That is a tough one, the auto industry is highly cyclical and XTC has underperformed its peers in a material way. That said, it does seem to be turning the corner a little and delivered strong results recently. The company's new Castool plants are starting to ramp up and its new Castool facility in Mexico is expected to enter operations this fall. This will position it to increase manufacture capacity as it attempts to "better penetrate markets in Latin America and the Southern US".
Management did say that the auto cycle is well positioned for a rebound as demand is still outstripping supply and dealership inventory remains near record lows. Inflationary pressures continue to impact the company on various material inputs and labour has also been a challenge. ALl this said, it still expects to achieve 10% revenue growth and EPS of $1.90 per share through the end of 2026. If they achieve this (and that is a big IF based on historical performance which hasn't been great), then that would be a CAGR of 46% based on Fiscal 2023 estimates for $0.6 per share. That would be quite impressive and I'm sure the share price will react favourably if it manages to achieve that level of revenue growth and profitability over the next few years.
I view XTC as a higher risk, higher reward potential vs what I consider to be a best-in-class company like Magna.
Mat
(Of note, I own XTC).