Linamar (LNR) AI Stock Analysis

• Market Cap: $4.49B
• Dividend Yield: 1.43%
• Average Volume (3M): 94.25K
• Price to Earnings (P/E): 21.4
• Beta (1Y): 1.34
• Revenue Growth: -5.33%
• EPS Growth: -57.58%
• Country: CA
• Employees: 32,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 2.51
• Shares Outstanding: 59,809,586
• 10 Day Avg. Volume: 76,957
• 30 Day Avg. Volume: 94,251
• PEG Ratio: -0.28
• Price to Book (P/B): 0.64
• Price to Sales (P/S): 0.33
• P/FCF Ratio: 5.88
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 0.20
• Enterprise Value/Gross Profit: 1.38
• Enterprise Value/Ebitda: 1.30
• 1Y Price Target: $85.53
• Price Target Upside: 8.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: C$89.00 ▲(13.35% Upside)

Linamar's overall stock score reflects a strong financial foundation and positive technical indicators, despite challenges in revenue growth and industrial segment performance. The company's ability to generate free cash flow and manage tariffs effectively are significant strengths, while valuation concerns and market challenges pose risks.

Positive Factors

Mobility Segment Growth

The growth in the Mobility segment with strong margins indicates Linamar's ability to capitalize on automotive trends, supporting long-term revenue stability.

Strong Free Cash Flow

Robust free cash flow generation enhances Linamar's financial flexibility, enabling strategic investments and shareholder returns over time.

Market Share Gains

Consistent market share gains demonstrate competitive strength and resilience, positioning Linamar well against industry headwinds.

Negative Factors

Sales Decline

A significant sales decline, particularly in the industrial segment, suggests challenges in maintaining growth, impacting long-term revenue prospects.

Industrial Segment Challenges

The downturn in the industrial segment, driven by weak agricultural markets, could hinder Linamar's diversification efforts and revenue stability.

Soft Agricultural Markets

A projected decline in the agricultural market poses risks to Linamar's industrial segment, affecting overall growth and profitability.

Linamar Business Overview & Revenue Model

Company Description

Linamar Corporation, together with its subsidiaries, design, develop, and produce engineered products in Canada, North America, Europe, and the Asia Pacific. It operates through two segments, Mobility and Industrial. The Mobility segment engages in the design, development, and manufacture of precision metallic components, modules, and systems for vehicle and power generation markets. It manufactures precision-machined components and assemblies that are used in transmissions, engines, and driveline systems; driveline systems, such as power transfer units, rear-drive units, and engineered gears; and engine components, including cylinder blocks and assemblies, cylinder heads and complete head assemblies, camshaft assemblies, connecting rods, flywheels, fuel rails, and fuel body/pumps. This segment also offers transmission cases, shafts, shaft and shell assemblies, clutch modules and clutch subcomponents, valve bodies, pumps, planetary gear assemblies, and housings/covers. It serves automotive original equipment manufacturers and commercial vehicle customers. The Industrial segment designs and produces mobile products, such as compact and rough terrain scissor lifts, vertical mast lifts, booms, and telehandlers primarily to construction equipment rental companies. This segment also offers harvesting equipment, including combine grain header attachments, self-propelled windrowers, pick-up headers, and hay products; and combine corn header attachments. Linamar Corporation has a strategic alliance with Ballard Power Systems Inc. for the co-development and sale of fuel cell powertrains and components for class 1 and 2 vehicles in North America and Europe. Linamar Corporation was founded in 1964 and is headquartered in Guelph, Canada.

How the Company Makes Money

Linamar generates revenue through several key streams, primarily from the sale of its manufactured products to automotive and industrial clients. The company's revenue model is built on long-term contracts and relationships with major automotive OEMs (Original Equipment Manufacturers), which provide a stable demand for its components. In addition to traditional automotive parts, Linamar's expansion into industrial sectors, including renewable energy and aerospace, contributes to its earnings by tapping into growing markets with increasing demand for advanced manufacturing solutions. Significant partnerships with leading automotive manufacturers enhance Linamar's market position and provide opportunities for joint ventures and collaborative development projects, further driving revenue growth. The company's investment in technology and innovation also plays a crucial role in increasing efficiency and reducing costs, thereby bolstering its profitability.

Linamar Financial Statement Overview

Summary

Linamar demonstrates a solid financial position with stable margins and a strong balance sheet. The company faces challenges in revenue growth and net profit margins, but maintains operational efficiency and a healthy cash flow. The moderate leverage and strong equity position provide a stable foundation for future growth.

Income Statement

Linamar's income statement shows a mixed performance. The company has maintained a stable gross profit margin around 14-15% over the years, indicating consistent cost management. However, the net profit margin has decreased to 2.06% in the TTM period, reflecting challenges in converting revenue into profit. The revenue growth rate is negative in the TTM period, suggesting a decline in sales compared to the previous year. Despite these challenges, the EBIT and EBITDA margins remain healthy, indicating operational efficiency.

Balance Sheet

The balance sheet reflects a strong equity position with a debt-to-equity ratio of 0.38 in the TTM period, indicating moderate leverage. The return on equity has decreased to 3.71% in the TTM period, suggesting reduced profitability for shareholders. However, the equity ratio remains robust, highlighting a solid financial foundation. Overall, the balance sheet shows stability with manageable debt levels.

