Magna International Inc
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
CAD 84.00 | Pmm | Tzhswdxy |
Magna: Investor Day Highlights Growth From Electrification and Advanced Driver Assistance Systems
No-moat-rated Magna highlighted revenue growth from powertrain electrification, battery enclosures, and advanced driver assistance systems (which includes the acquisition of Veoneer), or ADAS. The firm expects revenue, including joint ventures, from these product areas to grow at around an 87% annualized rate from slightly less than $1.0 billion in 2022 (excluding Veoneer) to $6.0 billion-$6.5 billion in 2025. Because of the big backlog of new business, management targets research and development in these product areas to fall from 110% of revenue in 2022 to just under 20% in 2025.