Latest news with #LinamarCorporation
Yahoo
14-04-2025
- Business
- Yahoo
Despite the downward trend in earnings at Linamar (TSE:LNR) the stock increases 3.0%, bringing five-year gains to 56%
While Linamar Corporation (TSE:LNR) shareholders are probably generally happy, the stock hasn't had particularly good run recently, with the share price falling 14% in the last quarter. But the silver lining is the stock is up over five years. Unfortunately its return of 46% is below the market return of 96%. Unfortunately not all shareholders will have held it for the long term, so spare a thought for those caught in the 28% decline over the last twelve months. Since the stock has added CA$84m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns. Our free stock report includes 4 warning signs investors should be aware of before investing in Linamar. Read for free now. While the efficient markets hypothesis continues to be taught by some, it has been proven that markets are over-reactive dynamic systems, and investors are not always rational. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. During five years of share price growth, Linamar actually saw its EPS drop 8.2% per year. Essentially, it doesn't seem likely that investors are focused on EPS. Because earnings per share don't seem to match up with the share price, we'll take a look at other metrics instead. In contrast revenue growth of 13% per year is probably viewed as evidence that Linamar is growing, a real positive. It's quite possible that management are prioritizing revenue growth over EPS growth at the moment. You can see below how earnings and revenue have changed over time (discover the exact values by clicking on the image). We consider it positive that insiders have made significant purchases in the last year. Having said that, most people consider earnings and revenue growth trends to be a more meaningful guide to the business. This free report showing analyst forecasts should help you form a view on Linamar As well as measuring the share price return, investors should also consider the total shareholder return (TSR). The TSR is a return calculation that accounts for the value of cash dividends (assuming that any dividend received was reinvested) and the calculated value of any discounted capital raisings and spin-offs. Arguably, the TSR gives a more comprehensive picture of the return generated by a stock. As it happens, Linamar's TSR for the last 5 years was 56%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. While the broader market gained around 9.5% in the last year, Linamar shareholders lost 27% (even including dividends). Even the share prices of good stocks drop sometimes, but we want to see improvements in the fundamental metrics of a business, before getting too interested. Longer term investors wouldn't be so upset, since they would have made 9%, each year, over five years. It could be that the recent sell-off is an opportunity, so it may be worth checking the fundamental data for signs of a long term growth trend. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. For example, we've discovered 4 warning signs for Linamar that you should be aware of before investing here. There are plenty of other companies that have insiders buying up shares. You probably do not want to miss this free list of undervalued small cap companies that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on Canadian exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
CBC
28-01-2025
- Automotive
- CBC
Linamar invests $1B to expand operations and develop EV technologies
Guelph, Ont.-based auto parts manufacturer Linamar Corporation is expanding its operations across the province and creating thousands of jobs by investing $1 billion into the automotive industry. The company's expansion will help to develop key components for the automotive supply chain, including powertrain solutions and technologies for hybrid and electric vehicles (EVs). The announcement was made Tuesday morning at the Frank Hasenfratz Centre for Excellence in Manufacturing in Guelph. "We have close to a billion dollars of work that we are launching right now in our Canadian facilities and we are continuing to quote on record levels of new business opportunities," Linamar's executive chair Linda Hasenfratz said at the announcement. "We expect to generate about $1.5 million of sales from those business wins over time and the opportunities that we are continuing to pursue." The funding will also accelerate advancements in parts manufacturing and semiconductor packaging methods for EV batteries. This will include enhancing vehicle ranging, improving efficiency and reducing charging times. Federal Minister of Innovation, Science and Industry François-Philippe Champagne was at the announcement. "This is great news for the industry, great news for the environment and it's also great news for the workers and communities in Guelph, Saltford, Wellend and Windsor," he said. Ontario's Minister of Economic Development, Job Creation and Trade Vic Fedeli was also in attendance at the announcement and said the province will support the expansion with a further $100 million investment. "With their $1 billion investment, Linamar will create more than 2,300 new, good paying jobs and help ensure our workers remain equipped to develop the innovative technologies of tomorrow," he said. As part of the investment, Linamar also plans to expand the production of eAxle systems and support ongoing advancements in developing hydrogen fuel cell and battery storage technologies.
