Martinrea InternationalTSX:MRE +2.04%84 Operating Margin % is 5.48% as of Mar. 2026, which is 1% above its 10-year median of 5.45. GuruFocus rates TSX:MRE with a GF Score™ of 84/100 and a GF Value™ of C$10.75 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,324 Vehicles & Parts companies, Martinrea International ranks better than 56.19% on this metric.
Martinrea International (TSX:MRE) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Martinrea International Operating Margin % Related Terms
Martinrea International Operating Margin % Historical Data
* Premium members only.
The historical data trend for Martinrea International's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSX:MRE vs ORLY, AZO, GPC: Operating Margin % Comparison
For the Auto Parts subindustry, Martinrea International's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Martinrea International Operating Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Martinrea International's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Martinrea International's Operating Margin % falls into.
Martinrea International Operating Margin % Calculation
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Martinrea International's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Martinrea International (TSX:MRE) has a Operating Margin % of 5.48% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Martinrea International and its competitors. This is near median its historical median of 5.45. Over the past decade, Martinrea International's Operating Margin % has ranged from 1.83 to 7.77. According to the industry distribution chart, Martinrea International ranks #580 out of 1324 companies in the Vehicles & Parts industry, placing it in the top 43.8%.
Is Martinrea International's Operating Margin % too high?
Martinrea International's current Operating Margin % of 5.48% is near median its 10-year median of 5.45. Over the past 10 years, this metric has ranged from a low of 1.83 to a high of 7.77. The Vehicles & Parts industry median Operating Margin % is 4.87. Martinrea International's value of 5.48% is 12.6% above this industry median. Based on the distribution chart, Martinrea International ranks #580 out of 1324 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Martinrea International has a GF Score™ of 84/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Martinrea International's Operating Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Martinrea International ranks #580 out of 1324 companies for Operating Margin %. This puts Martinrea International in the upper half of its industry. The industry median Operating Margin % is 4.87. Martinrea International's value of 5.48% is 12.6% above this benchmark. Historically, Martinrea International's own Operating Margin % has ranged from 1.83 to 7.77 over the past decade. While the company's 10-year median is 5.45 vs. the industry median of 4.87, Martinrea International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Vehicles & Parts company?
The median Operating Margin % among Vehicles & Parts companies is 4.87, based on 1,324 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Martinrea International's current Operating Margin % of 5.48% is 12.6% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Martinrea International and its competitors. For the Vehicles & Parts industry, the median Operating Margin % is 4.87 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Martinrea International's current Operating Margin % is 5.48%, which is near median its own 10-year median of 5.45. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Martinrea International stock overvalued right now?
Based on GuruFocus' analysis, Martinrea International (TSX:MRE) is currently considered Fairly Valued. The stock's GF Value™ is C$10.75, compared to a current price of C$10.01 — trading 6.9% below its estimated fair value. The current Operating Margin % is 5.48%, which is near median its 10-year median of 5.45 and 12.6% above the Vehicles & Parts industry median of 4.87. Martinrea International's overall GF Score™ is 84/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Martinrea International (TSX:MRE), the current Operating Margin % is 5.48% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Martinrea International (TSX:MRE) Overvalued in 2026?
Based on GuruFocus' analysis, Martinrea International stock appears to be undervalued.
The current stock price of C$10.01 is trading 6.9% below its estimated GF Value™ of C$10.75.
GuruFocus considers Martinrea International to be Fairly Valued.
Key valuation signals for TSX:MRE:
Operating Margin %: 5.48% (near median its 10-year median of 5.45)
GF Value™: C$10.75 vs. price of C$10.01 (6.9% below fair value)
Industry Position: 12.6% above the Vehicles & Parts median (#580 of 1324)
No single metric tells the full story. See the TSX:MRE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Martinrea International Inc is a diversified and world-wide automotive supplier engaged in the design, development and manufacturing of engineered, value-added Lightweight Structures and Propulsion Systems. Its products are used in the automotive sector by the majority of vehicle manufacturers. The Company's offerings include products, assemblies and systems for small and large cars, crossovers, pickups and sport utility vehicles. The company also provides metal forming and welding solutions. The company operates in Canada, USA, Europe, and Other Countries.
84GF Score
Get the complete analysis for TSX:MRE
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
TSX:MRE has been successfully added to your 
