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If You Invested $1000 in Magna 10 Years Ago, This Is How Much You'd Have Now
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For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially 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 $3,664.79, or a 266.48% gain, as of March 19, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 206.09% and the price of gold went up 17.48% over the same time frame.
Going forward, analysts are expecting more upside for MGA.
Shares of Magna have significantly outperformed the industry over the past year. 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. Joint venture with LG Electronics will help Magna to expand its electric powertrain offerings by capitalizing on existing engineering expertise and technological capabilities. Buyout of Honglizhixin is also set to drive the company’s top line. Healthy balance sheet of the firm with low leverage and high liquidity bodes well. Magna’s commitment to return shareholders’ capital via dividends and buybacks is also commendable. Thus, the stock is viewed as a lucrative bet.
The stock is up 20.85% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2021. The consensus estimate has moved up as well.
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If You Invested $1000 in Magna 10 Years Ago, This Is How Much You'd Have Now
For most investors, how much a stock's price changes over time is important. Not only can it impact your investment portfolio, but it can also help you compare investment results across sectors and industries.
Another factor that can influence investors is FOMO, or the fear of missing out, especially 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 $3,664.79, or a 266.48% gain, as of March 19, 2021. Investors should keep in mind that this return excludes dividends but includes price appreciation.
In comparison, the S&P 500 gained 206.09% and the price of gold went up 17.48% over the same time frame.
Going forward, analysts are expecting more upside for MGA.
Shares of Magna have significantly outperformed the industry over the past year. 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. Joint venture with LG Electronics will help Magna to expand its electric powertrain offerings by capitalizing on existing engineering expertise and technological capabilities. Buyout of Honglizhixin is also set to drive the company’s top line. Healthy balance sheet of the firm with low leverage and high liquidity bodes well. Magna’s commitment to return shareholders’ capital via dividends and buybacks is also commendable. Thus, the stock is viewed as a lucrative bet.
The stock is up 20.85% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 6 higher, for fiscal 2021. The consensus estimate has moved up as well.