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Investor Insights

This summary was created by AI, based on 21 opinions in the last 12 months.

Magna International (MG-T) is a prominent Canadian company in the auto industry with strong global operations. The company has a stable dividend yield and attractive valuation, but is facing challenges due to the slowing car business, higher interest rates, labor and commodity costs, and supply chain issues. Despite this, the company has shown potential for decent earnings growth and has a good management team.

Consensus
Mixed
Valuation
Fair Value
DON'T BUY
Magna Int'l. (A)

EV industry has slowed after tons of hype in 2023. Shift to EVs is measured in decades, not in years. See his Top Picks.

Automotive
DON'T BUY
Magna Int'l. (A)

It's been stuck around $60-70 for a long time. Looks cheap, but they always lower guidance. The PE looks attractive and so it the balance sheet, but the car business is slowing and tough.

Automotive
BUY
Magna Int'l. (A)

Current price is attractive for investors (valuation very fair). Stock price appears to be near book value. ROE is around ~10%. Dividend yield is stable and attractive. General direction of auto industry is strong. 

Automotive
DON'T BUY
Magna Int'l. (A)
MG vs. LNR

Better off owning suppliers than car companies, which are caught trying to straddle combustion and EVs. Prominent Canadian company. MG can take advantage of its size, LNR is really well run. LNR is his choice for the long run, more nimble.

He tends to not own this type of highly cyclical business.

Automotive
BUY
Magna Int'l. (A)

International. Top 3 supplier globally. Inexpensive multiple of 9x earnings, but volatile. Higher interest rates, labour and commodity costs. Microchip supply chain issues. Cautious about operating environment. Good management team.

Will benefit from overall increased car sales, both EV and traditional. ROE is above market average. Balance sheet quite strong. Impressive yield of 3.6%, higher than market. Can buy shares here confidently.

Automotive
BUY
Magna Int'l. (A)
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of $1.33 missed estimates of $1.47; sales were $10.45B nearly identical to estimates. Magna International's two largest business units by revenue also have the widest margins, as the smaller seating systems and complete vehicles segments need a surge in global vehicle output to expand their 3% adjusted Ebit margins. Magna has developed a product portfolio and customer base that can win wide-margin business as automakers perpetually pursue advances in safety, efficiency and connectivity. The company forecasts a 1.2% compound annual growth rate in North America new-vehicle production through 2026, a contraction in Europe and 4% gain in China. Magna's body exteriors & structures segment revenue grew 4% to $4.2 billion as adjusted Ebit margin widened 170 bps to 6.7%. The power & vision unit generated $3.8 billion in revenue -- a 25% jump -- with 230 bps worth of margin expansion to 6.1%. The stock is dropping today as investors seem to be focusing more on the 'miss' than on the improved margin outlook. We think it still has potential and it is very cheap at 8X earnings. It is expected to show overall decent earnings growth this year. 
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Automotive
DON'T BUY
Magna Int'l. (A)

He owns other industrials. Not looking at it going forward.

Automotive
DON'T BUY
Magna Int'l. (A)

Does not own shares. Does not think growth is going to continue for company. Major clients are traditional auto companies (Ford etc.) that are not growing. Would not recommend buying. 

Automotive
DON'T BUY
Magna Int'l. (A)

Don't buy based just on a nice dividend and low valuation. Lots to like, but stock's gone nowhere. Hard to figure out where the value is. He wants to own quality and the best, and this one doesn't make the cut.

Automotive
BUY ON WEAKNESS
Magna Int'l. (A)

Quality manufacturer. Well run. Generates really good ROC and free cashflow. Hangup right now is related to uncertainty on the economy. Potential NA recession not good for auto sales. Good name in the space.

Automotive
HOLD
Magna Int'l. (A)

Does not own shares. Volatile stock. Scores 8/10 fundamentally. Would hold of already own. Not a good time to invest otherwise. 

Automotive
HOLD
Magna Int'l. (A)

Is sensitive to the economy which he sees weakening. Cyclical. The consumer is stretched and the savings rate is declining. Yes, PEs are cheap, and MG supplied gas-engine as well as E-cars. He likes the auto companies, but now is not a great time for them.

Automotive
DON'T BUY
Magna Int'l. (A)

Transition to electric has caused a bit of pain on retooling factories. Once the transition is complete, they can't go back and forth. Union negotiations will impact car prices. He'd prefer an actual automaker like Toyota.

Automotive
BUY
Magna Int'l. (A)

A good company and major player in car parts. Shares have been volatile lately due to higher interest rates, labour costs, commodity prices and microchip prices. However, inflation is easing and so are supply chain bottlenecks. Good profits and balance sheet. Hold and enjoy the yield.

Automotive
SELL
Magna Int'l. (A)

Since peaking in early 2021, MG has been in a downtrend. Now, it's forming a base. If it breaks $85 and stays there a few weeks, that's good.  But it keeps rubbing against that resistance level and he doesn't see a catalyst to take it higher.

Automotive
Showing 1 to 15 of 1,076 entries

Magna Int'l. (A)(MG-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 7

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 12

Total Signals / Votes : 21

Stockchase rating for Magna Int'l. (A) 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 Int'l. (A)(MG-T) Frequently Asked Questions

What is Magna Int'l. (A) stock symbol?

Magna Int'l. (A) is a Canadian stock, trading under the symbol MG-T on the Toronto Stock Exchange (MG-CT). It is usually referred to as TSX:MG or MG-T

Is Magna Int'l. (A) a buy or a sell?

In the last year, 21 stock analysts published opinions about MG-T. 7 analysts recommended to BUY the stock. 12 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Magna Int'l. (A).

Is Magna Int'l. (A) a good investment or a top pick?

Magna Int'l. (A) was recommended as a Top Pick by on . Read the latest stock experts ratings for Magna Int'l. (A).

Why is Magna Int'l. (A) 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 Int'l. (A) worth watching?

21 stock analysts on Stockchase covered Magna Int'l. (A) In the last year. It is a trending stock that is worth watching.

What is Magna Int'l. (A) stock price?

On 2024-05-23, Magna Int'l. (A) (MG-T) stock closed at a price of $61.51.