Magna Int'l. (A)

MG-T

TSE:MG

61.91
2.13 (3.33%)
Magna International Inc. is a Canadian global automotive supplier headquartered in Aurora, Ontario, Canada.
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Analysis and Opinions about MG-T

Signal
Opinion
Expert
HOLD
HOLD
June 29, 2020
The auto industry is currently in complete disarray. How reluctant are people going to be to step up to big purchases after the economic recovery. If you are going to invest in the auto parts industry, you want to be with the big players. It will be a long but jagged recovery.
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The auto industry is currently in complete disarray. How reluctant are people going to be to step up to big purchases after the economic recovery. If you are going to invest in the auto parts industry, you want to be with the big players. It will be a long but jagged recovery.
TOP PICK
TOP PICK
June 8, 2020
He believes car sales ARE going to do well. New car sales are starting to pick up and people are not going back to mass transit or ride-sharing as they will prefer the safety of their cars. They probably have the best balance sheet of all the suppliers in the world. (Analysts’ price target is $65.69)
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He believes car sales ARE going to do well. New car sales are starting to pick up and people are not going back to mass transit or ride-sharing as they will prefer the safety of their cars. They probably have the best balance sheet of all the suppliers in the world. (Analysts’ price target is $65.69)
HOLD
HOLD
February 20, 2020
Cheap, at 8-10x earnings. Good company, balance sheet, business, management. But auto market is suspect, because of current sales slump and electric vehicles. Magna has worked through issues in the past, and it will again.
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Magna Int'l. (A) (MG-T)
February 20, 2020
Cheap, at 8-10x earnings. Good company, balance sheet, business, management. But auto market is suspect, because of current sales slump and electric vehicles. Magna has worked through issues in the past, and it will again.
HOLD
HOLD
February 18, 2020

He likes it. There's a big shift in e-cars, though, and they are impacted by the coronavirus. Magna will survive in both cases, because management is smart, though they may struggle to adjust to supplying e-cars for a while. It's okay to hold.

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Magna Int'l. (A) (MG-T)
February 18, 2020

He likes it. There's a big shift in e-cars, though, and they are impacted by the coronavirus. Magna will survive in both cases, because management is smart, though they may struggle to adjust to supplying e-cars for a while. It's okay to hold.

WEAK BUY
WEAK BUY
February 11, 2020

He owns Linamar instead. Both are suffering from perception with EPS plunging--car sales have peaked and there are fears that ride sharing will dominate more. Will people keep buying new cars? If so, these companies will do well. But both are great companies that should grow market share by acquisition and diversifying their businesses.

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Magna Int'l. (A) (MG-T)
February 11, 2020

He owns Linamar instead. Both are suffering from perception with EPS plunging--car sales have peaked and there are fears that ride sharing will dominate more. Will people keep buying new cars? If so, these companies will do well. But both are great companies that should grow market share by acquisition and diversifying their businesses.

COMMENT
COMMENT
January 31, 2020
LNR vs MG vs MRE? The auto parts sector has had headwinds. He would stick with MG-T as they pay the highest dividend. He would have thought LNR-T would have been more defensive, but an acquistion in the agricultural space has proved to be a failed attempt to diversify. All three look very cheap. He does own MG-T.
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Magna Int'l. (A) (MG-T)
January 31, 2020
LNR vs MG vs MRE? The auto parts sector has had headwinds. He would stick with MG-T as they pay the highest dividend. He would have thought LNR-T would have been more defensive, but an acquistion in the agricultural space has proved to be a failed attempt to diversify. All three look very cheap. He does own MG-T.
PAST TOP PICK
PAST TOP PICK
January 14, 2020
(A Top Pick Jan 25/19, Up 4%) He was too bullish about car sales. We've hit peak car sales. Meanwhile, e-cars keep selling, so where does this leave Magna? He exited.
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Magna Int'l. (A) (MG-T)
January 14, 2020
(A Top Pick Jan 25/19, Up 4%) He was too bullish about car sales. We've hit peak car sales. Meanwhile, e-cars keep selling, so where does this leave Magna? He exited.
HOLD
HOLD
January 10, 2020
They're buying back lots of shares and the stock price still good. Balance sheet good and they beat last quarter. But there's no EPS growth. We've seen Peak Auto. Magna is cyclical. Maybe don't sell it, but can hold it for 20 years. Not excited to enter it now, though.
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Magna Int'l. (A) (MG-T)
January 10, 2020
They're buying back lots of shares and the stock price still good. Balance sheet good and they beat last quarter. But there's no EPS growth. We've seen Peak Auto. Magna is cyclical. Maybe don't sell it, but can hold it for 20 years. Not excited to enter it now, though.
HOLD
HOLD
January 8, 2020

