Linamar Corp T.LNR

Bruce Murray - BNN - TOP PICK

[Possibleidiot01]

Linamar Corp. (LNR TSX)

Another deeply discounted industrial company selling at six times this year’s EPS estimate of $10.25. EPS is forecast to rise to $10.80 in 2025 and $12.48 in 2026. An industrial company of this quality have historically sold into the low teens price-to-earnings (P/E) indicating the potential for a stock price of well over $100 in a more optimistic environment. This company is well-managed and forecasting mid teens growth for the next two years. I suspect another major share buyback will be announced if the stock stays depressed. The current book value is $91.07 per share.

 

DISCLOSURE	PERSONAL	FAMILY	PORTFOLIO/FUND
POW TSX	Y	Y	Y
BMWYY NASD	Y	Y	Y
LNR TSX TOP PICK Linamar Corp(LNR-T) 15/08/2024   The high-end electronic Mercedes has an LNR electronic axle. Trades at 6x earnings. SkyJack is a dominant global business, opening plants in China and Mexico. Expansion possibilities, especially in EMs. Diversified. Company projects 10-15% earnings growth for the next several years. Will probably do a big share buyback. Yield is 1.62%. New CEO has been at the company 30 years. He gives straightforward answers and knows his stuff. (Analysts’ price target is $83.67) transportation equip & components   $62.660 Owned

[ValueBets]

Its so good to see someone on BNN. LNR is the cheapest growth stock, low risk, with decent ROE (and possible upside on ROE during the next decade).  Its not a ultra high growth, its not a ultra high ROE, its not a ultra high FCF yield stock. Investors don't know what they are missing since LNR has it all in a balanced way, through its growth phases. When the rates will drop, an