Linamar - Valuation Perspective In 2015 Linamar reached an all time high closing price of close to $90 per share. At that time sales were $5 Billion and EPS of $6+. Book value was $30 per share.
Since then Linamar has launched 8, 9, 10 speed business, acquired Montupet, Macdon, Salford, GF interest, Dura Shiloh assets, Mobex assets, and now Bourgault. Company has also retired 4 million shares.
In 2021 Linamar reached an intra day all time high of $91.98 per share. Sales were $6 Billion+ and $6+ EPS, Book value $70.
Since then, Linamar has acquired Salford, GF interest, Mobex Assets, Dura Shiloh assets, Bourgault and retired 4 million shares.
All during a time period of low interest fueling competition. Competitors have high debt loads in a higher interest rate environment. In a recession, I expect Linamar to outperform its competition. Linamar has one of the best balance sheets in the industry and continues to invest heavily to grow the business. As CapEx drops, FCF will explode higher.
This year I expect $10.5 Billion+ in Sales and $10 EPS. Book value $90+ per share. Company is growing double digit. Owner's Earnings are compounding double digit. High insider ownership. Current share price is $69 per share. Market is trading at a 20 X P/E. Return to a normal valuation gets you to $120 per share.
I expect all time high share price in 2024.