# Linamar Corporation (LNR.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Consumer Cyclical / Auto Components. Price C$102.93, market value C$6.1 billion.

## Valuation
- **P/E (trailing): 9.0×** (5-yr avg 9.8×, 3-yr avg 9.7×). Linamar Corporation trades at 9.0× trailing earnings, close to its own five-year average of 9.8×. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 7.8×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.06**. A PEG of 0.06 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 0.5×**. Each dollar of revenue is priced at 0.5×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 0.9×**. The shares trade below book value, which can signal a bargain or a balance sheet the market doubts.
- **EV / EBITDA: 4.4×**. Enterprise value is 4.4× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 17.9%** (5-yr avg 10.2%). Free cash flow equals 17.9% of the market value, above its five-year average of 10.2%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 11.1%**. The inverse of the P/E: 11.1% of the price is earned each year.

## Profitability
- **Gross margin: 14.5%**. Linamar Corporation keeps 14.5% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 8.8%**. 8.8% of revenue is left after running the business.
- **Net margin: 5.7%**. 5.7% of each dollar of sales reaches the bottom line.
- **Return on equity: 9.6%**. 9.6% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 9.9%**. Return on all capital, debt included, is 9.9%.
- **Return on assets: 6.3%**. Each dollar of assets produces 6.3% of profit.

## Growth
- **Revenue growth (1 yr): -3.3%** (3-yr 8.9%/yr, 5-yr 12.0%/yr). Revenue fell 3.3% over the last year, against 12.0% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): 132.2%** (3-yr 13.4%/yr, 5-yr 17.9%/yr). Earnings per share rose 132.2%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 190.5%/yr**. Free cash flow has compounded at 190.5% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.34**. Debt is 0.34 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.7×**. It would take 0.7 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 11.2×**. Operating profit covers interest 11.2× over, a safe margin.
- **Current ratio: 1.73** (quick 0.95). Current assets cover the next year's liabilities 1.73 times.
- **Altman Z-score: 2.97**. A Z-score of 2.97 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 7/9**. 7 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 1.24%** (C$1.77 per share, trailing). Linamar Corporation yields 1.24%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 11%** (6% of free cash flow). 11% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 5**. 5 straight years of increases.
- **Dividend growth (5 yr): 25.5%/yr** (1-yr 12.0%). The dividend has compounded at 25.5% a year over five years, doubling roughly every 3 years at that pace.
- **Shareholder yield: 2.5%**. Dividends plus net buybacks return 2.5% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (6 analysts). 6 analysts cover Linamar Corporation; the consensus is buy, with an average price target of C$116.17 (+13% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 35.0%** (YTD 24.9%, 3-mo -0.5%). The shares are up 35.0% over twelve months including dividends.
- **From 52-week high: -6.9%** (47.0% above the low). Trading 7% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 52**. An RSI of 52 is neutral.
- **Beta (1 yr): 0.84** (volatility 33%). Beta of 0.84 against the S&P/TSX Composite: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=LNR.TO · Page: https://foliofundamentals.com/stocks/lnr.to

Not investment advice.