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TSE:MG

Magna Int'l. (A) (MG.TO)

91.94
-0.40 (0.43%)
as of Jun 19, 2026, 8:00:00 pm Market Open.
239 watching
0
COMMENT
An opportunity. Supply chain issues has causes production cutbacks, but supplies are starting to loosen and increase. As more car companies receive more semiconductors, then MG will benefit. However, how will a recession (if it happens) impact these companies?
BUY
Cut guidance by 20% citing inflation and supply chain. Labour cost issues might be more structural. Super-cheap at 9.5x. Great balance sheet. Nice dividend. Modelling decent growth up to about 30% in 2023.
WAIT
Likes it as a business. Time is not now. Well run. Great free cashflow, great economics. Well positioned for EV. Watch and wait. Storm clouds of a recession, and this would hurt. Be patient.
BUY
Autos are very cyclical and impacted by inflation, so stocks have been weak lately given inflation, the chip shortage and Russia. He expects supplies to improve later this year and there's a pent-up demand for green cars. He expects healthy car sales coming.
WEAK BUY
MG vs. LNR Slight preference for MG over LNR. MG is much more global, bigger, and has a bigger presence on the electric side.
COMMENT
Car part companies have been hurt, valuations low. They have a lot of European production which is probably negatively impacting them given the Russian war. A quality company that generates a lot of cash flow. He likes the car parts companies because they can and will transition well to e-cars. But shares have disappointed in the past year.
WATCH
One name he'd pick in the auto sector is MG, as business economics on the supply side are much stronger and they're in a better position to transition to EVs. MG is a sensible way to have exposure to the sector.
HOLD
Caught up in supply chain, issues won't be resolved quickly. Top 5% of value, solid balance sheet, 11x price to earnings. Reasonable payout ratio for yield of 3%. Top-notch management, world-class company. If you have time, hold. He'd want to see price momentum before stepping in.
WAIT
In transition from combustion to electric. Well positioned for EV. What will the consumer demand and be willing to pay for? So far, it's a high margin area, but there will be more competition. Industrials have been hit hard, and he can't get a handle on the auto cycle. Underlying fundamentals are good, dividend fine, well managed. Headwinds for consumer, so wait and buy on sale.
WAIT
Facing headwinds. Lower production in Europe, rising oil prices, higher commodity costs, inflation, supply chain disruption that's not ending. Bull case is it's cheap and growth will pick up. Don't buy right now, but likes it longer term. Same comments for all auto stocks.
BUY
An excellent company well-placed for EVs. He has owned this in the past. This is not a bad pick in this industry.
PAST TOP PICK
(A Top Pick Mar 11/21, Down 29%) Great company in the auto parts and auto assembly space. They stopped out at $93 in June. There are supply chain problems in the auto industry and higher oi prices will also put pressure on this sector.
BUY ON WEAKNESS

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company is cheap based on metrics. Solid balance sheet, and it is well run. Could buy here. The chip shortage won’t last forever. They are well positioned for the move towards EVs. Looks fine to enter for longer term investors. Unlock Premium - Try 5i Free

PAST TOP PICK
(A Top Pick Mar 11/21, Down 9%) He got stopped out. Auto stocks have been consolidating on supply chain issues. If it can break $85 and get back above the 200-day MA, he'd be a buyer. It's inexpensive compared to peers. Rising relative to the market.
WAIT
Unsure of the auto cycle right now. There was a boom in sales post-pandemic, and a lot of demand has now been satisfied. Good line to EV transition. We're getting late in the cycle, and economic slowdown may impact demand. Stock's done well, so it needs to be in pain before he'd step in.
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