Linamar (LNR) AI Stock Analysis

• Market Cap: $4.29B
• Dividend Yield: 1.47%
• Average Volume (3M): 94.25K
• Price to Earnings (P/E): 20.4
• Beta (1Y): 1.34
• Revenue Growth: -2.60%
• EPS Growth: -64.22%
• Country: CA
• Employees: 32,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 2.81
• 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: 5.06
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 3.42
• Enterprise Value/Ebitda: 3.34
• 1Y Price Target: $82.00
• Price Target Upside: 11.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 68 Neutral
• Price Target: C$78.00 ▲(5.85% Upside)

Linamar's overall stock score reflects a stable financial performance with strong cash flow generation and a balanced leverage profile. However, technical indicators suggest bearish momentum, and valuation metrics indicate moderate pricing. The mixed sentiment from the earnings call, with strengths in the Mobility segment but challenges in the Industrial segment, also influences the score.

Positive Factors

Strong Cash Flow Generation

Linamar's ability to generate substantial free cash flow indicates strong operational efficiency and financial health, providing flexibility for future investments and shareholder returns.

Mobility Segment Growth

The growth in the Mobility segment underscores Linamar's competitive positioning and ability to capitalize on market opportunities, supporting long-term revenue and profit expansion.

Market Share Gains

Gaining market share across various segments demonstrates Linamar's competitive strength and potential for sustained growth, even in challenging market conditions.

Negative Factors

Industrial Segment Challenges

Significant sales declines in the Industrial segment highlight vulnerabilities in Linamar's business model, potentially affecting overall revenue and profitability if not addressed.

Global Market Declines

Declining vehicle production in key markets poses a risk to Linamar's automotive segment, potentially impacting future sales and necessitating strategic adjustments.

Soft Agricultural Markets

A downturn in the agricultural market could further pressure Linamar's industrial segment, affecting revenue streams and necessitating diversification or innovation to mitigate impact.

Linamar Business Overview & Revenue Model

Company Description

Linamar Corporation (LNR) is a diversified manufacturing company based in Canada, primarily operating in the automotive, industrial, and agricultural sectors. It specializes in precision machining, assembly, and the development of complex components and systems. The company offers a wide range of products, including powertrain and driveline components, mobility solutions, and products for the agriculture and construction industries.

How the Company Makes Money

Linamar generates revenue through several key streams, including the manufacture and sale of automotive components, which account for a significant portion of its earnings. The company partners with major automotive manufacturers, providing them with essential parts and systems that are integral to vehicle performance. Additionally, Linamar's industrial segment, which includes products for agricultural and construction equipment, contributes to its revenue through both direct sales and long-term contracts with clients. The company's focus on innovation and technology-driven solutions allows it to enhance its product offerings and maintain competitive pricing, further driving profitability. Strategic alliances and partnerships with other industry players also play a crucial role in expanding Linamar's market reach and enhancing its revenue potential.

Linamar Financial Statement Overview

Summary

Linamar exhibits a stable financial position with strong cash flow generation and a balanced leverage profile. While revenue growth has slowed, the company maintains operational efficiency and a solid equity base. Continued focus on improving profitability and returns on equity could enhance financial performance.

Income Statement

Linamar's income statement shows a stable gross profit margin of around 14.5% in TTM, with a slight decline in revenue growth rate of -1.98%. The net profit margin remains modest at 2.48%, indicating profitability challenges. However, the company maintains a healthy EBIT and EBITDA margin, reflecting operational efficiency.

Balance Sheet

The balance sheet reveals a manageable debt-to-equity ratio of 0.39, indicating a balanced approach to leveraging. Return on equity is moderate at 4.59%, suggesting room for improvement in generating returns for shareholders. The equity ratio stands at 53.85%, showcasing a solid equity base.

Cash Flow

Linamar's cash flow statement highlights a strong free cash flow growth rate of 17.45% in TTM, demonstrating effective cash generation. The operating cash flow to net income ratio is 4.39, indicating robust cash flow relative to net income. The free cash flow to net income ratio of 0.63 suggests efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.19B	10.58B	9.73B	7.92B	6.54B	5.82B
Gross Profit	1.49B	1.50B	1.32B	974.81M	937.65M	802.56M
EBITDA	1.52B	1.52B	1.27B	986.06M	1.02B	894.10M
Net Income	210.25M	258.26M	503.05M	426.19M	420.56M	279.13M
Balance Sheet
Total Assets	10.78B	10.50B	9.85B	8.58B	7.39B	7.56B
Cash, Cash Equivalents and Short-Term Investments	1.00B	1.05B	653.33M	860.51M	928.43M	861.10M
Total Debt	2.21B	2.29B	1.77B	1.31B	791.54M	1.30B
Total Liabilities	4.98B	5.07B	4.53B	3.76B	2.79B	3.20B
Stockholders Equity	5.80B	5.43B	5.32B	4.81B	4.60B	4.35B
Cash Flow
Free Cash Flow	835.58M	593.68M	-17.34M	37.06M	666.40M	1.15B
Operating Cash Flow	1.23B	1.13B	745.37M	447.71M	909.46M	1.41B
Investing Cash Flow	-357.23M	-1.12B	-1.19B	-715.74M	-267.32M	-290.31M
Financing Cash Flow	-633.07M	363.68M	255.57M	176.81M	-572.77M	-593.41M

Linamar Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 73.69
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 73.69 is above the 20-day moving average (MA) of 73.59, below the 50-day MA of 74.49, and above the 200-day MA of 61.56, indicating a neutral trend. The MACD of -0.61 indicates Positive momentum. The RSI at 50.48 is Neutral, neither overbought nor oversold. The STOCH value of 74.55 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
MG	78 Outperform	$17.72B	10.64	10.06%	4.24%	-0.54%	26.31%
LNR	68 Neutral	$4.29B	20.45	3.61%	1.47%	-2.60%	-64.22%
XTC	64 Neutral	$252.96M	10.72	6.01%	6.32%	-3.50%	-22.76%
MRE	62 Neutral	$738.07M	―	-4.10%	1.98%	-8.84%	-148.15%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CAS	59 Neutral	$1.04B	―	-0.47%	4.20%	2.77%	81.01%
NFI	44 Neutral	C$1.65B	―	-26.25%	―	9.12%	-182.49%

Linamar Corporate Events

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.

Linamar Corp. Reports Strong Q2 2025 Earnings

Linamar Corporation, a diversified advanced manufacturing company, operates in the Industrial and Mobility segments, providing solutions for vehicles, agriculture, and medical devices. Headquartered in Guelph, Ontario, Linamar is a global leader in manufacturing with over 34,000 employees across 19 countries.

Linamar Reports Strong Q2 2025 Financial Performance Amid Market Challenges

Linamar Corporation reported a significant increase in free cash flow for Q2 2025, reaching $177.6 million, attributed to effective cash management. The company’s liquidity also improved substantially, standing at $1.9 billion. Linamar has been actively returning cash to shareholders through share repurchases and maintaining dividends. Despite a decline in segment sales, Linamar achieved market share growth in its industrial segment, particularly in access and agriculture businesses. The mobility segment saw a 19.6% rise in normalized operating earnings, with margins returning to normal levels. The company remains unaffected by recent US tariffs due to its compliance with USMCA regulations, positioning it well for future opportunities.

The most recent analyst rating on (TSE:LNR) stock is a Buy with a C$65.00 price target. To see the full list of analyst forecasts on Linamar stock, see the TSE:LNR Stock Forecast page.