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TSE:MG
This summary was created by AI, based on 3 opinions in the last 12 months.
Magna International has faced significant challenges since its heavy investment in electric vehicles in 2021, where the anticipated demand did not materialize. The company has since managed to address issues with Chinese OEMs and has made notable gains in market share, particularly in the sectors of smart door handles and driverless systems. Recent performances suggest a turnaround, highlighted by a strong quarterly result that exceeded consensus expectations, despite ongoing headwinds from CUSMA. The automotive sector, having previously been impacted by U.S. tariffs, is beginning to show resilience, with investors starting to look past tariff threats, making Magna a potentially appealing investment opportunity. The general sentiment leans towards confidence in Magna's ability to navigate current market challenges and capitalize on future growth in the automotive industry.
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