Magna International

Magna International  -  MG  .  TSX

This is what I thought in May 2016 when I first bought the stock...

"Magna is one of the biggest bruisers in the Canadian market, with a market cap of $20 billion and operations spread across the globe. They have factories in China, Europe, the US, Mexico and Canada making a wide variety of auto parts for a wide cross section of automakers. The metrics look good with a trailing p:e of 9.5 at my purchase price of $54.45 and debt that is only 2 times earnings. The company is earning a high ROE of 20% right now and if they can continue this kind of performance, the stock's valuation should move higher. The company expects their strong earnings to continue for the next few years. They are eyeing expansion in China and want to grow their business in electronic sensors and vision as well as whole car assembly. Additionally, they are open to growing through acquisition and see the potential for improving their profitability in Europe where margins are much lower than they are in their NA operations."

What's changed since I made my first purchase of this stock? Follow the ongoing story in the posts below...

Mentioned / Featured in the Following Blog Posts