Magna International Inc (NYSE:MGA)

$ 41.71 -0.45 (-1.07%) Market Cap: 11.99 Bil Enterprise Value: 19.03 Bil PE Ratio: 11.15 PB Ratio: 1.04 GF Score: 75/100

Magna International Inc at Wolfe Research Global Auto and Auto Tech Conference Transcript

Feb 15, 2024 / 09:15PM GMT

Release Date Price: $55.62 (+2.75%)

Transcript

Rod Avraham Lache

Wolfe Research, LLC - MD & Senior Analyst

All right. We'll try to speak over the -- with the noise outside. Our next presentation is -- our next fireside chat is with Magna.

So during the earnings call last week, Magna's management team indicated that they see revenue climbing from $43 billion in 2023 to $50 billion by 2025. So $7 billion of growth. Of that $7 billion of growth, roughly 2/3, so $4.5 billion is coming from megatrend growth areas like ADAS, EV, drivelines and battery enclosures. That business generated $2.5 billion last year. It's expected to reach the low $7 billion by 2026.

But I think even more notably, at least from my perspective, they anticipate significant margin expansion as those businesses ramp. The -- right now, those businesses, and you can just imagine a $2.5 billion business that's consuming $1.2 billion of R&D. So profitability is not very good right now. But as they start to generate revenue, that actually is very meaningful to the bottom line. Their margins at Magna have already improved from 4.4% in 2022 to 5.2% in 2023, they

Already have an account? Log in

Get the full story

Start 7-Day Free Trial

	Access to All Earning Calls and Stock Analysis
	30-Year Financial on one screen
	All-in-one Stock Screener with unlimited filters
	Customizable Stock Dashboard
	Real Time Insider Trading Transactions
	8,000+ Institutional investors’ 13F holdings
	Powerful Excel Add-in and Google sheets Add-on
	All data downloadable
	Quick customer support
	And much more...

30-Day 100% money back guarantee

You are not charged until the trial ends. Subscription fee may be tax deductible.

Excellent

4.6 out of 5

Trustpilot

Research Tools

All-In-One Screener Stock Ideas Stock List Guru List Guru Real-Time Picks Insider List Insider Trades Economic Indicators Sector & Industry Performance DCF Calculator Discussion Board

Product

Pricing Plans Excel Add-In Google Sheets Add-on Data API Stock Comparison Table Manual of Stocks Mobile App 中文

Education

Financial Glossary Tutorials FAQ Schedule Free Session Buffett Indicator Shiller P/E Yield Curve Today U.S. Inflation Rate Global Market Valuation Fed Net Liquidity Buffett Assets Allocation

Company

About GuruFocus Career Contact Us Advertise Site Map Term of Use Privacy Policy Referral Program Partner Program

Survey

We'd love to learn more about your experiences on GuruFocus.com and how we can improve!

Take Survey

Disclaimers

GuruFocus.com is not operated by a broker or a dealer. Under no circumstances does any information posted on GuruFocus.com represent a recommendation to buy or sell a security. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The individuals or entities selected as "gurus" may buy and sell securities before and after any particular article and report and information herein is published, with respect to the securities discussed in any article and report posted herein. Gurus may be added or dropped from the GuruFocus site at any time. In no event shall GuruFocus.com be liable to any member, guest or third party for any damages of any kind arising out of the use of any content or other material published or available on GuruFocus.com, or relating to the use of, or inability to use, GuruFocus.com or any content, including, without limitation, any investment losses, lost profits, lost opportunity, special, incidental, indirect, consequential or punitive damages. Past performance is a poor indicator of future performance. The information on this site, and in its related newsletters, is not intended to be, nor does it constitute investment advice or recommendations. The information on this site is in no way guaranteed for completeness, accuracy or in any other way. The gurus listed in this website are not affiliated with GuruFocus.com, LLC. Stock quotes are provided by QuoteMedia, Inc. (CSI). Company fundamental data is provided by Morningstar. Analyst estimates data is sourced from both Refinitiv and Morningstar, with priority given to Refinitiv data. Data is updated daily.