MAHLE Metal Leve SA

MAHLE Metal Leve SA maintains a leveraged capital structure with a debt-to-equity ratio of 1.92, reflecting significant reliance on long-term debt of BRL 1.66 billion against total equity of BRL 861.5 million. Liquidity is assessed as medium risk, supported by a current ratio of 1.27 and cash and equivalents of BRL 608.1 million, though net cash is negative after accounting for total liabilities of BRL 2.93 billion. The company generates operating cash flow of BRL 757.8 million, which covers capital expenditures of BRL 153.1 million, resulting in free cash flow of BRL 208.4 million.

Profitability metrics indicate strong returns on capital, with a return on equity of 77.1% and a return on assets of 17.51%. The company reports revenue of BRL 5.41 billion, generating a gross profit of BRL 1.47 billion and operating income of BRL 916.2 million, leading to net income of BRL 608.6 million. These margins suggest efficient cost management within the auto parts manufacturing value chain, although specific cohort median comparisons are not provided in the input data to benchmark these returns against industry peers.

Segment and geographic revenue breakdowns are not disclosed in the available data, preventing a detailed analysis of revenue concentration risks or regional exposure. The company’s activity is broadly defined as Automobiles within the Auto, Truck & Motorcycle Parts industry, implying exposure to the broader automotive OEM supply chain. Without specific segment data, the revenue mix is assumed to be diversified across the company’s core manufacturing operations.

Growth trajectory analysis is limited by the absence of historical period data in the input. The current financial snapshot provides a single-period view of revenue and net income, but no year-over-year or quarterly trends are available to assess momentum or cyclicality. Consequently, the growth narrative relies solely on the current period’s performance, which shows robust absolute earnings of BRL 608.6 million.

Risk factors include medium liquidity risk and low dilution risk, with a key flag noting that net cash is negative after subtracting total debt. The high debt-to-equity ratio of 1.92 amplifies financial risk, particularly in a cyclical industry where cash flows may fluctuate. However, the low dilution risk suggests that equity holders are not currently facing significant share count expansion, as basic and diluted shares outstanding are identical at 135.5 million.

Recent events are reflected in analyst estimates, with a mean price target of BRL 35.50 and a median target of BRL 35.50, indicating modest upside potential from the current market price of BRL 31.99. The mean recommendation is 3.00 (Hold), with three analysts issuing Hold ratings and no Strong Buy or Buy recommendations, suggesting a neutral market sentiment. No specific filing, news, or transcript observations are provided to detail recent corporate actions or strategic shifts.

Revenue is projected to grow 18.6% year-over-year to BRL 5.4 billion in fiscal 2026, demonstrating strong top-line expansion momentum.

Analysts assign a mean price target of BRL 35.50, implying a 5.1% upside from the current market price of BRL 33.78.

Net margins of 12.3% are best-in-class, substantially higher than the 3.2% median observed across 473 comparable auto parts companies.

Long-term debt surged to BRL 1.66 billion in fiscal 2026, reflecting a high debt-to-equity ratio of 1.92.

The debt-to-equity ratio of 1.92 places the company in the bottom quartile of its cohort, indicating elevated financial leverage risk.

Net income growth has lagged revenue expansion, with a four-year CAGR of only 1.8% compared to 10.6% for revenue.

Cash conversion of 1.14 is below the cohort median of 1.37, suggesting less efficient translation of earnings into cash.

The company faces a medium level of liquidity risk, which could constrain operational flexibility or increase financing costs.

Revenue BRL 1.26B, −0,8% YoY; Operating income +7,5% YoY.

• ▍Revenue BRL 1.26B, −0,8% YoY
• ▍Operating income +7,5% YoY
• ▍Net income +35,0% YoY
• ▍Free cash flow +41,0% YoY
• ▍Net margin 17.1%

Revenue BRL 1.33B, +0,6% YoY; Operating income +21,8% YoY.

• ▍Revenue BRL 1.33B, +0,6% YoY
• ▍Operating income +21,8% YoY
• ▍Net income +22,9% YoY
• ▍Free cash flow +115,0% YoY
• ▍Net margin 10.3%

Revenue BRL 1.45B, +25,6% YoY; Operating income +15,8% YoY.

• ▍Revenue BRL 1.45B, +25,6% YoY
• ▍Operating income +15,8% YoY
• ▍Net income +32,1% YoY
• ▍Free cash flow +31,2% YoY
• ▍Net margin 13.0%

Revenue BRL 1.37B, +28,1% YoY; Operating income +16,2% YoY.

• ▍Revenue BRL 1.37B, +28,1% YoY
• ▍Operating income +16,2% YoY
• ▍Net income +42,9% YoY
• ▍Free cash flow −5,8% YoY
• ▍Net margin 9.3%

Revenue BRL 1.27B; Operating income BRL 202.0M.

• ▍Revenue BRL 1.27B
• ▍Operating income BRL 202.0M
• ▍Net margin 12.5%

Revenue BRL 1.32B; Operating income BRL 167.8M.

• ▍Revenue BRL 1.32B
• ▍Operating income BRL 167.8M
• ▍Net margin 8.4%

Revenue BRL 1.15B; Operating income BRL 241.1M.

• ▍Revenue BRL 1.15B
• ▍Operating income BRL 241.1M
• ▍Net margin 12.3%

Revenue BRL 1.07B; Operating income BRL 198.5M.

• ▍Revenue BRL 1.07B
• ▍Operating income BRL 198.5M
• ▍Net margin 8.3%

Revenue BRL 5.41B, +18,6% YoY; Operating income +5,3% YoY.

• ▍Revenue BRL 5.41B, +18,6% YoY
• ▍Operating income +5,3% YoY
• ▍Net income +12,4% YoY
• ▍Free cash flow −0,7% YoY
• ▍Net margin 11.3%

Revenue BRL 4.56B, +5,0% YoY; Operating income +6,6% YoY.

• ▍Revenue BRL 4.56B, +5,0% YoY
• ▍Operating income +6,6% YoY
• ▍Net income −27,6% YoY
• ▍Free cash flow +136,4% YoY
• ▍Net margin 11.9%

Revenue BRL 4.34B, +2,7% YoY; Operating income +13,2% YoY.

• ▍Revenue BRL 4.34B, +2,7% YoY
• ▍Operating income +13,2% YoY
• ▍Net income +32,4% YoY
• ▍Free cash flow −3 403,0% YoY
• ▍Net margin 17.2%

Revenue BRL 4.22B, +16,8% YoY; Operating income −0,2% YoY.

• ▍Revenue BRL 4.22B, +16,8% YoY
• ▍Operating income −0,2% YoY
• ▍Net income −0,3% YoY
• ▍Free cash flow −96,2% YoY
• ▍Net margin 13.4%