MG CN
Magna International Inc.
Industrial/Transportation
05/20/2014
Presented
| Date | 05/15/2014 |
| Price | CA$54.31 |
| Market Cap | $19.00B |
| Ent Value | $18.01B |
| P/E Ratio | 11.99x |
| Book Value | CA$21.11 |
| Div Yield | 1.64% |
| Shares O/S | 435.69M |
| Ave Daily Vol | 960,000 |
| Short Int | N/A |
Current
| Price | CA$56.61 |
| Market Cap | $13.00B |
| Magna International Inc. develops, manufactures, engineers, supplies, and sells automotive products. It operates through North America, Europe, Asia, and Rest of World segments. The company offers body, chassis, and renewable energy systems; powertrain systems, such as driveline systems, fluid pressure and controls, metal-forming solutions, and engineering services and system integration solutions; and exterior systems consisting of front and rear end fascia systems, exterior trims, modular systems, class A composite panels, structural components under hood and underbody components, and sheet molding compound materials. It also provides seating systems, including complete seating systems, mechanism and hardware solutions, specialty mechanism solutions, and seat structures, as well as foam and trim products; interior systems, such as sidewall and trim, cockpit, cargo management, and overhead systems; fuel, battery, and roof systems; and vision systems comprising interior and exterior mirrors, actuators, electronic vision systems, and door handle and overhead console systems. In addition, the company offers closure systems comprising door modules, window systems, power closure systems, latching systems, handle assemblies, driver controls, obstacle detection systems, engineering glasses, and sealing systems, as well as testing services for window regulators, wiper systems, door modules, cables, door latches, and closures. Further, it provides electronic systems, including eyeris - driver assistance systems, intelligent power systems, body electronics and HMI, engine electronics and liquid sensors, as well as industrial products, such as joysticks and electronic units for fork lifts; and vehicle engineering and contract manufacturing services. The company was founded in 1957 and is headquartered in Aurora, Canada. |
Please note, this stock split on 3/26/2015 at a ratio of 2/1. The presented data has been updated to account for the change, however, the text of the note may refer to data based on the original presented price of $108.61.
Public companies mentioned herein: Magna International (MGA), United Technologies (UTX), Honeywell (HON), Ford (F), General Motors (GM)
Highlights
The presenter noted the extent to which multiples have expanded across a broad range of industrials and cyclicals companies. Multi industrials like United Technologies (UTX) and Honeywell (HON) are trading at 18.5 times current year and 16.5 times 2015 earnings, yet EPS growth across the group is generally in the 9-10% range. These valuations are making it increasingly challenging to find a stock likely to outperform. Magna, a $20 billion market cap auto supplier that will be buying back a quarter of its shares over the next couple of years, appears well positioned to do just that.
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