TSE:MRE

Martinrea (MRE.TO)

10.52
-0.39 (3.57%)
as of Jun 10, 2026, 5:53:12 pm Market Open.
187 watching
0
BUY
He still likes it. He thinks there is still upside and he is going to add more. These guys are well positioned to meet the demand in the electric vehicle market.
TOP PICK
A cheap stock that's survived the downturn with a healthy balance sheet as they pay down debt. It trades at 4x forward operating cash flow which is growing, and probably boasts 10x forward earnings. The car business is coming back. Auto parts company can shift to meet demand in growing e-cars. (Analysts’ price target is $14.94)
TOP PICK
Likes the auto sector. Stay at home trade also benefits driving for vacation. People aren't getting on planes, they're driving. Trading at 4x operating cash flow. Balance sheet's improved, likes the valuation. Yield is 1.94%. (Analysts’ price target is $14.94)
TOP PICK
This has a bit of cyclicality in it. The auto parts sector has such cheap valuations. The earnings will take a hit in the downturn. But they can easily survive this. They will sell more as we get into the electric side. People will get back into their cars more quickly than they will get on an airplane when this is all over. (Analysts’ price target is $12.75)
DON'T BUY
A great company with a nice dividend and good earnings. Unfortunately it does not have enough upside for him. Not his kind of investing -- he likes to see 100% upside potential.
COMMENT
LNR vs MG vs MRE? The auto parts sector has had headwinds. He would stick with MG-T as they pay the highest dividend. He would have thought LNR-T would have been more defensive, but an acquistion in the agricultural space has proved to be a failed attempt to diversify. All three look very cheap. He does own MG-T.
BUY
The whole auto space is a little weak these days. This one is lower than the group. One day the growth will be back. There is nothing wrong with this one. It could be taken out.
DON'T BUY
Not safe, because they're a car parts-maker that is directly tied to the wider economy. It's a tough business that's getting tougher, because of radical changes in the industry. For example, car makes trucks now, not cars. The companies are merging and getting out of production, which hurts suppliers like MRE. Demand? His kids don't drive cars, for example. Also, e-cars don't need MRE's parts, and e-car production will accelerate.
TOP PICK
A value play, though auto parts are out of favour. MRE have been growing their margins very well in recent years. They are the least-exposed to Asia (are North American-focussed) vs. its peers. MRE is focussed on "light weighting" aluminium parts for cars to make the cars of the big carmakers lighter which promotes fuel efficiency in those cars. Trades at a cheap 4x earnings, the cheapest in over a decade. Good balance sheet and are buying back shares. (Analysts’ price target is $16.71)
DON'T BUY
Struggles with the auto companies in general. Decided to avoid them because of disruption in the space. For example, Lyft has a much bigger market cap than Ford. If more people ride-share, fewer cars are sold, but Martinrea makes parts for cars.
PAST TOP PICK
(A Top Pick Jan 05/18, Down 32%) The auto parts sector is slowing and there is concern about lease financing. He sees Lyft, Uber and mass transit is having a long term impact on the industry.
DON'T BUY
She doesn't follow this closely. She owns nothing in auto parts, because the U.S. auto cycle has likely peaked and things in Europe are slowing.
DON'T BUY
Considering the GM plant shutdown He held auto parts stocks for several years until the spring. He no lonege own this. This sector has had poor price momentum, and he sees continued pressure even after NAFTA being resolved. It's cheap at 5x PE. Has the weaker balance sheet vs. Magna and Linamar.
PAST TOP PICK

(A Top Pick Oct 6/17, Down 2%) He sold it back in July. There were great concerns regarding NAFTA.

BUY

Stick with it. They benefit from the NAFTA deal this week. Cheap. The best player in aluminum use in lightweight cars. Margins rising. Trading at 7x forward earnings. They're doing a good job. Their price is the best of the group.

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