MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
NYSE:MGA - New York Stock Exchange, Inc. - CA5592224011 - Common Stock - Currency: USD
MGA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 81 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 on the other hand it scores bad on growth. Finally 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.
In the past 5 years MGA has always been profitable.
In the past 5 years MGA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MGA (3.25%) is worse than 65.43% of its industry peers.
MGA has a Return On Equity of 8.76%. This is in the lower half of the industry: MGA underperforms 61.73% of its industry peers.
Looking at the Return On Invested Capital, with a value of 8.06%, MGA is doing worse than 62.96% 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 8.99%.
The last Return On Invested Capital (8.06%) for MGA is above the 3 year average (7.69%), which is a sign of increasing profitability.
| 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
With a Profit Margin value of 2.36%, MGA is not doing good in the industry: 65.43% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of MGA has declined.
Looking at the Operating Margin, with a value of 4.79%, MGA is doing worse than 69.14% of the companies in the same industry.
MGA's Operating Margin has declined in the last couple of years.
MGA has a Gross Margin of 13.54%. This is amonst the worse of the industry: MGA underperforms 80.25% 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
MGA has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
Compared to 1 year ago, MGA has less shares outstanding
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 2.37. 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 (2.37) is comparable to the rest of the industry.
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.
MGA has a Debt to FCF ratio (3.51) which is in line with its industry peers.
MGA has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.38, MGA is doing worse than 67.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.51 | ||
| Altman-Z | 2.37 |
ROIC/WACC1.03
WACC7.84%
2.3 Liquidity
MGA has a Current Ratio of 1.08. 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 1.08. This is amonst the worse of the industry: MGA underperforms 90.12% of its industry peers.
MGA has a Quick Ratio of 1.08. 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 (0.74) than 88.89% 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.
Looking at the last year, MGA shows a small growth in Revenue. The Revenue has grown by 0.09% in the last 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)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
Based on estimates for the next years, MGA will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.22% on average per year.
MGA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.06% yearly.
EPS Next Y-7.89%
EPS Next 2Y7.86%
EPS Next 3Y9.2%
EPS Next 5Y12.22%
Revenue Next Year-7.04%
Revenue Next 2Y-1.7%
Revenue Next 3Y-0.34%
Revenue Next 5Y0.06%
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
Based on the Price/Earnings ratio of 6.31, the valuation of MGA can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of MGA indicates a rather cheap valuation: MGA is cheaper than 87.65% of the companies listed in the same industry.
MGA is valuated cheaply when we compare the Price/Earnings ratio to 28.79, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 6.85, the valuation of MGA can be described as very cheap.
75.31% of the companies in the same industry are more expensive than MGA, based on the Price/Forward Earnings ratio.
MGA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 6.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGA is valued a bit cheaper than 74.07% of the companies in the same industry.
75.31% 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 | 6.62 | ||
| EV/EBITDA | 3.6 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.86%
EPS Next 3Y9.2%
5. Dividend
5.1 Amount
MGA has a Yearly Dividend Yield of 5.23%, which is a nice return.
MGA's Dividend Yield is rather good when compared to the industry average which is at 4.61. MGA pays more dividend than 97.53% of the companies in the same industry.
MGA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
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
53.42% of the earnings are spent on dividend by MGA. 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 2Y7.86%
EPS Next 3Y9.2%
34.06
+0.02 (+0.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners79.05%
Inst Owner Change-0.18%
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap9.63B
Analysts73
Price Target35.19 (3.32%)
Short Float %2.84%
Short Ratio3.57
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 5.23% |
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)-2.02%
PT rev (3m)-7.47%
EPS NQ rev (1m)0.29%
EPS NQ rev (3m)-31.16%
EPS NY rev (1m)-6.73%
EPS NY rev (3m)-19.9%
Revenue NQ rev (1m)0.03%
Revenue NQ rev (3m)-10.87%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-7.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.31 | ||
| Fwd PE | 6.85 | ||
| P/S | 0.22 | ||
| P/FCF | 6.62 | ||
| P/OCF | 2.65 | ||
| P/B | 0.84 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 3.6 |
EPS(TTM)5.4
EY15.85%
EPS(NY)4.97
Fwd EY14.6%
FCF(TTM)5.15
FCFY15.11%
OCF(TTM)12.85
OCFY37.72%
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 | 2.37 |
F-Score7
WACC7.84%
ROIC/WACC1.03
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-7.89%
EPS Next 2Y7.86%
EPS Next 3Y9.2%
EPS Next 5Y12.22%
Revenue 1Y (TTM)0.09%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%1.66%
Revenue Next Year-7.04%
Revenue Next 2Y-1.7%
Revenue Next 3Y-0.34%
Revenue Next 5Y0.06%
EBIT growth 1Y0.59%
EBIT growth 3Y2.43%
EBIT growth 5Y-2.75%
EBIT Next Year66.2%
EBIT Next 3Y23.39%
EBIT Next 5Y13.56%
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%