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Linamar

TSX:LNR
Snowflake Description

Good value with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LNR
TSX
CA$3B
Market Cap
  1. Home
  2. CA
  3. Automobiles
Company description

Linamar Corporation manufactures and sells precision metallic components, modules, and systems in Canada, the Rest of North America, the Asia Pacific, Mexico, and Europe. The last earnings update was 46 days ago. More info.


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LNR Share Price and Events
7 Day Returns
1.6%
TSX:LNR
0.5%
North America Auto Components
0%
CA Market
1 Year Returns
-27.1%
TSX:LNR
-33%
North America Auto Components
-3.1%
CA Market
LNR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Linamar (LNR) 1.6% 0.9% -5.1% -27.1% -10.1% -27.9%
North America Auto Components 0.5% 1.6% -7.2% -33% -1.2% -10.3%
CA Market 0% -1.3% -1% -3.1% 11.3% 0.9%
1 Year Return vs Industry and Market
  • LNR outperformed the Auto Components industry which returned -33% over the past year.
  • LNR underperformed the Market in Canada which returned -3.1% over the past year.
Price Volatility
LNR
Industry
5yr Volatility vs Market

LNR Value

 Is Linamar undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Linamar to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Linamar.

TSX:LNR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:LNR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.19
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.195 (1 + (1- 26.5%) (85.91%))
1.636
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.64
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (1.636 * 5.96%)
11.7%

Discounted Cash Flow Calculation for TSX:LNR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Linamar is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:LNR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 11.7%)
2019 496.77 Analyst x3 444.75
2020 422.70 Analyst x3 338.81
2021 377.60 Est @ -10.67% 270.97
2022 351.60 Est @ -6.88% 225.89
2023 336.71 Est @ -4.24% 193.67
2024 328.69 Est @ -2.38% 169.27
2025 325.13 Est @ -1.08% 149.90
2026 324.57 Est @ -0.17% 133.97
2027 326.07 Est @ 0.46% 120.50
2028 329.03 Est @ 0.91% 108.86
Present value of next 10 years cash flows CA$2,156.60
TSX:LNR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$329.03 × (1 + 1.95%) ÷ (11.7% – 1.95%)
CA$3,440.86
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$3,440.86 ÷ (1 + 11.7%)10
CA$1,138.42
TSX:LNR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$2,156.60 + CA$1,138.42
CA$3,295.02
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$3,295.02 / 65.32
CA$50.44
TSX:LNR Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$50.44
Current discount Discount to share price of CA$45.80
= -1 x (CA$45.80 - CA$50.44) / CA$50.44
9.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Linamar is available for.
Intrinsic value
9%
Share price is CA$45.8 vs Future cash flow value of CA$50.44
Current Discount Checks
For Linamar to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Linamar's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Linamar's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Linamar's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Linamar's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:LNR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CAD CA$8.67
TSX:LNR Share Price ** TSX (2019-06-17) in CAD CA$45.8
North America Auto Components Industry PE Ratio Median Figure of 27 Publicly-Listed Auto Components Companies 14.04x
Canada Market PE Ratio Median Figure of 545 Publicly-Listed Companies 15.07x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Linamar.

TSX:LNR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:LNR Share Price ÷ EPS (both in CAD)

= 45.8 ÷ 8.67

5.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Linamar is good value based on earnings compared to the North America Auto Components industry average.
  • Linamar is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does Linamar's expected growth come at a high price?
Raw Data
TSX:LNR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.28x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
10.2%per year
North America Auto Components Industry PEG Ratio Median Figure of 25 Publicly-Listed Auto Components Companies 0.92x
Canada Market PEG Ratio Median Figure of 247 Publicly-Listed Companies 1.15x

*Line of best fit is calculated by linear regression .

