MARTINREA INTERNATIONAL INC (MRE.CA) Stock Fundamental Analysis
TSX:MRE - Toronto Stock Exchange - CA5734591046 - Common Stock - Currency: CAD
Taking everything into account, MRE scores 4 out of 10 in our fundamental rating. MRE was compared to 4 industry peers in the Automobile Components industry. MRE may be in some trouble as it scores bad on both profitability and health. MRE has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year MRE was profitable.
MRE had a positive operating cash flow in the past year.
MRE had positive earnings in 4 of the past 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 2.45%. This is in the lower half of the industry: MRE underperforms 75.00% of its industry peers.
MRE's Return On Equity of 6.51% is on the low side compared to the rest of the industry. MRE is outperformed by 75.00% of its industry peers.
The Return On Invested Capital of MRE (7.84%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for MRE is below the industry average of 7.73%.
The last Return On Invested Capital (7.84%) for MRE is above the 3 year average (5.34%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 6.51% | ||
| ROIC | 7.84% |
ROA(3y)2.68%
ROA(5y)2.62%
ROE(3y)7.73%
ROE(5y)7.15%
ROIC(3y)5.34%
ROIC(5y)5.98%
1.3 Margins
MRE has a worse Profit Margin (1.95%) than 75.00% of its industry peers.
MRE's Profit Margin has declined in the last couple of years.
MRE's Operating Margin of 5.50% is in line compared to the rest of the industry. MRE outperforms 50.00% of its industry peers.
MRE's Operating Margin has declined in the last couple of years.
MRE has a Gross Margin of 13.04%. This is in the lower half of the industry: MRE underperforms 75.00% of its industry peers.
In the last couple of years the Gross Margin of MRE has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.5% | ||
| PM (TTM) | 1.95% | ||
| GM | 13.04% |
OM growth 3Y14.57%
OM growth 5Y-6.51%
PM growth 3YN/A
PM growth 5Y-10.73%
GM growth 3Y0.94%
GM growth 5Y-3.59%
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.
MRE has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MRE has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 1.96 indicates that MRE is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 1.96, MRE is doing worse than 75.00% of the companies in the same industry.
MRE has a debt to FCF ratio of 6.11. This is a slightly negative value and a sign of low solvency as MRE would need 6.11 years to pay back of all of its debts.
MRE has a Debt to FCF ratio (6.11) which is comparable to the rest of the industry.
MRE has a Debt/Equity ratio of 0.76. This is a neutral value indicating MRE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.76, MRE is doing worse than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 1.96 |
ROIC/WACC0.92
WACC8.55%
2.3 Liquidity
MRE has a Current Ratio of 1.23. This is a normal value and indicates that MRE is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MRE (1.23) is comparable to the rest of the industry.
A Quick Ratio of 0.80 indicates that MRE may have some problems paying its short term obligations.
MRE has a Quick ratio of 0.80. This is comparable to the rest of the industry: MRE outperforms 50.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
MRE shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -27.27%.
The Earnings Per Share has been decreasing by -0.18% on average over the past years.
MRE shows a decrease in Revenue. In the last year, the revenue decreased by -3.36%.
MRE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 7.83% yearly.
EPS 1Y (TTM)-27.27%
EPS 3Y55.3%
EPS 5Y-0.18%
EPS Q2Q%-72.06%
Revenue 1Y (TTM)-3.36%
Revenue growth 3Y16.52%
Revenue growth 5Y7.83%
Sales Q2Q%-10.26%
3.2 Future
The Earnings Per Share is expected to grow by 3.56% on average over the next years.
Based on estimates for the next years, MRE will show a small growth in Revenue. The Revenue will grow by 0.36% on average per year.
EPS Next Y-23.5%
EPS Next 2Y-3.44%
EPS Next 3Y3.56%
EPS Next 5YN/A
Revenue Next Year-4.04%
Revenue Next 2Y-0.71%
Revenue Next 3Y0.36%
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
With a Price/Earnings ratio of 4.41, the valuation of MRE can be described as very cheap.
Based on the Price/Earnings ratio, MRE is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 29.35, MRE is valued rather cheaply.
With a Price/Forward Earnings ratio of 3.77, the valuation of MRE can be described as very cheap.
Based on the Price/Forward Earnings ratio, MRE is valued cheaper than 100.00% of the companies 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 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.41 | ||
| Fwd PE | 3.77 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MRE indicates a rather cheap valuation: MRE is cheaper than 100.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, MRE is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.78 | ||
| EV/EBITDA | 2.61 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-3.44%
EPS Next 3Y3.56%
5. Dividend
5.1 Amount
MRE has a Yearly Dividend Yield of 2.53%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of MRE has falen by -23.85%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 3.95, MRE has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.33, MRE has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
5.2 History
The dividend of MRE has a limited annual growth rate of 5.56%.
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)5.56%
Div Incr Years1
Div Non Decr Years11
5.3 Sustainability
15.33% of the earnings are spent on dividend by MRE. This is a low number and sustainable payout ratio.
