Recent Insider Transactions Derivative • Jun 16
President exercised options to buy CA$10m worth of stock. On the 9th of June, Jim Jarrell exercised options to buy 100k shares at a strike price of around CA$50.14, costing a total of CA$5.0m. This transaction amounted to 31% of their direct individual holding at the time of the trade. Since December 2025, Jim has owned 320.51k shares directly. Company insiders have collectively bought CA$10b more than they sold, via options and on-market transactions, in the last 12 months. Declared Dividend • May 11
First quarter dividend of CA$0.29 announced Dividend of CA$0.29 is the same as last year. Ex-date: 25th May 2026 Payment date: 5th June 2026 Dividend yield will be 1.2%, which is lower than the industry average of 2.9%. Sustainability & Growth Dividend is well covered by both earnings (14% earnings payout ratio) and cash flows (7% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 14% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • May 07
First quarter 2026 earnings released: EPS: CA$3.72 (vs CA$2.94 in 1Q 2025) First quarter 2026 results: EPS: CA$3.72 (up from CA$2.94 in 1Q 2025). Revenue: CA$2.94b (up 16% from 1Q 2025). Net income: CA$221.4m (up 25% from 1Q 2025). Profit margin: 7.5% (up from 7.0% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.0% p.a. on average during the next 2 years, compared to a 7.1% growth forecast for the Auto Components industry in North America. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has increased by 12% per year, which means it is well ahead of earnings. Announcement • May 07
Linamar Corporation to Report Q2, 2026 Results on Aug 12, 2026 Linamar Corporation announced that they will report Q2, 2026 results at 4:00 PM, US Eastern Standard Time on Aug 12, 2026 Upcoming Dividend • Mar 23
Upcoming dividend of CA$0.29 per share Eligible shareholders must have bought the stock before 27 March 2026. Payment date: 14 April 2026. Payout ratio is a comfortable 12% and this is well supported by cash flows. Trailing yield: 1.4%. Lower than top quartile of Canadian dividend payers (5.7%). Lower than average of industry peers (2.6%). New Risk • Mar 17
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: CA$391k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. This is currently the only risk that has been identified for the company. Announcement • Mar 10
Linamar Corporation, Annual General Meeting, May 12, 2026 Linamar Corporation, Annual General Meeting, May 12, 2026. Location: ontario, guelph Canada Declared Dividend • Mar 08
Fourth quarter dividend of CA$0.29 announced Shareholders will receive a dividend of CA$0.29. Ex-date: 27th March 2026 Payment date: 14th April 2026 Dividend yield will be 1.3%, which is lower than the industry average of 2.9%. Sustainability & Growth Dividend is well covered by both earnings (12% earnings payout ratio) and cash flows (8% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 18% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Mar 06
Full year 2025 earnings released Full year 2025 results: Net income: (down CA$258.3m from profit in FY 2024). Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 13% per year, which means it is well ahead of earnings. New Risk • Mar 05
New major risk - Revenue and earnings growth Earnings have declined by 2.5% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 2.5% per year over the past 5 years. Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.4% net profit margin). Announcement • Mar 05
Linamar Corporation Declares Dividend for the Quarter Ended December 31, 2025, Payable on or After April 14, 2026 Linamar Corporation Board of Directors declared an eligible dividend in respect to the quarter ended December 31, 2025 of CAD 0.29 per share on the common shares of the company, payable on or after April 14, 2026 to shareholders of record on March 27, 2026. Buy Or Sell Opportunity • Feb 18
Now 21% undervalued Over the last 90 days, the stock has risen 19% to CA$93.36. The fair value is estimated to be CA$118, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10.0% over the last 3 years. Earnings per share has declined by 15%. Price Target Changed • Jan 06
Price target increased by 7.4% to CA$89.00 Up from CA$82.83, the current price target is an average from 6 analysts. New target price is 5.2% above last closing price of CA$84.63. Stock is up 48% over the past year. The company posted earnings per share of CA$4.20 last year. Announcement • Jan 02
Linamar Corporation (TSX:LNR) completed the acquisition of Leipzig Casting Facility of George Fischer AG. Linamar Corporation (TSX:LNR) entered into a definitive agreement to acquire Leipzig Casting Facility of George Fischer AG in a transaction valued at approximately €45 million on October 7, 2025. The acquisition is immediately accretive. Closing of the transaction is expected by the end of 2025. National Bank of Canada Financial Markets act as financial advisor for Linamar Corporation. Nader Hasan, Karsten Kühnle, Bruce Sheiner, Andre Hartmann, Felix Reiner, David Pak, Simon Weppner, Andreas Habig, Claus Pegatzky, Christoph Ritzer, Natalia Filkina, Tim Schaper, Tobias Teichner of Norton Rose Fulbright LLP and Norton Rose Fulbright Canada LLP act as legal advisor for Linamar Corporation. Philip Spoerlé and Andrea Giger, Thomas Hochstrasser, Nicolas Birkhäuser, Marc Vogelsang of Niederer Kraft Frey Ltd acted as legal advisors to Georg Fischer AG. Stefan Bressler, Gernot Wagner and Rebecca Emory of White & Case, L.L.P. (Germany) acted as legal advisors to Georg Fischer AG. Lazard acted as financial advisor to George Fischer.
