TSE:MG

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

93.95
-0.75 (0.79%)
as of Jun 4, 2026, 3:03:23 pm Market Open.
336 watching
0
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
BUY ON WEAKNESS
Would buy at these levels. There has been a huge run up of shares and has seen a drop. Supply chain issues continues to weight them down. Revenue is fine. Margin is the problem with inflation. It is probably already been priced in. 42% EPS growth, trading at 14x 2022. On a price to growth basis, a must own name.
WATCH
Whole industry is being impacted by the chip shortages. She hasn't been in this space in a while. As all vehicles become electric, there will be demand, and she wants the companies that will be well positioned. MG would probably be her preference, but she's just watching right now. Excitement earlier this year has died down.
BUY
Allan Tong’s Discover Picks With lockdowns thankfully in the rear-view mirror, cars have returned to roads with a vengeance. Those gun shy about taking public transit will drive. That’s the macro tailwind. The macro headwind is that this venerable Canadian maker of car parts is facing a shortage of computer chips. Not only Magna, but the entire sector and several others are being hit, a malady that realistically won’t end until Q1 or Q2 in 2022. Offsetting this short-term hurdle is Magna investing $70 million in a new Michigan plant to manufacture parts for the red-hot EV business, and partnering with an Israeli start-up. It already has deals with companies in Austria, China and South Korean in the EV sector. Smart. Magna is investing the future. Meanwhile, rumours persist that Apple will partner with Magna to produce self-driving cars. Read Barbell investing: Adobe, BlackRock, Magna for our full analysis.
BUY
He would stick with it. The auto sector is the epicentre of the semiconductor shortage. It's not a demand problem but a short term supply issue. He thinks they still have a couple of years of decent growth ahead of them. This is the best sector of the market.
PAST TOP PICK
(A Top Pick Oct 08/20, Up 43%) Value stock left behind from rotation to tech. Supply chain issues, failed takeover. Still growing at 24%, 8x multiple. A place for investors right now. Poised for the EV trend.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

PAST TOP PICK
(A Top Pick Aug 10/21, Down 12.2%)Stockchase Research Editor: Michael O'Reilly Our PAST TOP PICK with MG has triggered its stop at $95. We recommend covering the remaining position at this time. We will look for better opportunities.
PARTIAL BUY
Magna vs. Martinrea Supply chain constraints have hit hard the carmakers and car-parts makers. We likely will see lower-than-expected volumes for another year. US-China squabbles will also have an ongoing effect. Longer-term, MG is a partial buying opportunity. He hasn't looked closely at the car parts makers though to choose one over the other. He owns Linamar. Expect volatility in this space.
BUY
No, it isn't heading down. It adapts well to macro conditions, namely e-cars. Magna is ready for EVs. He likes this name. It will do well for the next five years. The valuation is slightly too high for him, but he's watching it. He also likes and owns Tesla within the car space, and likes GM.
BUY
Has owned this in the $60s, because he likes to buy cyclicals when they are out of favour. During the pandemic, the feeling was that people won't drive, but he thought that people would need cars to go to the store and won't ride the subway. He's always liked Magna. Near-term, the chip shortage is limiting production, so this will impact Magna, but it's a short-term problem and a buying opportunity.
DON'T BUY
It already hit its usual valuation peak. The stock has fallen 20% and trading poorly against its technical support level. Its fair market value is high. Be cautious here. It makes him nervous. Looks like it will fall further.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The chip shortage is impacting the company and growth expectations. This should pass over time. It is currently at 9x earnings. Shares have climbed 80% since last year. A strong long-term operator with attractive valuation and dividend. Unlock Premium - Try 5i Free

BUY ON WEAKNESS
A wonderful company, but has seen some share price weakness, due to more competition over an acquisition they want to make. Their positioned in the auto parts space is excellent. Their fundamentals boasts revenue growth, strong margins and free cash flow, and share buybacks and dividend hikes. They're positioning well for e-cars. The economy will remain hot, but Magna is very economically sensitive (i.e. fears of a recession), so it can be volatile. So, buy on a lower price to weather that volatility.
WATCH
She doesn't own any auto parts stocks. She's looking at the sector, as it will be a very attractive space with EVs. She hasn't decided yet what to buy in the space. Not a lot of exposure in China, which is a large market. Building up its EV expertise. Got ahead of itself, and now there's a pullback.
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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly Canadian auto parts manufacturer, MG, has seen sales into the light vehicle sector, especially in China, soar. Recent EPS reported at $1.40 was just shy of $1.44 expecations, brought about by semiconductor chip shortages worldwide. Its role in EV manufacturing is built around Fisker, GM, Ford and Volkswagen -- and it is becoming the world's go to supplier in that space. It is good value here, trading at 12x earnings, compared to peers at 20x. It has a PEG ratio under 1 and trades at 2.7x book value. It pays a good dividend, backed by a payout ratio under 20% of cashflow. We would buy this with a stop loss at $95, looking to achieve $135-- upside potential over 24%. Yield 2.04% (Analysts’ price target is $128.13)

BUY ON WEAKNESS
The Veoneer deal will be accretive starting in 2023. MG paid more, but it gives MG a leg into advance driving systems. Magna will continue to grow. Buy this dip. It still trades at a reasonable valuation and offers a good growth rate. It reminds him of Transforce. [Note: some audio problems]
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