MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGA - CA5592224011 - Common Stock
48.84 USD
+0.01 (+0.02%)
48.84 USD
0 (0%)
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 scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MGA has a valuation in line with the averages, but on the other hand it scores bad on growth. MGA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MGA was profitable.
MGA had a positive operating cash flow in the past year.
MGA had positive earnings in each of the past 5 years.
In the past 5 years MGA always reported a positive cash flow from operatings.
1.2 Ratios
MGA's Return On Assets of 3.14% is on the low side compared to the rest of the industry. MGA is outperformed by 60.98% of its industry peers.
The Return On Equity of MGA (8.20%) is comparable to the rest of the industry.
Looking at the Return On Invested Capital, with a value of 7.07%, MGA is doing worse than 67.07% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MGA is in line with the industry average of 8.52%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 8.2% | ||
| ROIC | 7.07% |
ROA(3y)3.05%
ROA(5y)3.4%
ROE(3y)8.13%
ROE(5y)8.77%
ROIC(3y)7.78%
ROIC(5y)7.41%
1.3 Margins
MGA has a worse Profit Margin (2.47%) than 62.20% of its industry peers.
In the last couple of years the Profit Margin of MGA has declined.
MGA has a Operating Margin of 4.76%. This is in the lower half of the industry: MGA underperforms 68.29% of its industry peers.
MGA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 13.86%, MGA is not doing good in the industry: 82.93% of the companies in the same industry are doing better.
MGA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.76% | ||
| PM (TTM) | 2.47% | ||
| GM | 13.86% |
OM growth 3Y-1.98%
OM growth 5Y-3.67%
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.
Compared to 1 year ago, MGA has less shares outstanding
Compared to 5 years ago, MGA has less shares outstanding
Compared to 1 year ago, MGA has an improved debt to assets ratio.
2.2 Solvency
MGA has an Altman-Z score of 2.38. 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.
The Altman-Z score of MGA (2.38) is comparable to the rest of the industry.
The Debt to FCF ratio of MGA is 2.67, which is a good value as it means it would take MGA, 2.67 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.67, MGA belongs to the best of the industry, outperforming 92.68% of the companies in the same industry.
A Debt/Equity ratio of 0.43 indicates that MGA is not too dependend on debt financing.
The Debt to Equity ratio of MGA (0.43) is worse than 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.91
WACC7.81%
2.3 Liquidity
A Current Ratio of 1.18 indicates that MGA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.18, MGA is not doing good in the industry: 89.02% of the companies in the same industry are doing better.
MGA has a Quick Ratio of 1.18. 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 has a worse Quick ratio (0.83) than 84.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
MGA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.97%.
The Earnings Per Share has been decreasing by -2.22% on average over the past years.
MGA shows a decrease in Revenue. In the last year, the revenue decreased by -2.04%.
MGA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.67% yearly.
EPS 1Y (TTM)3.97%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%3.91%
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%1.77%
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 10.17% on average per year.
The Revenue is expected to grow by 1.00% on average over the next years.
EPS Next Y-0.86%
EPS Next 2Y6.01%
EPS Next 3Y8.23%
EPS Next 5Y10.17%
Revenue Next Year-2.71%
Revenue Next 2Y-0.77%
Revenue Next 3Y0.45%
Revenue Next 5Y1%
3.3 Evolution
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 9.32, the valuation of MGA can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MGA indicates a rather cheap valuation: MGA is cheaper than 80.49% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.31, MGA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 8.05, the valuation of MGA can be described as reasonable.
MGA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MGA is cheaper than 76.83% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.59, MGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.32 | ||
| Fwd PE | 8.05 |
4.2 Price Multiples
MGA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MGA is cheaper than 74.39% of the companies in the same industry.
95.12% of the companies in the same industry are more expensive than MGA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.76 | ||
| EV/EBITDA | 4.81 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.01%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.21%, MGA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.49, MGA has a dividend in line with its industry peers.
MGA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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
52.47% of the earnings are spent on dividend by MGA. This is a bit on the high side, but may be sustainable.