We are living in a strange world where Tesla has a higher market cap than GM. There has been a stall in new car sales globally, especially in China where sales declined. He thinks all the parts manufacturers will suffer to a degree. Magna will be a survivor and will make the transition into electric cars going forward. He would not hesitate to own it for the long term. He does not own it presently.

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Magna Int'l. (A) (MG-T)
January 8, 2020

We are living in a strange world where Tesla has a higher market cap than GM. There has been a stall in new car sales globally, especially in China where sales declined. He thinks all the parts manufacturers will suffer to a degree. Magna will be a survivor and will make the transition into electric cars going forward. He would not hesitate to own it for the long term. He does not own it presently.

PAST TOP PICK
PAST TOP PICK
December 24, 2019
(A Top Pick Dec 28/18, Up 20%) A year we ago, we were entering the start of a 4-year cycle, at a time when investors were scared.
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Magna Int'l. (A) (MG-T)
December 24, 2019
(A Top Pick Dec 28/18, Up 20%) A year we ago, we were entering the start of a 4-year cycle, at a time when investors were scared.
COMMENT
COMMENT
December 17, 2019

Generates good free cash flow. Diversified. A solid, long-term investment. Car sales are under pressure in Europe and China (holding on so far in North America). Also, e-cars are gaining traction, and the car companies must adjust. Magna and Linamar should do well adapting to changes. There's little upside in the car industry in the short term; this space will remain volatile.

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Magna Int'l. (A) (MG-T)
December 17, 2019

Generates good free cash flow. Diversified. A solid, long-term investment. Car sales are under pressure in Europe and China (holding on so far in North America). Also, e-cars are gaining traction, and the car companies must adjust. Magna and Linamar should do well adapting to changes. There's little upside in the car industry in the short term; this space will remain volatile.

HOLD
HOLD
November 28, 2019
Great company. #2 auto parts buyer in the world. Well run. Generates lots of free cash. Crazy cheap. Auto market has turned over. In a trading range right now. Great long-term businesses. If it pulled back 10% or more, he'd be a buyer.
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Magna Int'l. (A) (MG-T)
November 28, 2019
Great company. #2 auto parts buyer in the world. Well run. Generates lots of free cash. Crazy cheap. Auto market has turned over. In a trading range right now. Great long-term businesses. If it pulled back 10% or more, he'd be a buyer.
BUY
BUY
November 20, 2019
Despite fears of recession and slow down, we have seen a nice turnaround over the last 8 weeks in autos. MG-T has little exposure to China trade issues. It pays a nice dividend and has a free cash flow yield of 13%. He expects an acceleration in manufacturing is coming and there is strong consumer spending. Yield 2.6%
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Magna Int'l. (A) (MG-T)
November 20, 2019
Despite fears of recession and slow down, we have seen a nice turnaround over the last 8 weeks in autos. MG-T has little exposure to China trade issues. It pays a nice dividend and has a free cash flow yield of 13%. He expects an acceleration in manufacturing is coming and there is strong consumer spending. Yield 2.6%
BUY
BUY
November 8, 2019
Auto parts are always cyclical and volatile. MG is probably the best auto parts company in the world. He thinks the auto space is improving, despite the GM strike. He just bought more for his clients.
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Magna Int'l. (A) (MG-T)
November 8, 2019
Auto parts are always cyclical and volatile. MG is probably the best auto parts company in the world. He thinks the auto space is improving, despite the GM strike. He just bought more for his clients.
TOP PICK
TOP PICK
October 21, 2019
The auto and auto parts industries will do well. Magna has 320 manufacturing locations in 30 countries. 2.8% dividend with extremely good dividend coverage. They have lots of free cash flow. 17% growth forecast for next year. (Analysts’ price target is $76.17)
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Magna Int'l. (A) (MG-T)
October 21, 2019
The auto and auto parts industries will do well. Magna has 320 manufacturing locations in 30 countries. 2.8% dividend with extremely good dividend coverage. They have lots of free cash flow. 17% growth forecast for next year. (Analysts’ price target is $76.17)
WATCH
WATCH
October 18, 2019

