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Mild and mixed before earnings
Investor Insights

This summary was created by AI, based on 4 opinions in the last 12 months.

Magna International (MGA-N) is facing significant challenges in the current automotive landscape, particularly due to the impact of tariffs and a general downturn in the auto parts sector. Despite the soft EV sales and a series of downward guidance revisions over the past year, some analysts suggest that the stock could be nearing a bottom, which may present a buying opportunity. However, concerns remain regarding its profitability, which has declined since 2018, and its valuation, which reflects skepticism about future earnings potential. While there is a belief that the aging fleet in North America could drive replacement part sales and support earnings growth, several experts advise caution and recommend waiting for more favorable market conditions before making investment decisions. Overall, Magna's strong brand is noted, but the sentiment is largely one of caution given the current state of the stock and industry dynamics.

Consensus
Caution
Valuation
Undervalued
Similar
LinaR
DON'T BUY

Tariffs are impacted them, but the auto parts sector is already out of favour. EV sales have levelled off. Magna lower their guidance again and again last year. They're nearing a bottom now. Prefers Linamar for its much lower EV of 6x, and they have diverse businesses, like agricultural equipment.

Consumer Products
TOP PICK

Under valued given current stock price. Expecting stronger sales ahead. Auto part sector not favorable right now, but is a good time to buy. Car business presents many customers with aging auto fleet in North America (will require replacement parts). Expecting earnings to rise, especially with EV opportunity. 

Consumer Products
BUY ON WEAKNESS
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Growth has slowed down and profitability has been sliding since 2018. Its valuation of 7X forward earnings reflects a lot of these concerns, and it trades just above book value at 1.1X price to book. Cash flows are mostly used to pay its dividend, and it has been a net issuer of debt over the past two years. We do not like its recent momentum, following a string of weak earnings results. We would prefer to wait until next earnings to assess if a floor can be put into its price, but for now the cheap valuation could become even cheaper if results continue to disappoint. 
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Consumer Products
BUY ON WEAKNESS

Too early to buy shares in business. Expecting further weakness. Wait for shares to hit rock bottom before buying. Strong brand name with history of strong execution. 

Consumer Products
BUY

Owns shares, and would recommend buying. Can have strong moves in positive direction due to cyclical nature of business. Would recommend buying around $70. Expecting shares to rise to $100. 

Consumer Products
BUY

Owns shares in company. Has been buying shares on weakness. Cost containment efforts ahead of schedule. Improving trends in costs. Would recommend buying. Expecting 90% growth rate. Believes company will benefit from soft landing. 

Consumer Products
BUY

Likes it here. Auto companies will depend more on outsourcing parts, especially with the labour settlements we're seeing. In a good position over the next few years. Tight margins will continue for a little while. Dominant player.

Consumer Products
BUY

Owns shares in Canadian dividend fund.
Share price appreciating after Covid-19.
Recession fears weighing on share price.
Believes is a good long term investment.
Excellent value at current share price.

Consumer Products
DON'T BUY

Recent bad news tough on stock.
Has owned shares in the past, but not currently.
Very bearish on the auto sector.
Electric vehicle very disruptive on sector (top down government policy).
Wait until sector become better run. 


Consumer Products
HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research.

MG has a decent enough balance sheet, with net debt about 1.6X annual cash flow. 
Dividend payout is in the 25% range and we would not expect a cut. 
Three years is a long forecast time, but analysts show close to $10 in EPS in 2026, so if that is realized the stock is very cheap and is likely to do better. 
But it has had a series of bad announcements, and we would expect the company to be in the penalty box for at least several months now. 
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Consumer Products
BUY

Current share price presenting good buying opportunity.
Very large shareholders through the years.
Well run company.
Growth into electronics business will be good for the long term.
Auto sector recovering well. 
Car demand growing. 


Consumer Products
BUY

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. LG joint venture very favorable. Margins improving and strong liquidity. Positioned well for EV growth. Globally diversified operation. Unlock Premium - Try 5i Free

Consumer Products
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Recovery linked to automotive industry. Low debt relative to industry. Strong market position to aid recovery. Shares look attractive for long-term.
Consumer Products
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research. Recovery linked to automotive industry. Low debt relative to industry. Strong market position to aid recovery. Shares look attractive for long-term.
Consumer Products
DON'T BUY
They're moving into EV's, but all the auto parts suppliers are suffering because of supply chain shortages. There are concerns of shutting down production in European if there's a power shortage. Margins in this business are thin, and it's cyclical. Look elsewhere.
Consumer Products
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Magna International(MGA-N) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 3

Stockchase rating for Magna International is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Magna International(MGA-N) Frequently Asked Questions

What is Magna International stock symbol?

Magna International is a American stock, trading under the symbol MGA-N on the New York Stock Exchange (MGA). It is usually referred to as NYSE:MGA or MGA-N

Is Magna International a buy or a sell?

In the last year, 3 stock analysts published opinions about MGA-N. 2 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Magna International.

Is Magna International a good investment or a top pick?

Magna International was recommended as a Top Pick by on . Read the latest stock experts ratings for Magna International.

Why is Magna International stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Magna International worth watching?

3 stock analysts on Stockchase covered Magna International In the last year. It is a trending stock that is worth watching.

What is Magna International stock price?

On 2025-02-18, Magna International (MGA-N) stock closed at a price of $38.09.