MAGNA INTERNATIONAL INC (NYSE:MGA) appears to be flying under the radar despite its strong fundamentals.

Consider MAGNA INTERNATIONAL INC (NYSE:MGA) as a top value stock, identified by our stock screening tool. NYSE:MGA shines in terms of profitability, solvency, and liquidity, all while remaining very reasonably priced. Let's dive deeper into the analysis.

How We Gauge Valuation for NYSE:MGA

An integral part of ChartMill's stock analysis is the Valuation Rating, which spans from 0 to 10. This rating evaluates diverse valuation factors, including price to earnings and cash flows, while considering the stock's profitability and growth. NYSE:MGA has received a 8 out of 10:

• The Price/Earnings ratio is 6.54, which indicates a rather cheap valuation of MGA.
• Compared to the rest of the industry, the Price/Earnings ratio of MGA indicates a rather cheap valuation: MGA is cheaper than 97.67% of the companies listed in the same industry.
• The average S&P500 Price/Earnings ratio is at 29.75. MGA is valued rather cheaply when compared to this.
• With a Price/Forward Earnings ratio of 6.63, the valuation of MGA can be described as very cheap.
• Based on the Price/Forward Earnings ratio, MGA is valued cheaply inside the industry as 90.70% of the companies are valued more expensively.
• MGA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.44.
• Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MGA indicates a rather cheap valuation: MGA is cheaper than 90.70% of the companies listed in the same industry.
• MGA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MGA is cheaper than 88.37% of the companies in the same industry.
• MGA's earnings are expected to grow with 13.08% in the coming years. This may justify a more expensive valuation.

What does the Profitability looks like for NYSE:MGA

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:MGA was assigned a score of 5 for profitability:

• MGA has a Return On Assets of 3.25%. This is in the better half of the industry: MGA outperforms 65.12% of its industry peers.
• The Return On Equity of MGA (8.76%) is better than 69.77% of its industry peers.
• The Return On Invested Capital of MGA (8.06%) is better than 69.77% of its industry peers.
• The last Return On Invested Capital (8.06%) for MGA is above the 3 year average (7.69%), which is a sign of increasing profitability.
• With a decent Profit Margin value of 2.36%, MGA is doing good in the industry, outperforming 60.47% of the companies in the same industry.

Health Examination for NYSE:MGA

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NYSE:MGA, the assigned 5 for health provides valuable insights:

• MGA has a Altman-Z score of 2.38. This is in the better half of the industry: MGA outperforms 65.12% of its industry peers.
• MGA has a debt to FCF ratio of 3.51. This is a good value and a sign of high solvency as MGA would need 3.51 years to pay back of all of its debts.
• MGA's Debt to FCF ratio of 3.51 is amongst the best of the industry. MGA outperforms 81.40% of its industry peers.
• A Debt/Equity ratio of 0.38 indicates that MGA is not too dependend on debt financing.
• MGA's Debt to Equity ratio of 0.38 is fine compared to the rest of the industry. MGA outperforms 60.47% of its industry peers.

Understanding NYSE:MGA's Growth Score

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NYSE:MGA scores a 4 out of 10:

• Based on estimates for the next years, MGA will show a quite strong growth in Earnings Per Share. The EPS will grow by 13.71% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
• When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

Our Decent Value screener lists more Decent Value stocks and is updated daily.

Our latest full fundamental report of MGA contains the most current fundamental analsysis.

Disclaimer

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.