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Summary
- Linamar stocks climbed 124 per cent, while Magna shares jumped 81 per cent in six months.
- Linmar’s Q4 sales ended December 31, 2020, jumped 5.4 per cent to $1.7 billion.
- Magna’s sales jumped 12 per cent to C$10.6 billion in Q4 ended December 31, 2020.
Canadian automobile equipment makers, Linamar Corp. (TSX:LNR) and Magna International Inc, (TSX:MG) may be the dream stocks you are looking to buy for long-term growth. These stocks may prove a jackpot for their owners, and it may be the right time to steal them before prices shoot up.
Now consider this, Linamar gained 124 per cent in the past six months and Magna jumped 81 per cent in the same period. And their vertical climb is likely to continue given their strong performance.
Linamar (LNR:TSX) rose 10.7 per cent to C$88.65 from the previous close on Thursday, while Magna (TSX:MG) was up 1.63 per cent to C$114.75. Based on their stock value, Linamar’s market cap is about C$$5.8 billion and Magna around C$34 billion.
Pic Credit: Pixabay
Linmar’s 2020 Performance
Linmar’s Q4 sales ended December 31, 2020, jumped 5.4 per cent to C$1.7 billion, compared to C$1.6 billion in the same period in 2019. Its cash flows were estimated at C$422.7 million during the period. A record cash flow in 2020, enabled the company to boost dividend to C$0.16 per share.
While cost cut has been a focus, its new business deals for 2021 will keep the revenues flowing.
Linmar’s sales were driven by strong demand in the North American and Asia Pacific markets.
As part of its corporate social responsibility, the company is setting up a health clinic this week to deliver up to 2,000 covid vaccines per day to help in the government’s push for recovery.
Linamar Corp manufactures various products for industrial and transportation applications.
Pic Credit: Pixabay
Magna’s Innovation-led Growth
Magna provides high-tech electrification products for zero-emission vehicles. It has recently unveiled its eBeam technology which will help in the transition of pickup trucks to electrification. The breakthrough in solid-beam rear axle in trucks has the potential to revolutionize the industry. And their power can exceed 220 kW.
eBeam can be integrated with a battery-electric or hybrid powertrain system, the company said. It has also come up with next-generation AWD eDrive technology which improves driving.
Magna’s cutting-edge technologies like the PHEV drivetrain and next-gen battery drive systems will drive growth in the future. It has recently put them into the test with their debut in Sweden.
In Q4, ended December 31, 2020, Magna’s sales jumped 12 per cent to C$10.6 billion, compared to the same period in the previous year.
Its cash flow totalled C$2.3 billion, compared to C$1.7 billion in the same quarter of 2019. Given the robust income, the company raised the quarterly dividend by 8 per cent to C$0.43 per share.
