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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
Financials 
Technical Analysis 0
BUY
It is an incredibly well run company. They make reasonable profits. Their customers are very happy with them. It is a well diversified company and they make great returns on their capital. They generate a lot of free cash flow. They are very disciplined on that. The risk is that they have no control over the auto cycle. Their margins can get quite compressed. MG-T feels they will have a higher content on electric cars than internal combustion cars.
Automotive
HOLD
Well run with good management. A cyclical business, where car sales are flattening globally. Statistically cheap right now. There may be a 6 month trade in this. A further slowing in the economy, would not hurt this stock materially. He would look for only $3-$4 per share upside before taking profit.
Automotive
DON'T BUY
He sold it a year ago with concerns about the economy slowing and the auto cycle peaking. Also, Magna has a dispute with an Asian joint-venture deal. And the steel tariffs didn't help. They produce things cheaply in Mexico, but sell few products down there, which is a negative, vulnerable to protectionism.
Automotive
PAST TOP PICK
(A Top Pick Sep 05/18, Down 6%) Trades at 7x earnings. cash easily cover its dividend. it's a growth cyclical stock. The auto space is turning over, but he expects only a mild downturn. Over the next three years, MG will generate cash flow equal to a third of the company. Pays a 3% dividend. Still likes it.
Alex RuusOwned
Automotive
BUY
They just reported results. They had to trim their guidance. They will probably not do wrong by their shareholders. They buy 5% of their shares back annually. Their payout ratio is only about 20%. They know what they are doing. 7 or 8 times forward earnings. You have to have a long term outlook.
Automotive
DON'T BUY
Among Canadian car-parts-makers, they have the most exposure to Daimler, which just issued a weak earnings report. This sector appear to have bottomed, so maybe consider it now. He prefers Linamar, which is cheaper (offers a lower valuation) and it is not purely into cars, but also some industrial production.
Automotive
COMMENT
As the cycle ends. The market pays for growth and Magna had a weak Q1 and lowered guidance. M&A hasn't worked out as planned. No doubt that car sales have slowed. They're in a very cyclical business and we could be at the end of the cycle. Managers are good capital allocators and will fix their China problem. Emerging markets continue to grow and will feed demand for cars, even near the end of the peak.
Automotive
WEAK BUY
It broke through the down trend back in early 2019 and had been making some motions to see a reversal. However, the recent new lows below $60 may be signalling a resumption of the longer term bear trend. Key support near $60. He would be out if that level is breached. A rally with 10-15% upside is possible.
Automotive
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