
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. 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
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
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%.
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