TSX:LNR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.28x ÷ 10.2%

0.52x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Linamar is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Linamar's assets?
Raw Data
TSX:LNR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CAD CA$59.24
TSX:LNR Share Price * TSX (2019-06-17) in CAD CA$45.8
North America Auto Components Industry PB Ratio Median Figure of 44 Publicly-Listed Auto Components Companies 1.2x
Canada Market PB Ratio Median Figure of 2,414 Publicly-Listed Companies 1.41x
TSX:LNR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:LNR Share Price ÷ Book Value per Share (both in CAD)

= 45.8 ÷ 59.24

0.77x

* Primary Listing of Linamar.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Linamar is good value based on assets compared to the North America Auto Components industry average.
X
Value checks
We assess Linamar's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. Linamar has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

LNR Future Performance

 How is Linamar expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
10.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Linamar expected to grow at an attractive rate?
  • Linamar's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • Linamar's earnings growth is positive but not above the Canada market average.
  • Linamar's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:LNR Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:LNR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 10.2%
TSX:LNR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 0.7%
North America Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 12.6%
North America Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 5%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.6%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:LNR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:LNR Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 8,100 1
2022-12-31 8,100 1
2021-12-31 8,200 1
2020-12-31 8,247 941 718 4
2019-12-31 7,999 994 712 4
TSX:LNR Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-03-31 7,701 786 567
2018-12-31 7,621 691 591
2018-09-30 7,463 807 602
2018-06-30 7,176 722 596
2018-03-31 6,784 611 561
2017-12-31 6,546 634 549
2017-09-30 6,347 686 530
2017-06-30 6,253 826 545
2017-03-31 6,144 782 541
2016-12-31 6,006 898 522
2016-09-30 5,874 889 501
2016-06-30 5,692 778 487

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Linamar's earnings are expected to grow by 10.2% yearly, however this is not considered high growth (20% yearly).
  • Linamar's revenue is expected to grow by 0.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:LNR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Linamar Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:LNR Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 9.23 9.32 9.14 2.00
2019-12-31 9.00 9.08 8.92 2.00
TSX:LNR Past Financials Data
Date (Data in CAD Millions) EPS *
2019-03-31 8.67
2018-12-31 9.05
2018-09-30 9.20
2018-06-30 9.12
2018-03-31 8.59
2017-12-31 8.41
2017-09-30 8.13
2017-06-30 8.36
2017-03-31 8.29
2016-12-31 8.01
2016-09-30 7.70
2016-06-30 7.47

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Linamar will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Linamar's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the North America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the North America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Linamar has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

LNR Past Performance

  How has Linamar performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Linamar's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Linamar's year on year earnings growth rate has been positive over the past 5 years.
  • Linamar's 1-year earnings growth is less than its 5-year average (1.1% vs 14.5%)
  • Linamar's earnings growth has not exceeded the North America Auto Components industry average in the past year (1.1% vs 2.9%).
Earnings and Revenue History
Linamar's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Linamar Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:LNR Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 7,701.15 567.17 439.61
2018-12-31 7,620.58 591.48 435.99
2018-09-30 7,463.14 602.03 423.75
2018-06-30 7,175.59 596.09 400.25
2018-03-31 6,784.39 560.89 362.84
2017-12-31 6,546.46 549.37 347.34
2017-09-30 6,346.73 530.39 343.39
2017-06-30 6,252.55 545.38 337.60
2017-03-31 6,143.52 540.79 331.66
2016-12-31 6,005.58 522.13 325.36
2016-09-30 5,873.77 501.29 313.08
2016-06-30 5,692.13 486.66 304.21
2016-03-31 5,403.04 449.43 288.58
2015-12-31 5,162.45 436.67 264.09
2015-09-30 4,922.47 413.18 247.81
2015-06-30 4,669.28 384.97 239.16
2015-03-31 4,406.27 354.57 225.44
2014-12-31 4,171.56 320.56 218.48
2014-09-30 4,094.70 317.51 215.49
2014-06-30 3,967.33 290.10 204.88
2014-03-31 3,791.64 261.07 194.45
2013-12-31 3,595.49 229.79 183.25
2013-09-30 3,425.85 191.72 177.22
2013-06-30 3,305.88 173.47 172.28
2013-03-31 3,228.78 154.91 169.05
2012-12-31 3,221.94 146.10 165.60
2012-09-30 3,183.41 142.49 157.04
2012-06-30 3,135.61 130.27 153.55

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Linamar has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Linamar used its assets more efficiently than the North America Auto Components industry average last year based on Return on Assets.
  • Linamar's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Linamar's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Linamar has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

LNR Health

 How is Linamar's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Linamar's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Linamar is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Linamar's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Linamar's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Linamar Company Filings, last reported 2 months ago.

