TSX:LNR

Stock Analysis Report

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Executive Summary

Linamar Corporation together with its subsidiaries design, develop, and produce engineered products in Canada, Rest of North America, the Asia Pacific, and Europe. More Details


Snowflake Analysis

Excellent balance sheet and fair value.


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

-4.7%

LNR

-6.6%

CA Auto Components

-8.1%

CA Market


1 Year Return

2.7%

LNR

-2.7%

CA Auto Components

-60.7%

CA Market

Return vs Industry: LNR exceeded the Canadian Auto Components industry which returned -2.7% over the past year.

Return vs Market: LNR exceeded the Canadian Market which returned -60.7% over the past year.


Shareholder returns

LNRIndustryMarket
7 Day-4.7%-6.6%-8.1%
30 Day13.4%11.6%-6.7%
90 Day12.3%13.8%-26.5%
1 Year3.8%2.7%0.3%-2.7%-59.0%-60.7%
3 Year-41.8%-43.4%-5.5%-12.2%-60.3%-64.4%
5 Year-36.3%-38.9%10.5%-1.4%-51.7%-59.4%

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

Valuation

Is Linamar undervalued compared to its fair value and its price relative to the market?

15.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: LNR (CA$44.9) is trading above our estimate of fair value (CA$27.98)

Significantly Below Fair Value: LNR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: LNR is good value based on its PE Ratio (15.6x) compared to the XN Auto Components industry average (26.5x).

PE vs Market: LNR's PE Ratio (15.6x) is in line with the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: LNR is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: LNR is good value based on its PB Ratio (0.7x) compared to the CA Auto Components industry average (0.9x).


Next Steps

Future Growth

How is Linamar forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

41.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: LNR's forecast earnings growth (41.2% per year) is above the savings rate (1.7%).

Earnings vs Market: LNR's earnings (41.2% per year) are forecast to grow slower than the Canadian market (60.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: LNR's revenue (11% per year) is forecast to grow faster than the Canadian market (7.3% per year).

High Growth Revenue: LNR's revenue (11% 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 (7.8%).


Next Steps

Past Performance

How has Linamar performed over the past 5 years?

-0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: LNR has high quality earnings.

Growing Profit Margin: LNR's current net profit margins (3.2%) are lower than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: LNR's earnings have declined by 0.9% 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 (-63.8%) over the past year, making it difficult to compare to the Auto Components industry average (-18.5%).


Return on Equity

High ROE: LNR's Return on Equity (4.6%) is considered low.


Next Steps

Financial Health

How is Linamar's financial position?


Financial Position Analysis

Short Term Liabilities: LNR's short term assets (CA$2.3B) exceed its short term liabilities (CA$1.8B).

Long Term Liabilities: LNR's short term assets (CA$2.3B) exceed its long term liabilities (CA$1.4B).


Debt to Equity History and Analysis

Debt Level: LNR's debt to equity ratio (39.8%) is considered satisfactory.

Reducing Debt: LNR's debt to equity ratio has increased from 31% to 39.8% over the past 5 years.

Debt Coverage: LNR's debt is well covered by operating cash flow (70.4%).

Interest Coverage: LNR's interest payments on its debt are well covered by EBIT (10.2x coverage).


Balance Sheet


Next Steps

Dividend

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

0.53%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: LNR's dividend (0.53%) isn’t notable compared to the bottom 25% of dividend payers in the Canadian market (1.75%).

High Dividend: LNR's dividend (0.53%) is low compared to the top 25% of dividend payers in the Canadian market (6.04%).


Stability and Growth of Payments

Stable Dividend: LNR is not paying a notable dividend for the Canadian market, therefore no need to check if payments are stable.

Growing Dividend: LNR is not paying a notable dividend for the Canadian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: LNR is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of LNR's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

16.2yrs

Average management tenure


CEO

Linda Hasenfratz (54 yo)

18.17yrs

Tenure

CA$12,433,326

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 ($USD9.31M) is above average for companies of similar size in the Canadian market ($USD2.02M).

Compensation vs Earnings: Linda's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Frank Hasenfratz
Founder & Chairman of the Board54.75yrsCA$9.89m24.01%
CA$ 705.5m
Linda Hasenfratz
CEO & Non-Independent Director18.17yrsCA$12.43m7.01%
CA$ 206.1m
Jim Jarrell
President & COO16.17yrsCA$9.28m0.18%
CA$ 5.4m
Dale Schneider
Chief Financial Officer8.92yrsCA$941.58k0.030%
CA$ 871.9k
Kenneth McDougall
Group President of Skyjack Incno dataCA$1.38m0.0091%
CA$ 266.5k
Mark Stoddart
CTO, Executive VP of Sales & Marketing and Non-Independent Director21.75yrsno data1.25%
CA$ 36.8m
Roger Fulton
Executive VP of Human Resources17.08yrsno data0.012%
CA$ 356.2k
Brian Ahlborn
Group President of Linamar Machining & Assembly - Europe & Linamar Montupet Castingno datano datano data
Brad Boehler
Group President of Skyjack Inc8.75yrsno datano data
Wenzhang Huang
Group President of Linamar Machining & Assembly - Asia Pacificno datano datano data

16.2yrs

Average Tenure

56yo

Average Age

Experienced Management: LNR's management team is seasoned and experienced (16.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Frank Hasenfratz
Founder & Chairman of the Board54.75yrsCA$9.89m24.01%
CA$ 705.5m
Linda Hasenfratz
CEO & Non-Independent Director18.17yrsCA$12.43m7.01%
CA$ 206.1m
Mark Stoddart
CTO, Executive VP of Sales & Marketing and Non-Independent Director21.75yrsno data1.25%
CA$ 36.8m
Terry Reidel
Independent Director17.75yrsCA$70.24k0.0061%
CA$ 179.6k
Dennis Grimm
Independent Director6.42yrsCA$65.85k0.0064%
CA$ 187.8k
Lisa Forwell
Independent Director0.42yrno data0.00076%
CA$ 22.3k

19.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: LNR's board of directors are seasoned and experienced ( 19.8 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$2.939b
  • Shares outstanding: 65.45m
  • Website: https://www.linamar.com

Number of Employees


Location

  • Linamar Corporation
  • 287 Speedvale Avenue West
  • Guelph
  • Ontario
  • N1H 1C5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
LNRTSX (The Toronto Stock Exchange)YesCommon SharesCACADJan 1986
LNRDB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1986
LIMA.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJan 1986

Biography

Linamar Corporation together with its subsidiaries design, develop, and produce engineered products in Canada, Rest of North America, the Asia Pacific, and Europe. It operates through two segments, Transpo ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 04:17
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.