Education
About Us
Working with TipRanks
Follow Us
Martinrea International (TSE:MRE)
TSX:MRE
Top Page
Martinrea International
(TSX:MRE)
Rating:60Neutral
Price Target:
C$8.50
▲(2.29% Upside)
Positive Factors
Stock Stability
There is likely limited downside in the stock, suggesting some stability in MRE shares.
Stock Valuation
MRE's shares are trading at just under 3x forward EBITDA, which is at the lower end of its historical valuation range.
Negative Factors
Industry Outlook
Flat industry production in North America is expected, which could limit Martinrea International Inc.'s growth.
Market Comparison
Analysts see less potential upside in MRE shares compared to other companies like MGA and LNR.
Performance Expectations
MRE's performance is expected to largely trend with industry production, offering less margin improvement compared to competitors.
Martinrea International (MRE) vs. iShares MSCI Canada ETF (EWC)
Market Cap
$604.87M
Dividend Yield2.33%
Average Volume (3M)81.67K
Price to Earnings (P/E)5.7
Beta (1Y)1.13
Revenue Growth-9.36%
EPS Growth-145.18%
CountryCA
Employees17,000
SectorConsumer Cyclical
Sector Strength71
IndustryAuto - Parts
Share Statistics
EPS (TTM)0.66
Shares Outstanding72,787,850
10 Day Avg. Volume58,330
30 Day Avg. Volume81,671
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap2.67
Enterprise Value/Revenue0.33
Enterprise Value/Gross Profit2.61
Enterprise Value/Ebitda3.71
Forecast
1Y Price Target
$8.50Price Target Upside2.31% Upside
Rating ConsensusHold
Number of Analyst Covering1
Martinrea International Business Overview & Revenue Model
Company DescriptionMartinrea International Inc. is a global automotive supplier headquartered in Ontario, Canada, specializing in the design and manufacturing of metal parts, assemblies, and modules for the automotive industry. The company operates primarily in two sectors: the Automotive Products segment, which includes body and chassis, and the Fluid Management segment, focused on fluid transfer systems and fuel delivery components. Martinrea provides high-quality products and services to major automotive manufacturers and strives for innovation in vehicle lightweighting and sustainability.
How the Company Makes MoneyMartinrea International generates revenue primarily through the sale of automotive components and systems to various original equipment manufacturers (OEMs) and Tier 1 suppliers. Key revenue streams include the production of metal stamping components, welded assemblies, and fluid management systems. The company also benefits from long-term contracts with major automotive players, ensuring a consistent flow of orders. Strategic partnerships with leading automotive manufacturers enhance its market position and provide opportunities for collaborative development of new technologies. Factors contributing to earnings include operational efficiency, investment in advanced manufacturing techniques, and a focus on research and development to meet the evolving needs of the automotive industry.
Martinrea International Earnings Call Summary
Earnings Call Date:Aug 12, 2025
(Q1-2025)
| % Change Since: -3.15%|
Next Earnings Date:Nov 12, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mix of improvements in financial results and new business awards against significant challenges from U.S. tariffs, losses in European operations, and negative free cash flow. The positive steps in cost management and new business are counterbalanced by concerns over tariffs and declines in key financial metrics.Q1-2025 Updates
Positive Updates
Improved Q1 Financial Results
Q1 financial results improved over Q4 with higher production sales and better margins. Inventories are now at normal levels, and volumes improved compared to Q4.
New Business Awards
Awarded new business worth $60 million in annualized sales, with $55 million in structural components with Mercedes and General Motors and $5 million with Volvo Truck.
SG&A Cost Reduction Initiative
Announced a project targeting $50 million in annual cost improvement through SG&A cost reductions, generating free cash flow, and maintaining a strong balance sheet.
Negative Updates
Impact of U.S. Tariffs
U.S. tariffs on automotive imports are clouding the business outlook. Tariffs have led to OEMs announcing temporary shutdowns and volume reductions. The direct impact has been manageable but could accelerate.