Cash Flow

Linamar's cash flow statement indicates a positive trend in free cash flow growth, with a 10% increase in the TTM period. The operating cash flow to net income ratio is stable, suggesting efficient cash generation relative to net income. However, the free cash flow to net income ratio is 0.68, indicating a moderate conversion of net income into free cash flow. The company shows a healthy cash flow position, but there is room for improvement in cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	25.27B	10.58B	9.73B	7.92B	6.54B	5.82B
Gross Profit	3.68B	1.50B	1.32B	974.81M	937.65M	802.56M
EBITDA	3.90B	1.52B	1.27B	986.06M	1.02B	894.10M
Net Income	821.29M	258.26M	503.05M	426.19M	420.56M	279.13M
Balance Sheet
Total Assets	10.97B	10.50B	9.85B	8.58B	7.39B	7.56B
Cash, Cash Equivalents and Short-Term Investments	1.23B	1.05B	653.33M	860.51M	928.43M	861.10M
Total Debt	2.16B	2.29B	1.77B	1.31B	791.54M	1.30B
Total Liabilities	4.95B	5.07B	4.53B	3.76B	2.79B	3.20B
Stockholders Equity	6.02B	5.43B	5.32B	4.81B	4.60B	4.35B
Cash Flow
Free Cash Flow	2.47B	593.68M	-17.34M	37.06M	666.40M	1.15B
Operating Cash Flow	3.35B	1.13B	745.37M	447.71M	909.46M	1.41B
Investing Cash Flow	-780.75M	-1.12B	-1.19B	-715.74M	-267.32M	-290.31M
Financing Cash Flow	-1.41B	363.68M	255.57M	176.81M	-572.77M	-593.41M

Linamar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:LNR, the sentiment is Positive. The current price of 78.52 is above the 20-day moving average (MA) of 77.45, above the 50-day MA of 75.38, and above the 200-day MA of 64.48, indicating a bullish trend. The MACD of 1.20 indicates Negative momentum. The RSI at 56.11 is Neutral, neither overbought nor oversold. The STOCH value of 58.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:LNR.

Linamar Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LNR	77 Outperform	$4.49B	21.39	4.01%	1.43%	-5.33%	-57.58%
MG	76 Outperform	C$19.43B	13.55	8.31%	3.95%	0.66%	-0.61%
XTC	64 Neutral	$245.31M	10.43	6.05%	6.27%	-3.53%	-17.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CAS	61 Neutral	$1.13B	-141.29	1.16%	3.87%	3.50%	―
MRE	54 Neutral	$735.16M	―	-2.64%	2.01%	-7.25%	-143.07%
NFI	44 Neutral	C$1.67B	-7.37	-52.38%	―	14.40%	-1117.18%

Linamar Corporate Events

Linamar Corp. Reports Strong Q3 Growth and Strategic Acquisitions

Linamar Corporation is a diversified advanced manufacturing company specializing in mobility, agriculture, and industrial sectors, known for its innovative casting, forging, and machining solutions across a global footprint.

Linamar Reports Strong Q3 Performance and Strategic Growth Initiatives

Linamar reported strong financial performance in Q3 2025, driven by significant growth in its Mobility segment and effective cash management, resulting in $320.9 million in free cash flow. The company also announced the renewal of its normal course issuer bid, allowing for the repurchase of up to 3,850,534 shares, and highlighted strategic acquisitions to enhance its manufacturing capabilities, positioning itself for future growth despite challenges in the industrial market.

The most recent analyst rating on (TSE:LNR) stock is a Hold with a C$78.00 price target. To see the full list of analyst forecasts on Linamar stock, see the TSE:LNR Stock Forecast page.

Linamar to Acquire Aludyne’s North American Assets, Boosting Structural Casting Capabilities

Linamar Corporation has announced a definitive agreement to acquire select assets of Aludyne Incorporated’s North American operations for $300 million USD, significantly expanding its manufacturing footprint in the U.S. This acquisition enhances Linamar’s capabilities in aluminum casting and precision machining, aligning with its strategic focus on propulsion-agnostic structural components. The integration of Aludyne’s assets is expected to strengthen Linamar’s local customer support and supply chain stability, while offering new collaborative opportunities for its Canadian operations. The transaction is anticipated to be accretive shortly after completion, reinforcing Linamar’s position in the global mobility market.

The most recent analyst rating on (TSE:LNR) stock is a Hold with a C$80.00 price target. To see the full list of analyst forecasts on Linamar stock, see the TSE:LNR Stock Forecast page.

Linamar Acquires George Fischer’s Leipzig Facility to Boost Industrial Casting Capabilities

Linamar Corporation has announced the acquisition of George Fischer’s Leipzig Casting Facility for €45 million, enhancing its capabilities in large ductile iron castings for heavy industrial applications. This strategic acquisition is expected to drive revenue and income growth, diversify Linamar’s offerings, and strengthen its presence in the European market, benefiting stakeholders and aligning with the company’s growth strategy in the commercial vehicle sector.

The most recent analyst rating on (TSE:LNR) stock is a Buy with a C$84.00 price target. To see the full list of analyst forecasts on Linamar stock, see the TSE:LNR Stock Forecast page.

Linamar Corp. Earnings Call: Mixed Sentiment and Strategic Wins

Linamar Corp. recently held its earnings call, revealing a mixed sentiment among its business segments. The company showcased robust performance in its Mobility segment and effective tariff management, leading to significant free cash flow and market share gains. However, challenges persist in the industrial segment, with notable sales declines and a soft agricultural market impacting overall results.