TSX:LNR Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 3,869.65 2,570.21 485.46
2018-12-31 3,803.13 2,504.37 471.98
2018-09-30 3,556.85 2,510.24 424.56
2018-06-30 3,510.20 2,573.57 417.05
2018-03-31 3,394.16 2,616.08 455.27
2017-12-31 3,112.84 1,304.06 439.06
2017-09-30 2,968.23 1,472.65 524.94
2017-06-30 2,917.87 1,510.54 510.58
2017-03-31 2,757.86 1,496.33 438.18
2016-12-31 2,590.26 1,433.16 404.97
2016-09-30 2,514.79 1,683.67 462.15
2016-06-30 2,387.47 1,758.40 414.74
2016-03-31 2,302.08 1,801.08 408.41
2015-12-31 2,258.67 548.25 339.08
2015-09-30 2,138.88 575.14 204.21
2015-06-30 1,947.73 616.25 193.70
2015-03-31 1,845.84 674.25 180.09
2014-12-31 1,670.65 437.12 194.05
2014-09-30 1,595.96 450.64 115.20
2014-06-30 1,504.60 472.48 119.08
2014-03-31 1,471.55 546.28 144.49
2013-12-31 1,352.34 543.58 130.34
2013-09-30 1,240.50 656.49 117.42
2013-06-30 1,202.57 689.18 97.24
2013-03-31 1,112.63 754.26 95.09
2012-12-31 1,050.62 719.07 81.57
2012-09-30 1,007.30 707.81 59.15
2012-06-30 993.84 725.96 108.53
  • Linamar's level of debt (66.4%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (37.1% vs 66.4% today).
  • Debt is well covered by operating cash flow (30.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 18.8x coverage).
X
Financial health checks
We assess Linamar's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Linamar has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

LNR Dividends

 What is Linamar's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.05%
Current annual income from Linamar dividends. Estimated to be 1.05% next year.
If you bought CA$2,000 of Linamar shares you are expected to receive CA$21 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Linamar's pays a lower dividend yield than the bottom 25% of dividend payers in Canada (2.14%).
  • Linamar's dividend is below the markets top 25% of dividend payers in Canada (5.78%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:LNR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
North America Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 18 Stocks 2.3%
Canada Market Average Dividend Yield Market Cap Weighted Average of 335 Stocks 3.6%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.2%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:LNR Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 0.48 1.00
2019-12-31 0.48 1.00
TSX:LNR Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-05-02 0.480 1.060
2019-03-11 0.480 0.970
2018-08-07 0.480 0.931
2018-05-15 0.480 0.788
2018-03-07 0.480 0.666
2017-11-07 0.480 0.682
2017-05-10 0.480 0.698
2017-03-08 0.480 0.817
2016-11-02 0.400 0.710
2016-08-10 0.400 0.739
2016-05-04 0.400 0.785
2015-11-04 0.400 0.641
2015-03-04 0.400 0.527
2014-11-04 0.400 0.574
2014-08-07 0.400 0.680
2014-05-07 0.400 0.639
2014-03-26 0.400 0.751
2014-03-05 0.400 0.804
2013-11-13 0.320 0.738
2013-08-14 0.320 0.938
2013-05-08 0.320 1.077
2013-03-28 0.320 1.351
2013-03-06 0.320 1.318
2012-11-14 0.320 1.339
2012-08-08 0.320 1.517
2012-05-09 0.320 1.534
2012-03-06 0.320 1.588
2011-11-09 0.320 2.044
2011-08-10 0.320 2.164
2011-05-11 0.320 1.579
2011-03-09 0.320 1.537
2010-11-11 0.240 1.145
2010-08-11 0.240 1.212
2010-05-05 0.240 1.239
2010-03-04 0.240 1.241
2009-11-12 0.120 0.809
2009-08-13 0.120 0.876

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Linamar is not paying a notable dividend for Canada, therefore no need to check if the payments are stable.
  • Linamar is not paying a notable dividend for Canada, therefore no need to check if the payments are increasing.
Current Payout to shareholders
What portion of Linamar's earnings are paid to the shareholders as a dividend.
  • No need to calculate the sustainability of Linamar's dividends as it is not paying a notable one for Canada.
Future Payout to shareholders
  • No need to calculate the sustainability of Linamar's dividends in 3 years as they are not expected to pay a notable one for Canada.
X
Income/ dividend checks
We assess Linamar's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.2%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Linamar afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Linamar has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

