Yahoo Finance Reasons Why I Like Martinrea International Inc (TSE:MRE)
As an investor, I look for investments which does not compromise one fundamental factor for another. By this I mean, I look at stocks holistically, from their financial health to their future outlook. In the case of Martinrea International Inc (TSX:MRE), it is a financially-robust company with a a strong track record of performance, trading at a discount. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on Martinrea International here.
Undervalued with solid track record
In the previous year, MRE has ramped up its bottom line by 66.23%, with its latest earnings level surpassing its average level over the last five years. In addition to beating its historical values, MRE also outperformed its industry, which delivered a growth of 11.87%. This is what investors like to see! MRE’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This implies that MRE manages its cash and cost levels well, which is a key determinant of the company’s health. MRE seems to have put its debt to good use, generating operating cash levels of 0.39x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows.
MRE’s share price is trading at below its true value, meaning that the market sentiment for the stock is currently bearish. According to my intrinsic value of the stock, which is driven by analyst consensus forecast of MRE’s earnings, investors now have the opportunity to buy into the stock to reap capital gains. Compared to the rest of the auto components industry, MRE is also trading below its peers, relative to earnings generated. This further reaffirms that MRE is potentially undervalued.
Next Steps:
For Martinrea International, I’ve put together three fundamental factors you should further examine:
Future Outlook: What are well-informed industry analysts predicting for MRE’s future growth? Take a look at our free research report of analyst consensus for MRE’s outlook.
Dividend Income vs Capital Gains: Does MRE return gains to shareholders through reinvesting in itself and growing earnings, or redistribute a decent portion of earnings as dividends? Our historical dividend yield visualization quickly tells you what your can expect from MRE as an investment.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MRE? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
