Martinrea International (MRE) AI Stock Analysis

• Market Cap: C$752.63M
• Dividend Yield: 1.93%
• Average Volume (3M): 131.91K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: -7.25%
• EPS Growth: -143.07%
• Country: CA
• Employees: 17,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 0.52
• Shares Outstanding: 72,787,850
• 10 Day Avg. Volume: 109,962
• 30 Day Avg. Volume: 131,913
• PEG Ratio: 0.16
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.14
• P/FCF Ratio: 4.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$11.05
• Price Target Upside: 6.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: C$10.00 ▼(-3.29% Downside)

Martinrea International's overall stock score reflects significant challenges in financial performance, particularly in profitability, despite stable cash flow and balance sheet. Technical analysis indicates bearish momentum, while valuation concerns persist due to negative earnings. The earnings call provides some optimism with operational improvements and new business awards, but challenges remain.

Positive Factors

Cash Flow Generation

Strong cash flow generation indicates efficient operations and financial health, providing flexibility for investment and debt management.

New Business Awards

Securing new business awards and extensions strengthens market position and ensures a steady revenue stream, enhancing long-term growth prospects.

Operational Improvements

Operational improvements leading to margin expansion reflect enhanced efficiency and cost management, supporting sustainable profitability.

Negative Factors

Revenue Decline

Declining revenue indicates challenges in maintaining sales momentum, which can impact long-term growth and market competitiveness.

Profitability Challenges

Negative profit margins highlight difficulties in achieving profitability, which may affect financial stability and investor confidence.

Supply Chain Disruptions

Supply chain disruptions and cybersecurity issues can hinder production efficiency, affecting delivery timelines and financial performance.

Martinrea International Business Overview & Revenue Model

Company Description

Martinrea International Inc. is a leading global automotive supplier headquartered in Canada, specializing in the design, engineering, and manufacturing of innovative automotive systems, modules, and components. The company operates primarily in the automotive sector, focusing on producing metal forming, fluid management, and lightweighting solutions. Martinrea serves a diverse customer base, including major automotive manufacturers, and is committed to delivering high-quality products that enhance vehicle performance and safety.

How the Company Makes Money

Martinrea International generates revenue primarily through the sale of automotive components and systems to original equipment manufacturers (OEMs) and tier-one suppliers in the automotive industry. The company's key revenue streams include the production of metal stamped parts, fluid management systems, and various other automotive components. Significant partnerships with major automotive manufacturers, combined with their focus on innovation and efficiency, enable Martinrea to secure long-term contracts and maintain a steady flow of income. Additionally, the company benefits from the growing demand for lightweight materials and advanced manufacturing processes, positioning itself to capitalize on trends such as electric vehicle production and increased sustainability initiatives in the automotive sector.

Martinrea International Financial Statement Overview

Summary

Martinrea International faces profitability challenges with declining revenue and negative net income in the TTM. The balance sheet shows manageable leverage, but the negative return on equity is concerning. Cash flow generation is a positive aspect, with improvements in free cash flow growth.

Income Statement

The income statement shows a challenging period for Martinrea International, with declining revenue and negative net profit margins in the TTM. The gross profit margin remains relatively stable, but the company is struggling with profitability as indicated by negative net income and declining EBIT margins. Revenue growth has been negative, reflecting potential market challenges or operational inefficiencies.

Balance Sheet

The balance sheet indicates moderate leverage with a debt-to-equity ratio below 1, suggesting manageable debt levels. However, the negative return on equity in the TTM highlights profitability issues. The equity ratio is stable, indicating a solid asset base relative to equity.

Cash Flow

Cash flow analysis reveals a positive free cash flow growth rate in the TTM, suggesting improved cash generation. The operating cash flow to net income ratio is healthy, indicating good cash conversion despite negative net income. However, the free cash flow to net income ratio reflects challenges in translating earnings into free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.79B	5.01B	5.34B	4.76B	3.78B	3.38B
Gross Profit	635.15M	648.56M	675.40M	559.26M	345.62M	415.10M
EBITDA	406.24M	475.17M	597.92M	516.59M	328.40M	263.75M
Net Income	-42.01M	-34.55M	153.66M	132.84M	35.88M	-27.32M
Balance Sheet
Total Assets	3.93B	3.82B	3.99B	4.14B	3.61B	3.37B
Cash, Cash Equivalents and Short-Term Investments	142.99M	167.95M	186.80M	161.66M	153.29M	152.79M
Total Debt	1.15B	1.22B	1.23B	1.34B	1.25B	1.05B
Total Liabilities	2.39B	2.35B	2.52B	2.77B	2.44B	2.19B
Stockholders Equity	1.54B	1.47B	1.47B	1.38B	1.17B	1.18B
Cash Flow
Free Cash Flow	151.16M	150.54M	207.57M	53.96M	-118.73M	54.13M
Operating Cash Flow	422.45M	433.29M	511.09M	437.78M	180.03M	355.02M
Investing Cash Flow	-271.65M	-285.50M	-303.75M	-381.27M	-305.86M	-331.95M
Financing Cash Flow	-184.96M	-167.43M	-180.72M	-41.72M	129.93M	10.56M

Martinrea International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MRE, the sentiment is Positive. The current price of 10.34 is above the 20-day moving average (MA) of 10.19, above the 50-day MA of 10.19, and above the 200-day MA of 8.99, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 53.26 is Neutral, neither overbought nor oversold. The STOCH value of 52.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MRE.

Martinrea International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MG	77 Outperform	C$20.80B	14.50	8.31%	3.69%	0.66%	-0.61%
LNR	77 Outperform	C$5.07B	20.67	4.01%	1.32%	-5.33%	-57.58%
XTC	71 Outperform	C$256.64M	10.68	6.05%	6.21%	-3.53%	-17.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
BYD	58 Neutral	C$6.18B	215.93	1.90%	0.28%	4.24%	-60.60%
NFI	52 Neutral	C$1.89B	-4.73	-52.38%	―	14.40%	-1117.18%
MRE	51 Neutral	C$752.63M	-18.29	-2.64%	1.93%	-7.25%	-143.07%

Martinrea International Corporate Events

Martinrea International Reports Strong Q3 Results and Secures New Business

Martinrea International Inc. reported strong financial results for the third quarter of 2025, with total sales reaching $1,190.8 million and a quarterly cash dividend declared. The company achieved an adjusted operating income margin increase and secured new business awards totaling $30 million in annualized sales. Despite challenges such as tariffs and a production disruption at Jaguar Land Rover, Martinrea remains optimistic, maintaining its 2025 outlook and expecting further improvements in 2026.

Martinrea International to Release Q3 2025 Financial Results

Martinrea International Inc. has announced that it will release its financial results for the third quarter of 2025 on November 11, after the market closes. The company plans to hold a conference call on the same day to discuss these results, which will be accessible via phone and webcast, offering stakeholders insights into the company’s financial performance and strategic positioning.