LNR Management

 What is the CEO of Linamar's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Linda Hasenfratz
COMPENSATION CA$15,437,064
AGE 52
TENURE AS CEO 16.8 years
CEO Bio

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 at Linamar Corp. until November 2011 and served as its Interim Treasurer and Executive Vice President. Prior to that, She also served as an Interim Chief Financial Officer of Linamar Corp. since November 11, 2010. Ms. Hasenfratz served as the Chief Operating Officer of Linamar Corporation from September 1997 to September 1999 and its President from April 1999 to August 2, 2004. She has been with Linamar since July 1990. Ms. Hasenfratz served as the Chief Executive Officer and President of Lpp Manufacturing Inc. She served as Operations Manager of Comtech Manufacturing Ltd. since January 1995. As Operations Manager for Comtech and later for the Vehcom Manufacturing subsidiary, Ms. Hasenfratz was fully responsible for day-to-day operations of both facilities, ensuring customer satisfaction; employee satisfaction and profitability objectives were met. She has been an Independent Director of Faurecia S.A. since May 26, 2011. Ms. Hasenfratz has been a Non-Independent Director of Linamar Corporation since 1998. She has been an Independent Director of Canadian Imperial Bank of Commerce, a parent company of CIBC World Markets Corp. since May 2004. Ms. Hasenfratz serves as a Director of Linamar Hungary Zrt. She serves as Member of the Board of Governors, Royal Ontario Museum (Canada); Chairwoman of the business Council of Canada; formerly the Canadian Council of Chief Executives (Canada); and Member of the Catalyst Canadian Board of Advisors (Canada). She served as Board member of Original Equipment Suppliers Association (USA). Ms. Hasenfratz is Vice Chairman of the Royal Ontario Museum Foundation. She received an Executive MBA in 1997 and a Honours Bachelor of Science degree from the Ivey School of Business at the University of Western Ontario and a Honorary Doctorate of Engineering from Ryerson University in 2003.

CEO Compensation
  • Linda's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Linda's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the Linamar management team in years:

14.8
Average Tenure
54
Average Age
  • The average tenure for the Linamar management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Frank Hasenfratz

TITLE
Founder & Chairman of the Board
COMPENSATION
CA$13M
AGE
83

Linda Hasenfratz

TITLE
CEO & Non-Independent Director
COMPENSATION
CA$15M
AGE
52
TENURE
16.8 yrs

Jim Jarrell

TITLE
President & COO
COMPENSATION
CA$11M
TENURE
14.8 yrs

Dale Schneider

TITLE
Chief Financial Officer
COMPENSATION
CA$1M
TENURE
7.6 yrs

Ken McDougall

TITLE
Group President of Linamar Canada - Mexico Group
COMPENSATION
CA$2M

Mark Stoddart

TITLE
CTO, Executive VP of Sales & Marketing and Non-Independent Director
AGE
54

Roger Fulton

TITLE
Executive VP of Human Resources
TENURE
15.8 yrs

Brian Ahlborn

TITLE
Group President of Linamar Machining & Assembly - Europe & Linamar Montupet Casting

Brad Boehler

TITLE
Group President of Skyjack Inc
TENURE
7.4 yrs
Board of Directors Tenure

Average tenure and age of the Linamar board of directors in years:

20.9
Average Tenure
70.5
Average Age
  • The average tenure for the Linamar board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Frank Hasenfratz

TITLE
Founder & Chairman of the Board
COMPENSATION
CA$13M
AGE
83
TENURE
53.4 yrs

Linda Hasenfratz

TITLE
CEO & Non-Independent Director
COMPENSATION
CA$15M
AGE
52
TENURE
21.4 yrs

Mark Stoddart

TITLE
CTO, Executive VP of Sales & Marketing and Non-Independent Director
AGE
54
TENURE
20.4 yrs

