Toronto, Ontario – On Monday, Magna International stock finished the day trading at $46.22 — its lowest closing price since April 6, 2020.
Equity in the Aurora-based auto parts giant has been in a steady declines since last November, when then-U.S. President-Elect Donald Trump began discussing plans to impose tariffs on goods imported from Canada. At the beginning of the year, the stock was trading just below $60-per-share. It fell below $50 in early March.
Other Canadian auto parts companies are also trading at or very near five-year lows. On Monday, stock in Vaughan-based Martinrea closed at $6.77, its lowest closing price since March 2020. The Guelph-based Linamar Corp. saw its stock value dip to $47.09, its lowest price since November 2020.
Like Magna, both companies have faced steady declines since Trump's election. Since November, Martinrea's value has dropped by 37 per cent and Linamar has declined by about 17 per cent.
The Trump administration’s protectionist policies are not the only headwinds facing Magna. Between June 2021 and November 2024, when Trump was elected, the stock’s value fell from above $125 to about $60. A portion of this decline can be attributed to more general trends facing businesses in the broader automotive sector. In the company’s Q4 report, Magna’s chief executive officer, Swamy Kotagiri, noted it is being challenged by “lower vehicle volumes in key markets.”
As a result of these lowered vehicle volumes, Magna was already expecting to generate less profit in 2025 than it had in 2024. In the quarterly report, the company predicted gross of sales between $38.6 billion and $40.2 billion in 2025, down from $42.8 billion in the previous year.
Magna’s reputation also took a hit last year after its founder and chairman, Frank Stronach, was accused of sexual misconduct by multiple women. He is now fighting more than a dozen charges, including for rape, filed by Peel Police.
Some analysts believe traders may be overlooking Magna’s potential. According to recent reporting from The Globe and Mail, Magna is among the 25 most under-valued companies trading on the TSX.
