TSE:LNR

Linamar Corp (LNR.TO)

100.57
+1.52 (1.53%)
as of Jun 30, 2026, 8:00:01 pm Market Open.
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Investor Insights
star iconJun 30, 2026, 12:00 am

This summary was created by AI, based on 6 opinions in the last 12 months.

Experts are generally optimistic about Linamar Corp (LNR-T), highlighting its solid operational capabilities and the potential for resilience against tariffs, particularly if CUSMA remains unchanged. Notably, some analysts mention that the company's valuation, while improved, remains phenomenally cheap at around 3x EV/EBITDA. There is a consensus that, despite concerns regarding the Canadian manufacturing sector amidst geopolitical changes, Linamar showcases strong fundamentals, including robust earnings and innovative technology in auto parts and mobility. While some experts express caution due to the stock’s rising price and valuation metrics, they acknowledge its status as a core holding for investors looking for growth amidst market uncertainties. Overall, the sentiment reflects a mixture of confidence in the company’s business model and a watchful stance regarding valuation corrections.

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Consensus
Positive
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Valuation
Undervalued
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Similar
Magna,MGA
WAIT
He would wait. The auto industry is dealing with tariff issues. Their Skyjack division has been hurt with weaker earnings. If we go into recession this stock will go much lower.
BUY

Some of the outlook for the auto sector which is negative is reflected in their price. MG-T gives you a more diversified part of the car. LNR-T is mostly drive train components and these are still needed for electric cars. The parts don't change as much as more cosmetic parts so when you tool up for a part the investment lasts far longer.

PAST TOP PICK
(A Top Pick Sep 18/18, Down 25%) They're moving big into e-cars around the world, but will also do well making transmissions for pick-up trucks for the coming decade. It trades at 5x earnings. LNR will grow sales 10-15% annually. It's cheap now.
DON'T BUY
It's had a bad run. It's a value play. The car sector is showing cracks.
COMMENT

China, the US and Europe are Ford's biggest markets. Europe is slowing and the experiment in China has been a disaster. In North America, they are moving out of cars to focus only on trucks. The auto space will recover, but he would play it via Linamar (auto parts) instead.

DON'T BUY
His analyst see it trading at half its normal value to book value -- incredibly cheap. The problem is we are late in the economic expansion cycle. There is a school of that that the central banks may prolong the trend, but he doesn't believe it. There is fear about auto demand going forward. He doesn't think you need to be into this just yet.
BUY
All car stocks already have a recession baked into the stock prices. That's positive. The group trades around 3x operating cash flow and 7x earnings.
DON'T BUY
He has owned it in the past. He was hoping when the Canada-US-Mexico auto parts tariff issues worked out they would benefit. However, earnings growth continues to be challenged at the moment. Better opportunity elsewhere. Yield 1%
WAIT
Ridiculously cheap. Tempting at these prices. Doesn't deserve the low price. Overhang is the trade wars. Plus, in a recession, it's a cyclical and would go down. Likes the company a lot, but has a hard time recommending it here just because of how late in the cycle we are.
WAIT
The auto sector has been a wild ride. The last major low in 2016 was in the low 40s and it has reached that. People that bought there are hurting. So if it can make it through, then it will have a chance to go up.
BUY
The auto sector is heavily discounted and now in a lot of trouble. There's a transition coming with e-cars. LNR has a good track record in performance and dividend growth has historically been good. The CEO recently bought a lot of stock. At some point, there'll be a recovery in autos, so long-term you'll be okay. Buy now and do well long-term.
TOP PICK
Was a $85 stock and now it is $45. They make car components and everybody hates car components. P/E is 5 times earnings. They have a big plant in China that is running at half capacity only. But they have products to go forward. He has been following this company since it came public in 1986. Very well managed. Buy it and put it away. (Analysts’ price target is $61.50)
TOP PICK
Price is discounting a large recession. Trading at 5x 2019 expected earnings. Revenues and earnings are still expected to be positive this year. Also in aerial lifts and agriculture. More diversified than Magna. Yield is 1.06%. (Analysts’ price target is $61.50)
DON'T BUY
It is so cheap at these levels. It has a decent balance sheet, but trades at 5 times earnings. The problem is auto sales are heading lower globally, he thinks. If you have patience sit tight, but he is loath to get in front of a freight train coming out of the tunnel -- lots of light, but don't get run over.
HOLD
It is pretty reasonably priced today. More of the automotive parts business is outsourced and LNR-T benefits. They have an advantage in the high precision parts they make. He owns it personally and has no intention to sell.
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