European Market Challenges
Adjusted operating income in Europe was a loss again this quarter, though improved from Q4. The region still faces weak production volumes, especially on EV programs, and a higher cost structure.
Negative Free Cash Flow
Free cash flow before IFRS 16 lease payments was negative $25.4 million, compared to negative $1.4 million in Q1 2024, primarily due to lower EBITDA.
Adjusted EBITDA and Operating Income Decline
Adjusted EBITDA was $140.9 million, down from $162.8 million in Q1 2024. Adjusted operating income was $61.9 million, down from $79.1 million in Q1 2024.
Decreased Adjusted EPS
Adjusted net earnings per share came in at $0.41, down from $0.62 in Q1 2024, due to decreased operating income, a net foreign exchange loss, and a higher effective tax rate.
Company Guidance
During the Martinrea International First Quarter 2025 Results Conference Call, the company provided several key metrics and guidance updates. They reported an adjusted EBITDA of $140.9 million, down from $162.8 million in Q1 2024, and an adjusted operating income of $61.9 million, down from $79.1 million year-over-year, with production sales declining by about 10%. The adjusted operating income margin was 5.3%, a decrease of 70 basis points, reflecting a 13% decremental margin on lower production sales. The company projected sales for 2025 to be between $4.8 billion and $5.1 billion, with an adjusted operating income margin of 5.3% to 5.8%, and free cash flow of $125 million to $175 million. The outlook does not include potential impacts from tariffs on auto parts, which remain a concern due to ongoing geopolitical and trade uncertainties. Martinrea also highlighted a $50 million annual cost improvement target from its SG&A reduction project, and new business awards totaling $60 million in annualized sales of mature volumes. The company decided to temporarily pause share buybacks until there is more clarity on the tariff situation, focusing on maintaining a strong balance sheet and using free cash flow to pay down debt.Martinrea International Financial Statement Overview
Summary
Martinrea International shows operational efficiency with positive EBIT and EBITDA margins but faces challenges with negative net income and declining revenue. The balance sheet is stable but decreasing equity and assets raise concerns. Cash flow management is efficient, but negative free cash flow poses risks.Income Statement
The company has shown a volatile performance with revenue fluctuations. The gross profit margin is positive at approximately 12.8% TTM but has decreased from previous years. The net profit margin is negative TTM, indicating losses, which is a concern. Revenue growth has been inconsistent, with a decline most recently TTM. The EBIT and EBITDA margins are positive, which suggests some level of operational efficiency, though EBIT margin has declined.65
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio around 0.85, showing manageable leverage. The equity ratio is around 38% TTM, indicating a stable capital structure. However, a decrease in stockholders' equity and assets over the periods is a concern. Return on equity has turned negative TTM, driven by net losses.70
Positive
Cash Flow
The cash flow statement shows a decline in free cash flow from the previous year, with a negative growth rate. The operating cash flow to net income ratio is positive, indicating operational cash efficiency despite net losses. However, the negative free cash flow to net income ratio highlights challenges in generating cash relative to earnings.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 4.86B | 5.01B | 5.34B | 4.76B | 3.78B | 3.38B |
| Gross Profit | 620.84M | 648.56M | 675.40M | 559.26M | 345.62M | 415.10M |
| EBITDA | 436.41M | 475.17M | 601.48M | 516.59M | 332.32M | 263.75M |
| Net Income | -60.72M | -34.55M | 153.66M | 132.84M | 35.88M | -27.32M |
Balance Sheet | ||||||
| Total Assets | 3.90B | 3.82B | 3.99B | 4.14B | 3.61B | 3.37B |
| Cash, Cash Equivalents and Short-Term Investments | 148.55M | 167.95M | 186.80M | 161.66M | 153.29M | 152.79M |