Terry Reidel

TITLE
Independent Director
COMPENSATION
CA$73K
AGE
74
TENURE
16.4 yrs

Dennis Grimm

TITLE
Independent Director
COMPENSATION
CA$65K
AGE
67
TENURE
5.1 yrs

William Harrison

TITLE
Independent Director
COMPENSATION
CA$66K
AGE
79
TENURE
29.4 yrs
Who owns this company?
Recent Insider Trading
  • Linamar insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
29. May 19 Sell Mark Stoddart Individual 28. May 19 28. May 19 -2,500 CA$45.47 CA$-113,675
11. Apr 19 Sell Mark Stoddart Individual 10. Apr 19 10. Apr 19 -2,000 CA$51.15 CA$-102,300
04. Apr 19 Sell Brad Boehler Individual 02. Apr 19 02. Apr 19 -2,000 CA$48.44 CA$-96,880
16. Mar 19 Buy Elaine Wright Individual 15. Mar 19 15. Mar 19 200 CA$47.90 CA$9,580
15. Mar 19 Buy Dennis Grimm Individual 15. Mar 19 15. Mar 19 1,040 CA$47.98 CA$49,899
15. Mar 19 Sell Mark Stoddart Individual 14. Mar 19 14. Mar 19 -5,000 CA$47.87 CA$-239,350
07. Jan 19 Sell Brian Wade Individual 04. Jan 19 04. Jan 19 -3,260 CA$45.07 CA$-146,943
07. Jan 19 Sell Mark Stoddart Individual 07. Jan 19 07. Jan 19 -22,000 CA$46.38 CA$-1,020,294
19. Dec 18 Buy Christopher Merchant Individual 14. Dec 18 14. Dec 18 431 CA$45.00 CA$19,395
19. Dec 18 Buy Brian Wade Individual 13. Dec 18 13. Dec 18 862 CA$45.00 CA$38,790
18. Dec 18 Buy Dale Schneider Individual 18. Dec 18 18. Dec 18 580 CA$44.12 CA$25,588
18. Dec 18 Buy Roger Fulton Individual 18. Dec 18 18. Dec 18 428 CA$44.12 CA$18,882
18. Dec 18 Buy Mark Stoddart Individual 18. Dec 18 18. Dec 18 373 CA$44.12 CA$16,456
17. Dec 18 Buy Michael Russell Individual 13. Dec 18 13. Dec 18 431 CA$45.00 CA$19,395
17. Dec 18 Buy Roxanne Rose Individual 13. Dec 18 13. Dec 18 431 CA$45.00 CA$19,395
17. Dec 18 Buy Linda Hasenfratz Individual 17. Dec 18 17. Dec 18 50,000 CA$45.36 CA$2,268,050
14. Dec 18 Buy Kenneth McDougall Individual 13. Dec 18 13. Dec 18 862 CA$45.00 CA$38,790
14. Dec 18 Buy Alexander Drolc Individual 13. Dec 18 13. Dec 18 431 CA$45.00 CA$19,395
10. Oct 18 Sell Mark Stoddart Individual 05. Oct 18 05. Oct 18 -5,200 CA$58.09 CA$-302,068
26. Sep 18 Sell Salvatore Cocca Individual 24. Sep 18 24. Sep 18 -3,000 CA$60.40 CA$-181,207
28. Aug 18 Buy Linda Hasenfratz Individual 28. Aug 18 28. Aug 18 17,200 CA$57.71 CA$992,536
24. Aug 18 Buy Elaine Wright Individual 17. Aug 18 17. Aug 18 80 CA$54.86 CA$4,386
14. Aug 18 Sell Mark Stoddart Individual 13. Aug 18 13. Aug 18 -5,500 CA$54.28 CA$-298,526
10. Jul 18 Sell Mark Stoddart Individual 09. Jul 18 09. Jul 18 -1,000 CA$56.41 CA$-56,410
X
Management checks
We assess Linamar's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Linamar has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

LNR News

Simply Wall St News

Here's What Linamar Corporation's (TSE:LNR) P/E Ratio Is Telling Us

The formula for P/E is: Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS) Or for Linamar: P/E of 5.2 = CA$45.09 ÷ CA$8.67 (Based on the trailing twelve months to March 2019.) Is A High P/E Ratio Good? … TSX:LNR Price Estimation Relative to Market, June 11th 2019 Its relatively low P/E ratio indicates that Linamar shareholders think it will struggle to do as well as other companies in its industry classification. … The Bottom Line On Linamar's P/E Ratio Linamar trades on a P/E ratio of 5.2, which is below the CA market average of 15.

