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Here's How Much You'd Have If You Invested $1000 in Magna a Decade Ago
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Magna (MGA - Free Report) ten years ago? It may not have been easy to hold on to MGA for all that time, but if you did, how much would your investment be worth today?
Magna's Business In-Depth
With that in mind, let's take a look at Magna's main business drivers.
Magna International Inc., based in Aurora, Canada, is a manufacturer and supplier of complete automotive components. The company designs, develops and manufactures automotive systems, assemblies, modules and components, apart from engineering and assembling complete vehicles, primarily for sale to original equipment manufacturers (OEMs) of cars and light trucks.
The four reportable segments of Magna are —
Body Exteriors & Structures (accounting for 40.8% of total revenues in 2020) – The segment engages in designing and engineering of body structures, chassis structures, exterior systems & Modules, trim & automotive jewelry, active aerodynamics, and fuel systems.
Power & Vision (29.4%) – The unit works on improving the mode vehicles move and interact. It works on powertrain electrification, transmissions, powertrain subsystems & components, ADAS & automated driving, control modules, mechatronics, mirrors, and lighting.
Seating Systems (13.4%) – This business line innovates comfortable and safe vehicle interiors with flexible configurations. It works on seat complete, structural products, and foam & trim.
Complete Vehicles (16.4%) – Apart from providing complete vehicle manufacturing, the unit offers modular solutions for vehicle parts and systems. It offers complete vehicle engineering and manufacturing.
The Canadian vehicle component provider’s operations are dependent on growth of auto manufacturing and sales across all the key markets, consisting of North America, South America, Europe, Asia and Africa. In coming years, it expects China, South America, Eastern Europe and India to majorly drive revenue figures.
Magna has 346 manufacturing operations, 165,000 employees, and 94 product development, engineering and sales centers across 27 countries. General Motors, Ford, Fiat Chrysler N.V., BMW AG, Daimler AG and Volkswagen AG are its customers.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Magna a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in March 2011 would be worth $3,735.39, or a gain of 273.54%, as of March 16, 2021, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 209.62% and the price of gold went up 19.05% over the same time frame.
Analysts are anticipating more upside for MGA.
Magna’s sharp focus on innovation and technology development along with program launches is likely to boost its prospects. The firm’s efforts to enhance its portfolio of e-powertrain products and develop advanced driver assistance systems (ADAS) technology position it well. Buyout of Honglizhixin will also drive the company’s top line. Healthy balance sheet of the firm with low leverage and high liquidity bodes well. However, soaring commodity, warranty and launch costs remains a concern for Magna. The firm's high 2021 capital spending of $1.6 billion is likely to clip cash flows and margins. As it is, Magna expects to witness short-term hiccups amid the global chip shortage. Unfavorable forex translations, negative trade policies and customer-price concessions remain headwinds. Thus, the stock warrants a cautious stance now.
Over the past four weeks, shares have rallied 19.28%, and there have been 6 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much You'd Have If You Invested $1000 in Magna a Decade Ago
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Magna (MGA - Free Report) ten years ago? It may not have been easy to hold on to MGA for all that time, but if you did, how much would your investment be worth today?
Magna's Business In-Depth
With that in mind, let's take a look at Magna's main business drivers.
Magna International Inc., based in Aurora, Canada, is a manufacturer and supplier of complete automotive components. The company designs, develops and manufactures automotive systems, assemblies, modules and components, apart from engineering and assembling complete vehicles, primarily for sale to original equipment manufacturers (OEMs) of cars and light trucks.
The four reportable segments of Magna are —
Body Exteriors & Structures (accounting for 40.8% of total revenues in 2020) – The segment engages in designing and engineering of body structures, chassis structures, exterior systems & Modules, trim & automotive jewelry, active aerodynamics, and fuel systems.
Power & Vision (29.4%) – The unit works on improving the mode vehicles move and interact. It works on powertrain electrification, transmissions, powertrain subsystems & components, ADAS & automated driving, control modules, mechatronics, mirrors, and lighting.
Seating Systems (13.4%) – This business line innovates comfortable and safe vehicle interiors with flexible configurations. It works on seat complete, structural products, and foam & trim.
Complete Vehicles (16.4%) – Apart from providing complete vehicle manufacturing, the unit offers modular solutions for vehicle parts and systems. It offers complete vehicle engineering and manufacturing.
The Canadian vehicle component provider’s operations are dependent on growth of auto manufacturing and sales across all the key markets, consisting of North America, South America, Europe, Asia and Africa. In coming years, it expects China, South America, Eastern Europe and India to majorly drive revenue figures.
Magna has 346 manufacturing operations, 165,000 employees, and 94 product development, engineering and sales centers across 27 countries. General Motors, Ford, Fiat Chrysler N.V., BMW AG, Daimler AG and Volkswagen AG are its customers.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Magna a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in March 2011 would be worth $3,735.39, or a gain of 273.54%, as of March 16, 2021, and this return excludes dividends but includes price increases.
In comparison, the S&P 500 gained 209.62% and the price of gold went up 19.05% over the same time frame.
Analysts are anticipating more upside for MGA.
Magna’s sharp focus on innovation and technology development along with program launches is likely to boost its prospects. The firm’s efforts to enhance its portfolio of e-powertrain products and develop advanced driver assistance systems (ADAS) technology position it well. Buyout of Honglizhixin will also drive the company’s top line. Healthy balance sheet of the firm with low leverage and high liquidity bodes well. However, soaring commodity, warranty and launch costs remains a concern for Magna. The firm's high 2021 capital spending of $1.6 billion is likely to clip cash flows and margins. As it is, Magna expects to witness short-term hiccups amid the global chip shortage. Unfavorable forex translations, negative trade policies and customer-price concessions remain headwinds. Thus, the stock warrants a cautious stance now.
Over the past four weeks, shares have rallied 19.28%, and there have been 6 higher earnings estimate revisions in the past two months for fiscal 2021 compared to none lower. The consensus estimate has moved up as well.