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 5 out of 10 in our fundamental rating. MGA was compared to 43 industry peers in the Automobile Components industry. Both the profitability and the financial health of MGA get a neutral evaluation. Nothing too spectacular is happening here. MGA may be a bit undervalued, certainly considering the very reasonable score on growth MGA also has an excellent dividend rating. With these ratings, MGA could be worth investigating further for value and dividend investing!.
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.
MGA had positive earnings in each of the past 5 years.
MGA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MGA has a Return On Assets of 3.25%. This is in the better half of the industry: MGA outperforms 65.12% of its industry peers.
MGA has a Return On Equity of 8.76%. This is in the better half of the industry: MGA outperforms 69.77% of its industry peers.
MGA's Return On Invested Capital of 8.06% is fine compared to the rest of the industry. MGA outperforms 69.77% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MGA is below the industry average of 10.03%.
The 3 year average ROIC (7.69%) for MGA is below the current ROIC(8.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 8.76% | ||
| ROIC | 8.06% |
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
The Profit Margin of MGA (2.36%) is better than 60.47% of its industry peers.
In the last couple of years the Profit Margin of MGA has declined.
MGA has a Operating Margin (4.79%) which is comparable to the rest of the industry.
In the last couple of years the Operating Margin of MGA has declined.
The Gross Margin of MGA (13.54%) is worse than 62.79% of its industry peers.
MGA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.79% | ||
| PM (TTM) | 2.36% | ||
| GM | 13.54% |
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
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.
MGA has less shares outstanding than it did 5 years ago.
MGA has a better debt/assets ratio than last year.
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 better than 65.12% of its industry peers.
MGA has a debt to FCF ratio of 3.51. This is a good value and a sign of high solvency as MGA would need 3.51 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 3.51, MGA belongs to the best of the industry, outperforming 81.40% of the companies in the same industry.
MGA has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.38, MGA is doing good in the industry, outperforming 60.47% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.82
WACC9.85%
2.3 Liquidity
A Current Ratio of 1.08 indicates that MGA should not have too much problems paying its short term obligations.
MGA has a Current ratio of 1.08. This is amonst the worse of the industry: MGA underperforms 81.40% of its industry peers.
A Quick Ratio of 0.74 indicates that MGA may have some problems paying its short term obligations.
MGA has a Quick ratio of 0.74. This is amonst the worse of the industry: MGA underperforms 81.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.08 | ||
| 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 0.00%.
The Earnings Per Share has been decreasing by -2.22% on average over the past years.
MGA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.09%.
MGA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.67% yearly.
EPS 1Y (TTM)0%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%27.07%
Revenue 1Y (TTM)0.09%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%1.66%
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 13.71% yearly.
The Revenue is expected to grow by 2.07% on average over the next years.
EPS Next Y-1.24%
EPS Next 2Y10.19%
EPS Next 3Y13.08%
EPS Next 5Y13.71%
Revenue Next Year-4.69%
Revenue Next 2Y-1.25%
Revenue Next 3Y-0.27%
Revenue Next 5Y2.07%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 6.30, the valuation of MGA can be described as very cheap.
Based on the Price/Earnings ratio, MGA is valued cheaply inside the industry as 97.67% of the companies are valued more expensively.
MGA is valuated cheaply when we compare the Price/Earnings ratio to 29.75, which is the current average of the S&P500 Index.
MGA is valuated cheaply with a Price/Forward Earnings ratio of 6.38.
Based on the Price/Forward Earnings ratio, MGA is valued cheaper than 90.70% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.44. MGA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 6.38 |
4.2 Price Multiples
MGA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MGA is cheaper than 90.70% of the companies in the same industry.
88.37% 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 | 6.61 | ||
| EV/EBITDA | 3.7 |
4.3 Compensation for Growth
MGA's earnings are expected to grow with 13.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y10.19%
EPS Next 3Y13.08%
5. Dividend
5.1 Amount
MGA has a Yearly Dividend Yield of 4.61%, which is a nice return.
