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Magna International Inc. (MGA)

NYSE - NYSE Delayed Price. Currency in USD
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61.75+0.09 (+0.15%)
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Neutralpattern detected
Previous Close61.66
Open61.90
Bid61.33 x 800
Ask65.71 x 800
Day's Range61.20 - 62.02
52 Week Range22.75 - 63.58
Volume354,413
Avg. Volume957,485
Market Cap18.48B
Beta (5Y Monthly)1.53
PE Ratio (TTM)40.57
EPS (TTM)1.52
Earnings DateN/A
Forward Dividend & Yield1.60 (2.59%)
Ex-Dividend DateNov 19, 2020
1y Target Est67.76
  • Electric Carmakers Are in a Stock Market Bubble
    Bloomberg

    Electric Carmakers Are in a Stock Market Bubble

    (Bloomberg Opinion) -- The chief executive officer of Volkswagen AG, Herbert Diess, has predicted that within five to 10 years the world’s most valuable company will be a carmaker. Given how much investors have been bidding up the shares of Tesla Inc. and other electric vehicle stocks, it might happen sooner.Tesla’s market value soared past $540 billion this week — equivalent to 250 times its expected earnings this year — meaning it’s now the world’s 10th-most valuable listed business, according to Bloomberg data. A trio of New York-listed Chinese electric-vehicle groups — Nio Inc., XPeng Inc. and Li Auto Inc. — are worth a combined $154 billion. None of the three is profitable and together they delivered fewer than 30,000 vehicles during the most recent quarter, just over 1% of Volkswagen’s car sales volumes.Arrival Ltd., a U.K.-based electric-bus and van startup that’s poised to go public by merging with a special purpose acquisition company, is valued at almost $16 billion after the SPAC’s shares more than doubled in a week. It won’t start producing vehicles until late next year.(1)The electric revolution is real and the shift away from combustion engines is accelerating. From a climate perspective, it’s great that investors are allocating capital like this. Still, valuations look mighty bubbly. The potential for disappointment is massive, particularly for the newest crop of EV makers that are yet to generate meaningful revenue.Like all financial bubbles, this one is driven by dreams of enormous wealth. Elon Musk has overtaken Bill Gates as the world’s second-richest person. Scottish investment manager Baillie Gifford & Co., an early Musk backer, recently cashed out billions of dollars in Tesla stock but retains a 3.7% holding worth about $20 billion. Baillie Gifford has more than one horse in the EV race: Its Nio stake is worth almost $6 billion. The Chinese company’s U.S-listed shares have surged 1,235% this year. Nio’s recent history shows the perils of electric-vehicle stocks. It warned in March of substantial doubt in its ability to continue as a going concern, having burned through $4 billion of cash in three years. It survived thanks to a local government bailout. Tesla has been on the cusp of bankruptcy at least twice since 2003. Those now joining the electric race claim to have learned lessons from these near-death struggles but there’s little to suggest their fates will be any less volatile.Competition is intense and while electric motors are simpler to build than combustion engines, developing a vehicle that’s safe, reliable and exciting is incredibly difficult. Incumbent giants such as Volkswagen and General Motors Co. are much better capitalized and they’ve far more experience managing supply chains and building brands. After a slow