Review of Magna International

MAR 16, 2023 - MG is a well-established global auto-manufacturing company that has operations focused on almost all aspects of a vehicle. The company is shifting part of its focus to the megatrend areas to address the ‘car of the future’ and anticipates these new markets to continue driving topline growth for the company. 2022 was a challenging year for Magna, as it idled its Russian facilities, witnessed higher input costs and labor costs, faced inefficiencies at some of its facilities, and largely saw a material decrease in its earnings and profit margins. We feel that the company is appropriately priced given its historical valuations and margins against its peers. With headwinds in horizon and growing pains, we are downgrading the name by one notch to 'B+'.

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Q: If one was willing to accept the smaller cap size risk and the much lower yield, could you endorse a switch from MG to DOO to stay (technically at least) in the same sector in the hopes of realizing a higher total return in the long run (5-10 years)? When I look at the history, Magna is about where it was 7 or 8 years ago, and DOO is up about 4 fold. I realize the past doesn’t predict the future, but still…..

Read Answer Asked by Stephen R. on June 05, 2023

Q: Good morning team,
Could you please give your take on these holdings .. keepers or let go? With the exception of TECK, I am down with the rest. Although they are good companies, they don't seem to have +ve momentum ..
I appreciate your thoughts ?
Thanks
CR

Read Answer Asked by Carlo on May 30, 2023

Q: My MGA is sagging but I still like the company's future. My ATS is doing fine, thank you very much. I'm thinking about selling MGA and increasing my ATS to a full position. Long time horizons but in say five years, which company would you rather be in today? thanks

Read Answer Asked by alex on May 30, 2023