TSE:MG

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

93.65
-1.05 (1.11%)
as of Jun 4, 2026, 2:37:48 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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Similar
Ford, F
BUY
High quality, a Canadian industrial champion. International. Issues from supply chains and microchips. Attractive multiple. High ROE, good management and balance sheet. Nice dividend yield. Good buy here for a long-term hold.
WEAK BUY
Fairly valued, decent upside potential. Decent balance sheet. Small yield of 2.4% is better than nothing. Intrinsic value has drifted off. Lots of companies getting into EV, but are they going to make money?
WEAK BUY
Auto parts might finally be waking up. Supply-side issues may be dissipating. Interesting at these levels. He doesn't own yet, but could in the near future.
DON'T BUY
He doesn't like this type of business. He owns CPRT instead.
BUY
He likes the car stocks. This is not the typical downturn now; inventories are not bloated as they are in other downturn and production levels remain firm despite the shortage of computer chips. Trades around a cheap 8x earnings and 3x cash flow. They can and will serve EVs as well as gas cars.
WATCH
Well-run and ready for the transition to EVs. But don't buy now. It's a deep cyclical stock. See Linamar's warning today of weakening production.
COMMENT
An opportunity. Supply chain issues has causes production cutbacks, but supplies are starting to loosen and increase. As more car companies receive more semiconductors, then MG will benefit. However, how will a recession (if it happens) impact these companies?
BUY
Cut guidance by 20% citing inflation and supply chain. Labour cost issues might be more structural. Super-cheap at 9.5x. Great balance sheet. Nice dividend. Modelling decent growth up to about 30% in 2023.
WAIT
Likes it as a business. Time is not now. Well run. Great free cashflow, great economics. Well positioned for EV. Watch and wait. Storm clouds of a recession, and this would hurt. Be patient.
BUY
Autos are very cyclical and impacted by inflation, so stocks have been weak lately given inflation, the chip shortage and Russia. He expects supplies to improve later this year and there's a pent-up demand for green cars. He expects healthy car sales coming.
WEAK BUY
MG vs. LNR Slight preference for MG over LNR. MG is much more global, bigger, and has a bigger presence on the electric side.
COMMENT
Car part companies have been hurt, valuations low. They have a lot of European production which is probably negatively impacting them given the Russian war. A quality company that generates a lot of cash flow. He likes the car parts companies because they can and will transition well to e-cars. But shares have disappointed in the past year.
WATCH
One name he'd pick in the auto sector is MG, as business economics on the supply side are much stronger and they're in a better position to transition to EVs. MG is a sensible way to have exposure to the sector.
HOLD
Caught up in supply chain, issues won't be resolved quickly. Top 5% of value, solid balance sheet, 11x price to earnings. Reasonable payout ratio for yield of 3%. Top-notch management, world-class company. If you have time, hold. He'd want to see price momentum before stepping in.
WAIT
In transition from combustion to electric. Well positioned for EV. What will the consumer demand and be willing to pay for? So far, it's a high margin area, but there will be more competition. Industrials have been hit hard, and he can't get a handle on the auto cycle. Underlying fundamentals are good, dividend fine, well managed. Headwinds for consumer, so wait and buy on sale.
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