MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
NYSE:MGA - New York Stock Exchange, Inc. - CA5592224011 - Common Stock - Currency: USD
Taking everything into account, MGA scores 4 out of 10 in our fundamental rating. MGA was compared to 80 industry peers in the Automobile Components industry. While MGA seems to be doing ok healthwise, there are quite some concerns on its profitability. MGA is valued correctly, but it does not seem to be growing. Finally MGA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MGA had positive earnings in the past year.
In the past year MGA had a positive cash flow from operations.
In the past 5 years MGA has always been profitable.
Each year in the past 5 years MGA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.57%, MGA is doing worse than 63.75% of the companies in the same industry.
Looking at the Return On Equity, with a value of 9.76%, MGA is doing worse than 61.25% of the companies in the same industry.
The Return On Invested Capital of MGA (7.52%) is worse than 63.75% of its industry peers.
MGA had an Average Return On Invested Capital over the past 3 years of 7.69%. This is in line with the industry average of 9.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 9.76% | ||
| ROIC | 7.52% |
ROA(3y)3.05%
ROA(5y)3.4%
ROE(3y)8.13%
ROE(5y)8.77%
ROIC(3y)7.69%
ROIC(5y)7.35%
1.3 Margins
MGA's Profit Margin of 2.73% is on the low side compared to the rest of the industry. MGA is outperformed by 65.00% of its industry peers.
MGA's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.65%, MGA is not doing good in the industry: 70.00% of the companies in the same industry are doing better.
MGA's Operating Margin has declined in the last couple of years.
MGA has a Gross Margin of 13.62%. This is amonst the worse of the industry: MGA underperforms 83.75% of its industry peers.
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 | 4.65% | ||
| PM (TTM) | 2.73% | ||
| GM | 13.62% |
OM growth 3Y-3.12%
OM growth 5Y-4.35%
PM growth 3Y-17.39%
PM growth 5Y-12.05%
GM growth 3Y-1.57%
GM growth 5Y-0.26%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MGA is destroying value.
The number of shares outstanding for MGA has been reduced compared to 1 year ago.
MGA has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MGA has been reduced compared to a year ago.
2.2 Solvency
MGA has an Altman-Z score of 2.31. 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.
With a Altman-Z score value of 2.31, MGA perfoms like the industry average, outperforming 45.00% of the companies in the same industry.
The Debt to FCF ratio of MGA is 3.68, which is a good value as it means it would take MGA, 3.68 years of fcf income to pay off all of its debts.
MGA has a Debt to FCF ratio (3.68) which is in line with its industry peers.
MGA has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.38, MGA is doing worse than 67.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.9
WACC8.37%
2.3 Liquidity
A Current Ratio of 1.06 indicates that MGA should not have too much problems paying its short term obligations.
The Current ratio of MGA (1.06) is worse than 92.50% of its industry peers.
MGA has a Quick Ratio of 1.06. This is a bad value and indicates that MGA is not financially healthy enough and could expect problems in meeting its short term obligations.
MGA's Quick ratio of 0.74 is on the low side compared to the rest of the industry. MGA is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
MGA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.03%.
Measured over the past years, MGA shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.22% on average per year.
Looking at the last year, MGA shows a decrease in Revenue. The Revenue has decreased by -2.69% in the last year.
The Revenue has been growing slightly by 1.67% on average over the past years.
EPS 1Y (TTM)-5.03%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%-27.78%
Revenue 1Y (TTM)-2.69%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-8.21%
3.2 Future
Based on estimates for the next years, MGA will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.35% on average per year.
Based on estimates for the next years, MGA will show a small growth in Revenue. The Revenue will grow by 0.21% on average per year.
EPS Next Y-7.89%
EPS Next 2Y7.86%
EPS Next 3Y9.2%
EPS Next 5Y10.35%
Revenue Next Year-6.41%
Revenue Next 2Y-1.98%
Revenue Next 3Y-0.82%
Revenue Next 5Y0.21%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.23, the valuation of MGA can be described as reasonable.
MGA's Price/Earnings ratio is a bit cheaper when compared to the industry. MGA is cheaper than 78.75% of the companies in the same industry.
MGA is valuated cheaply when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.68, which indicates a rather cheap valuation of MGA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGA indicates a somewhat cheap valuation: MGA is cheaper than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.76. MGA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 6.68 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MGA indicates a somewhat cheap valuation: MGA is cheaper than 73.75% of the companies listed in the same industry.
MGA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MGA is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.93 | ||
| EV/EBITDA | 4.45 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.86%
EPS Next 3Y9.2%
5. Dividend
5.1 Amount
MGA has a Yearly Dividend Yield of 4.41%, which is a nice return.
