Martinrea International Inc.
Martinrea International Inc. Fundamental Analysis
Martinrea International Inc. (MRETF) shows weak financial fundamentals with a PE ratio of 6.62, profit margin of 2.22%, and ROE of 7.13%. The company generates $4.9B in annual revenue with weak year-over-year growth of -6.10%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 25.1/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MRETF's fundamental strength across five key dimensions:
Efficiency Score
WeakMRETF struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMRETF trades at attractive valuation levels.
Growth Score
WeakMRETF faces weak or negative growth trends.
Financial Health Score
ExcellentMRETF maintains a strong and stable balance sheet.
Profitability Score
WeakMRETF struggles to sustain strong margins.
Key Financial Metrics
Is MRETF Expensive or Cheap?
P/E Ratio
MRETF trades at 6.62 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MRETF's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Martinrea International Inc. at 0.47 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -0.41 times EBITDA. This is generally considered low.
How Well Does MRETF Make Money?
Net Profit Margin
For every $100 in sales, Martinrea International Inc. keeps $2.22 as profit after all expenses.
Operating Margin
Core operations generate 4.90 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.13 in profit for every $100 of shareholder equity.
ROA
Martinrea International Inc. generates $2.86 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Martinrea International Inc. generates limited operating cash flow of $440.12M, signaling weaker underlying cash strength.
Free Cash Flow
Martinrea International Inc. produces free cash flow of $189.54M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.60 in free cash annually.
FCF Yield
MRETF converts 25.63% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
6.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.47
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.15
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.74
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.19
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.09
vs 25 benchmark
How MRETF Stacks Against Its Sector Peers
| Metric | MRETF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 6.62 | 23.64 | Better (Cheaper) |
| ROE | 7.13% | 1155.00% | Weak |
| Net Margin | 2.22% | 669.00% | Weak |
| Debt/Equity | 0.74 | 0.73 | Neutral |
| Current Ratio | 1.19 | 2.57 | Neutral |
| ROA | 2.86% | -8241.00% (disorted) | Weak |
MRETF outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Martinrea International Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
41.78%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
-120.83%
Industry Style: Cyclical, Growth, Discretionary
DecliningFCF CAGR
17.89%
Industry Style: Cyclical, Growth, Discretionary
High Growth