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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
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.
BUY
No, it isn't heading down. It adapts well to macro conditions, namely e-cars. Magna is ready for EVs. He likes this name. It will do well for the next five years. The valuation is slightly too high for him, but he's watching it. He also likes and owns Tesla within the car space, and likes GM.
BUY
Has owned this in the $60s, because he likes to buy cyclicals when they are out of favour. During the pandemic, the feeling was that people won't drive, but he thought that people would need cars to go to the store and won't ride the subway. He's always liked Magna. Near-term, the chip shortage is limiting production, so this will impact Magna, but it's a short-term problem and a buying opportunity.
DON'T BUY
It already hit its usual valuation peak. The stock has fallen 20% and trading poorly against its technical support level. Its fair market value is high. Be cautious here. It makes him nervous. Looks like it will fall further.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The chip shortage is impacting the company and growth expectations. This should pass over time. It is currently at 9x earnings. Shares have climbed 80% since last year. A strong long-term operator with attractive valuation and dividend. Unlock Premium - Try 5i Free

BUY ON WEAKNESS
A wonderful company, but has seen some share price weakness, due to more competition over an acquisition they want to make. Their positioned in the auto parts space is excellent. Their fundamentals boasts revenue growth, strong margins and free cash flow, and share buybacks and dividend hikes. They're positioning well for e-cars. The economy will remain hot, but Magna is very economically sensitive (i.e. fears of a recession), so it can be volatile. So, buy on a lower price to weather that volatility.
WATCH
She doesn't own any auto parts stocks. She's looking at the sector, as it will be a very attractive space with EVs. She hasn't decided yet what to buy in the space. Not a lot of exposure in China, which is a large market. Building up its EV expertise. Got ahead of itself, and now there's a pullback.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly Canadian auto parts manufacturer, MG, has seen sales into the light vehicle sector, especially in China, soar. Recent EPS reported at $1.40 was just shy of $1.44 expecations, brought about by semiconductor chip shortages worldwide. Its role in EV manufacturing is built around Fisker, GM, Ford and Volkswagen -- and it is becoming the world's go to supplier in that space. It is good value here, trading at 12x earnings, compared to peers at 20x. It has a PEG ratio under 1 and trades at 2.7x book value. It pays a good dividend, backed by a payout ratio under 20% of cashflow. We would buy this with a stop loss at $95, looking to achieve $135-- upside potential over 24%. Yield 2.04% (Analysts’ price target is $128.13)

BUY ON WEAKNESS
The Veoneer deal will be accretive starting in 2023. MG paid more, but it gives MG a leg into advance driving systems. Magna will continue to grow. Buy this dip. It still trades at a reasonable valuation and offers a good growth rate. It reminds him of Transforce. [Note: some audio problems]
DON'T BUY
How are they going to position themselves for the coming EV cycle? None of the these auto suppliers have figured this out. He would not look at the suppliers so much as the branded companies.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Hard to argue against the potential growth the company gives as well as the recent partnerships. The valuation is pretty reasonable as well. Would be comfortable buying at current levels or $105 if you’re waiting for weakness. Unlock Premium - Try 5i Free

WAIT
Not cheap. Tailwinds, well run, and has done well. Trading at 19x. Lots of optimism surrounding various deals. As a rule, you don't buy deep cyclicals when the economy is booming. Clouds on the horizon, such as a huge capex spend to retool for the EV market. Supply issues in semis will impact the auto sector. Doesn't fit his long-term, secular growth thesis. Buy in the throes of a recession.
WAIT
Many are swamped with supply chain blockages. They have positioned themselves well for the electric car business. It is a supplier to every major NA and European car manufacturer. It is well placed. That being said, the stock has gone up a lot. Not sure it is a great buying place. Wait for the frenzy of reopening to abate before buying.
TOP PICK
Remains a great re-opening play. Buying back 1.7M shares. The name is trading at 10.5x 2022, but growing at 17%. Very well positioned for electrification adn self driving car. People underestimate the opportunity. Will still go up higher and adding to his position. (Analysts’ price target is $130.54)
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Supply issues were raised by the company as a risk. However, it has not been quantified. Robust growth is still expected in 2021. The issue is probably already priced in, which is now trading at 12x earnings. Unlock Premium - Try 5i Free

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