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Linamar Corporation (LNR.TO)

Toronto - Toronto Real Time Price. Currency in CAD
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53.81+0.19 (+0.35%)
At close: 04:00PM EDT

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  • A
    Anonymous
    Crashing any news
  • b
    ben j
    I am confused as to why this stock is so low? Earnings looked good, P/E is super low, and they are still growing and buying back stock. i know that 'peak' auto sales seems to be an issue but a lot of companies with less growth are going up while losing money and this stock stays low while growing and making a ton of money. Can someone help me out?
  • A
    Analytica
    Top Pick on Bloomberg!
    Linamar (LNR TSX)

    Mispriced stock. In Q3 2021, the company grew its content per vehicle globally by 10 per cent. It is well positioned to capture market share in EV’s. Its agriculture division makes combines which will sell well in the North American markets given the higher grain prices following the Ukrainian invasion. We think the stock is worth over $100.
  • T
    TurboJezus
    Amazing how this company is worth 1B and turns a profit while Canopy trades at 6B but turns millions In losses
  • A
    Analytica
    Teal Linde's Top Picks: May 16, 2022 Bloomberg Market Call
    LINAMAR (LNR TSX)

    Last purchased on May 5, 2022 at $50.99

    Linamar is a company that should benefit simply from a return to normal operating conditions – a reversion to the mean. With 2019 impacted by the GM strike, 2020 impacted by the coronavirus, and 2021 and year-to-date 2022 hurt by supply chain shortages, a normal year in 2023 should enable the company to return to higher levels of profitability and a higher share price.

    From a financial perspective, Linamar earned an average return on equity of 20 per cent from 2013 to 2017. For the trailing twelve months, its return on equity is around 10 per cent.

    With current book value at $70 per share, if the company can return to earning a return on equity of 15 per cent, that would equate to EPS of $10.50 per share. Apply a 10x P/E multiple to $10.50 of EPS would result in a $105 share price, double its current price. If return on equity returns to 20 per cent, EPS will become $14 per share. At a 10x P/E multiple, the share price would be $140. Linamar is an attractive reversion to the mean investment opportunity.
  • P
    Phil
    I was waiting for a pullback to buy this quality stock. Thanks market!
  • C
    Corey
    Insanely cheap, trading at 70% of book value, 5 x Earnings, reasonable debt, huge Margin of Safety.
  • J
    JWM
    It has been disastrous experience with the Corona meltdown, but I have not sold a single share of LNR. I have added tons of oil stocks to my portfolio last week, and hoping they will shine with the recovery. When I look at LNR and compare its financial metrics to other sectors like TSLA, Canopy, Bio, etc, my stomach hurts with the market's madness. I am quite #$%$ off the market has been avoiding jewel like LNR and injecting investments elsewhere.
  • C
    Corey
    Net Book value of $62 per share now, with debt dropping...not that the market will like the miss.

    Hope we see share buybacks to keep buying a $1 for 70 cents.
  • y
    yaoyao
    new to auto parts industry. Am i doing my DD wrong? This company is in a net cash position and trading at 3 x 2020 free cash flow and 3X 2021 EBITDA? How can this happen? what is the risk here?
  • A
    Analytica
    Linamar Corp. (LNR-T -2.99%decrease
    )

    On Dec. 14, chief executive officer and director Linda Hasenfratz invested over $3.6-million in shares of Linamar. Ms. Hasenfratz purchased 50,000 shares at a price per share of $72.55, increasing this particular account’s position to 250,000 shares.

    This year, the stock has been a laggard. Year-to-date, the share price is up less than 5 per cent, underperforming the broader market. The S&P/TSX composite index is up 18 per cent in 2021.

    Looking forward, analysts anticipate this auto stock will rebound. According to Refinitiv, there are five buy recommendations and the average one-year target price is $96, implying the share price has 36 per cent upside potential.
  • J
    JWM
    I am at the breakeven now with the jump today. Hope this continues and LNR finds its fair value. This should be traded around 60-70. Let s go~!
  • F
    Flobert
    Exro Announces Strategic Development Agreement with Linamar for Electric Drive Solution to Advance Electric Vehicle Adoption
  • G
    GEORGE
    everyone praises this company --well managed- positive results -well diversified-- so what is going on with the stock price -it has only seen one direction-- down
  • C
    Cool
    The numbers for this stock are beautiful and intrinsically it is worth between 125 and 150. This price is a gift from the deep value gods. Don't ask questions, just be gracious.
  • w
    william
    Sorry folks you are talking about the wrong company. Magna is the one with the law suit frank s. Is suing Belinda s. Over mishandling of a trust fund. Suit is for $500 million. By the way the closing of gm had little affect on Lnr most of their product goes off shore. I find a lot of info on here is without a lot of real research about companies. Mostly rumours which is no way to invest.
  • A
    Analytica
    In the Globe this morning!
    Scotia Capital analyst Mark Neville is expecting to see a gradual increase in North American automobile production volumes, prompting him to raise his financial projections for parts suppliers.

    “Production volumes in 2021 were significantly constrained by supply chain challenges – most notably, semiconductor shortages,” he said in a note released Friday. “In our opinion, strong consumer demand coupled with record low inventory levels should support a sustained period of robust production volumes – when chip availability allows. We continue to anticipate a gradual recovery in industry volumes through 2022 as chip availability improves, and a full recovery in 2023. Higher volumes should translate into higher margins, while more consistent volumes should largely eliminate inefficiencies related to unpredictable scheduling changes.”

    Mr. Neville is projecting fourth-quarter production volumes will be down “significantly” year-over-year, however he thinks they will have “improved meaningfully quarter-over-quarter as a number of OEs (including GM and Ford) have spoken about improved semiconductor availability.”

    He added: Moreover, it is also our understanding that sudden changes to production schedules have become less frequent, which should also help the cost side of the equation in Q4 – relative to Q3. As we gain increased confidence in the shape of the production recovery – and, in turn, earnings and CF – we have increased our valuation multiples across the group.”

    With that view, he raised his target prices for shares of these companies:

    Magna International Inc. (MGA-N +3.30%increase
    /MG-T +3.39%increase
    , “sector outperform”) to US$105 from US$100. The average on the Street is US$97.71.
    Martinrea International Inc. (MRE-T +1.05%increase
    , “sector perform”) to $17.50 from $16. Average: $15.63.
    Linamar Corp. (LNR-T +3.96%increase
    , “sector outperform”) to $105 from $100. Average: $97.
    “For Q4/21, we’re above consensus for LNR, largely in line for MRE and ABCT, and modestly below for MGA. That said, the range of estimates is still fairly wide. Moreover, as we’ve previously stated, we view positive incremental data points around production as the catalyst to take the auto equities higher, not near-term earnings,” said the analyst.
  • J
    JWM
    I don't understand. People keep saying automative industry is cyclical. However, LNR performances have been immuned to this, while the share price has been depressed for about a year. I have been accumulating my position at $48-51. I hope it flies to $70++++ soon.
  • A
    Anonymous
    $500+ free cash flow with $2.6B market cap. Very reasonable debt. Solid place to invest and wait.
  • i
    iosif
    Bought today, should be a good entry price