MAGNA INTERNATIONAL INC (MGA)
CA5592224011 - Common Stock
Taking everything into account, MGA scores 4 out of 10 in our fundamental rating. MGA was compared to 82 industry peers in the Automobile Components industry. MGA has a bad profitability rating. Also its financial health evaluation is rather negative. MGA is not valued too expensively and it also shows a decent growth rate. MGA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MGA had positive earnings in the past year.
MGA had a positive operating cash flow in the past year.
MGA had positive earnings in each of the past 5 years.
Each year in the past 5 years MGA had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MGA (3.28%) is worse than 68.29% of its industry peers.
MGA's Return On Equity of 8.77% is on the low side compared to the rest of the industry. MGA is outperformed by 65.85% of its industry peers.
MGA has a worse Return On Invested Capital (7.37%) than 64.63% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MGA is in line with the industry average of 9.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 8.77% | ||
| ROIC | 7.37% |
ROA(3y)3.7%
ROA(5y)4.12%
ROE(3y)9.47%
ROE(5y)10.27%
ROIC(3y)7.67%
ROIC(5y)7.91%
1.3 Margins
MGA has a worse Profit Margin (2.52%) than 69.51% of its industry peers.
In the last couple of years the Profit Margin of MGA has declined.
MGA has a worse Operating Margin (4.74%) than 70.73% of its industry peers.
In the last couple of years the Operating Margin of MGA has declined.
Looking at the Gross Margin, with a value of 13.45%, MGA is doing worse than 81.71% of the companies in the same industry.
In the last couple of years the Gross Margin of MGA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.74% | ||
| PM (TTM) | 2.52% | ||
| GM | 13.45% |
OM growth 3Y1.49%
OM growth 5Y-7.23%
PM growth 3Y6.92%
PM growth 5Y-12.81%
GM growth 3Y-1.21%
GM growth 5Y-1.49%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MGA is creating some value.
MGA has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, MGA has less shares outstanding
MGA has a worse debt/assets ratio than last year.
2.2 Solvency
MGA has an Altman-Z score of 2.34. This is not the best score and indicates that MGA is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.34, MGA is in line with its industry, outperforming 41.46% of the companies in the same industry.
The Debt to FCF ratio of MGA is 6.53, which is on the high side as it means it would take MGA, 6.53 years of fcf income to pay off all of its debts.
MGA has a Debt to FCF ratio of 6.53. This is in the lower half of the industry: MGA underperforms 69.51% of its industry peers.
MGA has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.47, MGA is doing worse than 71.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.53 | ||
| Altman-Z | 2.34 |
ROIC/WACC1.02
WACC7.21%
2.3 Liquidity
MGA has a Current Ratio of 1.14. This is a normal value and indicates that MGA is financially healthy and should not expect problems in meeting its short term obligations.
MGA has a Current ratio of 1.14. This is amonst the worse of the industry: MGA underperforms 92.68% of its industry peers.
A Quick Ratio of 0.77 indicates that MGA may have some problems paying its short term obligations.
MGA has a worse Quick ratio (0.77) than 89.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
MGA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.20%.
MGA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.22% yearly.
MGA shows a small growth in Revenue. In the last year, the Revenue has grown by 1.79%.
MGA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.95% yearly.
EPS 1Y (TTM)1.2%
EPS 3Y6.5%
EPS 5Y-4.22%
EPS Q2Q%-12.33%
Revenue 1Y (TTM)1.79%
Revenue growth 3Y9.44%
Revenue growth 5Y0.95%
Sales Q2Q%-3.82%
3.2 Future
MGA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.45% yearly.
Based on estimates for the next years, MGA will show a small growth in Revenue. The Revenue will grow by 1.92% on average per year.
EPS Next Y0.25%
EPS Next 2Y7.23%
EPS Next 3Y9.37%
EPS Next 5Y11.45%
Revenue Next Year-0.49%
Revenue Next 2Y0.22%
Revenue Next 3Y0.92%
Revenue Next 5Y1.92%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.41 indicates a reasonable valuation of MGA.
Based on the Price/Earnings ratio, MGA is valued a bit cheaper than 78.05% of the companies in the same industry.
When comparing the Price/Earnings ratio of MGA to the average of the S&P500 Index (27.54), we can say MGA is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.83, the valuation of MGA can be described as very cheap.
78.05% of the companies in the same industry are more expensive than MGA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.99, MGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.41 | ||
| Fwd PE | 6.83 |
4.2 Price Multiples
67.07% of the companies in the same industry are more expensive than MGA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGA is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.7 | ||
| EV/EBITDA | 4.42 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)33.2
PEG (5Y)N/A
EPS Next 2Y7.23%
EPS Next 3Y9.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.16%, MGA is a good candidate for dividend investing.
MGA's Dividend Yield is comparable with the industry average which is at 4.24.
MGA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
5.2 History
On average, the dividend of MGA grows each year by 6.87%, which is quite nice.
MGA has been paying a dividend for at least 10 years, so it has a reliable track record.
