Magna International is a leading Canadian mobility technology company and one of the world's largest automotive suppliers. Headquartered in Aurora, Ontario, Magna operates 342 manufacturing facilities and 103 product development, engineering, and sales centers across 28 countries, employing approximately 167,000 people. Magna+9dakkota.com+9MarketScreener+9Magna+5Wikipedia+5Magna+5
📈 Stock Performance
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TSX (MG): Closed at CAD 51.72 on May 13, 2025.
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52-Week Range: CAD 43.25 – CAD 66.66.
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Market Cap: Approximately CAD 14.6 billion.
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Dividend Yield: 5.18%, with 15 consecutive years of dividend increases.
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Forward P/E Ratio: 7.59. MarketWatch+2Trading Economics+2Reuters+2Yahoo Finance+1partstrader.com+1MarketScreener+1Magna+1Magna+1Investing.com+1Magna+15Reuters+15Kavout+15
💰 Financial Highlights
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Q1 2025 Revenue: $10.07 billion, an 8.2% decrease year-over-year.
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Adjusted EPS: $0.78, down from $1.08 in Q1 2024.
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Free Cash Flow (2024): $2.13 billion.
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Cash Position: $1.25 billion as of the latest report.
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2025 Sales Outlook: Raised to $40–41.6 billion. Nasdaq+2Reuters+2Magna+2MagnaMarketWatch+3StockAnalysis+3Reuters+3MarketScreener+1Investing.com+1
🌍 Global Operations
Magna's extensive global footprint includes operations in North America, Europe, Asia, South America, and Africa. The company supports every major automaker worldwide, with a significant presence in emerging markets such as China, South America, Eastern Europe, and India. Magna+3Magna+3Magna+3
🤝 Partnerships & Clients
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Key Clients: General Motors, Ford, Stellantis, BMW, Mercedes-Benz, Volkswagen, Toyota, Tesla, Tata Motors, Bombardier, Harley-Davidson, John Deere, and others.
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Recent Partnerships:
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Mercedes-Benz: Expanded collaboration on powertrain systems, ADAS technologies, and electrification.
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NVIDIA: Joint development of AI-powered solutions for next-generation vehicle intelligence and autonomy.
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Waymo: Partnership to build over 2,000 fully autonomous Jaguar I-PACE vehicles and integrate Waymo's technology into new vehicle platforms.
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Sanctuary AI: Strategic partnership for the development of general-purpose AI robots for manufacturing operations. Wikipedia+1Magna+1MagnaMagnaReutersCoast Reporter
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📊 Major Shareholders
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Pzena Investment Management LLC: 9.9% ownership.
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Magna Deferred Profit Sharing Plan: 6.08%.
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Hotchkis & Wiley Capital Management LLC: 4.38%.
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Royal Trust Corp. of Canada: 4.27%.MarketBeat+6WallStreetZen+6MarketScreener+6StockAnalysis+2MarketScreener UK+2MarketScreener+2Magna+2StockAnalysis+2MarketScreener+2Wikipedia
🚀 Growth Potential
Magna is strategically positioned to capitalize on key automotive industry trends:
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Electrification: Development of next-generation eDrive systems and battery enclosures. Magna Steyr
- Magna Steyr Austria EV plant
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Autonomous Driving: Collaborations with NVIDIA and Waymo to advance vehicle autonomy.
- Magna/Waymo AV Michigan plant
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Connectivity: Integration of 5G technology to enhance vehicle connectivity and ADAS capabilities. Magna+21Magna+21GlobeNewswire+21ReutersMagna
Analysts anticipate a 95% increase in earnings over the next few years, reflecting a highly optimistic outlook. Simply Wall St
⚠️ Tariff Impact
The imposition of U.S. tariffs has significantly impacted Magna's operations:Magna+5Reuters+5Magna+5
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Estimated Annual Hit: $250 million from import duties.
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CEO's Statement: Swamy Kotagiri likened the tariff impact to facing multiple crises simultaneously, including COVID-19, chip shortages, and the Great Recession.
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Mitigation Strategies: Implementation of cost-saving measures, operational improvements, restructuring, and cuts to capital and engineering expenses. MarketScreener+1MarketScreener+1Wikipedia+3partstrader.com+3Reuters+3Reuters
🧠 Innovation & Technology
Magna continues to invest in cutting-edge technologies:
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AI & Robotics: Partnership with Sanctuary AI for developing human-like robots for manufacturing.
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Software Platforms: Collaboration with GM and Wipro to create SDVerse, a B2B marketplace for automotive software.
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Sustainability: Initiatives to develop sustainable solutions using recycled materials and reduce environmental impact. Coast ReporterInvestopediaMagna
🧾 Conclusion
Magna International demonstrates robust fundamentals, a diversified global presence, and strategic investments in future mobility technologies. While facing challenges from tariffs and market fluctuations, the company's proactive measures and strong partnerships position it well for long-term growth. Investors may find Magna's current valuation attractive, considering its commitment to innovation, sustainability, and shareholder returns.
Ed Note: We are long MG stock!