A downtrend has been in place since 2017 for LNR-T. It has shown a little relative strength against the S&P recently. Also, another bullish indicator is forming so it should be watched. He is trying to acquire MG-T, if it can break above $50.

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Magna Int'l. (A) (MG-T)
October 18, 2019

A downtrend has been in place since 2017 for LNR-T. It has shown a little relative strength against the S&P recently. Also, another bullish indicator is forming so it should be watched. He is trying to acquire MG-T, if it can break above $50.

BUY
BUY
September 23, 2019
It is an incredibly well run company. They make reasonable profits. Their customers are very happy with them. It is a well diversified company and they make great returns on their capital. They generate a lot of free cash flow. They are very disciplined on that. The risk is that they have no control over the auto cycle. Their margins can get quite compressed. MG-T feels they will have a higher content on electric cars than internal combustion cars.
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Magna Int'l. (A) (MG-T)
September 23, 2019
It is an incredibly well run company. They make reasonable profits. Their customers are very happy with them. It is a well diversified company and they make great returns on their capital. They generate a lot of free cash flow. They are very disciplined on that. The risk is that they have no control over the auto cycle. Their margins can get quite compressed. MG-T feels they will have a higher content on electric cars than internal combustion cars.
HOLD
HOLD
September 20, 2019
Well run with good management. A cyclical business, where car sales are flattening globally. Statistically cheap right now. There may be a 6 month trade in this. A further slowing in the economy, would not hurt this stock materially. He would look for only $3-$4 per share upside before taking profit.
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Magna Int'l. (A) (MG-T)
September 20, 2019
Well run with good management. A cyclical business, where car sales are flattening globally. Statistically cheap right now. There may be a 6 month trade in this. A further slowing in the economy, would not hurt this stock materially. He would look for only $3-$4 per share upside before taking profit.
DON'T BUY
DON'T BUY
September 4, 2019
He sold it a year ago with concerns about the economy slowing and the auto cycle peaking. Also, Magna has a dispute with an Asian joint-venture deal. And the steel tariffs didn't help. They produce things cheaply in Mexico, but sell few products down there, which is a negative, vulnerable to protectionism.
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Magna Int'l. (A) (MG-T)
September 4, 2019
He sold it a year ago with concerns about the economy slowing and the auto cycle peaking. Also, Magna has a dispute with an Asian joint-venture deal. And the steel tariffs didn't help. They produce things cheaply in Mexico, but sell few products down there, which is a negative, vulnerable to protectionism.
DON'T BUY
DON'T BUY
August 28, 2019
Long term? The auto cycle peaked and is declining. Don't own it for the yield, because auto stocks are cyclical. Be cautious here. Swings in valuation mean, don't hold these stocks for a long time, but trade them. He avoids the car space.
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Magna Int'l. (A) (MG-T)
August 28, 2019
Long term? The auto cycle peaked and is declining. Don't own it for the yield, because auto stocks are cyclical. Be cautious here. Swings in valuation mean, don't hold these stocks for a long time, but trade them. He avoids the car space.
PAST TOP PICK
PAST TOP PICK
August 26, 2019
