TSE:MG

Magna Int'l. (A) (MG.TO)

94.68
-0.03 (0.03%)
as of Jun 4, 2026, 6:27:44 pm Market Open.
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Investor Insights
star iconJun 4, 2026, 12:00 am

This summary was created by AI, based on 5 opinions in the last 12 months.

Magna International (MG-T) has experienced a complex trajectory since significantly investing in electric vehicles (EVs) in 2021, facing challenges such as lower-than-expected demand and the impact of tariffs. However, the company has managed to address these issues, particularly with Chinese original equipment manufacturers (OEMs), leading to a recovery in market share for products like smart door handles and driverless systems. Recent reporting indicates that Magna has performed exceptionally well in its latest quarter, exceeding consensus expectations despite ongoing headwinds from CUSMA and the cyclical nature of the auto industry. While some experts express caution regarding the potential for further weakness and the cyclical economic environment, there is a prevailing sentiment that long-term investors could benefit if they can withstand short-term fluctuations. Overall, with signs of a recovering auto sector and improving conditions, Magna International presents a compelling case for investment, albeit with some reservations about future challenges.

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Consensus
Cautious
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Valuation
Fair Value
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Ford, F
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.
TOP PICK
Buy industrials into a recovery. Strong auto demand. Rapidly improving balance sheet. Nice play on global growth. In on the electrification trend. Nice dividend. Cheap. Not a bad risk/reward. Yield is 3.06%. (Analysts’ price target is $77.20)
HOLD
The auto industry is currently in complete disarray. How reluctant are people going to be to step up to big purchases after the economic recovery. If you are going to invest in the auto parts industry, you want to be with the big players. It will be a long but jagged recovery.
TOP PICK
He believes car sales ARE going to do well. New car sales are starting to pick up and people are not going back to mass transit or ride-sharing as they will prefer the safety of their cars. They probably have the best balance sheet of all the suppliers in the world. (Analysts’ price target is $65.69)
HOLD
Cheap, at 8-10x earnings. Good company, balance sheet, business, management. But auto market is suspect, because of current sales slump and electric vehicles. Magna has worked through issues in the past, and it will again.
HOLD

He likes it. There's a big shift in e-cars, though, and they are impacted by the coronavirus. Magna will survive in both cases, because management is smart, though they may struggle to adjust to supplying e-cars for a while. It's okay to hold.

WEAK BUY

He owns Linamar instead. Both are suffering from perception with EPS plunging--car sales have peaked and there are fears that ride sharing will dominate more. Will people keep buying new cars? If so, these companies will do well. But both are great companies that should grow market share by acquisition and diversifying their businesses.

COMMENT
LNR vs MG vs MRE? The auto parts sector has had headwinds. He would stick with MG-T as they pay the highest dividend. He would have thought LNR-T would have been more defensive, but an acquistion in the agricultural space has proved to be a failed attempt to diversify. All three look very cheap. He does own MG-T.
PAST TOP PICK
(A Top Pick Jan 25/19, Up 4%) He was too bullish about car sales. We've hit peak car sales. Meanwhile, e-cars keep selling, so where does this leave Magna? He exited.
HOLD
They're buying back lots of shares and the stock price still good. Balance sheet good and they beat last quarter. But there's no EPS growth. We've seen Peak Auto. Magna is cyclical. Maybe don't sell it, but can hold it for 20 years. Not excited to enter it now, though.
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