Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, diversified auto supplier Magna International
With that in mind, let's take a closer look at Magna's business and see what CAPS investors are saying about the stock right now.
Magna facts
|
Headquarters (Founded) |
Aurora, Canada (1957) |
|
Market Cap |
$14.57 billion |
|
Industry |
Auto parts and equipment |
|
Trailing-12-Month Revenue |
$22.92 billion |
|
Management |
CEO Donald Walker (since 2005) CFO Vincent Galifi (since 1997) |
|
Return on Equity (Average, Past 3 Years) |
1.5% |
|
Cash/Debt |
$1.66 billion / $120 million |
|
Dividend Yield |
1.2% |
|
Competitors |
BorgWarner
Johnson Controls
Lear |
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 90% of the 182 members who have rated Magna believe the stock will outperform the S&P 500 going forward. These bulls include All-Stars turtle286 and pickemblind, both of whom are ranked in the top 16% of our community.
Late last year, turtle286 brought Magna's improving fundamentals to our community's attention: "With orders increasing, higher EPS estimates, a dividend hike, and share repurchase agreement issued ... what's not to like?!"
Magna's diversified nature, massive scale, and attractive valuation fuel its four-star CAPS status. Currently, Magna even trades at a price-to-cash flow (9.5) discount to main rivals BorgWarner (20.5), Johnson Controls (18.2), and Lear (12.9), as well as smaller auto suppliers like Tenneco
CAPS member pickemblind expands on the outperform case:
Based in Toronto, Magna designs and [develops] automotive supplies. They build everything from engine parts, to interior and exterior trim. They have a pretty impressive list of customers which includes just about every auto maker that I can think of.
Magna was started in the garage of Frank Stronach back in 1957 and has since grown to become one of the biggest and most diversified auto suppliers in the world. They had the dual class shares for a number of years but have recently converted shares into a single class. ...
The auto industry has been in the turnaround mode for a while now and Magna looks to be able to gain market share during this comeback.
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