MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGA - CA5592224011 - Common Stock
54.51 USD
+0.91 (+1.7%)
54.51 USD
0 (0%)
Overall MGA gets a fundamental rating of 4 out of 10. We evaluated MGA against 82 industry peers in the Automobile Components industry. The financial health of MGA is average, but there are quite some concerns on its profitability. MGA has a valuation in line with the averages, but it does not seem to be growing. MGA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MGA was profitable.
In the past year MGA had a positive cash flow from operations.
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
The Return On Assets of MGA (3.14%) is worse than 60.98% of its industry peers.
MGA has a Return On Equity of 8.20%. This is comparable to the rest of the industry: MGA outperforms 41.46% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for MGA is in line with the industry average of 8.62%.
| 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.
The Operating Margin of MGA (4.76%) is worse than 68.29% of its industry peers.
MGA's Operating Margin has declined in the last couple of years.
The Gross Margin of MGA (13.86%) is worse than 82.93% of its industry peers.
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MGA is still creating some value.
The number of shares outstanding for MGA has been reduced compared to 1 year ago.
The number of shares outstanding for MGA has been reduced compared to 5 years ago.
The debt/assets ratio for MGA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.42 indicates that MGA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of MGA (2.42) is comparable to the rest of the industry.
MGA has a debt to FCF ratio of 2.67. This is a good value and a sign of high solvency as MGA would need 2.67 years to pay back of all of its debts.
MGA has a Debt to FCF ratio of 2.67. This is amongst the best in the industry. MGA outperforms 92.68% of its industry peers.
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 | 2.42 |
ROIC/WACC0.93
WACC7.58%
2.3 Liquidity
A Current Ratio of 1.18 indicates that MGA should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.18, MGA is doing worse than 89.02% of the companies in the same industry.
A Quick Ratio of 0.83 indicates that MGA may have some problems paying its short term obligations.
MGA has a Quick ratio of 0.83. This is amonst the worse of the industry: MGA underperforms 84.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.97% over the past year.
The Earnings Per Share has been decreasing by -2.22% on average over the past years.
The Revenue has decreased by -2.04% in the past year.
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
The Earnings Per Share is expected to grow by 10.17% on average over the next years. This is quite good.
MGA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.00% yearly.
EPS Next Y1.49%
EPS Next 2Y6.7%
EPS Next 3Y8.6%
EPS Next 5Y10.17%
Revenue Next Year-2.05%
Revenue Next 2Y-0.53%
Revenue Next 3Y0.56%
Revenue Next 5Y1%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 10.40, the valuation of MGA can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MGA indicates a somewhat cheap valuation: MGA is cheaper than 71.95% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.22, MGA is valued rather cheaply.
MGA is valuated reasonably with a Price/Forward Earnings ratio of 8.87.
MGA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MGA is cheaper than 74.39% of the companies in the same industry.
MGA is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.4 | ||
| Fwd PE | 8.87 |
4.2 Price Multiples
MGA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MGA is cheaper than 73.17% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MGA is valued cheaper than 93.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.54 | ||
| EV/EBITDA | 5.18 |
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)6.99
PEG (5Y)N/A
EPS Next 2Y6.7%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.80%, MGA has a reasonable but not impressive dividend return.
MGA's Dividend Yield is comparable with the industry average which is at 2.57.
Compared to an average S&P500 Dividend Yield of 1.87, MGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
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
MGA pays out 52.47% of its income as dividend. 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 2Y6.7%
EPS Next 3Y8.6%
54.51
+0.91 (+1.7%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners73.71%
Inst Owner Change-0.59%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap15.36B
Revenue(TTM)41.79B
Net Income(TTM)1.03B
Analysts72.63
Price Target38.59 (-29.21%)
Short Float %2.85%
Short Ratio5.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.8% |
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)7.71%
PT rev (3m)9.48%
EPS NQ rev (1m)3%
EPS NQ rev (3m)7.83%
EPS NY rev (1m)2.37%
EPS NY rev (3m)5.23%
Revenue NQ rev (1m)0.25%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.4 | ||
| Fwd PE | 8.87 | ||
| P/S | 0.37 | ||
| P/FCF | 7.54 | ||
| P/OCF | 4.36 | ||
| P/B | 1.22 | ||
| P/tB | 1.7 | ||
| EV/EBITDA | 5.18 |
EPS(TTM)5.24
EY9.61%
EPS(NY)6.15
Fwd EY11.28%
FCF(TTM)7.22
FCFY13.25%
OCF(TTM)12.51
OCFY22.95%
SpS148.29
BVpS44.71
TBVpS32
PEG (NY)6.99
PEG (5Y)N/A
Graham Number72.6
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 | 2.42 |
F-Score6
WACC7.58%
ROIC/WACC0.93
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 Y1.49%
EPS Next 2Y6.7%
EPS Next 3Y8.6%
EPS Next 5Y10.17%
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%1.77%
Revenue Next Year-2.05%
Revenue Next 2Y-0.53%
Revenue Next 3Y0.56%
Revenue Next 5Y1%
EBIT growth 1Y-1.63%
EBIT growth 3Y3.64%
EBIT growth 5Y-2.06%
EBIT Next Year72.06%
EBIT Next 3Y23.5%
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 10.4 and the Price/Book (PB) ratio is 1.22.
What is the earnings growth outlook for MAGNA INTERNATIONAL INC?
The Earnings per Share (EPS) of MAGNA INTERNATIONAL INC (MGA) is expected to grow by 1.49% in the next year.