HI there,
Linamar did post solid quarterly results as it beat on both the top and bottom lines and posted record free cash low in the quarter. Worth noting however, that as an autoparts manufacturer it does operate in a cyclical industry. The dividend raise is nice, but also worth noting it cut the dividend for two quarters during the pandemic. The other companies in the space, including our favourite (Magna) did not. In fact, they have a long history of dividend growth.
YoY Linamar's revenue dropped from $7.4B in 2019 to $5.8B this past year. Obviously, this is very much as a result of the pandemic and the expectation is for 6.3B in 2021 and 7.5B in 2022. That means it is only expected to reach 2019 levels in two years from now. Yet, thanks to a strong uptrend, it is trading above 2019 valuations. Not a bad company, and is riding the industry momentum but i'd consider it fully valued here. Could provide reasonable upside, but don't expect anything near the double it posted over the past year.
Mat