| Total Debt | 1.26B | 1.22B | 1.23B | 1.34B | 1.25B | 1.05B |
| Total Liabilities | 2.42B | 2.35B | 2.52B | 2.77B | 2.44B | 2.19B |
| Stockholders Equity | 1.48B | 1.47B | 1.47B | 1.38B | 1.17B | 1.18B |
Cash Flow | ||||||
| Free Cash Flow | 135.33M | 150.54M | 207.57M | 53.96M | -118.73M | 54.13M |
| Operating Cash Flow | 422.65M | 433.29M | 511.09M | 437.78M | 180.03M | 355.02M |
| Investing Cash Flow | -283.94M | -285.50M | -303.75M | -381.27M | -305.86M | -331.95M |
| Financing Cash Flow | -164.42M | -167.43M | -180.72M | -41.72M | 129.93M | 10.56M |
Martinrea International Technical Analysis
Positive
8.31
Price Trends
8.48
Positive
7.92
Positive
8.48
Positive
Market Momentum
-0.03
Positive
56.23
Neutral
50.12
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 8.31 is below the 20-day moving average (MA) of 8.47, below the 50-day MA of 8.48, and below the 200-day MA of 8.48, indicating a bullish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 56.23 is Neutral, neither overbought nor oversold. The STOCH value of 50.12 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $4.14B | 16.40 | 4.66% | 1.48% | 2.26% | -54.00% | |
76 Outperform | $16.41B | 9.88 | 10.06% | 4.44% | -0.54% | 26.31% | |
61 Neutral | $17.22B | 11.58 | -7.48% | 3.16% | 1.46% | -15.87% | |
61 Neutral | $249.38M | 10.56 | 6.01% | 6.43% | -3.50% | -22.76% | |
60 Neutral | $604.87M | 5.65 | -3.98% | 2.33% | -9.36% | -145.18% | |
56 Neutral | C$669.27M | ― | 9.31% | ― | -18.16% | -275.09% | |
54 Neutral | C$2.20B | ― | -26.25% | ― | 9.12% | -182.49% |
* Consumer Cyclical Sector Average
Performance Comparison
TSE:MRE
Martinrea International
8.58
-1.72
-16.71%
TSE:LNR
Linamar
70.11
9.60
15.87%
TSE:MG
Magna International
60.73
9.17
17.79%
TSE:XTC
Exco Technologies
6.65
-0.65
-8.93%
TSE:NFI
NFI Group Inc
19.15
1.03
5.68%
TSE:ACQ
AutoCanada
28.95
14.04
94.16%
Martinrea International Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
Martinrea International Reports Strong Q2 Results and Secures New Business Awards
Positive
Aug 12, 2025
Martinrea International Inc. reported strong financial results for the second quarter of 2025, with total sales reaching $1,275.5 million and a notable increase in margins. The company also declared a quarterly cash dividend of $0.05 per share. New business awards amounting to approximately $40 million in annualized sales were secured, reflecting Martinrea’s strategic growth and operational improvements. The company is maintaining its 2025 outlook, anticipating total sales between $4.8 to $5.1 billion, driven by operational efficiencies and innovations in machine learning.
The most recent analyst rating on (TSE:MRE) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Martinrea International stock, see the TSE:MRE Stock Forecast page.
Financial Disclosures
Martinrea International to Announce Q2 Financial Results
Neutral
Aug 5, 2025
Martinrea International Inc. announced it will release its second-quarter financial results on August 12, 2025, after market close. The announcement will be followed by a conference call to discuss the results, which indicates the company’s commitment to transparency and engagement with its stakeholders.
The most recent analyst rating on (TSE:MRE) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Martinrea International stock, see the TSE:MRE Stock Forecast page.
Shareholder MeetingsBusiness Operations and Strategy
Martinrea International Inc. Reports Strong Shareholder Support at Annual Meeting
Positive
Jun 12, 2025
Martinrea International Inc. held its annual general meeting where shareholders showed strong support, voting in favor of all business items, including the election of directors. The company, despite facing tariff and trade challenges, continues to perform well and maintains a positive outlook, emphasizing its sustainable competitive advantage and commitment to delivering positive results for stakeholders.
The most recent analyst rating on (TSE:MRE) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on Martinrea International stock, see the TSE:MRE Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.