Martinrea International, Inc. (MRE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Magna International, Inc.

Exco Technologies Ltd.

Kelso Technologies, Inc.

Linamar Corp.

Martinrea International, Inc.

Aether Catalyst Solutions, Inc.

TUGA Innovations, Inc.

ABC Technologies Holdings, Inc.

Why is Martinrea International, Inc. ?

High Debt Company with a Debt to Equity ratio (avg) at times

Poor long term growth as Operating profit has grown by an annual rate 19.55% of over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) at times
The company has been able to generate a Return on Equity (avg) of 7.38% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 19.55% of over the last 5 years

The company declared very negative results in Dec'24 after flat results in Sep'24

OPERATING CASH FLOW(Y) Lowest at CAD 446.82 MM
NET PROFIT(9M) At CAD 74.34 MM has Grown at -29.23%
ROCE(HY) Lowest at -4.21%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -5.94%, its profits have fallen by -44.3%

Underperformed the market in the last 1 year

Even though the market (S&P/TSX 60) has generated returns of 22.54% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -5.94% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Martinrea International, Inc. for you?

High Risk, Medium Return

Absolute

Risk Adjusted

Volatility

Martinrea International, Inc.

-5.16%

0.83

34.87%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.42%

EBIT Growth (5y)

19.55%

EBIT to Interest (avg)

3.36

Debt to EBITDA (avg)

1.98

Net Debt to Equity (avg)

0.62

Sales to Capital Employed (avg)

2.00

Tax Ratio

100.00%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

0.17%

ROCE (avg)

8.58%

ROE (avg)

7.38%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

0.50

EV to EBIT

6.23

EV to EBITDA

2.68

EV to Capital Employed

0.68

EV to Sales

0.33

PEG Ratio

Dividend Yield

ROCE (Latest)

10.97%

ROE (Latest)

6.01%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bearish

Sideways

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Mildly Bullish

Dow Theory

Mildly Bearish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

10What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 986.79

RAW MATERIAL COST(Y)

Fallen by -3.34% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 69.09 %

OPERATING PROFIT MARGIN(Q)

Highest at 12.97 %

PRE-TAX PROFIT(Q)

Highest at CAD 67.6 MM

NET PROFIT(Q)

Highest at CAD 47.97 MM

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at CAD 446.82 MM

NET PROFIT(9M)

At CAD 74.34 MM has Grown at -29.23%

ROCE(HY)

Lowest at -4.21%

Here's what is working for Martinrea International, Inc.

Interest Coverage Ratio

Highest at 986.79

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At CAD 47.97 MM has Grown at 124.83%

over average net sales of the previous four periods of CAD 21.34 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Operating Profit Margin

Highest at 12.97 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 67.6 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Pre-Tax Profit

At CAD 67.6 MM has Grown at 53.49%

over average net sales of the previous four periods of CAD 44.04 MM

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Net Profit

Highest at CAD 47.97 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

Debt-Equity Ratio

Lowest at 69.09 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -3.34% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Martinrea International, Inc.

Operating Cash Flow

Lowest at CAD 446.82 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (CAD MM)