TSE:MG

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

96.14
-1.77 (1.81%)
as of Jul 31, 2026, 8:00:00 pm Market Open.
336 watching
0
Investor Insights
star iconAug 2, 2026, 12:00 am

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

Magna International has had a tumultuous journey since heavily investing in electric vehicles in 2021, with initial expectations not materializing due to demand issues and tariff impacts. However, the company appears to have addressed these challenges by resolving problems with Chinese OEMs, leading to a gain in market share, particularly in smart door handles and driverless systems. Recent quarterly results have surprised consensus estimates, reflecting a strong turnaround despite headwinds from CUSMA. The auto sector has been under pressure from US tariffs, yet it seems to be on the rebound, with market sentiment shifting positively as investors begin to look past these tariff concerns. Overall, Magna's strategic positioning and recent performance indicate it's an attractive stock to consider, especially on any dips in price.

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Consensus
Positive
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Valuation
Undervalued
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Similar
Ford,F
BUY ON WEAKNESS
The auto and auto sector rolled over early last year with a mid-cycle slow down. This sector is relatively outperforming now. He thinks we have seen a turn. We need a pull back. Then they will perform well over the next year.
DON'T BUY
The auto cycle will be challenged for a while, and it's going through massive change with e-cars. This will reduce the capacity of existing car parts plants or close some of them down. These are serious storm clouds on the horizon.
HOLD
Auto stocks are all cheap. He owns Linamar, which is cheaper and he thinks has more upside in a recovery. Auto sales are flat. The stock's recovering with the market. These stocks are incredibly cheap. If you own it, hold on to it, it has room to go higher as the market gets more comfortable with the overall economic outlook.
TOP PICK
Well-run though cyclical. MG says that if car sales remain flat for the next three years, MG will generate of 35% of current market cap in free cash flow (after paying dividends). They will continue to buy back stock. They've doubled the dividend. Cheap valuation. (Analysts’ price target is $78.30)
DON'T BUY
The trend is down. If it break down he might hold if owned.
SELL ON STRENGTH
The December period was bad in that the bottom fell out. We have electrification and lots of other things happen in the next decade. He would let it try to rally for you and sell into strength.
DON'T BUY
Wouldn't buy it now, though used to be a core holding. Sold it last year. Concern that auto sales cycle has rolled over. Reticent to invest in auto sector in general, and Magna in particular.
BUY
LNR-T vs. MG-T. MG-T is the third largest global auto parts manufacturer on the planet and so are very dependent on the growth of autos. He thinks worries about ride-share taking over and reducing auto ownership are over grown. LNR-T is concentrated within the drive-train of the vehicle. They are capturing market share globally and own the industry in North America. Electric vehicles will have no gears in them, but LNR-T will build drive trains for electric autos. They also own two other businesses: Skyjack, and a farm machinery business they acquired last year. LNR-T can grow faster when the businesses are booming, but MG-T has less debt.
HOLD
He likes the global exposure compared to its competitors. The recent tariff and trade rhetoric with China, it took a hit. It should do well going forward, trading under 10 times earnings. It is well run and diversified.
BUY
All car stocks are now very cheap. Investors are nervous over Europe; Magna is 40% European. This is well-managed. He'd rather own the car parts makers than the auto-makers. Good entry points for the entire group. He's owned Magna in the past, but finds Linamar cheaper. Parts-makers are trading at super-low 4x earnings.
TOP PICK
Pretty excited about. Same thing is going on that went on during the last 4-year cycle reset in 2016. Coming back to major support around $60. Going strongly in terms of value. Looks great at these levels. Will be more volatility ahead, but investing is all about risk/reward. Discretionary should outperform the broader market. Yield is 2.8%. (Analysts’ price target is $79.13)
BUY
He flip-flops between this and Linamar (which he currently owns). Uber is disruptive so investors don't know how the car market will look in five years. Also China's auto sales have declined for the first time in a long time. But the earnings are so cheap, around 8x P/E, that the stock looks attractive. MG can outgrow currents problems and give investors a nice return. There are still long-term opportunities to grow.
BUY
Anything in the auto space has been quite challenged. He feels this is one of the more conservative ways to play the auto sector. It is cheap on a valuation basis. They are into driver autonomy and electrification and are a leader in these. You need to be patient with it because auto sales will not go through the roof any time soon.
DON'T BUY
She doesn't own this sector because of concerns (peak auto, tariffs, GM closings). But if she were to buy this sector, this would be her choice, because they have a global presence, especially Europe where they can improve their margins.
HOLD
It's unfortunate that it didn't gain from the USMCA deal. He exited a while ago to avoid dealing with that noise. It's trading at 9x and growing earnings at double digits. Very profitable and re-tooling on the driverless car front. All positive, but it's been tough. If you hold, sit tight. Don't enter it.
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