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
DON'T BUY
It's late in the cycle for Magna, though it's done very well. They are vulnerable to an auto war/tariffs, and it faces Tesla and other tech competitors that are coming.
DON'T BUY
Owned this for years, but sold it last October because its valuation got too high. Magna also had problems with a join venture in China, which is difficult to resolve. Add to that the auto cycle is plateauing.
BUY
He recommended this in December and likes it here. $75 will be an important resistance test. He likes this chart and the auto space. His target is $77-80 to May/June when you could take some profits.
DON'T BUY
In a trading zone. A dividend grower. He would not be a buyer right now as it is lacking any trending action. It needs to move above $73 until he would be interested.
DON'T BUY
A good company with big cash reserves and fine performance, but there's a lot of negativity in auto parts now. He doubts the stock will rise in the near future, but historically, they survive these down trends and do things like share buybacks. MG could be on his radar down the line.
DON'T BUY
He keeps watching it. Great balance sheet. They've been growing their dividend this cycle, but auto sales have rolled over. Magna is still making good money, but trading at 7-8x earnings because the market believes that the auto companies are rolling over; production and sales have rolled over. He's cautious about it. He may buy it 10-15% lower.
WEAK BUY
Head and shoulders chart and now at the head. Beware of the top, but beyond that he likes this chart.
PAST TOP PICK
(A Top Pick Feb 06/18, Up 1%) You get the diversification when you own this. They are well positioned to where future growth is coming from. He continues to own it. It is not expensive and you get a reasonable dividend.
DON'T BUY
It is cheap trading at 8 times forward earnings. Slowing global auto production levels could affect them. 53% of the sales come from the Detroit 3. We are late cycle. Not something he wants to own. Technically doesn't look good. Deep cyclical company.
DON'T BUY
It is showing good value today, but he worries that the auto cycle is coming to an end. He thinks there will be better buying opportunities in the next few years. The turnaround has been impressive, but the timing is not right.
BUY
You need to own Magna or Linamar, cheap names. Yes, they're cyclical and there's talk of auto sales rolling over and e-cars, but he doesn't believe those fears. These companies continue to put up impressive numbers and are still growing 5% on the topline. They're well-run and diversified. He's not worried about this sector. Insiders are buying their own stocks. Linamar has a great CEO.
SELL
Sold it last fall because the auto cycle has peaked here and in Europe. They also have problems with a Chinese joint venture that could become thorny. Their margins were under pressure, partly due from the steel/aluminum tariffs. There's more risk than reward here. He's impressed by the stock, but it's time to lighten up on this.
COMMENT
Will this benefit when trade issues are resolved? Yes, but Magna is so diversified and large that e-cars will have a greater impact. Auto sales have been in a lull. PE's are low. Pays a good dividend and stock buyback program.
BUY
It's not the most gentle chart with an uptrend-downtrend-base pattern. We're probably now breaking out of a base now around $70. If it breaks upwards here it's very bullish.
PAST TOP PICK
(A Top Pick Jan 18/18, Down 6%) Nothing has really shaken his conviction on it. Price momentum has been the knock on it recently. It is really cheap and a best in class auto parts company. 23% return on equity. They have a solid balance sheet. They are right as an activist target. He likes it. It is a solid holding.
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