(A Top Pick Sep 05/18, Down 6%) Trades at 7x earnings. cash easily cover its dividend. it's a growth cyclical stock. The auto space is turning over, but he expects only a mild downturn. Over the next three years, MG will generate cash flow equal to a third of the company. Pays a 3% dividend. Still likes it.
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Magna Int'l. (A) (MG-T)
August 26, 2019
(A Top Pick Sep 05/18, Down 6%) Trades at 7x earnings. cash easily cover its dividend. it's a growth cyclical stock. The auto space is turning over, but he expects only a mild downturn. Over the next three years, MG will generate cash flow equal to a third of the company. Pays a 3% dividend. Still likes it.
HOLD
HOLD
August 14, 2019
If you are a long term investor, this is the premium stock in the auto part space.
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Magna Int'l. (A) (MG-T)
August 14, 2019
If you are a long term investor, this is the premium stock in the auto part space.
DON'T BUY
DON'T BUY
August 13, 2019
The autopart space has likely peaked in the US on an annual growth basis. She would stay away.
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Magna Int'l. (A) (MG-T)
August 13, 2019
The autopart space has likely peaked in the US on an annual growth basis. She would stay away.
BUY
BUY
August 8, 2019
They just reported results. They had to trim their guidance. They will probably not do wrong by their shareholders. They buy 5% of their shares back annually. Their payout ratio is only about 20%. They know what they are doing. 7 or 8 times forward earnings. You have to have a long term outlook.
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Magna Int'l. (A) (MG-T)
August 8, 2019
They just reported results. They had to trim their guidance. They will probably not do wrong by their shareholders. They buy 5% of their shares back annually. Their payout ratio is only about 20%. They know what they are doing. 7 or 8 times forward earnings. You have to have a long term outlook.
HOLD
HOLD
July 24, 2019
There has been a slow down in the global auto market -- especially in China. It looks reasonably valued at only 6 times earnings and a yield of 3%. It trades at 1.3 times book. He would continue to hold.
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There has been a slow down in the global auto market -- especially in China. It looks reasonably valued at only 6 times earnings and a yield of 3%. It trades at 1.3 times book. He would continue to hold.
WEAK BUY
WEAK BUY
July 18, 2019
Missed earnings last quarter. Lower 2019 volumes. Concern that new technology will elevate costs. Only 1% EPS growth. Exceptionally cheap at 6x. Really good over the long term, if not the next year. (Analysts’ price target is $72.11)
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Missed earnings last quarter. Lower 2019 volumes. Concern that new technology will elevate costs. Only 1% EPS growth. Exceptionally cheap at 6x. Really good over the long term, if not the next year. (Analysts’ price target is $72.11)
DON'T BUY
DON'T BUY
July 12, 2019

Among Canadian car-parts-makers, they have the most exposure to Daimler, which just issued a weak earnings report. This sector appear to have bottomed, so maybe consider it now. He prefers Linamar, which is cheaper (offers a lower valuation) and it is not purely into cars, but also some industrial production.

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Among Canadian car-parts-makers, they have the most exposure to Daimler, which just issued a weak earnings report. This sector appear to have bottomed, so maybe consider it now. He prefers Linamar, which is cheaper (offers a lower valuation) and it is not purely into cars, but also some industrial production.