MRE's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP15.33%
EPS Next 2Y-3.44%
EPS Next 3Y3.56%
TSX:MRE (3/7/2025, 7:00:00 PM)
7.76
-0.16 (-2.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners15.62%
Inst Owner ChangeN/A
Ins Owners1.98%
Ins Owner ChangeN/A
Market Cap564.85M
Analysts82
Price Target15.56 (100.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.53% |
Yearly Dividend0.2
Dividend Growth(5Y)5.56%
DP15.33%
Div Incr Years1
Div Non Decr Years11
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-33.08%
Min EPS beat(2)-62.19%
Max EPS beat(2)-3.97%
EPS beat(4)1
Avg EPS beat(4)-18.48%
Min EPS beat(4)-62.19%
Max EPS beat(4)8.97%
EPS beat(8)4
Avg EPS beat(8)-3.48%
EPS beat(12)7
Avg EPS beat(12)-122.49%
EPS beat(16)9
Avg EPS beat(16)-103.38%
Revenue beat(2)0
Avg Revenue beat(2)-4.6%
Min Revenue beat(2)-4.98%
Max Revenue beat(2)-4.22%
Revenue beat(4)2
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-4.98%
Max Revenue beat(4)7.92%
Revenue beat(8)6
Avg Revenue beat(8)3.85%
Revenue beat(12)10
Avg Revenue beat(12)5.78%
Revenue beat(16)12
Avg Revenue beat(16)4.2%
PT rev (1m)-0.81%
PT rev (3m)-6.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-5.88%
EPS NY rev (1m)-0.48%
EPS NY rev (3m)-10.86%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.26%
Revenue NY rev (1m)-0.63%
Revenue NY rev (3m)-0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.41 | ||
| Fwd PE | 3.77 | ||
| P/S | 0.11 | ||
| P/FCF | 2.78 | ||
| P/OCF | 1.2 | ||
| P/B | 0.37 | ||
| P/tB | 0.38 | ||
| EV/EBITDA | 2.61 |
EPS(TTM)1.76
EY22.68%
EPS(NY)2.06
Fwd EY26.55%
FCF(TTM)2.79
FCFY35.99%
OCF(TTM)6.49
OCFY83.66%
SpS70.88
BVpS21.24
TBVpS20.69
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 6.51% | ||
| ROCE | 10.16% | ||
| ROIC | 7.84% | ||
| ROICexc | 8.37% | ||
| ROICexgc | 8.5% | ||
| OM | 5.5% | ||
| PM (TTM) | 1.95% | ||
| GM | 13.04% | ||
| FCFM | 3.94% |
ROA(3y)2.68%
ROA(5y)2.62%
ROE(3y)7.73%
ROE(5y)7.15%
ROIC(3y)5.34%
ROIC(5y)5.98%
ROICexc(3y)5.71%
ROICexc(5y)6.37%
ROICexgc(3y)5.82%
ROICexgc(5y)6.5%
ROCE(3y)6.92%
ROCE(5y)7.75%
ROICexcg growth 3Y27.05%
ROICexcg growth 5Y-4.49%
ROICexc growth 3Y27.36%
ROICexc growth 5Y-4.12%
OM growth 3Y14.57%
OM growth 5Y-6.51%
PM growth 3YN/A
PM growth 5Y-10.73%
GM growth 3Y0.94%
GM growth 5Y-3.59%
F-Score8
Asset Turnover1.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 6.11 | ||
| Debt/EBITDA | 1.89 | ||
| Cap/Depr | 79.29% | ||
| Cap/Sales | 5.22% | ||
| Interest Coverage | 3.21 | ||
| Cash Conversion | 75.83% | ||
| Profit Quality | 201.99% | ||
| Current Ratio | 1.23 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 1.96 |
F-Score8
WACC8.55%
ROIC/WACC0.92
Cap/Depr(3y)113.62%
Cap/Depr(5y)118.28%
Cap/Sales(3y)7.04%
Cap/Sales(5y)7.4%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-27.27%
EPS 3Y55.3%
EPS 5Y-0.18%
EPS Q2Q%-72.06%
EPS Next Y-23.5%
EPS Next 2Y-3.44%
EPS Next 3Y3.56%
EPS Next 5YN/A
Revenue 1Y (TTM)-3.36%
Revenue growth 3Y16.52%
Revenue growth 5Y7.83%
Sales Q2Q%-10.26%
Revenue Next Year-4.04%
Revenue Next 2Y-0.71%
Revenue Next 3Y0.36%
Revenue Next 5YN/A
EBIT growth 1Y-3.13%
EBIT growth 3Y33.5%
EBIT growth 5Y0.81%
EBIT Next Year100.84%
EBIT Next 3Y27.96%
EBIT Next 5YN/A
FCF growth 1Y241.65%
FCF growth 3Y48.13%
FCF growth 5YN/A
OCF growth 1Y19.31%
OCF growth 3Y12.92%
OCF growth 5Y11.49%