Toronto, Ontario -- Canada's biggest automotive parts manufacturers are on a roll. In recent days, the three largest -- Magna International, Martinrea and Linamar Corp. -- have each seen their equities hit the highest trading values seen since the election of Donald Trump in November, 2024.
Magna recapturing magnificence
On Sept. 18, Magna International's stock reached a new 52-week high, trading at $65.24 CAD -- a 17.56 percent increase on a year-over-year basis and a 28.7 percent gain over the past six months.
According to several sources, the price rebound should be credited to the Aurora-based auto parts manufacturer's attractive fundamentals including a modest P/E ratio of 11.06 and a substantial 4.2 percent dividend yield.
Despite the recent upswing, the company's stock remains far below its all-time high of $123 CAD, which was reached in June 2021. Since that point, Magna has faces ongoing challenges including supply chain disruptions, electric vehicle transition costs and reduced global vehicle production volumes.
The company also has been conducting a targeted review of its records as founder Frank Stronach faces multiple sexual assault charges, with the 92-year-old billionaire charged with 18 offences including rape and sexual assault involving 13 alleged victims spanning from the 1970s to 2024.
Linamar looking limber
On Sept. 15, Linamar’s stock touched a new 52-week high of $77.94 before settling at $77.80.
The Guelph-based manufacturer has seen steady momentum this year, trading at a price-to-earnings ratio of 21.9 and delivering a dividend yield of roughly 1.5 percent.
Analysts point to solid earnings and consistent cash returns as key drivers, but the stock still faces pressures tied to supply costs and the auto industry’s ongoing shift toward electric powertrains.
Martinrea moving up
Martinrea’s shares have traded between $6.12 and $11.91 over the past year, with a recent close near $11.30. The company offers a quarterly dividend of five cents, producing an annual yield of about 1.8 percent, and reported adjusted earnings per share of $0.66 in its latest quarter, up from $0.58 a year earlier.
Even with the recent gains, the stock is far from its all-time high of $16.19 first -- and last -- reached in 2007, and its modest forward P/E ratio of 5.5 reflects a certain degree of investor caution about future performance of the Ontario automotive aftermarket fixture.
