TSE:MG

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

94.68
-0.03 (0.03%)
as of Jun 4, 2026, 6:27:44 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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Similar
Ford, F
TOP PICK
Auto companies continue to outsource engineering and manufacturing. They do assembly. Sales were up 17% with earnings up 98%. 91% earnings growth expected for this year. ROE is around 20%. Has broken out of a 2 year negative trend. There is around a 38% upside potential. (Analysts’ price target is $118.76)
TOP PICK
They just reported a great quarter and a great 2022 outlook. It is a cyclical recovery trade; There is a valuation upside trade for free; There were great JVs announced. It checks a lot of the boxes. (Analysts’ price target is $114.84)
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Markets liked the latest quarter results. EPS beat expectations and revenue was inline with what the street expected. They raised dividends by 8%. Auto sales is expected to rebound in the following year. Unlock Premium - Try 5i Free

BUY ON WEAKNESS
Auto parts are really interesting with electrification chatter and partnerships. Broader theme of growth and inflation accelerating. Over next 12 months, expects it to continue to improve. You might get a better entry point. One of the best run manufacturers. An undemanding multiple.
BUY ON WEAKNESS
It's had a good recovery since last spring. A great company aligned with EV and traditional cars. It'll continue to be a good stock, but don't chase it. At some point, you'll find a better entry point like $85-90. With low interest rates, people will continue to buy cars, even with the popularity of ride-sharing.
BUY

It has had a strong rebound. The auto production is rebounding nicely from the 2020 lows. They make money on internal combustion engines, EVs and hybrids. He owns LNR-T instead.

BUY ON WEAKNESS
Very strong sales with low inventory. It is at 12x 2021 evaluation that makes it a compelling name. There is a lot of life left in the stock with 34% growth rate. You want to add more in retracements. 20%-30% upside in the next few years.
DON'T BUY
A Canadian success story. However, the problem with these stocks is that they're cyclical. MG is at the mercy of how many new cars are sold. During the pandemic, fewer cars were sold. You can argue that as restrictions are lifted, there may be a spike in demand. Going forward, returns won't be as strong as they have in recent months. At best, cyclicals can comprise a portion of a portfolio.
BUY
Owns it in their Canadian dividend portfolio. It is gaining market shares making more parts for cars. A core holding with good dividend growth. They will be part of the electrification of cars and maintain market shares. The best in the business.
BUY ON WEAKNESS
It has done quite well in the last quarter, making headlines in deals with electric vehicles. This is the one in the space she would own. Wait for a pullback.
BUY

He just bought it. They've done a great job and expects them to be the generic "white label" parts-maker for all e-carmakers. Apple is talking to Hyundai about e-cars, but Hyundai works with Magna. He sees growth in e-cars. Costs will be managed efficiently (i.e. battery costs declining) as Magna transitions to e-cars, and Magna has been doing this for a long time, around 80 years.

DON'T BUY
It has had a beautiful run. The issue is that it has run up to a level of two times book value. It has been higher and has fair market value to pull it higher. He sees $102 will be a fair resistance point. It is now not cheap.
BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A well run company that has a strong balance sheet, good growth potential, and the EV industry opens new opportunities. EPS is expected to double in 2021. Unlock Premium - Try 5i Free

BUY ON WEAKNESS
It is trading at 9x 2022. Their balance sheet is rapidly improving and the inventory cycle is coming up for building out. There is a lot more to go. This area is getting more discovered by investors.
DON'T BUY
Auto parts stocks can be value traps. They often have high ROE, low debt. Problem is they're cyclical, depending on how auto sales are doing. Feast or famine. He prefers companies that can increase earnings through thick and thin. Be very careful. Not long-term holdings, they're rentals.
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