The dividend of MGA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.47%
EPS Next 2Y6.01%
EPS Next 3Y8.23%
48.84
+0.01 (+0.02%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners78.22%
Inst Owner Change-0.6%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap13.76B
Revenue(TTM)41.79B
Net Income(TTM)1.03B
Analysts72.63
Price Target38.41 (-21.36%)
Short Float %2.22%
Short Ratio3.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend1.89
Dividend Growth(5Y)5.84%
DP52.47%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.25%
Min EPS beat(2)6.28%
Max EPS beat(2)22.22%
EPS beat(4)3
Avg EPS beat(4)5.04%
Min EPS beat(4)-15.82%
Max EPS beat(4)22.22%
EPS beat(8)3
Avg EPS beat(8)-3.56%
EPS beat(12)6
Avg EPS beat(12)1.13%
EPS beat(16)8
Avg EPS beat(16)3.3%
Revenue beat(2)2
Avg Revenue beat(2)0.56%
Min Revenue beat(2)0.19%
Max Revenue beat(2)0.93%
Revenue beat(4)4
Avg Revenue beat(4)0.56%
Min Revenue beat(4)0.19%
Max Revenue beat(4)0.93%
Revenue beat(8)4
Avg Revenue beat(8)-1.28%
Revenue beat(12)6
Avg Revenue beat(12)-0.37%
Revenue beat(16)8
Avg Revenue beat(16)-0.26%
PT rev (1m)8.57%
PT rev (3m)11.92%
EPS NQ rev (1m)5.04%
EPS NQ rev (3m)6.71%
EPS NY rev (1m)3.2%
EPS NY rev (3m)2.8%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.32 | ||
| Fwd PE | 8.05 | ||
| P/S | 0.33 | ||
| P/FCF | 6.76 | ||
| P/OCF | 3.9 | ||
| P/B | 1.09 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 4.81 |
EPS(TTM)5.24
EY10.73%
EPS(NY)6.07
Fwd EY12.43%
FCF(TTM)7.23
FCFY14.79%
OCF(TTM)12.51
OCFY25.62%
SpS148.31
BVpS44.71
TBVpS32
PEG (NY)N/A
PEG (5Y)N/A
Graham Number72.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 8.2% | ||
| ROCE | 9.55% | ||
| ROIC | 7.07% | ||
| ROICexc | 7.54% | ||
| ROICexgc | 9.19% | ||
| OM | 4.76% | ||
| PM (TTM) | 2.47% | ||
| GM | 13.86% | ||
| FCFM | 4.87% |
ROA(3y)3.05%
ROA(5y)3.4%
ROE(3y)8.13%
ROE(5y)8.77%
ROIC(3y)7.78%
ROIC(5y)7.41%
ROICexc(3y)8.34%
ROICexc(5y)8.28%
ROICexgc(3y)10.22%
ROICexgc(5y)10.06%
ROCE(3y)10.45%
ROCE(5y)9.9%
ROICexgc growth 3Y0.12%
ROICexgc growth 5Y-3.49%
ROICexc growth 3Y-0.84%
ROICexc growth 5Y-4.32%
OM growth 3Y-1.98%
OM growth 5Y-3.67%
PM growth 3Y-17.39%
PM growth 5Y-12.05%
GM growth 3Y-1.57%
GM growth 5Y-0.26%
F-Score6
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.67 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 91.3% | ||
| Cap/Sales | 3.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.32% | ||
| Profit Quality | 197.1% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 2.38 |
F-Score6
WACC7.81%
ROIC/WACC0.91
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)3.97%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%3.91%
EPS Next Y-0.86%
EPS Next 2Y6.01%
EPS Next 3Y8.23%
EPS Next 5Y10.17%
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%1.77%
Revenue Next Year-2.71%
Revenue Next 2Y-0.77%
Revenue Next 3Y0.45%
Revenue Next 5Y1%
EBIT growth 1Y-1.63%
EBIT growth 3Y3.64%
EBIT growth 5Y-2.06%
EBIT Next Year67.1%
EBIT Next 3Y22.77%
EBIT Next 5Y14.63%
FCF growth 1Y290.79%
FCF growth 3Y-2.44%
FCF growth 5Y-10.38%
OCF growth 1Y24.73%
OCF growth 3Y7.32%
OCF growth 5Y-1.7%
MAGNA INTERNATIONAL INC / MGA FAQ
Can you provide the ChartMill fundamental rating for MAGNA INTERNATIONAL INC?
ChartMill assigns a fundamental rating of 4 / 10 to MGA.
Can you provide the valuation status for MAGNA INTERNATIONAL INC?
ChartMill assigns a valuation rating of 6 / 10 to MAGNA INTERNATIONAL INC (MGA). This can be considered as Fairly Valued.
How profitable is MAGNA INTERNATIONAL INC (MGA) stock?
MAGNA INTERNATIONAL INC (MGA) has a profitability rating of 3 / 10.
What is the valuation of MAGNA INTERNATIONAL INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MAGNA INTERNATIONAL INC (MGA) is 9.32 and the Price/Book (PB) ratio is 1.09.
What is the earnings growth outlook for MAGNA INTERNATIONAL INC?
The Earnings per Share (EPS) of MAGNA INTERNATIONAL INC (MGA) is expected to decline by -0.86% in the next year.