TSE:MG

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

94.71
+0.01 (0.01%)
as of Jun 4, 2026, 8:00:00 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
DON'T BUY
A very well managed company. Unfortunately, the timing is not great as the car industry is not doing well.
SELL
The auto parts manufacturers, particularly in Canada, are going to have a very difficult time with what is happening to the North American auto industry. General Motors and Ford are going to get costs under their system and their suppliers will be the first place they look.
DON'T BUY
There are questions about their operations as well as the industry they are in as well as the sustainability of the earnings level.
BUY
This one looks cheap to him.
DON'T BUY
Having major problems. Had a high in 2004 and ever since it has been down and up and down and up with the downs and ups being lower than their previous ones.
BUY
A big supplier to the big three. However, it's getting a bigger share of the smaller number of cars being sold. It's also starting to make complete cars in Europe. Coming out of the end of this tunnel, it's going to be in a much stronger position.
DON'T BUY
Doesn't like the industry that they are involved with. There's a real issue in the over capacity in the car industry.
SELL
You have to be very careful of industries that can't rally in a bull market. A very well run company, but if you're selling into a difficult market, it's difficult to see how you make money.
DON'T BUY
The odds of a General Motors (GM-N) or Ford (F-N) going bankrupt kind of increase day by day. If they do a deal in order to shed their union liabilities, a side affect will be that a company like Magna will get stiffed on their accounts receivable. Of course they'll still build cars and will need parts.
TOP PICK
Top Short Had a tremendous move, but back in the middle of 2004, it started to top out and has had nothing but problems ever since. It could have another little rally and that would be your opportunity to sell it if you own.
DON'T BUY
There's massive overcapacity in this industry. 60% of their contracts are with Ford (F-N) and General Motors (GM-N).
TOP PICK
Top Short Either shorting or buying a PUT. Had a top formation. There are 2 mountains ('02 and '04) and it couldn't get above its previous high. Had a negative channel and finally had a breakdown from the 200 day moving average.
WEAK BUY
Good dividend for income investors but he doesn't like the price movement over the last year. You would have to look at this as a value name rather than a growth name.
WAIT
Talked to a couple of auto parts manufacturers and they are hurting quite bad. Production cuts by the big 3 will hurt Magna. Inventory levels are high. A superbly run company and an absolute must in a portfolio when it reaches a bootom.
TOP PICK
Although the auto sector has only grown at less than a 2% rate in the '90's, Magna has managed a 17% annual rate. Have a great cash position. Trading at about 9.5 X earnings and 4 X cash flow. Has dropped but looks like it is finding a support level.
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