Linamar Corporation (TSX:LNR) completed the acquisition of Leipzig Casting Facility of George Fischer AG on December 31, 2025. Recent Insider Transactions • Dec 14
Executive Chairman of the Board recently bought CA$4.0m worth of stock On the 10th of December, Linda Hasenfratz bought around 50k shares on-market at roughly CA$80.08 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Linda has been a buyer over the last 12 months, purchasing a net total of CA$7.0m worth in shares. Recent Insider Transactions Derivative • Nov 27
President exercised options to buy CA$8.0m worth of stock. On the 24th of November, Jim Jarrell exercised options to buy 100k shares at a strike price of around CA$100,000, costing a total of CA$10.0b. This transaction amounted to 46% of their direct individual holding at the time of the trade. Since December 2024, Jim's direct individual holding has increased from 220.01k shares to 221.96k. Company insiders have collectively bought CA$10.0b more than they sold, via options and on-market transactions, in the last 12 months. Announcement • Nov 17
Linamar Corporation (TSX:LNR) completed the acquisition of Certain assets of Aludyne Inc North American operations. from Aludyne, Inc. Linamar Corporation (TSX:LNR) entered into a definitive agreement to acquire Certain assets of Aludyne Inc North American operations. from Aludyne, Inc. for $300 million on October 9, 2025. The purchase price is subject to customary adjustments for working capital and other closing conditions. Linamar will fund the acquisition using available liquidity under its existing credit facilities and cash on hand.
The transaction is subject to the receipt of regulatory approvals, completion of due diligence and the satisfaction of other customary closing conditions. The transaction is expected to close within 30 days. The transaction is expected to be accretive soon after acquisition. On October 9, 2025, it was announced that the closing is expected in Q4 2025.
National Bank of Canada Financial Markets acted as financial advisor for Linamar Corporation. Jones Day acted as legal advisor for Aludyne, Inc. Jefferies LLC acted as financial advisor for Aludyne, Inc. AlixPartners, LLP acted as financial advisor for Aludyne, Inc. C Street Advisory Group acted as strategic communications advisor to Aludyne, Inc.
