Linamar
Market Cap
CA$2.7b
Last Updated
2020/02/24 01:40 UTC
Data Sources
Company Financials +
Executive Summary
Linamar Corporation manufactures and sells precision metallic components, modules, and systems in Canada, the Rest of North America, the Asia Pacific, Mexico, and Europe.
Rewards
Risk Analysis
Snowflake Analysis
Undervalued with adequate balance sheet and pays a dividend.
Similar Companies
Share Price & News
How has Linamar's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: LNR has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-3.7%
LNR
-0.6%
CA Auto Components
0.1%
CA Market
1 Year Return
-21.3%
LNR
-8.6%
CA Auto Components
4.5%
CA Market
Return vs Industry: LNR underperformed the Canadian Auto Components industry which returned -8.6% over the past year.
Return vs Market: LNR underperformed the Canadian Market which returned 4.5% over the past year.
Shareholder returns
| LNR | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.7% | -0.6% | 0.1% |
| 30 Day | -11.2% | -3.2% | 0.9% |
| 90 Day | -7.1% | -5.7% | 3.7% |
| 1 Year | -20.4%-21.3% | -7.0%-8.6% | 7.8%4.5% |
| 3 Year | -29.3%-31.2% | -4.5%-13.6% | 18.2%7.5% |
| 5 Year | -45.5%-47.6% | 1.3%-12.3% | 33.7%14.2% |
Price Volatility Vs. Market
How volatile is Linamar's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Does Market Volatility Impact Linamar Corporation's (TSE:LNR) Share Price?2 weeks ago | Simply Wall St
We Think Linamar (TSE:LNR) Is Taking Some Risk With Its Debt4 weeks ago | Simply Wall St
Introducing Linamar (TSE:LNR), The Stock That Dropped 36% In The Last Five YearsValuation
Is Linamar undervalued compared to its fair value and its price relative to the market?
30.0%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: LNR (CA$41.12) is trading below our estimate of fair value (CA$58.71)
Significantly Below Fair Value: LNR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: LNR is good value based on its PE Ratio (5.3x) compared to the Auto Components industry average (13.6x).
PE vs Market: LNR is good value based on its PE Ratio (5.3x) compared to the Canadian market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: LNR is poor value based on its PEG Ratio (11.6x)
Price to Book Ratio
PB vs Industry: LNR is good value based on its PB Ratio (0.7x) compared to the XN Auto Components industry average (1.3x).
Next Steps
Future Growth
How is Linamar forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
0.5%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: LNR's forecast earnings growth (0.5% per year) is below the savings rate (1.4%).
Earnings vs Market: LNR's earnings (0.5% per year) are forecast to grow slower than the Canadian market (10.9% per year).
High Growth Earnings: LNR's earnings are forecast to grow, but not significantly.
Revenue vs Market: LNR's revenue (0.5% per year) is forecast to grow slower than the Canadian market (4.7% per year).
High Growth Revenue: LNR's revenue (0.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: LNR's Return on Equity is forecast to be low in 3 years time (10.2%).
Next Steps
Past Performance
How has Linamar performed over the past 5 years?
10.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: LNR has high quality earnings.
Growing Profit Margin: LNR's current net profit margins (6.7%) are lower than last year (8.1%).
Past Earnings Growth Analysis
Earnings Trend: LNR's earnings have grown by 10% per year over the past 5 years.
Accelerating Growth: LNR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: LNR had negative earnings growth (-16.1%) over the past year, making it difficult to compare to the Auto Components industry average (-7%).
Return on Equity
High ROE: LNR's Return on Equity (12.8%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Linamar's financial position?
Financial Position Analysis
Short Term Liabilities: LNR's short term assets (CA$3.0B) exceed its short term liabilities (CA$1.5B).
Long Term Liabilities: LNR's short term assets (CA$3.0B) exceed its long term liabilities (CA$2.6B).
Debt to Equity History and Analysis
Debt Level: LNR's debt to equity ratio (58.9%) is considered high.
Reducing Debt: LNR's debt to equity ratio has increased from 28.1% to 58.9% over the past 5 years.
Debt Coverage: LNR's debt is well covered by operating cash flow (39.7%).
Interest Coverage: LNR's interest payments on its debt are well covered by EBIT (17.2x coverage).
Balance Sheet
Inventory Level: LNR has a high level of physical assets or inventory.
Debt Coverage by Assets: LNR's debt is covered by short term assets (assets are 1.3x debt).
Next Steps
Dividend
What is Linamar's current dividend yield, its reliability and sustainability?
1.17%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: LNR's dividend (1.17%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (2.01%).
High Dividend: LNR's dividend (1.17%) is low compared to the top 25% of dividend payers in the Canadian market (5.38%).