start, they’ve gone “all-in” on EVs. They won’t be shoved aside easily. Several factors have driven electric-vehicle stocks to these giddy heights. The U.S. Federal Reserve has stoked a speculative frenzy by cutting interest rates to zero, and bored millennials trading stocks at home on Robinhood have caught the EV bug. Electric-vehicle companies know how to market themselves to this crowd: Workhorse Group Inc. says its delivery vans can be paired with a drone, while XPeng emphasizes its autonomous-driving capabilities. ElectraMeccanica Vehicles Corp.’s “Solo” model has just three wheels.  Then there’s 2020’s hottest financial fad: SPACs. Many have merged with electric-vehicle groups, and one peculiarity of these deals is that the companies are allowed to publish detailed multi-year financial forecasts, unlike in a regular initial public offering. These projections are often extremely bullish. Like Arrival, Fisker Inc. — an asset-light electric-auto business whose shares have soared — is yet to commence commercial sales. Even Musk is worried about SPACs, though he hasn’t said which ones.These new companies claim to have a solution for the manufacturing difficulties and massive capital outlays that almost sank Tesla. Drawing a comparison with the way Apple Inc. outsources phone production to Foxconn Technology Group, Fisker plans to subcontract manufacturing of its Ocean SUV to Canadian auto-parts supplier Magna International Inc. Electric- and hydrogen-truck maker Nikola Corp. is pursuing a similar strategy with partners GM and CNH Industrial NV. Others are taking a different approach. Electric-pickup startup Lordstown Motors Corp. acquired a factory from GM and has licensed technology from Workhorse to speed its market entry. Not to be outdone, Arrival claims to have reinvented the car assembly line. It plans to construct smaller, cheaper “microfactories” situated closer to where products are sold. Greater automation will reduce the need for human labor, it says.However you produce vehicles, though, there’s plenty to trip you up. More than a third of Workhorse’s factory staff have had to down tools because of suspected coronavirus infections. Li Auto recalled all 10,000 electric SUVs produced before June, after it found a potential suspension problem. Workhorse and XPeng both warned recently of battery supply bottlenecks. A big test for wannabe Teslas will come when they’ve burned though their cash and need to ask equity and debt investors for more, as Tesla and Nio have done repeatedly. ElectraMeccanica warned in its latest accounts that its “ability to continue as a going concern will depend on our continued ability to raise capital on acceptable terms.”All of this may have short sellers licking their lips, but Tesla’s rise shows the danger of betting against the bubble. Nikola was the subject of a scathing report from Hindenburg Research that questioned its technology, and which forced the departure of its chairman. Yet its market capitalization now exceeds $11.5 billion.Diess may be right about carmakers becoming the most valuable companies. It’s inevitable, however, that some won't make it.(1) Basis of calculation: the transaction at $10 a share valued Arrival's equity at $6 billion. Shares of the CIIG Spac are now trading at $26.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Bryant is a Bloomberg Opinion columnist covering industrial companies. He previously worked for the Financial Times.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