Linamar Corporation (TSX:LNR) completed the acquisition of Certain assets of Aludyne Inc North American operations. from Aludyne, Inc. on November 15, 2025. Declared Dividend • Nov 16
Third quarter dividend of CA$0.29 announced Shareholders will receive a dividend of CA$0.29. Ex-date: 21st November 2025 Payment date: 2nd December 2025 Dividend yield will be 1.4%, which is lower than the industry average of 2.9%. Sustainability & Growth Dividend is well covered by both earnings (6% earnings payout ratio) and cash flows (7% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 4.1% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Recent Insider Transactions • Nov 14
Insider recently sold CA$700k worth of stock On the 13th of November, Csaba Havasi sold around 9k shares on-market at roughly CA$77.80 per share. This transaction amounted to 10% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth CA$1.0m. Insiders have been net sellers, collectively disposing of CA$1.4m more than they bought in the last 12 months. Reported Earnings • Nov 14
Third quarter 2025 earnings released: EPS: CA$2.83 (vs CA$2.24 in 3Q 2024) Third quarter 2025 results: EPS: CA$2.83 (up from CA$2.24 in 3Q 2024). Revenue: CA$2.54b (down 3.6% from 3Q 2024). Net income: CA$169.2m (up 23% from 3Q 2024). Profit margin: 6.7% (up from 5.2% in 3Q 2024). Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 14% growth forecast for the Auto Components industry in North America. Over the last 3 years on average, earnings per share has fallen by 15% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Announcement • Nov 13
Linamar Corporation Declares Dividend for the Quarter Ended September 30, 2025, Payable on or After December 2, 2025 The Board of Directors of Linamar Corporation declared an eligible dividend in respect to the quarter ended September 30, 2025, of CAD 0.29 per share on the common shares of the company, payable on or after December 2, 2025, to shareholders of record on November 21, 2025. Recent Insider Transactions • Oct 12
Board Member recently sold CA$1.0m worth of stock On the 10th of October, Mark Stoddart sold around 14k shares on-market at roughly CA$71.33 per share. This transaction amounted to 2.6% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of CA$725k more than they bought in the last 12 months. Announcement • Oct 09
Linamar Corporation (TSX:LNR) entered into a definitive agreement to acquire Leipzig Casting Facility of George Fischer in a transaction valued at approximately €45 million. Linamar Corporation (TSX:LNR) entered into a definitive agreement to acquire Leipzig Casting Facility of George Fischer in a transaction valued at approximately €45 million on October 7, 2025. The acquisition is immediately accretive. Closing of the transaction is expected by the end of 2025. National Bank of Canada Financial Markets act as financial advisor for Linamar Corporation. Nader Hasan, Karsten Kühnle, Bruce Sheiner, Andre Hartmann, Felix Reiner, David Pak, Simon Weppner, Andreas Habig, Claus Pegatzky, Christoph Ritzer, Natalia Filkina, Tim Schaper, Tobias Teichner of Norton Rose Fulbright LLP and Norton Rose Fulbright Canada LLP act as legal advisor for Linamar Corporation. Philip Spoerlé and Andrea Giger, Thomas Hochstrasser, Nicolas Birkhäuser, Marc Vogelsang of Niederer Kraft Frey Ltd acted as legal advisors to Georg Fischer AG. Stefan Bressler, Gernot Wagner and Rebecca Emory of White & Case, L.L.P. (Germany) acted as legal advisors to Georg Fischer AG. Declared Dividend • Aug 17
Second quarter dividend of CA$0.29 announced Shareholders will receive a dividend of CA$0.29. Ex-date: 22nd August 2025 Payment date: 9th September 2025 Dividend yield will be 1.5%, which is lower than the industry average of 2.9%. Sustainability & Growth Dividend is well covered by both earnings (14% earnings payout ratio) and cash flows (8% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 4.0% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 14
Second quarter 2025 earnings: EPS and revenues miss analyst expectations Second quarter 2025 results: EPS: CA$2.12 (down from CA$2.83 in 2Q 2024). Revenue: CA$2.64b (down 7.2% from 2Q 2024). Net income: CA$126.9m (down 27% from 2Q 2024). Profit margin: 4.8% (down from 6.1% in 2Q 2024). Revenue missed analyst estimates by 2.0%. Earnings per share (EPS) also missed analyst estimates by 23%. Revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Auto Components industry in North America. Over the last 3 years on average, earnings per share has fallen by 6% per year but the company’s share price has increased by 3% per year, which means it is well ahead of earnings. Announcement • Aug 14
