TSE:MG

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

90.62
-0.42 (0.46%)
as of Jul 13, 2026, 8:00:00 pm Market Open.
335 watching
0
Investor Insights
star iconJul 13, 2026, 12:00 am

This summary was created by AI, based on 3 opinions in the last 12 months.

Magna International (MG-T) has faced challenges since its heavy investment in electric vehicles in 2021, largely due to unmet demand and the negative effects of tariffs. However, the company has taken significant steps to address these issues, especially in its partnerships with Chinese OEMs, leading to a recovery in market share within innovative fields like smart door handles and driverless technology. Recently, the company reported a strong quarterly performance that exceeded market expectations, highlighting its resilience amid headwinds from CUSMA and ongoing complexities in auto supply chains. The automotive sector, which has been under pressure from tariffs, is showing renewed vigor as investors begin to return, signaling a potential recovery for stocks in this space.

consensus icon
Consensus
Positive
valuation icon
Valuation
Undervalued
review icon
Similar
Aptiv, APTV
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.
HOLD
There has been a slow down in the global auto market -- especially in China. It looks reasonably valued at only 6 times earnings and a yield of 3%. It trades at 1.3 times book. He would continue to hold.
WEAK BUY
Missed earnings last quarter. Lower 2019 volumes. Concern that new technology will elevate costs. Only 1% EPS growth. Exceptionally cheap at 6x. Really good over the long term, if not the next year. (Analysts’ price target is $72.11)
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.

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.
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.
DON'T BUY
She is on the sidelines for the auto parts sector. MG-T had to reduce guidance lately with a slow down coming in Europe. Meanwhile the company is investing in expensive autonomous technology. She is staying away.
PAST TOP PICK
(A Top Pick Jul 10/18, Down 24%) They had a lousy Q1. They overpaid an acquisition in China. They had a write-down elsewhere. Good managers, but the market didn't cut them a break over these mistakes. They still generate a lot of free cash flow and he expects heavy share buybacks to come. This is a screaming buy.
DON'T BUY
He recommended it last December, but the chart has since deteriorated and is still finding a floor. He's now cautious. Resistance is at $62. He wants to see more volume before he reconsiders.
DON'T BUY

The stock has taken a hit since they reported weaker earnings, but they are a global operator and pay a decent yield. He owns no car stocks; it's a tough sector with trade tensions overhanging it. He slightly prefers Martinrea.

DON'T BUY
We were seeing an extended cycle for the autos. Now we are seeing some erosion in sales. We are almost at the support level. It looks like we are in a head and shoulders pattern. He would not look at it.
DON'T BUY
He sold it last fall because the auto cycle is maturing (sales have peaked in North America where Magna has one-third of its business), and Magna was having trouble with a joint venture in China where it's hard to enforce contracts. True, the stock has bounced back since he sold last fall, but he'd still be out.
WEAK BUY
Like the chart. It broke below its 20-day moving average. It had a hammer pattern last year that flushed out a lot of weak hands/investors. It's now testing $71-72. If it slips below that, it will fall to $67. Falling to $61 is not a good sign. You can buy it now and happily hold it for a year.
BUY
It's broken past its consolidation and he's bullish about it.
HOLD
He owns it and is glad to see it having a good year. It trades at 8 times earnings -- cheap he thinks. If you are looking at a balanced portfolio, this is good to include. He is not ecstatic about the auto space, he still likes owning it. They sell parts to all the manufacturers.
Showing 166 to 180 of 1,106 entries