  • 7 Canadian Stocks to Buy for Improved International Relations
    InvestorPlace

    7 Canadian Stocks to Buy for Improved International Relations

    Canadian stocks will be getting a boost on the news that Joe Biden is the United States’ President-elect. U.S.-Canada relations have been strained during Trump’s term as U.S. President. That much is clear. The U.S. and Canada share a long border, many cultural values and many of the same views in general. Yet, it would be fair to say that our differences have come to the fore of late.  That trend should undergo a reversal, and relations should be on the mend in 2021. That should lead to a macro environment in which American investors, and all investors, look to our northern neighbors and their businesses more favorably. Cooperation will increase, foreign direct investment may rise, and more interest will abound.  7 of the Best Cheap Stocks for December The overall thrust is that there will be increased opportunity and logic behind giving Canadian stocks more scrutiny now and into 2021. There is a very good business case for these stocks to appreciate on the whole. These seven stocks listed below are not only attractive on improved international relations, but also fundamentally attractive in their own right. Read on because the case for northern diversification is strengthening. InvestorPlace - Stock Market News, Stock Advice & Trading Tips Lululemon (NASDAQ:LULU) Brookfield Infrastructure Partners (NYSE:BIP) Shopify (NYSE:SHOP) TFI International (NYSE:TFII) Magna International (NYSE:MGA) Telus Communications (NYSE:TU) Thomson Reuters (NYSE:TRI) Canadian Stocks: Lululemon (LULU) Source: Richard Frazier / Shutterstock.com Lululemon is a Vancouver-based athletic apparel company that has become a household name in the past few years. Admittedly it is more agnostic than some other names on this list in terms of its connection to improved international relations. Nevertheless, it is a strong Canadian company and should rise.  Investors could make the case that Lululemon is due for a downward price correction given that its valuation rankings are quite low. Traditional valuation ratios including price-to-earnings, price-to-sales and price-to-book ratios are all in the bottom 10-15% relative to industry peers. However, the same is true of Tesla (NASDAQ:TSLA) and many other growth stocks, and the markets have yet to correct them downward overall.  Markets are overall positive on Lululemon, having it rated overweight and basically 2-to-1 a buy over a hold. The thirty analyst average price in 12 months is nearly $373, leaving a bit of growth from current prices. And a bullish case could see it rise much higher.  Global activewear is predicted to have a CAGR of 11% 2020-2024. Lululemon is positioned to take advantage of that trend. Improved relations may mean room for improvement even though international relations may only modestly move this particular stock.  Brookfield Infrastructure Partners (BIP) Source: Mike Wilson Via Unsplash Brookfield Infrastructure Partners has significant operations in Bermuda and headquarters in Toronto. The company invests in diverse infrastructure assets globally, the majority of which is in North America. The company has $379 billion of AUM (Assets Under Management) in North America, $102 billion in EMEA, $36 billion in South America and $61 billion in the Asia Pacific region.  Given that a central pillar of President-elect Biden’s policy will be to invest in infrastructure, BIP stock has excellent tailwinds. And BIP has the majority of its assets in North America meaning improved U.S.-Canada relations bode well for the company specifically. 7 Electric Vehicle Stocks That Could Be Your Joyride into 2021 The company has $91 billion earmarked for infrastructure, specifically. It invests in every type of infrastructure from utilities, to transportation, to data, all of which should soon get a boost. The company is modestly undervalued now, but has analyst favor. This could mean a serious bump if Biden’s plans for an infrastructure build out take root.  Shopify (SHOP) Source: justplay1412 / Shutterstock.com Shopify recently posted a strong Q3 where actual earnings per share of $1.17 more than doubled consensus expectations of 54 cents. And despite the fact that the company also posted revenues that rose 96% over the same period a year earlier, its shares slipped.  The prevailing explanation is that while adoption of cloud-based ecommerce is likely to remain strong, the novel coronavirus is causing woes related to employment and entrepreneurship which drive SHOP stock. I am an optimist at heart, and I believe that Shopify has a bullish case underpinning it despite the current times we are living in. Because, while analysts are decidedly undecided on SHOP shares, I’m not.  Wall Street has it evenly split between buy and hold. Clearly ecommerce is here to stay. However, I also think that employment woes will be less pronounced on the positive vaccine news currently coming out of Pfizer (NYSE:PFE), Moderna (NASDAQ:MRNA) and AstraZeneca (NASDAQ:AZN), among others.  We do have a light at the end of a long tunnel. Although vaccine distribution will take time, it will happen. That will bring people back to work bolstering the American economy. As a consequence, more SMEs will migrate their shops to SHOP increasing share prices.  TFI International (TFII) Source: Shutterstock TFI International is a transportation and logistics company located in Quebec. The company operates throughout Canada, the U.S. and Mexico and employs over 17,000 people. Generally speaking, improved relations between the U.S. and Canada should equate to a greater flow of goods cross-border. In turn, TFII stock should capitalize.  