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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
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company reported an EPS of $4.20 In 2020 and is expected to rise to $4.70 in 2021. Analysts expect $6.62 for 2022. The stock is quite attractive today based on a PEG of 0.4. Unlock Premium - Try 5i Free

BUY
Problems in last year. Supply chain, reduced guidance on bottom line, impacted margins. Good news is it's managing quite well, problems will slowly dissipate, better earnings, higher volumes. Compelling.
WAIT
Hard to predict when bottlenecks will resolve. Everyone's pointing fingers. If he had to guess, earlier in 2022. Right now, it's still a mess. MG hasn't been performing well. He'd hold off. We're in the seasonally strong period until February, and we might actually skip that this year. Wait to see more progress.
COMMENT
Magna is a more conservative version of Linamar. Both are very good companies so it depends on what of type of investor you are.
DON'T BUY
MG vs. MRE vs. LNR 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.
DON'T BUY
They've done a good job with the dividend, but it's highly cyclical. He can't square their supply chain issues with the a huge surge to buy cars; historically a surge is followed by soft car demand for the next 3-4 years which he sees this happening. Can Magna navigate that drop? Buy this when the sector bottoms, but we're not there yet.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company has numerous EV partnerships with various makers and is a supplier to car makers. It also has more revenues from outside of North America than in North America. 5i is comfortable with buying today at these levels. Unlock Premium - Try 5i Free

BUY
MG vs. MRE One of the top two companies in the world. Lots of technology in the car. MRE is smaller, hit hard by pandemic. MRE is working on a new technology, but it's at early stages and expensive. MRE needs to show some of its problems are behind it. Go with MG.
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It's a Monthly Gems opinion which is available only for Stockchase Premium

Curated by Allan Tong since 2019.
99+ opinions with 4.15 rating.

TOP PICK

Going down the food chain, among the auto parts companies, Magna remains best in class. However, pesky supply issues will reduce their financial outlook. On Oct. 20, the company lowered total 2021 sales from US$38 to $39.5 billion (as projected last August) to US$35.4 to $36.4 billion, with EBIT to be 5.1% to 5.4% from August's 7% to 7.4%. We'll get a better picture when Magna reports on Nov. 5. It's a solid company, but will be stuck in neutral until the supple bottleneck is flushed. If you already own shares, hang on, while others may want to wait or take a partial position and see what happens.

BUY ON WEAKNESS
Would buy at these levels. There has been a huge run up of shares and has seen a drop. Supply chain issues continues to weight them down. Revenue is fine. Margin is the problem with inflation. It is probably already been priced in. 42% EPS growth, trading at 14x 2022. On a price to growth basis, a must own name.
WATCH
Whole industry is being impacted by the chip shortages. She hasn't been in this space in a while. As all vehicles become electric, there will be demand, and she wants the companies that will be well positioned. MG would probably be her preference, but she's just watching right now. Excitement earlier this year has died down.
BUY
Allan Tong’s Discover Picks With lockdowns thankfully in the rear-view mirror, cars have returned to roads with a vengeance. Those gun shy about taking public transit will drive. That’s the macro tailwind. The macro headwind is that this venerable Canadian maker of car parts is facing a shortage of computer chips. Not only Magna, but the entire sector and several others are being hit, a malady that realistically won’t end until Q1 or Q2 in 2022. Offsetting this short-term hurdle is Magna investing $70 million in a new Michigan plant to manufacture parts for the red-hot EV business, and partnering with an Israeli start-up. It already has deals with companies in Austria, China and South Korean in the EV sector. Smart. Magna is investing the future. Meanwhile, rumours persist that Apple will partner with Magna to produce self-driving cars. Read Barbell investing: Adobe, BlackRock, Magna for our full analysis.
BUY
He would stick with it. The auto sector is the epicentre of the semiconductor shortage. It's not a demand problem but a short term supply issue. He thinks they still have a couple of years of decent growth ahead of them. This is the best sector of the market.
PAST TOP PICK
(A Top Pick Oct 08/20, Up 43%) Value stock left behind from rotation to tech. Supply chain issues, failed takeover. Still growing at 24%, 8x multiple. A place for investors right now. Poised for the EV trend.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Aug 10/21, Down 12.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with MG has triggered its stop at $95. We recommend covering the remaining position at this time. We will look for better opportunities.
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