Should I buy Magna stock in 2025?

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At HelloSafe, our expert has been closely monitoring Magna's performance for more than three years. Each month, hundreds of thousands of Canadians trust us to analyze market trends and highlight the top investment opportunities. Our analyses are provided for informational purposes only and do not represent investment advice. In line with our ethical charter, we have never been, and will never be, compensated by Magna.

What is Magna?

How much is Magna stock?

The price of Magna stock is rising this week. As of now, MG trades at $48.50 CAD, with a 24-hour gain of +0.72% and a weekly change of -2.79%. Magna’s market capitalization stands at $9.87 billion, with a three-month average volume of 2.13 million shares. The stock has a price/earnings (P/E) ratio of 9.96, a dividend yield of 5.54%, and a beta of 1.22.

Given these figures, investors should note Magna’s attractive value and income potential, balanced by moderate volatility in the current Canadian market climate.

Our full analysis on Magna stock

After carefully reviewing Magna International’s latest financial results and dissecting its stock performance across the past three years, we have harnessed multi-source analyses—including financial metrics, technical indicators, market behavior, and competitive benchmarking—integrated through our proprietary algorithms. This data-driven synthesis enables a 360-degree evaluation of Magna within the evolving global mobility technology landscape. So, why might Magna stock once again become a strategic entry point into the North American mobility technology and automotive sector in 2025?

Recent Performance and Market Context

Magna’s shares (TSX: MG, NYSE: MGA) are currently trading at $48.50 CAD ($35.01 USD), representing a 24-hour gain of +0.72%. However, the stock has undergone a significant correction over the past year, declining by approximately 25%, a movement that underlines both heightened volatility and the cyclical nature of the automotive sector. Over six months, Magna stock has retraced by nearly 12%, contrasting its robust three-year performance, which included sharp pandemic-driven rebounds and interim all-time highs.

Despite these tactical pullbacks, recent business developments are positively reshaping market sentiment. In Q1 2025, Magna surpassed analyst revenue forecasts by reporting $10.07 billion in sales, despite an 8% year-over-year decline—a clear signal of comparative resilience versus sector peers. Notably, the company raised full-year revenue guidance for 2025 to $40.0–$41.6 billion, a forward-looking move reflecting confidence in its pipeline and operations.

Meanwhile, sector tailwinds remain meaningful. The automotive industry is witnessing renewed momentum in electrification, supply-chain stabilization, and consumer recovery, with major global automakers increasingly accelerating investments in innovative platforms—an environment that tends to favor leading technology suppliers like Magna. These dynamics, combined with Canada’s strategic role in North American auto manufacturing, establish a favorable context for a potential Magna stock rebound.

Technical Analysis

Magna’s short- and medium-term technical profile offers valuable signals for vigilant investors. The stock’s relative strength index (RSI) sits near 41.7—hovering above oversold thresholds but indicating neither strong downside nor imminent overbought risk. This neutral momentum suggests the possibility of a technical base forming, creating a potential entry window for those seeking to ride a cyclical recovery.

The MACD (Moving Average Convergence Divergence) has recently exhibited a bearish crossover, which historically signals caution, but often precedes stabilization phases during market corrections. Noteworthy is that the 20-day moving average has crossed above the current price, while the 50-day lives just overhead at $35.48 USD, with the 100-day and 200-day averages in downward trends. While this “death cross” pattern implies ongoing pressure, it may also indicate a final capitulation phase—a point where turnaround-minded investors often begin to accumulate positions.

Critically, major support is established near $34.46–$34.66 USD, levels that have triggered buying interest during recent selloffs. First resistance sits at $34.97, then $35.50—if the stock clears these thresholds with volume, it could unlock a renewed technical uptrend. In sum, the technical backdrop appears to favor opportunistic entry for medium- to long-term horizons, especially as broader market volatility subsides.

Fundamental Analysis

Underpinning Magna’s investment appeal is its combination of robust fundamentals, attractive valuation, and strategic positioning. Revenues for Q1 2025 reached $10.07 billion—beating consensus forecasts—while adjusted EPS of $0.78 illustrate ongoing earnings power, albeit off pandemic-era peaks. More importantly, management’s decision to raise annual revenue guidance signals conviction in operational resilience and continued demand from OEM partners.

Magna’s valuation metrics stand out in a global context: with a price-to-earnings (P/E) ratio of just 9.96 and a dividend yield of 5.54%, Magna trades at a significant discount to both the S&P/TSX Composite and most North American industrial peers. This discount appears unwarranted given Magna’s outsized role in North American auto supply chains and its exposure to forward-looking trends such as electrification and autonomous mobility.

Strategically, Magna holds leadership positions across body exteriors, powertrain technologies, electronics, and complete vehicle engineering. Its relentless investment in R&D (targeting EV drivetrains and autonomous features) and its proven ability to adapt production in response to shifting industry cycles provides a durable competitive advantage. Furthermore, a diversified global footprint spanning 28 countries mitigates regional risk and enhances market flexibility.