The company has expanded significantly over the past decade via a series of acquisitions across North America. TFI has undertaken 88 acquisitions in Canada, the U.S. and Mexico since 2008. The company currently has a return on invested capital that is lower than the weighted average cost of that capital. This is not what investors want to see. However, a bullish theory could be made that those 88 acquisitions will begin to pay dividends so to speak, thus increasing the TFI’s capital efficiency and currently unfavorable ROIC to WACC ratio.  Prime Minister Trudeau, when asked what his biggest cross-border concern is, answered “Trade … [c]ontinuing access to the American market, making sure we’re defending Canadian jobs, defending Canadian workers and ensuring a smooth flow of goods across the border.” 10 Winning Stocks To Buy After Big Q3 Earnings Results The Biden-Trudeau relationship is strong, which should pave the way forward for TFII stock.  Magna International (MGA) Source: JHVEPhoto / Shutterstock.com Magna is an automotive industry supplier providing body structures, seating, power & vision and complete vehicle engineering and manufacturing. I became aware of the company after it was announced that it will provide platform manufacturing for the Fisker (NYSE:FSR) Ocean EV. But the fact is that a cursory glance at the company’s partners shows it serves close to a hundred customers across the automotive industry. Almost all of them are well-known, household names.  Whether Fisker becomes a success or not is up for debate. However, more importantly to Magna is the opportunity to expand EV operations. The company will have an opportunity to not only prove itself with Fisker, but also a chance to gain market share in an EV environment fostered under President-elect Biden.  Biden is a car guy, and one who sees the evolution of the industry clearly tipping toward EVs. He is very likely to incentivize the industry at large, with plans to modernize government fleets, specifically. Magna will have an excellent chance to capitalize in an environment in which cross-border investment and cooperation are increasing.  Telus Communications (TU) Source: Shutterstock Telus Communications is one of the telecommunications which was central in the Huawei narrative. Remember, Canada did arrest Meng Wanzhou, Huawei’s CFO and daughter of the founder. The court case is ongoing now. This further strained tense international relations between China, Canada and the U.S.  Biden is likely to take a softer approach toward China, which should open Huawei’s opportunity to a degree with Telus. Huawei was a 4G provider for Telus, but was effectively shut out of 5G contracts in Canada.  This is because Canada has yet to give an official decision regarding whether to ban Huawei or not. In my mind this means that Telus and Huawei could begin negotiations again. Biden is likely to pressure China less than President Trump. Trudeau has been indecisive in banning Huawei and will receive less pressure under a Biden White House. There is a chance that Trudeau simply waits for a Biden inauguration and does not ban Huawei at all.  7 Macro Trends Creating the Next Wave of Growth Stocks  The conclusion is that Telus may have a chance to reestablish its relationship with Huawei and other Chinese telecoms as a consequence. Telus is already well-regarded by analysts and it could rise if it can find ways to save consumers money. The Canadian government believes current phone bills are excessive. If Huawei can prove that it can decrease operating costs, Canada may be much more willing to bend toward its will. If that happens, TU stock will be primed to rise.  Thomson Reuters (TRI) Source: Shutterstock Thomson Reuters has a great chance to rise and become a buy on improved international relations. It is my hope, but certainly not a foregone conclusion, that people will consume more neutral media sources under the new Presidency. Reuters news is regarded as being close unbiased and reliable.  Fact-based news should help to improve international relations, which is what Reuters aims for. The company’s recent Q3 earnings release provided some positive takeaway, which bolsters its case as a stock to buy. Highlighted in the report was that “Adjusted EBITDA, which excludes the impact of the warrant revaluation among other items, increased 42%, primarily reflecting lower costs and higher revenues. The related margin increased to 34.0% from 24.4% in the prior-year period.” Further, “Adjusted EPS, which excludes the company’s 45% equity interest in Refinitiv as well as other adjustments, increased to $0.39 per share from $0.27 per share in the prior-year period, primarily due to higher adjusted EBITDA.” Therefore, the bull thesis around TRI stock is that already improved international relations can be furthered by neutral media sources like Thomson Reuters.  On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. Alex Sirois is a freelance contributor to InvestorPlace whose personal stock investing style is focused on long-term, buy-and-hold, wealth-building stock picks. Having worked in several industries from e-commerce to translation to education and utilizing his MBA from George Washington University, he brings a diverse set of skills through which he filters his writing. More From InvestorPlace Why Everyone Is Investing in 5G All WRONG Top Stock Picker Reveals His Next 1,000% Winner Radical New Battery Could Dismantle Oil Markets The post 7 Canadian Stocks to Buy for Improved International Relations appeared first on InvestorPlace.