In the last 3 months the price of MGA has falen by -21.99%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 4.16, MGA pays a better dividend. On top of this MGA pays more dividend than 97.67% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, MGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
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 53.42% 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.
DP53.42%
EPS Next 2Y10.19%
EPS Next 3Y13.08%
NYSE:MGA (3/4/2025, 1:06:45 PM)
34
-1.33 (-3.76%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners79.05%
Inst Owner Change-2.2%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap9.62B
Analysts76
Price Target39.08 (14.94%)
Short Float %3.58%
Short Ratio5.78
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.61% |
Yearly Dividend1.89
Dividend Growth(5Y)5.84%
DP53.42%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.96%
Min EPS beat(2)-11.39%
Max EPS beat(2)7.47%
EPS beat(4)1
Avg EPS beat(4)-7.07%
Min EPS beat(4)-15.61%
Max EPS beat(4)7.47%
EPS beat(8)4
Avg EPS beat(8)1.74%
EPS beat(12)5
Avg EPS beat(12)-0.7%
EPS beat(16)7
Avg EPS beat(16)3.05%
Revenue beat(2)1
Avg Revenue beat(2)-1.7%
Min Revenue beat(2)-3.58%
Max Revenue beat(2)0.19%
Revenue beat(4)1
Avg Revenue beat(4)-2.35%
Min Revenue beat(4)-3.58%
Max Revenue beat(4)0.19%
Revenue beat(8)3
Avg Revenue beat(8)-0.5%
Revenue beat(12)5
Avg Revenue beat(12)-0.43%
Revenue beat(16)6
Avg Revenue beat(16)-0.65%
PT rev (1m)0%
PT rev (3m)-0.1%
EPS NQ rev (1m)-0.81%
EPS NQ rev (3m)-6.42%
EPS NY rev (1m)-11.55%
EPS NY rev (3m)-14.12%
Revenue NQ rev (1m)-0.58%
Revenue NQ rev (3m)-4.72%
Revenue NY rev (1m)-5.25%
Revenue NY rev (3m)-5.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.3 | ||
| Fwd PE | 6.38 | ||
| P/S | 0.22 | ||
| P/FCF | 6.61 | ||
| P/OCF | 2.65 | ||
| P/B | 0.83 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 3.7 |
EPS(TTM)5.4
EY15.88%
EPS(NY)5.33
Fwd EY15.68%
FCF(TTM)5.15
FCFY15.14%
OCF(TTM)12.85
OCFY37.78%
SpS151.43
BVpS40.73
TBVpS28.67
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.25% | ||
| ROE | 8.76% | ||
| ROCE | 10.82% | ||
| ROIC | 8.06% | ||
| ROICexc | 8.62% | ||
| ROICexgc | 10.65% | ||
| OM | 4.79% | ||
| PM (TTM) | 2.36% | ||
| GM | 13.54% | ||
| FCFM | 3.4% |
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 Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.51 | ||
| Debt/EBITDA | 1.2 | ||
| Cap/Depr | 134.28% | ||
| Cap/Sales | 5.08% | ||
| Interest Coverage | 6.63 | ||
| Cash Conversion | 98.97% | ||
| Profit Quality | 144.3% | ||
| Current Ratio | 1.08 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.38 |
F-Score7
WACC9.85%
ROIC/WACC0.82
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)0%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%27.07%
EPS Next Y-1.24%
EPS Next 2Y10.19%
EPS Next 3Y13.08%
EPS Next 5Y13.71%
Revenue 1Y (TTM)0.09%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%1.66%
Revenue Next Year-4.69%
Revenue Next 2Y-1.25%
Revenue Next 3Y-0.27%
Revenue Next 5Y2.07%
EBIT growth 1Y0.59%
EBIT growth 3Y2.43%
EBIT growth 5Y-2.75%
EBIT Next Year81.67%
EBIT Next 3Y27.31%
EBIT Next 5Y19.78%
FCF growth 1Y124.35%
FCF growth 3Y-2.44%
FCF growth 5Y-10.38%
OCF growth 1Y15.4%
OCF growth 3Y7.32%
OCF growth 5Y-1.7%