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.
336 watching
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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
HOLD

We are living in a strange world where Tesla has a higher market cap than GM. There has been a stall in new car sales globally, especially in China where sales declined. He thinks all the parts manufacturers will suffer to a degree. Magna will be a survivor and will make the transition into electric cars going forward. He would not hesitate to own it for the long term. He does not own it presently.

PAST TOP PICK
(A Top Pick Dec 28/18, Up 20%) A year we ago, we were entering the start of a 4-year cycle, at a time when investors were scared.
COMMENT

Generates good free cash flow. Diversified. A solid, long-term investment. Car sales are under pressure in Europe and China (holding on so far in North America). Also, e-cars are gaining traction, and the car companies must adjust. Magna and Linamar should do well adapting to changes. There's little upside in the car industry in the short term; this space will remain volatile.

HOLD
Great company. #2 auto parts buyer in the world. Well run. Generates lots of free cash. Crazy cheap. Auto market has turned over. In a trading range right now. Great long-term businesses. If it pulled back 10% or more, he'd be a buyer.
BUY
Despite fears of recession and slow down, we have seen a nice turnaround over the last 8 weeks in autos. MG-T has little exposure to China trade issues. It pays a nice dividend and has a free cash flow yield of 13%. He expects an acceleration in manufacturing is coming and there is strong consumer spending. Yield 2.6%
BUY
Auto parts are always cyclical and volatile. MG is probably the best auto parts company in the world. He thinks the auto space is improving, despite the GM strike. He just bought more for his clients.
TOP PICK
The auto and auto parts industries will do well. Magna has 320 manufacturing locations in 30 countries. 2.8% dividend with extremely good dividend coverage. They have lots of free cash flow. 17% growth forecast for next year. (Analysts’ price target is $76.17)
WATCH

A downtrend has been in place since 2017 for LNR-T. It has shown a little relative strength against the S&P recently. Also, another bullish indicator is forming so it should be watched. He is trying to acquire MG-T, if it can break above $50.

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.
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.
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.
DON'T BUY
Long term? The auto cycle peaked and is declining. Don't own it for the yield, because auto stocks are cyclical. Be cautious here. Swings in valuation mean, don't hold these stocks for a long time, but trade them. He avoids the car space.
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.
HOLD
If you are a long term investor, this is the premium stock in the auto part space.
DON'T BUY
The autopart space has likely peaked in the US on an annual growth basis. She would stay away.
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