Martinrea International (MRE) AI Stock Analysis

• Market Cap: $735.16M
• Dividend Yield: 1.98%
• Average Volume (3M): 149.32K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.29
• 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: 108,241
• 30 Day Avg. Volume: 149,320
• 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: 2.42
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 2.80
• Enterprise Value/Ebitda: 4.38
• 1Y Price Target: $10.98
• Price Target Upside: 8.69% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.97
• Revenue Forecast (FY): $4.90B

• Rating: 54 Neutral
• Price Target: C$10.50 ▲(3.96% Upside)

Martinrea International's overall score reflects significant challenges in financial performance, particularly in profitability and revenue growth. While technical indicators suggest a neutral trend, valuation concerns persist due to a negative P/E ratio. The earnings call provided some optimism with operational improvements and strategic initiatives, but supply chain and cybersecurity issues remain hurdles.

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. designs, develops, manufactures, and sells metal parts, assemblies and modules, fluid management systems, and aluminum products primarily to the automotive industry in North America, Europe, and internationally. It offers engine blocks, transmissions, cases, housings, oil coolers, hoses, tube assemblies, oil fillers, tubes, indicators, oil pick-up screens and pipes, heater hose inlets and outlets, and electric motor housings; and front horizontal, rear suspension, and front vertical modules. It also provides evaporator system integrity monitors, DPS lines, EGR tubes, air-injection tubes, and exhaust manifold tubes; fuel filler necks, capless refueling systems, fuel tank/sender assemblies, vapor assemblies and canister hoses, fuel line feed/return assembly systems, and fuel lines and hoses; and air-conditioning lines, and heater core inlet and outlet assemblies. In addition, it offers frame rail assemblies, surface stampings, structural BIW components, suspension arms and links, engine cradles, centre and rear crossmembers, suspension twist axles, roof assemblies, door intrusion beams, bumpers, radiator support assemblies, trailer hitches, dash and plenum assemblies, wheelhouse assemblies, roll-formed rockers and headers, appliqués, battery trays and housings, aluminum and steel shock towers, control arms, and knuckles, as well as belt, upper reveal, roof ditch, D-line, and other exterior decorative moldings. Further, it provides brake lines and assemblies, power steering lines and assemblies, power steering oil fillers, and tubes and indicators; and graphene brake lines products. The company was formerly known as Royal Laser Tech Corporation and changed its name to Martinrea International Inc. in June 2002. Martinrea International Inc. was incorporated in 1987 and is headquartered in Vaughan, Canada.

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: Negative
• Last Price: 10.10
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 10.1 is below the 20-day moving average (MA) of 10.26, below the 50-day MA of 10.32, and above the 200-day MA of 8.82, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 44.56 is Neutral, neither overbought nor oversold. The STOCH value of 43.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MRE.

Martinrea International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNR	77 Outperform	$4.49B	21.39	4.01%	1.42%	-5.33%	-57.58%
MG	76 Outperform	$19.46B	13.57	8.31%	3.95%	0.66%	-0.61%
XTC	64 Neutral	$245.31M	10.43	6.05%	6.36%	-3.53%	-17.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MRE	54 Neutral	$735.16M	―	-2.64%	1.98%	-7.25%	-143.07%
NFI	44 Neutral	C$1.67B	-7.37	-52.38%	―	14.40%	-1117.18%
ACQ	38 Underperform	C$579.45M	-32.14	18.07%	―	-26.93%	84.17%

Martinrea International Corporate Events

Martinrea’s Earnings Call: Optimism Amid Challenges

Martinrea International Inc.’s recent earnings call painted a picture of cautious optimism. The company reported several operational and financial improvements, such as margin growth and new business awards. However, these positive developments were tempered by challenges, including supply chain disruptions, cybersecurity issues, and lower volumes in their EV programs. Despite these setbacks, Martinrea demonstrated resilience through strategic negotiations and workforce initiatives.

Martinrea International Inc. Reports Strong Q3 Results

Martinrea International Inc. is a diversified global automotive supplier specializing in the design, development, and manufacturing of lightweight structures and propulsion systems. The company operates in the automotive sector with a focus on providing value-added engineering solutions.

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.

The most recent analyst rating on (TSE:MRE) stock is a Hold with a C$10.00 price target. To see the full list of analyst forecasts on Martinrea International stock, see the TSE:MRE Stock Forecast page.

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.

The most recent analyst rating on (TSE:MRE) stock is a Hold with a C$10.00 price target. To see the full list of analyst forecasts on Martinrea International stock, see the TSE:MRE Stock Forecast page.

Martinrea’s Strong Q2 Performance and Positive Outlook

Martinrea International Inc. recently held its earnings call, revealing a robust second quarter performance characterized by significant advancements in machine learning technologies and new business awards. Despite facing challenges from tariffs and anticipated seasonal slowdowns, the overall sentiment of the call was positive, underscoring operational improvements and a promising financial outlook.