Linamar Corporation Declares Dividend for the Quarter Ended June 30, 2025, Payable on or After September 9, 2025 The Board of Directors of Linamar Corporation declared an eligible dividend in respect to the quarter ended June 30, 2025, of CAD 0.29 per share on the common shares of the company, payable on or after September 9, 2025 to shareholders of record on August 22, 2025. Price Target Changed • Jul 21
Price target increased by 7.2% to CA$69.83 Up from CA$65.17, the current price target is an average from 6 analysts. New target price is approximately in line with last closing price of CA$67.02. Stock is down 2.8% over the past year. The company posted earnings per share of CA$4.20 last year. Valuation Update With 7 Day Price Move • May 14
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CA$62.34, the stock trades at a trailing P/E ratio of 14.5x. Average forward P/E is 11x in the Auto Components industry in North America. Total returns to shareholders of 25% over the past three years. Declared Dividend • May 12
First quarter dividend increased to CA$0.29 Dividend of CA$0.29 is 16% higher than last year. Ex-date: 26th May 2025 Payment date: 6th June 2025 Dividend yield will be 1.7%, which is lower than the industry average of 2.9%. Sustainability & Growth Dividend is well covered by both earnings (18% earnings payout ratio) and cash flows (9% cash payout ratio). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 80% to shift the payout ratio to a potentially unsustainable range, which is more than the 5.7% EPS decline seen over the last 5 years. Recent Insider Transactions • May 11
Insider recently sold CA$304k worth of stock On the 2nd of May, Csaba Havasi sold around 6k shares on-market at roughly CA$50.67 per share. This transaction amounted to 5.2% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought CA$1.6m more than they sold in the last 12 months. Recent Insider Transactions • May 09
Insider recently sold CA$304k worth of stock On the 2nd of May, Csaba Havasi sold around 6k shares on-market at roughly CA$50.67 per share. This transaction amounted to 5.2% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought CA$1.6m more than they sold in the last 12 months. Reported Earnings • May 08
First quarter 2025 earnings: EPS exceeds analyst expectations while revenues lag behind First quarter 2025 results: EPS: CA$2.94. Revenue: CA$2.53b (down 7.0% from 1Q 2024). Net income: CA$177.7m (flat on 1Q 2024). Profit margin: 7.0% (up from 6.6% in 1Q 2024). Revenue missed analyst estimates by 2.2%. Earnings per share (EPS) exceeded analyst estimates by 17%. Revenue is forecast to grow 1.2% p.a. on average during the next 2 years, compared to a 8.6% growth forecast for the Auto Components industry in North America. Upcoming Dividend • Mar 24
Upcoming dividend of CA$0.25 per share Eligible shareholders must have bought the stock before 28 March 2025. Payment date: 15 April 2025. Payout ratio is a comfortable 24% and this is well supported by cash flows. Trailing yield: 2.0%. Lower than top quartile of Canadian dividend payers (6.3%). Lower than average of industry peers (3.3%). New Risk • Mar 16
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: CA$400k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Minor Risks Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (2.4% net profit margin). Significant insider selling over the past 3 months (CA$400k sold). Announcement • Mar 12
Linamar Corporation, Annual General Meeting, May 15, 2025 Linamar Corporation, Annual General Meeting, May 15, 2025. Location: ontario, guelph Canada Declared Dividend • Mar 10
Fourth quarter dividend of CA$0.25 announced Dividend of CA$0.25 is the same as last year. Ex-date: 28th March 2025 Payment date: 15th April 2025 Dividend yield will be 1.9%, which is lower than the industry average of 2.9%. Sustainability & Growth Dividend is well covered by both earnings (24% earnings payout ratio) and cash flows (9% cash payout ratio). The dividend has increased by an average of 9.6% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 74% to shift the payout ratio to a potentially unsustainable range, which is more than the 8.2% EPS decline seen over the last 5 years. Reported Earnings • Mar 06
Full year 2024 earnings released: EPS: CA$4.20 (vs CA$8.18 in FY 2023) Full year 2024 results: EPS: CA$4.20 (down from CA$8.18 in FY 2023). Revenue: CA$10.6b (up 8.7% from FY 2023). Net income: CA$258.3m (down 49% from FY 2023). Profit margin: 2.4% (down from 5.2% in FY 2023). Revenue is forecast to stay flat during the next 2 years compared to a 7.3% growth forecast for the Auto Components industry in North America. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has only increased by 1% per year, which means it is significantly lagging earnings growth. Price Target Changed • Mar 05
Price target decreased by 7.1% to CA$69.50 Down from CA$74.83, the current price target is an average from 6 analysts. New target price is 37% above last closing price of CA$50.74. Stock is down 20% over the past year. The company posted earnings per share of CA$8.18 last year. Recent Insider Transactions • Feb 05