MGA has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.87%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
50.05% of the earnings are spent on dividend by MGA. This is a bit on the high side, but may be sustainable.
MGA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP50.05%
EPS Next 2Y7.23%
EPS Next 3Y9.37%
MAGNA INTERNATIONAL INC
NYSE:MGA (12/26/2024, 1:34:55 PM)
42.39
-0.03 (-0.07%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners76.66%
Inst Owner Change8.66%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap12.18B
Analysts77.14
Price Target38.76 (-8.56%)
Short Float %3.04%
Short Ratio5.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
Dividend Growth(5Y)6.87%
DP50.05%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.07%
Min EPS beat(2)-11.39%
Max EPS beat(2)-8.75%
EPS beat(4)0
Avg EPS beat(4)-12.16%
Min EPS beat(4)-15.61%
Max EPS beat(4)-8.75%
EPS beat(8)3
Avg EPS beat(8)-0.83%
EPS beat(12)5
Avg EPS beat(12)2.72%
EPS beat(16)7
Avg EPS beat(16)4.83%
Revenue beat(2)0
Avg Revenue beat(2)-3.47%
Min Revenue beat(2)-3.58%
Max Revenue beat(2)-3.35%
Revenue beat(4)0
Avg Revenue beat(4)-3.13%
Min Revenue beat(4)-3.58%
Max Revenue beat(4)-2.65%
Revenue beat(8)2
Avg Revenue beat(8)-0.83%
Revenue beat(12)4
Avg Revenue beat(12)-0.53%
Revenue beat(16)6
Avg Revenue beat(16)-0.52%
PT rev (1m)-1.39%
PT rev (3m)-4.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.71%
EPS NY rev (1m)-2.56%
EPS NY rev (3m)-4.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.29%
Revenue NY rev (1m)-0.57%
Revenue NY rev (3m)-1.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.41 | ||
| Fwd PE | 6.83 | ||
| P/S | 0.29 | ||
| P/FCF | 13.7 | ||
| P/OCF | 3.69 | ||
| P/B | 0.99 | ||
| P/tB | 1.41 | ||
| EV/EBITDA | 4.42 |
EPS(TTM)5.04
EY11.89%
EPS(NY)6.21
Fwd EY14.65%
FCF(TTM)3.09
FCFY7.3%
OCF(TTM)11.49
OCFY27.11%
SpS148.47
BVpS42.72
TBVpS30.12
PEG (NY)33.2
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 8.77% | ||
| ROCE | 10.02% | ||
| ROIC | 7.37% | ||
| ROICexc | 7.76% | ||
| ROICexgc | 9.48% | ||
| OM | 4.74% | ||
| PM (TTM) | 2.52% | ||
| GM | 13.45% | ||
| FCFM | 2.08% |
ROA(3y)3.7%
ROA(5y)4.12%
ROE(3y)9.47%
ROE(5y)10.27%
ROIC(3y)7.67%
ROIC(5y)7.91%
ROICexc(3y)8.52%
ROICexc(5y)8.84%
ROICexgc(3y)10.33%
ROICexgc(5y)10.63%
ROCE(3y)10.11%
ROCE(5y)10.39%
ROICexcg growth 3Y6.69%
ROICexcg growth 5Y-7.9%
ROICexc growth 3Y5.24%
ROICexc growth 5Y-8.81%
OM growth 3Y1.49%
OM growth 5Y-7.23%
PM growth 3Y6.92%
PM growth 5Y-12.81%
GM growth 3Y-1.21%
GM growth 5Y-1.49%
F-Score6
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.53 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 148.86% | ||
| Cap/Sales | 5.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.59% | ||
| Profit Quality | 82.54% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.34 |
F-Score6
WACC7.21%
ROIC/WACC1.02
Cap/Depr(3y)124.42%
Cap/Depr(5y)112.84%
Cap/Sales(3y)4.69%
Cap/Sales(5y)4.25%
Profit Quality(3y)75.67%
Profit Quality(5y)130.3%
High Growth Momentum
Growth
EPS 1Y (TTM)1.2%
EPS 3Y6.5%
EPS 5Y-4.22%
EPS Q2Q%-12.33%
EPS Next Y0.25%
EPS Next 2Y7.23%
EPS Next 3Y9.37%
EPS Next 5Y11.45%
Revenue 1Y (TTM)1.79%
Revenue growth 3Y9.44%
Revenue growth 5Y0.95%
Sales Q2Q%-3.82%
Revenue Next Year-0.49%
Revenue Next 2Y0.22%
Revenue Next 3Y0.92%
Revenue Next 5Y1.92%
EBIT growth 1Y9.23%
EBIT growth 3Y11.08%
EBIT growth 5Y-6.36%
EBIT Next Year73.8%
EBIT Next 3Y25.93%
EBIT Next 5Y15.93%
FCF growth 1Y25.21%
FCF growth 3Y-32.74%
FCF growth 5Y-20.69%
OCF growth 1Y50.78%
OCF growth 3Y-1.33%
OCF growth 5Y-3.27%