MARTINREA INTERNATIONAL INC (MRE.CA) Stock Fundamental Analysis
TSX:MRE - Toronto Stock Exchange - CA5734591046 - Common Stock - Currency: CAD
Taking everything into account, MRE scores 3 out of 10 in our fundamental rating. MRE was compared to 5 industry peers in the Automobile Components industry. MRE has a bad profitability rating. Also its financial health evaluation is rather negative. MRE is cheap, but on the other hand it scores bad on growth.
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.
In the past 5 years MRE always reported a positive cash flow from operatings.
1.2 Ratios
MRE has a Return On Assets of -1.56%. This is amonst the worse of the industry: MRE underperforms 80.00% of its industry peers.
The Return On Equity of MRE (-4.10%) is worse than 80.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.61%, MRE is doing worse than 60.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MRE is in line with the industry average of 7.01%.
| 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
With a Operating Margin value of 5.16%, MRE is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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 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 | 5.16% | ||
| 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
MRE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
The debt/assets ratio for MRE is higher compared to a year ago.
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.
MRE has a Altman-Z score of 1.92. This is amonst the worse of the industry: MRE underperforms 80.00% 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.
Looking at the Debt to FCF ratio, with a value of 9.28, MRE is doing worse than 80.00% of the companies in the same industry.
A Debt/Equity ratio of 0.80 indicates that MRE is somewhat dependend on debt financing.
MRE has a worse Debt to Equity ratio (0.80) than 80.00% of its industry peers.
| 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's Current ratio of 1.24 is on the low side compared to the rest of the industry. MRE is outperformed by 60.00% of its industry peers.
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.
The Quick ratio of MRE (0.79) is worse than 60.00% of its industry peers.
| 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.
The earnings per share for MRE have been decreasing by -12.34% on average. This is quite bad
MRE shows a decrease in Revenue. In the last year, the revenue decreased by -9.36%.
The Revenue has been growing slightly by 5.35% on average over the past years.
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.
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
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
MRE is valuated reasonably with a Price/Earnings ratio of 8.76.
MRE's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of MRE to the average of the S&P500 Index (27.48), we can say 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.
The average S&P500 Price/Forward Earnings ratio is at 36.52. MRE is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.76 | ||
| Fwd PE | 3.85 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than MRE, based on the Enterprise Value to EBITDA ratio.
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 | 4.57 | ||
| EV/EBITDA | 2.91 |
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 36.79% in the coming years. This may justify a more expensive valuation.
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 2.26%.
Compared to an average industry Dividend Yield of 3.61, MRE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.34, MRE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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 (7/17/2025, 7:00:00 PM)
8.5
-0.01 (-0.12%)
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 Cap618.72M
Analysts78
Price Target11.52 (35.53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.26% |
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)-3.56%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-6.4%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
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 | 8.76 | ||
| Fwd PE | 3.85 | ||
| P/S | 0.13 | ||
| P/FCF | 4.57 | ||
| P/OCF | 1.46 | ||
| P/B | 0.42 | ||
| P/tB | 0.43 | ||
| EV/EBITDA | 2.91 |
EPS(TTM)0.97
EY11.41%
EPS(NY)2.21
Fwd EY25.97%
FCF(TTM)1.86
FCFY21.87%
OCF(TTM)5.81
OCFY68.31%
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%