%, MRE has a reasonable but not impressive dividend return.
MRE's Dividend Yield is comparable with the industry average which is at 3.53.
MRE's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
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.
MRE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-23.14%
EPS Next 2Y37.41%
EPS Next 3Y29.03%
TSX:MRE (10/20/2025, 7:00:00 PM)
9.98
+0.07 (+0.71%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners14.56%
Inst Owner ChangeN/A
Ins Owners2.11%
Ins Owner ChangeN/A
Market Cap726.44M
Analysts80
Price Target12.6 (26.25%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.03% |
Yearly Dividend0.2
Dividend Growth(5Y)1.94%
DP-23.14%
Div Incr Years1
Div Non Decr Years11
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)22.58%
Min EPS beat(2)8.54%
Max EPS beat(2)36.61%
EPS beat(4)2
Avg EPS beat(4)-47.56%
Min EPS beat(4)-173.21%
Max EPS beat(4)36.61%
EPS beat(8)4
Avg EPS beat(8)-21.78%
EPS beat(12)7
Avg EPS beat(12)-9.52%
EPS beat(16)9
Avg EPS beat(16)-111.44%
Revenue beat(2)1
Avg Revenue beat(2)-2.29%
Min Revenue beat(2)-6.47%
Max Revenue beat(2)1.88%
Revenue beat(4)1
Avg Revenue beat(4)-2.82%
Min Revenue beat(4)-6.47%
Max Revenue beat(4)1.88%
Revenue beat(8)4
Avg Revenue beat(8)0.37%
Revenue beat(12)8
Avg Revenue beat(12)2.44%
Revenue beat(16)11
Avg Revenue beat(16)3.53%
PT rev (1m)0%
PT rev (3m)9.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.91%
EPS NY rev (1m)4.4%
EPS NY rev (3m)4.63%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.5 | ||
| Fwd PE | 4.48 | ||
| P/S | 0.15 | ||
| P/FCF | 4.85 | ||
| P/OCF | 1.63 | ||
| P/B | 0.49 | ||
| P/tB | 0.51 | ||
| EV/EBITDA | 2.94 |
EPS(TTM)1.05
EY10.52%
EPS(NY)2.23
Fwd EY22.33%
FCF(TTM)2.06
FCFY20.63%
OCF(TTM)6.14
OCFY61.51%
SpS66.39
BVpS20.24
TBVpS19.7
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -1.66% | ||
| ROE | -4.32% | ||
| ROCE | 9.58% | ||
| ROIC | 6.9% | ||
| ROICexc | 7.34% | ||
| ROICexgc | 7.46% | ||
| OM | 5.26% | ||
| PM (TTM) | N/A | ||
| GM | 13.01% | ||
| FCFM | 3.1% |
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-Score4
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 7.86 | ||
| Debt/EBITDA | 1.87 | ||
| Cap/Depr | 87.93% | ||
| Cap/Sales | 6.15% | ||
| Interest Coverage | 3.22 | ||
| Cash Conversion | 75.46% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 1.98 |
F-Score4
WACC8.53%
ROIC/WACC0.81
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)-53.33%
EPS 3Y41.11%
EPS 5Y-12.34%
EPS Q2Q%13.79%
EPS Next Y66.39%
EPS Next 2Y37.41%
EPS Next 3Y29.03%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.84%
Revenue growth 3Y9.84%
Revenue growth 5Y5.35%
Sales Q2Q%-2.02%
Revenue Next Year-3.17%
Revenue Next 2Y-0.42%
Revenue Next 3Y-0.56%
Revenue Next 5YN/A
EBIT growth 1Y-15.36%
EBIT growth 3Y75.76%
EBIT growth 5Y-1.65%
EBIT Next Year114.62%
EBIT Next 3Y34.5%
EBIT Next 5YN/A
FCF growth 1Y63.1%
FCF growth 3YN/A
FCF growth 5Y5.08%
OCF growth 1Y-1.82%
OCF growth 3Y34.01%
OCF growth 5Y1.54%