Stability and Growth of Payments
Stable Dividend: LNR's dividends per share have been stable in the past 10 years.
Growing Dividend: LNR's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its low payout ratio (10.9%), LNR's dividend payments are thoroughly covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: LNR's dividends in 3 years are forecast to be thoroughly covered by earnings (6.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
15.5yrs
Average management tenure
CEO
Linda Hasenfratz (53yo)
17.5yrs
Tenure
CA$15,437,064
Compensation
Ms. Linda S. Hasenfratz, C.M., has been the Chief Executive Officer of Linamar Corporation, an affiliate of Skyjack Inc., since August 12, 2002. Ms. Hasenfratz served as an Acting Chief Financial Officer a ...
CEO Compensation Analysis
Compensation vs Market: Linda's total compensation ($USD11.68M) is above average for companies of similar size in the Canadian market ($USD2.12M).
Compensation vs Earnings: Linda's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman of the Board | 54.1yrs | CA$12.90m | 23.78% CA$638.0m | |
| CEO & Non-Independent Director | 17.5yrs | CA$15.44m | 6.72% CA$180.4m | |
| President & COO | 15.5yrs | CA$11.08m | 0.032% CA$857.4k | |
| Chief Financial Officer | 8.3yrs | CA$1.16m | 0.030% CA$798.6k | |
| Group President of Linamar Canada - Mexico Group | 0yrs | CA$2.04m | 0.0091% CA$244.1k | |
| CTO, Executive VP of Sales & Marketing and Non-Independent Director | 21.1yrs | no data | 1.26% CA$33.7m | |
| Executive VP of Human Resources | 16.4yrs | no data | 0.012% CA$326.2k | |
| Group President of Linamar Machining & Assembly - Europe & Linamar Montupet Casting | 0yrs | no data | no data | |
| Group President of Skyjack Inc | 8.1yrs | no data | no data |
15.5yrs
Average Tenure
55yo
Average Age
Experienced Management: LNR's management team is seasoned and experienced (15.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder & Chairman of the Board | 54.1yrs | CA$12.90m | 23.78% CA$638.0m | |
| CEO & Non-Independent Director | 17.5yrs | CA$15.44m | 6.72% CA$180.4m | |
| CTO, Executive VP of Sales & Marketing and Non-Independent Director | 21.1yrs | no data | 1.26% CA$33.7m | |
| Independent Director | 30.1yrs | CA$66.04k | 0.013% CA$335.3k | |
| Independent Director | 17.1yrs | CA$73.49k | 0.0061% CA$164.4k | |
| Independent Director | 5.8yrs | CA$64.99k | 0.0043% CA$114.3k |
21.6yrs
Average Tenure
71.5yo
Average Age
Experienced Board: LNR's board of directors are seasoned and experienced ( 21.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: LNR insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Linamar Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Linamar Corporation
- Ticker: LNR
- Exchange: TSX
- Founded: 1966
- Industry: Auto Parts and Equipment
- Sector: Automobiles
- Market Cap: CA$2.683b
- Shares outstanding: 65.24m
- Website: https://www.linamar.com
Number of Employees
Location
- Linamar Corporation
- 287 Speedvale Avenue West
- Guelph
- Ontario
- N1H 1C5
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| LNR | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Jan 1986 |
| LNR | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Jan 1986 |
| LIMA.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Jan 1986 |
Biography
Linamar Corporation manufactures and sells precision metallic components, modules, and systems in Canada, the Rest of North America, the Asia Pacific, Mexico, and Europe. It operates through two segments, Industrial and Transportation. The company offers hybrid power units, power transfer units, rear drive units/modules, and engineered gears; and shaft and shell assemblies, differential assemblies, transmission gears, clutch modules, center housings, transmission/driveline shafts, transfer case pump housings, and other transmission components. It also provides cylinder blocks, cylinder heads, connecting rods, camshafts, flywheels, fuel rails, pumps and bodies, balance shaft modules, fuel injector bodies, fuel pump housings, and turbo charger housings; and wheel hubs and bearings, axle shafts, and steering knuckles. In addition, the company offers precision machined castings and metallic assemblies; planetary carriers, gearbox housings, bearing housings, and torque arms; aluminum castings; and freight solutions. Further, it provides mobile industrial and harvesting equipment, aerial work platforms, telehandlers, draper headers, and self-propelled windrowers; markets corn and sunflower heads under the Harvestec and OROS brands; and produces assemblies for hay rake equipment, track modules for tracked construction equipment and tractors, combine head trailers, and other agricultural related fabrications and systems. It serves automotive, commercial vehicle, off highway, marine and recreational, industrial, aerial work platforms, energy, and agricultural industries. Linamar Corporation was founded in 1966 and is headquartered in Guelph, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/24 01:40 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.