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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 ON WEAKNESS
Very strong sales with low inventory. It is at 12x 2021 evaluation that makes it a compelling name. There is a lot of life left in the stock with 34% growth rate. You want to add more in retracements. 20%-30% upside in the next few years.
DON'T BUY
A Canadian success story. However, the problem with these stocks is that they're cyclical. MG is at the mercy of how many new cars are sold. During the pandemic, fewer cars were sold. You can argue that as restrictions are lifted, there may be a spike in demand. Going forward, returns won't be as strong as they have in recent months. At best, cyclicals can comprise a portion of a portfolio.
BUY
Owns it in their Canadian dividend portfolio. It is gaining market shares making more parts for cars. A core holding with good dividend growth. They will be part of the electrification of cars and maintain market shares. The best in the business.
BUY ON WEAKNESS
It has done quite well in the last quarter, making headlines in deals with electric vehicles. This is the one in the space she would own. Wait for a pullback.
BUY

He just bought it. They've done a great job and expects them to be the generic "white label" parts-maker for all e-carmakers. Apple is talking to Hyundai about e-cars, but Hyundai works with Magna. He sees growth in e-cars. Costs will be managed efficiently (i.e. battery costs declining) as Magna transitions to e-cars, and Magna has been doing this for a long time, around 80 years.

DON'T BUY
It has had a beautiful run. The issue is that it has run up to a level of two times book value. It has been higher and has fair market value to pull it higher. He sees $102 will be a fair resistance point. It is now not cheap.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A well run company that has a strong balance sheet, good growth potential, and the EV industry opens new opportunities. EPS is expected to double in 2021. Unlock Premium - Try 5i Free

BUY ON WEAKNESS
It is trading at 9x 2022. Their balance sheet is rapidly improving and the inventory cycle is coming up for building out. There is a lot more to go. This area is getting more discovered by investors.
DON'T BUY
Auto parts stocks can be value traps. They often have high ROE, low debt. Problem is they're cyclical, depending on how auto sales are doing. Feast or famine. He prefers companies that can increase earnings through thick and thin. Be very careful. Not long-term holdings, they're rentals.
BUY
The auto sector in general is performing well. Consumer cyclical stocks have come into favour. Magna is inexpensive compared to peers. Unique in doing sub-assemblies. Expects it to participate well in this market.
BUY
Leading auto parts maker, and also at the leading edge of design. Able to supply the electric vehicle market, yet at a dirt cheap multiple. Good to hold into the next business cycle, 2-3 years. It will do well over time, but with volatility along the way. No hesitation buying it today.
BUY
Are they positioned for the e-car sector vs. their peers? Magna is better-positioned vs. Canadian auto suppliers. They have a balance sheet advantage, which is clean, and they have global partners entrenched who are all moving to e-cars. Magna doesn't advertise their business in e-cars, but he firmly believes they are involved and will be further involved a decade from now. They have the balance sheet to buy e-car suppliers. It's a solid, well-run company that sets them up long term. It has growth potential as the world recovers.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Sales were reported to be $9.13B which is down 2%. However, it met estimates. EPS beat estimates by 41%. They announced a buyback and an increase in sales forecasted by 5%. The results should attract attention from more investors. Unlock Premium - Try 5i Free

BUY
High quality company, really well managed. Inventory levels are down, as vehicle sales have gone up. Inventory levels need to be rebuilt urgently, so Magna will benefit. One to own at these levels.
HOLD
Had a very good run. Positive surprises globally on cars sold. Good international exposure. Valuation makes it hard to get excited about buying today. Future headwinds from electrification, so the multiple will be capped. Should produce a decent quarter, so hold it if you have it.
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