COMMENT
COMMENT
June 24, 2019
As the cycle ends. The market pays for growth and Magna had a weak Q1 and lowered guidance. M&A hasn't worked out as planned. No doubt that car sales have slowed. They're in a very cyclical business and we could be at the end of the cycle. Managers are good capital allocators and will fix their China problem. Emerging markets continue to grow and will feed demand for cars, even near the end of the peak.
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As the cycle ends. The market pays for growth and Magna had a weak Q1 and lowered guidance. M&A hasn't worked out as planned. No doubt that car sales have slowed. They're in a very cyclical business and we could be at the end of the cycle. Managers are good capital allocators and will fix their China problem. Emerging markets continue to grow and will feed demand for cars, even near the end of the peak.
WEAK BUY
WEAK BUY
June 18, 2019
It broke through the down trend back in early 2019 and had been making some motions to see a reversal. However, the recent new lows below $60 may be signalling a resumption of the longer term bear trend. Key support near $60. He would be out if that level is breached. A rally with 10-15% upside is possible.
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It broke through the down trend back in early 2019 and had been making some motions to see a reversal. However, the recent new lows below $60 may be signalling a resumption of the longer term bear trend. Key support near $60. He would be out if that level is breached. A rally with 10-15% upside is possible.
DON'T BUY
DON'T BUY
June 11, 2019
She is on the sidelines for the auto parts sector. MG-T had to reduce guidance lately with a slow down coming in Europe. Meanwhile the company is investing in expensive autonomous technology. She is staying away.
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She is on the sidelines for the auto parts sector. MG-T had to reduce guidance lately with a slow down coming in Europe. Meanwhile the company is investing in expensive autonomous technology. She is staying away.
PAST TOP PICK
PAST TOP PICK
May 17, 2019
(A Top Pick Jul 10/18, Down 24%) They had a lousy Q1. They overpaid an acquisition in China. They had a write-down elsewhere. Good managers, but the market didn't cut them a break over these mistakes. They still generate a lot of free cash flow and he expects heavy share buybacks to come. This is a screaming buy.
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(A Top Pick Jul 10/18, Down 24%) They had a lousy Q1. They overpaid an acquisition in China. They had a write-down elsewhere. Good managers, but the market didn't cut them a break over these mistakes. They still generate a lot of free cash flow and he expects heavy share buybacks to come. This is a screaming buy.
DON'T BUY
DON'T BUY
May 15, 2019
He recommended it last December, but the chart has since deteriorated and is still finding a floor. He's now cautious. Resistance is at $62. He wants to see more volume before he reconsiders.
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He recommended it last December, but the chart has since deteriorated and is still finding a floor. He's now cautious. Resistance is at $62. He wants to see more volume before he reconsiders.
DON'T BUY
DON'T BUY
May 14, 2019

The stock has taken a hit since they reported weaker earnings, but they are a global operator and pay a decent yield. He owns no car stocks; it's a tough sector with trade tensions overhanging it. He slightly prefers Martinrea.

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The stock has taken a hit since they reported weaker earnings, but they are a global operator and pay a decent yield. He owns no car stocks; it's a tough sector with trade tensions overhanging it. He slightly prefers Martinrea.

DON'T BUY
DON'T BUY
May 9, 2019
We were seeing an extended cycle for the autos. Now we are seeing some erosion in sales. We are almost at the support level. It looks like we are in a head and shoulders pattern. He would not look at it.
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We were seeing an extended cycle for the autos. Now we are seeing some erosion in sales. We are almost at the support level. It looks like we are in a head and shoulders pattern. He would not look at it.
DON'T BUY
DON'T BUY
May 8, 2019
He sold it last fall because the auto cycle is maturing (sales have peaked in North America where Magna has one-third of its business), and Magna was having trouble with a joint venture in China where it's hard to enforce contracts. True, the stock has bounced back since he sold last fall, but he'd still be out.
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He sold it last fall because the auto cycle is maturing (sales have peaked in North America where Magna has one-third of its business), and Magna was having trouble with a joint venture in China where it's hard to enforce contracts. True, the stock has bounced back since he sold last fall, but he'd still be out.
WEAK BUY
WEAK BUY
May 6, 2019
Like the chart. It broke below its 20-day moving average. It had a hammer pattern last year that flushed out a lot of weak hands/investors. It's now testing $71-72. If it slips below that, it will fall to $67. Falling to $61 is not a good sign. You can buy it now and happily hold it for a year.
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Like the chart. It broke below its 20-day moving average. It had a hammer pattern last year that flushed out a lot of weak hands/investors. It's now testing $71-72. If it slips below that, it will fall to $67. Falling to $61 is not a good sign. You can buy it now and happily hold it for a year.