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TSE:MRE
Martinrea (MRE.TO)
10.26
+0.02 (0.20%)
as of Jun 19, 2026, 8:00:00 pm Market Open.
141 watching
Financials 
Technical Analysis 0
PAST TOP PICK
(A Top Pick Aug 23/21, Down 19%) Slowdown in the auto sector went on longer. Still likes it and the valuation, added recently. Last quarter wasn't bad. Chip shortage is easing.
John ZechnerOwned
metal fabricators
PAST TOP PICK
(A Top Pick Jun 18/21, Down 28%) Auto sector has been hit very hard with recent supply chain issues, inflation and market slowdown.
Current share price is presenting good buying opportunity.
~3x share price to cash flow.
Will continue to hold shares.
John ZechnerOwned
metal fabricators
HOLD
Prefers it to Linamar because of the valuation and they have more plays on batteries for EVs, which offer growth potential. These stocks move as a group, though it's been a bloodbath for this sector over recession fears. Semis shortages have been an overhang longer than he expected. But car demand remains high with inventories low. They will do well as we transition to e-cars. Also likes Magna.
John ZechnerOwned
metal fabricators
PAST TOP PICK
(A Top Pick Apr 19/21, Down 42%) The car sector has been decimated and the chip shortage hasn't helped. The car sector is acting like we're in the next recession already, though he doesn't see one coming.
John ZechnerOwned
metal fabricators
DON'T BUY
Raw material and labour costs will rise for all auto-parts makers, which will pressure their margins. That said, it's a very good business to be in. He prefers Magna and Linamar. MRE has always been cheaper in PE to their peers, but it's not his first choice in auto-parts. All these companies will adapt to the EV market. See also his comments on LNR.
metal fabricators
DON'T BUY
MRE vs. LNR vs. MG A bit of a dilemma. All being hit by supply shortages. Earnings ticking down, so PE's are at the higher range. In terms of ROE, MG would be the most profitable. MRE's is quite a bit less, though the multiple is also less. MRE is 0.8 price to book, PE of 9.8. His choice is LNR: it's in the middle of the pack, price to book is just over 1, PE is 10, and ROE tends to be more over time.
metal fabricators
TOP PICK
Auto sector looks incredibly cheap. Trading under 3x operating cashflow. Well positioned when the industry turns around. Yield is 1.90%. (Analysts’ price target is $16.00)
John ZechnerOwned
metal fabricators
TOP PICK
Its valuation is cheaper than the rest and has under-performed this year. They are involved in the light-weighting of vehicles. Three times operating cash flow. The cycle will turn – the demand is still there. He likes the insider buying recently. (Analysts’ price target is $18.06)
John ZechnerOwned
metal fabricators
PARTIAL BUY
Magna vs. Martinrea Supply chain constraints have hit hard the carmakers and car-parts makers. We likely will see lower-than-expected volumes for another year. US-China squabbles will also have an ongoing effect. Longer-term, MG is a partial buying opportunity. He hasn't looked closely at the car parts makers though to choose one over the other. He owns Linamar. Expect volatility in this space.
metal fabricators
WEAK BUY
The transition to EVs for Magna vs. MRE. He likes the auto sector, but prefers Magna because it has European and Japanese exposure. Also, they are diverse in products, and have enough cash to invest in EV technologies, like trying to buy a car-related AI company. MRE is good, but not his first choice.
metal fabricators
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