Board Member recently sold CA$400k worth of stock On the 31st of January, Mark Stoddart sold around 7k shares on-market at roughly CA$56.81 per share. This transaction amounted to 1.3% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger sale worth CA$499k. Despite this recent sale, insiders have collectively bought CA$1.7m more than they sold in the last 12 months. Board Change • Feb 02
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 2 experienced directors. 4 highly experienced directors. President, CEO & Director Jim Jarrell was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Recent Insider Transactions • Dec 18
Executive Chairman of the Board recently bought CA$3.0m worth of stock On the 16th of December, Linda Hasenfratz bought around 50k shares on-market at roughly CA$60.01 per share. This transaction amounted to less than 1% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. This was Linda's only on-market trade for the last 12 months. Recent Insider Transactions • Nov 17
Board Member recently sold CA$499k worth of stock On the 15th of November, Mark Stoddart sold around 8k shares on-market at roughly CA$60.42 per share. This transaction amounted to 1.5% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Despite this recent sale, insiders have collectively bought CA$1.8m more than they sold in the last 12 months. New Risk • Nov 17
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: CA$700k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. This is currently the only risk that has been identified for the company. Declared Dividend • Nov 15
Third quarter dividend of CA$0.25 announced Shareholders will receive a dividend of CA$0.25. Ex-date: 22nd November 2024 Payment date: 2nd December 2024 Dividend yield will be 1.6%, which is lower than the industry average of 2.9%. Sustainability & Growth Dividend is well covered by both earnings (3% earnings payout ratio) and cash flows (18% cash payout ratio). The dividend has increased by an average of 9.6% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 4.5% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Price Target Changed • Nov 14
Price target decreased by 7.1% to CA$75.83 Down from CA$81.67, the current price target is an average from 6 analysts. New target price is 24% above last closing price of CA$60.98. Stock is up 2.5% over the past year. The company posted earnings per share of CA$8.18 last year. Announcement • Nov 14
Linamar Corporation Declares Dividend for the Quarter Ended September 30, 2024, Payable on or After December 2, 2024 Linamar Corporation announced that Board of Directors declared an eligible dividend in respect to the quarter ended September 30, 2024, of CAD 0.25 per share on the common shares of the company, payable on or after December 2, 2024 to shareholders of record on November 22, 2024. Reported Earnings • Nov 13
Third quarter 2024 earnings released: EPS: CA$2.24 (vs CA$2.38 in 3Q 2023) Third quarter 2024 results: EPS: CA$2.24 (down from CA$2.38 in 3Q 2023). Revenue: CA$2.64b (up 8.3% from 3Q 2023). Net income: CA$138.0m (down 6.0% from 3Q 2023). Profit margin: 5.2% (down from 6.0% in 3Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 1.2% p.a. on average during the next 3 years, compared to a 8.2% growth forecast for the Auto Components industry in North America. Over the last 3 years on average, earnings per share has increased by 17% per year but the company’s share price has fallen by 9% per year, which means it is significantly lagging earnings. New Risk • Nov 03
New minor risk - Dividend sustainability The dividend is not well covered by cash flows. The company is paying a dividend despite having no free cash flows. Dividend yield: 1.8% This is considered a minor risk. Dividends are ultimately paid out of the company's available cash reserves. Companies that pay out too much of their cash flow are at risk of having to reduce or cut their dividend in future. If cash flow growth slows or cash flows fall, then there may not be enough cash reserves to maintain the same dividend. Or in extreme cases, companies may opt to take on debt to maintain the dividend. This risk is mitigated by the fact the dividend is covered by earnings, however, cash flows are generally more important. For dividend paying companies, any reduction in the dividend can significantly impact the share price. This is currently the only risk that has been identified for the company. Declared Dividend • Aug 12
Second quarter dividend of CA$0.25 announced Shareholders will receive a dividend of CA$0.25. Ex-date: 23rd August 2024 Payment date: 9th September 2024 Dividend yield will be 1.6%, which is lower than the industry average of 2.9%. Sustainability & Growth Dividend is covered by earnings (5% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 4.2% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Reported Earnings • Aug 09
