MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGA - CA5592224011 - Common Stock
53.23 USD
-0.18 (-0.34%)
53.23 USD
0 (0%)
Taking everything into account, MGA scores 5 out of 10 in our fundamental rating. MGA was compared to 42 industry peers in the Automobile Components industry. MGA has only an average score on both its financial health and profitability. MGA is cheap, but on the other hand it scores bad on growth. MGA also has an excellent dividend rating. This makes MGA very considerable for value and dividend investing!
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.
- Each year in the past 5 years MGA had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 3.14%, MGA is doing good in the industry, outperforming 73.81% of the companies in the same industry.
- MGA has a better Return On Equity (8.20%) than 78.57% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 7.07%, MGA is in the better half of the industry, outperforming 61.90% 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 9.10%.
| 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
- Looking at the Profit Margin, with a value of 2.47%, MGA is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
- MGA's Profit Margin has declined in the last couple of years.
- MGA has a Operating Margin (4.76%) which is comparable to the rest of the industry.
- MGA's Operating Margin has declined in the last couple of years.
- MGA's Gross Margin of 13.86% is on the low side compared to the rest of the industry. MGA is outperformed by 69.05% 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 | 4.76% | ||
| 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.
- MGA has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for MGA has been reduced compared to 5 years ago.
- MGA has a better debt/assets ratio than last year.
2.2 Solvency
- MGA has an Altman-Z score of 2.42. 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.
- MGA has a Altman-Z score of 2.42. This is comparable to the rest of the industry: MGA outperforms 57.14% of its industry peers.
- 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 85.71% of the companies in the same industry.
- A Debt/Equity ratio of 0.43 indicates that MGA is not too dependend on debt financing.
- MGA's Debt to Equity ratio of 0.43 is in line compared to the rest of the industry. MGA outperforms 59.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.85
WACC8.28%
2.3 Liquidity
- A Current Ratio of 1.18 indicates that MGA should not have too much problems paying its short term obligations.
- The Current ratio of MGA (1.18) is worse than 80.95% of its industry peers.
- A Quick Ratio of 0.83 indicates that MGA may have some problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 0.83, MGA is doing worse than 73.81% of the companies in the same industry.
| 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.
- 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.
- 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 10.16 indicates a reasonable valuation of MGA.
- Compared to the rest of the industry, the Price/Earnings ratio of MGA indicates a rather cheap valuation: MGA is cheaper than 85.71% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.21. MGA is valued rather cheaply when compared to this.
- The Price/Forward Earnings ratio is 8.66, which indicates a very decent valuation of MGA.
- MGA's Price/Forward Earnings ratio is rather cheap when compared to the industry. MGA is cheaper than 88.10% of the companies in the same industry.
- When comparing the Price/Forward Earnings ratio of MGA to the average of the S&P500 Index (24.26), we can say MGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 8.66 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MGA is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, MGA is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.37 | ||
| EV/EBITDA | 5.17 |
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)6.83
PEG (5Y)N/A
EPS Next 2Y6.7%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
- MGA has a Yearly Dividend Yield of 3.68%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.61, MGA pays a better dividend. On top of this MGA pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, MGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
5.2 History
- The dividend of MGA has a limited annual growth rate of 5.84%.
- MGA has been paying a dividend for at least 10 years, so it has 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.
- MGA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.47%
EPS Next 2Y6.7%
EPS Next 3Y8.6%
MAGNA INTERNATIONAL INC / MGA FAQ
Can you provide the ChartMill fundamental rating for MAGNA INTERNATIONAL INC?
ChartMill assigns a fundamental rating of 5 / 10 to MGA.
What is the valuation status for MGA stock?
ChartMill assigns a valuation rating of 7 / 10 to MAGNA INTERNATIONAL INC (MGA). This can be considered as Undervalued.
How profitable is MAGNA INTERNATIONAL INC (MGA) stock?
MAGNA INTERNATIONAL INC (MGA) has a profitability rating of 5 / 10.
Can you provide the financial health for MGA stock?
The financial health rating of MAGNA INTERNATIONAL INC (MGA) is 5 / 10.
Is the dividend of MAGNA INTERNATIONAL INC sustainable?
The dividend rating of MAGNA INTERNATIONAL INC (MGA) is 8 / 10 and the dividend payout ratio is 52.47%.