
TSE:MG
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.
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company is cheap based on metrics. Solid balance sheet, and it is well run. Could buy here. The chip shortage won’t last forever. They are well positioned for the move towards EVs. Looks fine to enter for longer term investors. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company reported an EPS of $4.20 In 2020 and is expected to rise to $4.70 in 2021. Analysts expect $6.62 for 2022. The stock is quite attractive today based on a PEG of 0.4. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company has numerous EV partnerships with various makers and is a supplier to car makers. It also has more revenues from outside of North America than in North America. 5i is comfortable with buying today at these levels. Unlock Premium - Try 5i Free