Martinrea (MRE-T)
TSE:MRE
7.74
0.38
(5.16%) 1d
Financials
Technical Analysis
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This summary was created by AI, based on 7 opinions in the last 12 months.
Martinrea, a company within the struggling auto sector, faces significant challenges primarily stemming from the risk of U.S. tariffs and a high level of debt, raising concerns about future growth prospects. Despite being perceived as cheap based on valuation metrics such as a low PE ratio and operating cash flow, analysts caution that it may still have room to decline further due to ongoing market pressures. Some experts see potential in its product offerings, which can cater to both traditional and electric vehicles, highlighting potential advantages in a slowly transitioning market. Insider buying and improving margins are viewed positively; however, the consensus remains that the overall environment for auto parts manufacturers is highly competitive and capital-intensive, making it a risky investment.
Everything that could go wrong, has. Potential tariffs of 25%. Concerns about capex needed for EVs. Now trading at 3x operating cashflow, 7-8 forward PE. Doing the right things, great backlog, European exposure. Still likes the story, sticking with it.
The car sector has disappointed, is floundering. He sold some car stocks, but held onto MRE because it's cheap. Is lots of insider buying and margins are improving. Are almost immune from the EV transition because the components they made can be used in gas as well as electric cars. 8-9x forward PE and a good balance sheet.
A cyclical player, but that happens in the auto industry. He's added to this recently. Still cheap. Autos have issues: inventories are climbing and EVs haven't take off as expected. MRE can supply both EVs and traditional cars, and there's been insider buying. Trades at 3x operating cash flow and 8x forward PE.
True, there are headwinds in autos, but this trades at 3-4x operating cash flow and 8-9x forward PE. Also, they're huge in areas like aluminum parts. Are well-positioned in gas-engine cars and EVs; there's 80% crossover shared between both kinds of cars.
(Analysts’ price target is $19.34)
Our PAST TOP PICK with MRE has triggered its stop at $12. To remain disciplined, we recommend covering the position at this time. This will result in a net investment loss of 11%, when combined with previous recommendations.
Following reported earnings indicating revenues increasing 22% over the year, we reiterate MRE as a TOP PICK. Supply chain and semi-conductor supply issues are lessening for the automotive supplier. It trades at 6x earnings and under book value. We like that cash reserves are growing, while debt is retired. We recommend trailing up the stop (from $11) to $12, looking to achieve $19 -- upside potential over 30%. Yield 1.4%
(Analysts’ price target is $19.22)Is really cheap at 8s forward PE and 3x operating cash flow. They delivered this year. Their operating margins are rising. He took some shares off the table at $15, worried about consumer spending and growth. Union impact? Doesn't know about direct impact by unions, but watch for impact of unions on the bigger players, like Ford.
We again reiterate MRE as a TOP PICK. The auto industry supplier last reported record all-time sales and growing cash reserves as it retired debt. It trades at 7x earnings and under book value. Its dividend is backed by a payout ratio under 15% of cash flow. We continue to recommend a stop-loss at $11, looking to achieve $19 -- upside potential of 40%. Yield 1.4%
(Analysts’ price target is $19.38)We reiterate this diversified supplier of automotive motor blocks and transmissions as a TOP PICK. Recently reported earnings showed sales were up over 12% on the year -- setting an all-time record. The company reports shortages of semiconductors is being to ease, which should continue to aid earnings growth. It trades at 6x earnings and under book value. Cash reserves are growing, while debt is retired. We continue to recommend a stop at $11, looking to achieve $19 -- upside potential of 43%. Yield 1.5%
(Analysts’ price target is $19.38)
Martinrea(MRE-T) Rating
Ranking : 4 out of 5
Bullish - Buy Signals / Votes : 3
Neutral - Hold Signals / Votes : 3
Bearish - Sell Signals / Votes : 2
Total Signals / Votes : 8
Martinrea(MRE-T) Frequently Asked Questions
What is Martinrea stock symbol?
Martinrea is a Canadian stock, trading under the symbol MRE-T on the Toronto Stock Exchange (MRE-CT). It is usually referred to as TSX:MRE or MRE-T
Is Martinrea a buy or a sell?
In the last year, 8 stock analysts published opinions about MRE-T. 3 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Martinrea.
Is Martinrea a good investment or a top pick?
Martinrea was recommended as a Top Pick by on . Read the latest stock experts ratings for Martinrea.
Why is Martinrea stock dropping?
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
Is Martinrea worth watching?
8 stock analysts on Stockchase covered Martinrea In the last year. It is a trending stock that is worth watching.
What is Martinrea stock price?
On 2025-05-02, Martinrea (MRE-T) stock closed at a price of $7.74.
Auto stocks are really struggling, both Canada and US, and they're right at the epicentre of this whole tariff battle. Beware the value trap -- something's gone down, looks cheap, but hasn't started going up yet. Chart doesn't look as though it's bottomed out yet.
Though cheap, it could still go lower. Whole sector might take time to build a base, as it's been beaten down so much. The auto sector really brought down the most recent Canadian retail sales numbers.