MGA's Dividend Yield is rather good when compared to the industry average which is at 4.30. MGA pays more dividend than 97.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.37, MGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
5.2 History
The dividend of MGA has a limited annual growth rate of 5.84%.
MGA has paid a dividend for at least 10 years, which is a reliable track record.
MGA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.84%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
47.21% 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.
DP47.21%
EPS Next 2Y7.86%
EPS Next 3Y9.2%
41.96
-0.55 (-1.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners78.19%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap11.87B
Analysts72
Price Target29.39 (-29.96%)
Short Float %3.25%
Short Ratio4.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
Yearly Dividend1.89
Dividend Growth(5Y)5.84%
DP47.21%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.17%
Min EPS beat(2)-15.82%
Max EPS beat(2)7.47%
EPS beat(4)1
Avg EPS beat(4)-7.12%
Min EPS beat(4)-15.82%
Max EPS beat(4)7.47%
EPS beat(8)3
Avg EPS beat(8)-4.05%
EPS beat(12)4
Avg EPS beat(12)-2.89%
EPS beat(16)6
Avg EPS beat(16)0.9%
Revenue beat(2)2
Avg Revenue beat(2)0.56%
Min Revenue beat(2)0.19%
Max Revenue beat(2)0.92%
Revenue beat(4)2
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-3.58%
Max Revenue beat(4)0.92%
Revenue beat(8)3
Avg Revenue beat(8)-1.02%
Revenue beat(12)5
Avg Revenue beat(12)-0.6%
Revenue beat(16)6
Avg Revenue beat(16)-0.83%
PT rev (1m)-10.83%
PT rev (3m)-16.67%
EPS NQ rev (1m)3.87%
EPS NQ rev (3m)-5.44%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.63%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 6.68 | ||
| P/S | 0.28 | ||
| P/FCF | 7.93 | ||
| P/OCF | 3.44 | ||
| P/B | 1.01 | ||
| P/tB | 1.44 | ||
| EV/EBITDA | 4.45 |
EPS(TTM)5.1
EY12.15%
EPS(NY)6.28
Fwd EY14.97%
FCF(TTM)5.29
FCFY12.61%
OCF(TTM)12.2
OCFY29.07%
SpS148.24
BVpS41.5
TBVpS29.24
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 9.76% | ||
| ROCE | 10.27% | ||
| ROIC | 7.52% | ||
| ROICexc | 7.94% | ||
| ROICexgc | 9.77% | ||
| OM | 4.65% | ||
| PM (TTM) | 2.73% | ||
| GM | 13.62% | ||
| FCFM | 3.57% |
ROA(3y)3.05%
ROA(5y)3.4%
ROE(3y)8.13%
ROE(5y)8.77%
ROIC(3y)7.69%
ROIC(5y)7.35%
ROICexc(3y)8.23%
ROICexc(5y)8.22%
ROICexgc(3y)10.09%
ROICexgc(5y)9.99%
ROCE(3y)10.32%
ROCE(5y)9.82%
ROICexcg growth 3Y-1.05%
ROICexcg growth 5Y-4.17%
ROICexc growth 3Y-2%
ROICexc growth 5Y-5%
OM growth 3Y-3.12%
OM growth 5Y-4.35%
PM growth 3Y-17.39%
PM growth 5Y-12.05%
GM growth 3Y-1.57%
GM growth 5Y-0.26%
F-Score7
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 121.15% | ||
| Cap/Sales | 4.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.83% | ||
| Profit Quality | 130.63% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.31 |
F-Score7
WACC8.37%
ROIC/WACC0.9
Cap/Depr(3y)138.93%
Cap/Depr(5y)118.27%
Cap/Sales(3y)5.12%
Cap/Sales(5y)4.53%
Profit Quality(3y)89.25%
Profit Quality(5y)130.62%
High Growth Momentum
Growth
EPS 1Y (TTM)-5.03%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%-27.78%
EPS Next Y-7.89%
EPS Next 2Y7.86%
EPS Next 3Y9.2%
EPS Next 5Y10.35%
Revenue 1Y (TTM)-2.69%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-8.21%
Revenue Next Year-6.41%
Revenue Next 2Y-1.98%
Revenue Next 3Y-0.82%
Revenue Next 5Y0.21%
EBIT growth 1Y-4.41%
EBIT growth 3Y2.43%
EBIT growth 5Y-2.75%
EBIT Next Year61.71%
EBIT Next 3Y21.26%
EBIT Next 5Y13.73%
FCF growth 1Y444.36%
FCF growth 3Y-2.44%
FCF growth 5Y-10.38%
OCF growth 1Y61.06%
OCF growth 3Y7.32%
OCF growth 5Y-1.7%