  • Magna Brings EyeQ5-Based Driver Assistance System to Market
    GlobeNewswire

    Magna Brings EyeQ5-Based Driver Assistance System to Market

    Magna ADAS Gen5 Magna and Mobileye have collaborated since 2007 to provide automakers and consumers with leading-edge driver-assistance systems. * One of the industry’s first “one-box” EyeQ5 front-facing camera systems * Magna’s electronics and camera expertise, Mobileye’s image-processing technology * Magna ADAS systems are found on more than 250 vehicle models on the road todayTROY, Mich., Nov. 24, 2020 (GLOBE NEWSWIRE) -- A premium automaker in Europe will soon be able to offer industry-leading driver assistance features across a larger portion of its vehicle lineup, thanks to the next generation of camera-based driver assistance from Magna.The Magna Gen5 “one-box” solution is a Mobileye EyeQ5-based system – one of the industry’s first where the forward-facing camera and related software are contained in a single assembly. Benefits include lower cost, simplified installation on the assembly line, and the ability for the technology to be applied to a wider range of an automaker’s lineup. The system will provide drivers with safety and convenience features such as adaptive cruise control, automatic emergency braking and pedestrian detection. As with previous generations, the system combines Magna’s electronics and camera expertise with Mobileye’s system-on-chip (SoC) image-processing technology. The camera features a 120-degree, 8-megapixel optical path, while Magna has continued to refine its world-class camera manufacturing processes to achieve the quality and volumes required of global vehicle platforms. Mobileye collaborated with Magna engineers to ensure that the EyeQ5 met and exceeded new requirements related to the launch program.“At Magna, our ADAS capability has been built on automotive cameras, evidenced by more than 500 U.S. patents in the last 15 years,” said Uwe Geissinger, President of Magna Electronics. “As demonstrated by our long collaboration with Mobileye and the introduction of our new Gen5 system, we’re constantly working to deliver innovative systems to our customers and help make vehicles safer and more enjoyable to drive.”“We have been working with Magna on camera-based ADAS since 2007, and our collaboration continues to provide leading-edge driver-assistance features,” said Erez Dagan, Executive Vice President for Products and Strategy at Mobileye. “This latest system represents a new level of performance and functionality, and we’re already looking for ways to make subsequent generations even better.”Magna provides global automakers with ADAS technologies – including the PACE Award-winning Trailer Angle Detection, Automatic Emergency Braking, and rearview object and pedestrian detection – to more than 250 vehicle models on the road today.TAGS Automotive camera systems, camera-based ADAS, automotive electronicsINVESTOR CONTACT Louis Tonelli, Vice President, Investor Relations louis.tonelli@magna.com, (+1) 905.726.7035MEDIA CONTACT Tracy Fuerst, Vice President, Corporate Communications & PR tracy.fuerst@magna.com, (+1) 248.631.7004ABOUT MAGNA We are a mobility technology company. We have over 157,000 entrepreneurial-minded employees, 344 manufacturing operations and 93 product development, engineering and sales centres in 27 countries. We have complete vehicle engineering and contract manufacturing expertise, as well as product capabilities that include body, chassis, exteriors, seating, powertrain, active driver assistance, electronics, mechatronics, mirrors, lighting and roof systems. Our common shares trade on the Toronto Stock Exchange (MG) and the New York Stock Exchange (MGA). For further information about Magna, visit www.magna.com.THIS RELEASE MAY CONTAIN STATEMENTS WHICH CONSTITUTE “FORWARD-LOOKING STATEMENTS” UNDER APPLICABLE SECURITIES LEGISLATION AND ARE SUBJECT TO, AND EXPRESSLY QUALIFIED BY, THE CAUTIONARY DISCLAIMERS THAT ARE SET OUT IN MAGNA’S REGULATORY FILINGS. PLEASE REFER TO MAGNA’S MOST CURRENT MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL POSITION, ANNUAL INFORMATION FORM AND ANNUAL REPORT ON FORM 40-F, AS REPLACED OR UPDATED BY ANY OF MAGNA’S SUBSEQUENT REGULATORY FILINGS, WHICH SET OUT THE CAUTIONARY DISCLAIMERS, INCLUDING THE RISK FACTORS THAT COULD CAUSE ACTUAL EVENTS TO DIFFER MATERIALLY FROM THOSE INDICATED BY SUCH FORWARD-LOOKING STATEMENTS. THESE DOCUMENTS ARE AVAILABLE FOR REVIEW ON MAGNA’S WEBSITE AT WWW.MAGNA.COM.A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/cf925241-95aa-4512-be68-d2071c01bcb3