Volume and Liquidity

Market confidence in Magna is underscored by its sustained trading volume—averaging over 2.1 million shares daily on NYSE alone. This high liquidity ensures narrow bid-ask spreads, smooth execution, and dynamic price adjustments that efficiently integrate news and industry flows. With a publicly available float accounting for over 93% of outstanding shares, Magna benefits from active pricing dynamics and low risk of externally driven price distortions.

Short interest remains moderate at 2.75%, suggesting limited speculative betting against the stock, while strong institutional participation provides further ballast against volatility. Together, these attributes position Magna as a liquid, institutionally supported stock suited to both tactical traders and patient, long-term investors seeking portfolio diversification.

Catalysts and Positive Outlook

• Electrification & EV Supply Contracts: As the automotive sector pivots toward electrification, Magna’s deep partnerships with global OEMs put it at the forefront of the EV supply chain. Recent investments in next-generation e-drive systems, battery enclosures, and power electronics are expected to translate into escalating order books as adoption accelerates.
• Operational Efficiency/Cost Control: The company’s targeted margin expansion programs and production adaptation initiatives are set to yield operational leverage, particularly as supply chain constraints further ease throughout 2025.
• Free Cash Flow and Shareholder Returns: Management maintains a disciplined capital allocation strategy, consistently generating free cash flow to underpin its dividend (yielding 5.54% in May 2025) and enable selective share repurchases.
• Innovation in ADAS and Autonomous Systems: Ongoing R&D in advanced driver assistance systems, software integration, and complete vehicle solutions ensures Magna’s ongoing relevance and pricing power in the sector’s most lucrative segments.
• ESG and Regulatory Tailwinds: The progressive tightening of regulatory standards around emissions and safety creates a fertile backdrop for Magna’s advanced product suite, especially as North America and Europe pursue decarbonization targets.
• Potential M&A and Strategic Alliances: Given its strong balance sheet, Magna remains well-positioned to pursue targeted acquisitions or strategic partnerships in high-growth sub-segments such as electrification and digital platforms.
• Favorable Analyst Consensus: Market consensus anticipates a 30% upside, with the average 12-month price target around $45.50 USD—a view grounded in both intrinsic valuation and cyclical recovery prospects.

Investment Strategies

• Short-Term: For technically inclined traders, the current support zone ($34.46–$34.66 USD) provides a low-risk entry, especially if confirmation of a reversal or breakout above $35.50 occurs. Active traders may seek to ride volatility as momentum shifts positive, targeting resistance bands set by recent selloffs.
• Medium-Term: Investors looking to benefit from upcoming catalysts—such as quarterly earnings beats, contract announcements, or regulatory shifts toward EV infrastructure—might view Magna’s recent pullback as an optimal accumulation window ahead of these expected news flows.
• Long-Term: For patient capital, Magna’s combination of discounted valuation, sector leadership, and a structurally high dividend yield supports portfolio anchoring, particularly for TFSA, RRSP, or income-focused mandates. The company’s resilience and strategic focus position it well for re-rating as cyclical pressures ease.

Is It the Right Time to Buy Magna?

In light of the comprehensive review above, Magna International appears to represent an excellent opportunity for investors intent on aligning with a forward-looking, innovation-driven automotive leader at a compelling valuation. The fundamentals justify renewed interest: discount pricing on both earnings and book value, added to a top-tier dividend yield, all while management signals confidence through raised revenue forecasts and continued investment in growth initiatives.

The current technical configuration may indicate the end of a corrective cycle, especially as industry conditions normalize and short-term selling pressure wanes. Strategic catalysts—including the EV transition, new platform launches, and further cost optimization—highlight significant upside potential over the medium to long term.

Investors seeking to capitalize on a resurgent Canadian tech-industrial play, with the income protection of a robust dividend and exposure to secular mobility trends, should seriously consider the merits of Magna at current levels. The stock’s liquidity, market position, and alignment with powerful sector themes suggest it may be entering a new bullish phase.

In summary, Magna’s compelling mix of value, income, innovation, and cyclical recovery potential uniquely position it as a strong candidate for portfolio inclusion as the auto sector reshapes for the future. The convergence of fundamental resilience, technical stabilization, and powerful upcoming catalysts makes now a particularly promising juncture to contemplate building exposure. As sector momentum returns and Magna executes on its strategic vision, the opportunity for committed investors appears both timely and substantial.

How to buy Magna stock in Canada?

Buying Magna International (TSX: MG) shares online in Canada is simple and secure when using a regulated broker. Investors have two primary options: purchasing shares directly (“spot buying”) for long-term ownership, or trading via Contracts for Difference (CFDs) for a more flexible, leveraged approach. Both methods allow access from the comfort of your home, with user-friendly platforms and strong investor protections in place. Each has its own risk and cost profile, making it important to choose according to your objectives—a detailed comparison of the top brokers is available further down this page.

