Linamar Corporation

$ 102.46 2.11 %

Linamar Corporation and its subsidiaries are engaged in the design, development, and production of advanced engineered products across Canada, North America, Europe, and the Asia Pacific. The company operates through two primary segments: Mobility and Industrial. The Mobility segment is dedicated to crafting and manufacturing high-precision metallic components, integrated modules, and complete systems for the vehicle and power generation markets. It produces intricately machined parts and assemblies vital for transmissions, engines, and driveline systems. This includes comprehensive driveline systems like power transfer units, rear-drive units, and specialized gears, alongside numerous engine components such as cylinder blocks, cylinder heads, camshafts, connecting rods, flywheels, and various fuel system parts. The segment also supplies transmission cases, shafts, shaft and shell assemblies, clutch modules, valve bodies, pumps, planetary gear assemblies, and housings. Its customer base consists mainly of automotive original equipment manufacturers (OEMs) and commercial vehicle companies. The Industrial segment focuses on designing and manufacturing mobile equipment, including compact and rough-terrain scissor lifts, vertical mast lifts, boom lifts, and telehandlers, primarily for construction equipment rental firms. Additionally, this segment provides agricultural harvesting machinery, offering combine grain and corn header attachments, self-propelled windrowers, pick-up headers, and other hay products. Linamar Corporation has formed a strategic alliance with Ballard Power Systems Inc. to jointly develop and market fuel cell powertrains and components for Class 1 and 2 vehicles in North America and Europe. Founded in 1964, Linamar Corporation's headquarters are situated in Guelph, Canada.

CEO: Jim Jarrell - https://www.linamar.com

Price objectif

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Recommandation

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DCF

$ 162.13

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LNR.TO vs S&P500

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Quick ratio

0.92

indicates that the company may have difficulty covering its short-term debts with its readily available assets.

P/E ratio

9.76

may indicate that the company is undervalued or has poor growth prospects.

EPS

10.50

is the net profit of a company divided by the number of outstanding shares, indicating the profit earned per share.

ROE

10.37 %

reflects reasonable profitability, showing good use of equity.

ROIC

7.58 %

does not generate enough return to cover its financing costs, which indicates value destruction and may pose long-term profitability issues.

WACC

8.56

is a company's average cost of capital, weighted by the proportion of debt and equity in its financing. It represents the minimum return the company must generate to satisfy its investors.

Debt-to-Equity Ratio

0.35

indicates that the company uses more equity than debt, suggesting prudent management.

Free cash flow per share

17.13

is a measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.

Dividend payout ratio

10.67 %

indicates that the company is retaining a large portion of its profits to reinvest in growth

Earnings per share

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Financials

Piotroski score
7 indicates good financial health
Altman score
2.79 indicates an uncertain financial situation
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Cash / Debt

Cash Ratio
0.34 indicates liquidity risk, as the company may not have enough cash to meet its immediate obligations
Debt Ratio
0.19 indicates that the company uses little debt to finance its assets, suggesting good financial stability
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Free Cash Flow

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Earnings Per Share (annual)

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Sales

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