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Linamar Corp LIMAF


Primary Symbol: T.LNR

Linamar Corporation is a Canada-based advanced manufacturing company. The Company is engaged in providing manufacturing solutions and developing engineered products. Its segments include Industrial and Mobility. The Industrial segment consists of MacDon, Salford, Bourgault, and Skyjack. MacDon manufactures combined draper headers and self-propelled windrowers for the agricultural harvesting industry. Skyjack manufactures scissor, boom, and telehandler lifts for the aerial work platform industry. The Mobility segment is focused on propulsion systems, structural and chassis systems, energy storage and power generation for both the global electrified and traditionally powered vehicle markets and is subdivided into three regional groups and one global product group: North America, Europe, Asia Pacific, and the newly formed Structures Group. The regional mobility groups are vertically integrated operations combining expertise in light metal casting, forging, machining, and assembly.


TSX:LNR - Post by User

Comment by ValueBetson Aug 12, 2024 2:26pm
138 Views
Post# 36174993

RE:RE:RE:RE:RE:RE:RE:Capital Allocation

RE:RE:RE:RE:RE:RE:RE:Capital Allocation

Again I agree 100%. I'm thinking, Industrial is easily worth 4G$ (and 5G in a not so depressed AG market). So this leaves Mobility to be worth enough to pay down the long term debt (think about all the assets they hold in the factories), they are worth more then the debt even in a liquidation event. More importantly, I love mobility, its profitable and permits organic growth when needed.

I love insider ownership, however, this doesnt leave room for activists. I like mgr strategy, to deversify out from mobility, even while growing mobility (possible with such a
low dividend). They certainly have advantages they can transfer to acquisition targets. With such a path to growth, in time, we can hope that mobility, while growing, represent, one day, 1/3 of the profits and then, that the company as a whole will be more consistent annually in terms of FCF, and please the market.


I think FCF is an important thing. However, the capacity to generate some is more important then generating it. LNR can generate lots of FCF and they will, but they do in between growth phases. I don't think this please any linear models.

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