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.
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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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Ford, F
DON'T BUY
How are they going to position themselves for the coming EV cycle? None of the these auto suppliers have figured this out. He would not look at the suppliers so much as the branded companies.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Hard to argue against the potential growth the company gives as well as the recent partnerships. The valuation is pretty reasonable as well. Would be comfortable buying at current levels or $105 if you’re waiting for weakness. Unlock Premium - Try 5i Free

WAIT
Not cheap. Tailwinds, well run, and has done well. Trading at 19x. Lots of optimism surrounding various deals. As a rule, you don't buy deep cyclicals when the economy is booming. Clouds on the horizon, such as a huge capex spend to retool for the EV market. Supply issues in semis will impact the auto sector. Doesn't fit his long-term, secular growth thesis. Buy in the throes of a recession.
WAIT
Many are swamped with supply chain blockages. They have positioned themselves well for the electric car business. It is a supplier to every major NA and European car manufacturer. It is well placed. That being said, the stock has gone up a lot. Not sure it is a great buying place. Wait for the frenzy of reopening to abate before buying.
TOP PICK
Remains a great re-opening play. Buying back 1.7M shares. The name is trading at 10.5x 2022, but growing at 17%. Very well positioned for electrification adn self driving car. People underestimate the opportunity. Will still go up higher and adding to his position. (Analysts’ price target is $130.54)
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Supply issues were raised by the company as a risk. However, it has not been quantified. Robust growth is still expected in 2021. The issue is probably already priced in, which is now trading at 12x earnings. Unlock Premium - Try 5i Free

BUY ON WEAKNESS

He has owned this in the past. He believes in e-cars, and his firm has a stake in GM. Magna is best of breed in car parts. The stock has moved too quickly for him. He likes their move into e-car parts.

BUY

Trades at 24x earnings. Really likes the auto sector and auto parts and assembly. This is the one he'd choose. Growing cashflow. 90% of the products they make are as applicable to EV as to traditional engines. They assemble full vehicles, and there's a real possibility they win a mandate from Apple. Dividend should grow. Yield is 1.8%.

BUY
Reasonable multiple, great history of execution, and really big opportunities in EV. 70% of revenue is assembling vehicles. Many components are easily transferable to EV. 24x trailing earnings, great dividend and dividend growth. Great risk/reward.
BUY
The apple car would be a bonus. The bigger play is the valuation is cheap and the positioning is quite good for all in the sector. They can migrate to electric vehicle manufacture almost better than the original equipment manufacturers. The biggest thing you are changing is the power chain.
BUY ON WEAKNESS

Auto stocks are a great place to be right now. Tesla, GM, Ford, etc. MG had their investor day and they are well positioned to profit from EV and other auto innovations. The stock is still trading reasonably. 10.4x 2022, with 43% modelled EPS growth. The best is probably still to come.

BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The parts sector is preferable over the retailers for longer lead time on new models and multi year contracts. Valuation, management and strong balance sheet are all strong points. They also have international exposure and EV potential. Unlock Premium - Try 5i Free

BUY
Likes the parts sector, and MG is well positioned for the EV market. Winning more EV contracts. Valuation of the sector has diminished. Good balance sheet. Auto sales should stay firm once people start travelling again.
TOP PICK
Whole auto industry is in transition. Sells to all the major auto producers, which are doing well. 75% of its parts are suitable for EVs. Great balance sheet. Inexpensive relative to peers. Plan share buybacks. An important company in the Canadian landscape and fits perfectly with current market themes. Yield is 1.89%. (Analysts’ price target is $118.85)
DON'T BUY
The question is whether oil is cheap or not. How widespread will the adoption of EVs be? Caveat is that governments will have to spend on infrastructure. All car companies are talking about growing EV opportunities, and their valuations are very cheap. Longer duration trade in car companies themselves, though a bit riskier, than with Magna.
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