MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - NYSE:MGA - CA5592224011 - Common Stock
49.09 USD
-0.39 (-0.79%)
49.09 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. While MGA seems to be doing ok healthwise, 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
MGA had positive earnings in the past year.
MGA had a positive operating cash flow in the past year.
In the past 5 years MGA has always been profitable.
MGA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MGA has a Return On Assets of 3.14%. This is in the lower half of the industry: MGA underperforms 60.98% of its industry peers.
MGA's Return On Equity of 8.20% is in line compared to the rest of the industry. MGA outperforms 41.46% of its industry peers.
MGA has a Return On Invested Capital of 7.07%. This is in the lower half of the industry: MGA underperforms 67.07% of its industry peers.
MGA had an Average Return On Invested Capital over the past 3 years of 7.78%. This is in line with the industry average of 8.55%.
| 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's Operating Margin of 4.76% is on the low side compared to the rest of the industry. MGA is outperformed by 68.29% of its industry peers.
MGA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 13.86%, MGA is doing worse than 82.93% of the companies in the same industry.
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 below the Cost of Capital (WACC), so MGA is destroying value.
The number of shares outstanding for MGA has been reduced compared to 1 year ago.
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
An Altman-Z score of 2.38 indicates that MGA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.38, MGA perfoms like the industry average, outperforming 47.56% of the companies in the same 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.
MGA has a better Debt to FCF ratio (2.67) than 92.68% of its industry peers.
MGA has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.43, MGA is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.9
WACC7.86%
2.3 Liquidity
MGA has a Current Ratio of 1.18. 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 1.18. This is amonst the worse of the industry: MGA underperforms 89.02% of its industry peers.
A Quick Ratio of 0.83 indicates that MGA may have some problems paying 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%.
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.
The Revenue has decreased by -2.04% in the past year.
The Revenue has been growing slightly by 1.67% on average over the past years.
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%-2.12%
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 10.17% yearly.
MGA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.00% yearly.
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
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
A Price/Earnings ratio of 9.37 indicates a reasonable valuation of MGA.
Based on the Price/Earnings ratio, MGA is valued cheaper than 80.49% of the companies in the same industry.
When comparing the Price/Earnings ratio of MGA to the average of the S&P500 Index (25.89), we can say MGA is valued rather cheaply.
The Price/Forward Earnings ratio is 8.09, which indicates a very decent 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 75.61% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MGA to the average of the S&P500 Index (34.59), we can say MGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 8.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGA is valued a bit cheaper than the industry average as 73.17% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGA indicates a rather cheap valuation: MGA is cheaper than 93.90% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.79 | ||
| EV/EBITDA | 4.83 |
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
MGA has a Yearly Dividend Yield of 3.91%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.20, MGA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, MGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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 their dividend for at least 10 years, which is a reliable track record.
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.
MGA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.47%
EPS Next 2Y6.01%
EPS Next 3Y8.23%
49.09
-0.39 (-0.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners78.22%
Inst Owner Change-0.62%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap13.83B
Revenue(TTM)41.79B
Net Income(TTM)1.03B
Analysts72.63
Price Target35.56 (-27.56%)
Short Float %2.39%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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)12.65%
Min EPS beat(2)3.08%
Max EPS beat(2)22.22%
EPS beat(4)3
Avg EPS beat(4)4.24%
Min EPS beat(4)-15.82%
Max EPS beat(4)22.22%
EPS beat(8)3
Avg EPS beat(8)-3.96%
EPS beat(12)6
Avg EPS beat(12)0.86%
EPS beat(16)8
Avg EPS beat(16)3.1%
Revenue beat(2)1
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-4.13%
Max Revenue beat(2)0.93%
Revenue beat(4)3
Avg Revenue beat(4)-0.52%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)0.93%
Revenue beat(8)3
Avg Revenue beat(8)-1.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.73%
Revenue beat(16)7
Avg Revenue beat(16)-0.53%
PT rev (1m)0.51%
PT rev (3m)6.47%
EPS NQ rev (1m)1.98%
EPS NQ rev (3m)3.6%
EPS NY rev (1m)3.2%
EPS NY rev (3m)7.63%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)2.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 8.09 | ||
| P/S | 0.33 | ||
| P/FCF | 6.79 | ||
| P/OCF | 3.92 | ||
| P/B | 1.1 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 4.83 |
EPS(TTM)5.24
EY10.67%
EPS(NY)6.07
Fwd EY12.36%
FCF(TTM)7.23
FCFY14.72%
OCF(TTM)12.51
OCFY25.49%
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
WACC7.86%
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)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%-2.12%
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 9.37 and the Price/Book (PB) ratio is 1.1.
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.