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Linamar Corp.

  • Market Cap: Mid Cap
  • Industry: Auto Components & Equipments
  • ISIN: CA53278L1076
  • TSE: LNR
CAD
96.61
0.41 (0.43%)

Sep 21

TSE

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  • Price Points
  • Score
  • Mojo Parameters
  • Total Return
  • News and Corporate Actions
  • Key factors
  • Shareholding
  • Financials
  • CompanyCV
stock-recommendationScore
Click here to find our call on this stock
Strong Sell
Sell
Hold
Buy
Strong Buy

Comparison

Company
Score
Quality
Valuation
Financial
Technical
Exco Technologies Ltd.
Linamar Corp.
Martinrea International, Inc.
Magna International, Inc.
Kelso Technologies, Inc.
Aether Catalyst Solutions, Inc.
TUGA Innovations, Inc.
ABC Technologies Holdings, Inc.

Why is Linamar Corp. ?

1
Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 15.40
2
Positive results in Mar 26
  • OPERATING CASH FLOW(Y) Highest at CAD 1,362.37 MM
  • INTEREST COVERAGE RATIO(Q) Highest at 2,086.18
  • CASH AND EQV(HY) Highest at CAD 2,101.79 MM
3
With ROE of 9.95%, it has a fair valuation with a 0.95 Price to Book Value
  • The stock is trading at a fair value compared to its peers' average historical valuations
  • Over the past year, while the stock has generated a return of 52.72%, its profits have fallen by -2.3%
4
Market Beating Performance
  • The stock has generated a return of 52.72% in the last 1 year, much higher than market (S&P/TSX 60) returns of 30.16%
stock-recommendationReal-Time Research Report

Verdict Report

How much should you hold?

  1. Overall Portfolio exposure to Linamar Corp. should be less than 10%
  2. Overall Portfolio exposure to Auto Components & Equipments should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Linamar Corp. for you?

Medium Risk, High Return

Absolute
Risk Adjusted
Volatility
Linamar Corp.
25.66%
7.15
31.17%
S&P/TSX 60
20.36%
2.51
12.02%
stock-recommendationQuality
stock-summaryManagement Risk
stock-summaryGrowth
stock-summaryCapital Structure
stock-recommendation
Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor
Value
Sales Growth (5y)
11.96%
EBIT Growth (5y)
11.86%
EBIT to Interest (avg)
14.66
Debt to EBITDA (avg)
0.65
Net Debt to Equity (avg)
0.23
Sales to Capital Employed (avg)
1.30
Tax Ratio
26.81%
Dividend Payout Ratio
11.90%
Pledged Shares
0
Institutional Holding
0.05%
ROCE (avg)
12.05%
ROE (avg)
8.94%
stock-recommendationValuation

Valuation Scorecard stock-summary

stock-recommendation
Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors stock-summary

Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
0.95
EV to EBIT
7.23
EV to EBITDA
4.37
EV to Capital Employed
0.95
EV to Sales
0.66
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
13.20%
ROE (Latest)
9.95%
stock-recommendationTechnicals

Technical key factors

Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bullish
Mildly Bearish
OBV
Mildly Bullish
Mildly Bearish
stock-recommendation Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish  Turned 
Technical Movement
Analyse All Technical Factors stock-recommendation
stock-recommendationFinancial Trend

Financial Trend Scorecard stock-summary

stock-recommendation
Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

9What is working for the Company
OPERATING CASH FLOW(Y)

Highest at CAD 1,398.51 MM

DEBT-EQUITY RATIO (HY)

Lowest at 13.46 %

DIVIDEND PER SHARE(HY)

Highest at CAD 5.77

CASH AND EQV(HY)

Highest at CAD 2,461.14 MM

NET SALES(Q)

Highest at CAD 3,138.78 MM

-3What is not working for the Company
RAW MATERIAL COST(Y)

Grown by 6.25% (YoY

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.77 times

OPERATING PROFIT MARGIN(Q)

Lowest at 13.99 %

Here's what is working for Linamar Corp.

Operating Cash Flow
Highest at CAD 1,398.51 MM and Grown
In each year in the last three years
MOJO Watch
The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Debt-Equity Ratio
Lowest at 13.46 % and Grown
In each half year in the last five Semi-Annual periods
MOJO Watch
The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share
Highest at CAD 5.77 and Grown
In each year in the last five years
MOJO Watch
Company is distributing higher dividend from profits generated

DPS (CAD)

Net Sales
Highest at CAD 3,138.78 MM
in the last five periods
MOJO Watch
Near term sales trend is positive

Net Sales (CAD MM)

Cash and Eqv
Highest at CAD 2,461.14 MM
in the last six Semi-Annual periods
MOJO Watch
Short Term liquidity is improving

Cash and Cash Equivalents

Here's what is not working for Linamar Corp.

Operating Profit Margin
Lowest at 13.99 %
in the last five periods
MOJO Watch
Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio
Lowest at 5.77 times
in the last five Semi-Annual periods
MOJO Watch
Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost
Grown by 6.25% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales

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