MARTINREA INTERNATIONAL INC (MRE.CA) Stock Fundamental Analysis
TSX:MRE - CA5734591046 - Common Stock
10.37 CAD
+0.28 (+2.78%)
Overall MRE gets a fundamental rating of 3 out of 10. We evaluated MRE against 5 industry peers in the Automobile Components industry. MRE has a bad profitability rating. Also its financial health evaluation is rather negative. MRE is valued quite cheap, but it does not seem to be growing.
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.
The reported net income has been mixed in the past 5 years: MRE reported negative net income in multiple years.
MRE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MRE (-1.66%) is worse than 80.00% of its industry peers.
The Return On Equity of MRE (-4.32%) is worse than 80.00% of its industry peers.
MRE's Return On Invested Capital of 6.90% is on the low side compared to the rest of the industry. MRE is outperformed by 60.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MRE is in line with the industry average of 6.72%.
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
MRE has a Operating Margin of 5.26%. This is in the lower half of the industry: MRE underperforms 60.00% of its industry peers.
In the last couple of years the Operating Margin of MRE has declined.
With a Gross Margin value of 13.01%, MRE is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
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
MRE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
MRE has less shares outstanding than it did 1 year ago.
MRE has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MRE is higher compared to a year ago.
2.2 Solvency
An Altman-Z score of 1.99 indicates that MRE is not a great score, but indicates only limited risk for bankruptcy at the moment.
MRE has a Altman-Z score of 1.99. This is amonst the worse of the industry: MRE underperforms 80.00% of its industry peers.
The Debt to FCF ratio of MRE is 7.86, which is on the high side as it means it would take MRE, 7.86 years of fcf income to pay off all of its debts.
MRE has a Debt to FCF ratio of 7.86. This is amonst the worse of the industry: MRE underperforms 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.
Looking at the Debt to Equity ratio, with a value of 0.75, MRE is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.75 | ||
| Debt/FCF | 7.86 | ||
| Altman-Z | 1.99 |
ROIC/WACC0.78
WACC8.87%
2.3 Liquidity
A Current Ratio of 1.23 indicates that MRE should not have too much problems paying its short term obligations.
MRE has a Current ratio of 1.23. This is in the lower half of the industry: MRE underperforms 60.00% of its industry peers.
A Quick Ratio of 0.82 indicates that MRE may have some problems paying its short term obligations.
MRE's Quick ratio of 0.82 is on the low side compared to the rest of the industry. MRE is outperformed by 60.00% of its industry peers.
| 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.
The Revenue has decreased by -8.84% in the past year.
MRE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.35% yearly.
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.
The Revenue is expected to decrease by -0.56% on average over the next years.
EPS Next Y59.37%
EPS Next 2Y37.6%
EPS Next 3Y29.03%
EPS Next 5YN/A
Revenue Next Year-3.31%
Revenue Next 2Y-0.18%
Revenue Next 3Y-0.56%
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.
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
Based on the Price/Earnings ratio of 9.88, the valuation of MRE can be described as reasonable.
MRE's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.08, MRE is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 4.64, the valuation of MRE can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MRE indicates a rather cheap valuation: MRE is cheaper than 100.00% of the companies listed in the same industry.
MRE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.72.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.88 | ||
| Fwd PE | 4.64 |
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.
MRE's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MRE is cheaper than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.04 | ||
| EV/EBITDA | 2.99 |
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 29.03% in the coming years.
PEG (NY)0.17
PEG (5Y)N/A
EPS Next 2Y37.6%
EPS Next 3Y29.03%
5. Dividend
5.1 Amount
MRE has a Yearly Dividend Yield of 1.98%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.48, MRE has a dividend in line with its industry peers.
MRE's Dividend Yield is comparable with the S&P500 average which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
5.2 History
The dividend of MRE has a limited annual growth rate of 1.94%.
MRE has been paying a dividend for at least 10 years, so it has 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
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-23.14%
EPS Next 2Y37.6%
EPS Next 3Y29.03%
TSX:MRE (8/29/2025, 7:00:00 PM)
10.37
+0.28 (+2.78%)
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 Cap754.83M
Analysts78
Price Target12.09 (16.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.98% |
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)4.94%
PT rev (3m)4.94%
EPS NQ rev (1m)3.38%
EPS NQ rev (3m)-17.69%
EPS NY rev (1m)0.22%
EPS NY rev (3m)0.22%
Revenue NQ rev (1m)1.86%
Revenue NQ rev (3m)-1.8%
Revenue NY rev (1m)0.78%
Revenue NY rev (3m)0.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.88 | ||
| Fwd PE | 4.64 | ||
| P/S | 0.16 | ||
| P/FCF | 5.04 | ||
| P/OCF | 1.69 | ||
| P/B | 0.51 | ||
| P/tB | 0.53 | ||
| EV/EBITDA | 2.99 |
EPS(TTM)1.05
EY10.13%
EPS(NY)2.23
Fwd EY21.54%
FCF(TTM)2.06
FCFY19.86%
OCF(TTM)6.14
OCFY59.19%
SpS66.39
BVpS20.24
TBVpS19.7
PEG (NY)0.17
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 | 1.99 |
F-Score4
WACC8.87%
ROIC/WACC0.78
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 Y59.37%
EPS Next 2Y37.6%
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-3.31%
Revenue Next 2Y-0.18%
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 Year108.31%
EBIT Next 3YN/A
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%