Second quarter 2024 earnings released Second quarter 2024 results: Revenue: CA$2.85b (up 12% from 2Q 2023). Net income: CA$174.1m (up 29% from 2Q 2023). Profit margin: 6.1% (up from 5.3% in 2Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 5.3% p.a. on average during the next 3 years, compared to a 8.8% growth forecast for the Auto Components industry in North America. Declared Dividend • May 12
First quarter dividend of CA$0.25 announced Shareholders will receive a dividend of CA$0.25. Ex-date: 27th May 2024 Payment date: 7th June 2024 Dividend yield will be 1.3%, which is lower than the industry average of 2.9%. Sustainability & Growth Dividend is covered by earnings (8% earnings payout ratio) but the company has no free cash flows available, indicating it may be using cash reserves or debt to pay the dividend. The dividend has increased by an average of 12% per year over the past 10 years. However, payments have been volatile during that time. Earnings per share has grown by 1.1% over the last 5 years. Unless this trend reverses, it should provide support to the dividend and adequate earnings cover. Announcement • May 10
Linamar Corporation Declares Dividend for the Quarter Ended March 31, 2024, Payable on or After June 7, 2024 Linamar Corporation announced that the Board of Directors declared an eligible dividend in respect to the quarter ended March 31, 2024, of CAD 0.25 per share on the common shares of the company, payable on or after June 7, 2024, to shareholders of record on May 27, 2024. Reported Earnings • May 09
First quarter 2024 earnings released: EPS: CA$2.90 (vs CA$1.90 in 1Q 2023) First quarter 2024 results: EPS: CA$2.90 (up from CA$1.90 in 1Q 2023). Revenue: CA$2.72b (up 19% from 1Q 2023). Net income: CA$178.5m (up 53% from 1Q 2023). Profit margin: 6.6% (up from 5.1% in 1Q 2023). The increase in margin was driven by higher revenue. Revenue is forecast to grow 7.7% p.a. on average during the next 2 years, compared to a 9.9% growth forecast for the Auto Components industry in North America. Over the last 3 years on average, earnings per share has increased by 11% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Upcoming Dividend • Mar 20
Upcoming dividend of CA$0.25 per share Eligible shareholders must have bought the stock before 27 March 2024. Payment date: 15 April 2024. Payout ratio is a comfortable 11% but the company is paying out more than the cash it is generating. Trailing yield: 1.4%. Lower than top quartile of Canadian dividend payers (6.4%). Lower than average of industry peers (2.4%). Announcement • Mar 14
Linamar Corporation, Annual General Meeting, May 16, 2024 Linamar Corporation, Annual General Meeting, May 16, 2024. Declared Dividend • Mar 10
Fourth quarter dividend of CA$0.25 announced Shareholders will receive a dividend of CA$0.25. Ex-date: 27th March 2024 Payment date: 15th April 2024 Dividend yield will be 1.3%, which is lower than the industry average of 2.9%. Sustainability & Growth Dividend is covered by earnings (11% earnings payout ratio) but not covered by cash flows (dividend approximately 16x free cash flows). The dividend has increased by an average of 11% per year over the past 10 years. However, payments have been volatile during that time. The company's earnings per share (EPS) would need to decline by 88% to shift the payout ratio to a potentially unsustainable range, which is more than the 2.0% EPS decline seen over the last 5 years. Reported Earnings • Mar 08
Full year 2023 earnings released: EPS: CA$8.18 (vs CA$6.67 in FY 2022) Full year 2023 results: EPS: CA$8.18 (up from CA$6.67 in FY 2022). Revenue: CA$9.73b (up 23% from FY 2022). Net income: CA$503.1m (up 18% from FY 2022). Profit margin: 5.2% (down from 5.4% in FY 2022). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 8.4% p.a. on average during the next 2 years, compared to a 9.2% growth forecast for the Auto Components industry in North America. Over the last 3 years on average, earnings per share has increased by 12% per year but the company’s share price has fallen by 6% per year, which means it is significantly lagging earnings. Price Target Changed • Feb 01
Price target decreased by 8.4% to CA$81.20 Down from CA$88.67, the current price target is an average from 5 analysts. New target price is 27% above last closing price of CA$63.77. Stock is down 11% over the past year. The company posted earnings per share of CA$6.67 last year. Announcement • Dec 21
Linamar Corporation (TSX : LNR) entered into an agreement to acquire Bourgault Industries Ltd. Linamar Corporation (TSX : LNR) entered into an agreement to acquire Bourgault Industries Ltd. on December 20, 2023. 