Spot Buying

Spot buying means purchasing Magna shares outright on the Toronto Stock Exchange (TSX: MG) and becoming a direct shareholder. This method suits investors looking for long-term ownership, dividend income, and capital gains. Typical Canadian brokerages charge a fixed commission per order, often around $5–$10 CAD.

Important example

Example: Suppose Magna’s share price is $48.50 CAD. With a $1,000 investment, you could buy approximately 20 shares (20 × $48.50 = $970), leaving $30 for the brokerage fee (roughly $5).
✔️ Gain scenario: If the share price climbs 10% to $53.35 CAD, your 20 shares are now worth $1,067.
Result: That’s a $100 gross gain (+10%), not accounting for dividends or taxes.

Trading via CFD

CFDs (Contracts for Difference) allow you to speculate on Magna’s share price movements without owning the shares. CFDs are typically offered by specialized brokers and let you use leverage (borrowed funds) to amplify gains or losses. With CFDs, costs include the spread (the difference between buy and sell price) and overnight financing fees if positions are held longer than a day.

Important example

Example: With $1,000 and 5x leverage, you control a position worth $5,000 in Magna CFDs.
✔️ Gain scenario: If Magna’s stock price rises by 8%, your position gains 8% × 5 = 40%.
Result: That’s a $400 gain on your $1,000 outlay (excluding the spread and overnight fees).

Final Advice

Before investing, carefully compare brokers’ fees, trading platforms, and account features. Costs and terms can vary significantly—our broker comparator further down can help you identify the best fit for your needs. Ultimately, your choice between spot buying and CFDs should reflect your investment goals, risk tolerance, and investment style. Take your time to explore your options and invest with confidence.

Platforms

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Broker specializing in Forex and CFDs

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Avatrade

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Our 7 tips for buying Magna stock

The latest news about Magna

Magna International’s Q1 2025 revenue surpassed analyst expectations, signaling resilience in a challenging sector. In its latest quarterly release, Magna reported revenues of $10.07 billion, exceeding analyst forecasts of $9.66 billion despite an 8% year-over-year decline. The company also raised its full-year revenue guidance to the range of $40.0–$41.6 billion, up from previous estimates, which management attributes to operational resilience and strong demand recovery in key customer programs, many of which involve Canadian facilities. This positive top-line surprise and revised guidance have been well received by local financial commentators, reflecting Magna’s solid competitive positioning within Canada’s automotive sector.

Magna’s dividend yield remains robust at 5.54%, appealing to Canadian income investors and registered accounts. Magna continues to attract interest from Canadian investors seeking reliable income, paying a $0.49 quarterly dividend with a yield above 5.5%. The stock is also eligible for RRSP and TFSA accounts, and dividends qualify for the Canadian dividend tax credit when held in non-registered accounts—an important factor for tax-efficient investing. This strong yield is supported by disciplined capital allocation and ongoing free cash flow generation, providing confidence in dividend sustainability even amid cyclical headwinds.

Operational improvements and supply chain initiatives signal management’s commitment to margin expansion in 2025. Magna’s leadership has reiterated its focus on operational efficiencies and supply chain robustness as key drivers for maintaining strong margins this year. Investments in advanced manufacturing and supply chain resilience are of particular relevance to Canadian stakeholders, as they support local facilities and jobs. These initiatives are expected to help offset ongoing industry challenges such as lingering supply disruptions and market unpredictability, ultimately reinforcing Magna’s capacity to deliver steady shareholder returns.

Magna’s strategic role in the automotive electrification trend continues to support its medium-term growth outlook. With the global auto industry’s ongoing transition toward electric vehicles, Magna’s engineering and manufacturing strengths in EV-specific body systems, powertrains, and components are increasingly valuable. The company’s partnerships with North American automakers—including those with significant Canadian operations—position it as a critical supplier in the continent’s evolving vehicle landscape. This alignment with major OEMs and growing EV adoption is anticipated to drive revenue diversification and long-term opportunity, particularly in Canada where electrification is a federal priority.

Despite near-term stock volatility and sector headwinds, Magna’s valuation is compelling for value and income-focused Canadian investors. Despite recent technical weakness and a 1-year stock decline of over 25%, Magna trades at a P/E ratio of 9.96, notably lower than the sector average. The combination of low valuation, strong income profile, and the underlying health of Canada’s auto supply base make Magna increasingly attractive for patient investors focused on value and yield. Expert commentary from Canadian market analysts emphasizes that, while short-term fluctuations are likely, the company’s disciplined management and exposure to long-term growth catalysts present constructive prospects for those able to withstand cyclical pressures.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.