Simply Wall St -

Estimating The Fair Value Of Linamar Corporation (TSE:LNR)

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (CA$, Millions) CA$496.77 CA$422.70 CA$377.60 CA$351.60 CA$336.71 CA$328.69 CA$325.13 CA$324.57 CA$326.07 CA$329.03 Growth Rate Estimate Source Analyst x3 Analyst x3 Est @ -10.67% Est @ -6.88% Est @ -4.24% Est @ -2.38% Est @ -1.08% Est @ -0.17% Est @ 0.46% Est @ 0.91% Present Value (CA$, Millions) Discounted @ 11.13% CA$447.02 CA$342.27 CA$275.13 CA$230.53 CA$198.66 CA$174.51 CA$155.33 CA$139.53 CA$126.14 CA$114.54 Present Value of 10-year Cash Flow (PVCF)= CA$2.20b "Est" = FCF growth rate estimated by Simply Wall St After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 11.1%. … TSX:LNR Intrinsic value, May 30th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

What Type Of Shareholder Owns Linamar Corporation's (TSE:LNR)?

As Charlie Munger said 'Show me the incentive and I will show you the outcome.' With a market capitalization of CA$3.0b, Linamar is a decent size, so it is probably on the radar of institutional investors. … Taking a look at our data on the ownership groups (below), it's seems that institutional investors have bought into the company. … Insider Ownership Of Linamar The definition of company insiders can be subjective, and does vary between jurisdictions.

Simply Wall St -

Should Linamar Corporation's (TSE:LNR) Recent Earnings Worry You?

Measuring Linamar Corporation's (TSE:LNR) track record of past performance is an insightful exercise for investors. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 14%, indicating the rate at which LNR is growing has slowed down. … You should continue to research Linamar to get a better picture of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for LNR’s future growth?

Simply Wall St -

Have Insiders Been Buying Linamar Corporation (TSE:LNR) Shares This Year?

So shareholders might well want to know whether insiders have been buying or selling shares in Linamar Corporation (TSE:LNR). … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … While we always like to see insider buying, it's less meaningful if the purchases were made at much lower prices, as the opportunity they saw may have passed

Simply Wall St -

What Kind Of Share Price Volatility Should You Expect For Linamar Corporation (TSE:LNR)?

Modern finance theory considers volatility to be a measure of risk, and there are two main types of price volatility. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … Any stock with a beta of greater than one is considered more volatile than the market, while those with a beta below one are either less volatile or poorly correlated with the market.

Simply Wall St -

What You Should Know About Linamar Corporation's (TSE:LNR) Financial Strength

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Evaluating financial health as part of your investment thesis is. … Let's work through some financial health checks you may wish to consider if you're interested in this stock.

Simply Wall St -

How Financially Strong Is Linamar Corporation (TSE:LNR)?

This article will examine LNR’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Don’t forget that this is a general and concentrated examination of Linamar’s financial health, so you should conduct further analysis. … View our latest analysis for Linamar

Simply Wall St -

How Should Investors React To Linamar Corporation's (TSE:LNR) CEO Pay?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Linda Hasenfratz's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Linamar Corporation has a market cap of CA$3.1b, and is paying total annual CEO compensation of CA$16m.

Simply Wall St -

Don’t Buy Linamar Corporation (TSE:LNR) Until You Understand Its ROCE

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … Return On Capital Employed (ROCE): What is it? … How Do You Calculate Return On Capital Employed

Simply Wall St -

LNR Company Info

Description

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.

Details
Name: Linamar Corporation
LNR
Exchange: TSX
Founded: 1966
CA$2,991,632,871
65,319,495
Website: http://www.linamar.com
Address: Linamar Corporation
287 Speedvale Avenue West,
Guelph,
Ontario, N1H 1C5,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX LNR Common Shares The Toronto Stock Exchange CA CAD 30. Jan 1986
OTCPK LIMA.F Common Shares Pink Sheets LLC US USD 30. Jan 1986
DB LNR Common Shares Deutsche Boerse AG DE EUR 30. Jan 1986
Number of employees
Current staff
Staff numbers
29,000
Linamar employees.
Industry
Auto Parts and Equipment
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/17 23:39
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/06/02
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.