MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGA - CA5592224011 - Common Stock
53.99 USD
+0.21 (+0.39%)
53.99 USD
0 (0%)
We assign a fundamental rating of 5 out of 10 to MGA. MGA was compared to 43 industry peers in the Automobile Components industry. MGA has only an average score on both its financial health and profitability. MGA is valued quite cheap, but it does not seem to be growing. 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.
MGA had a positive operating cash flow in the past year.
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's Return On Assets of 3.14% is fine compared to the rest of the industry. MGA outperforms 74.42% of its industry peers.
The Return On Equity of MGA (8.20%) is better than 79.07% 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 62.79% 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
MGA has a Profit Margin of 2.47%. This is in the better half of the industry: MGA outperforms 72.09% of its industry peers.
MGA's Profit Margin has declined in the last couple of years.
MGA's Operating Margin of 4.76% is fine compared to the rest of the industry. MGA outperforms 60.47% of its industry peers.
In the last couple of years the Operating Margin of MGA has declined.
With a Gross Margin value of 13.86%, MGA is not doing good in the industry: 67.44% of the companies in the same industry are doing better.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 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.
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.
MGA has a Altman-Z score (2.42) which is comparable to the rest of the 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 Debt to FCF ratio of 2.67. This is amongst the best in the industry. MGA outperforms 86.05% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that MGA is not too dependend on debt financing.
MGA has a Debt to Equity ratio (0.43) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.87
WACC8.17%
2.3 Liquidity
A Current Ratio of 1.18 indicates that MGA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.18, MGA is not doing good in the industry: 79.07% of the companies in the same industry are doing better.
MGA has a Quick Ratio of 1.18. This is a bad value and indicates that MGA is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of MGA (0.83) is worse than 69.77% 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.
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
Based on estimates for the next years, MGA will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.17% on average per year.
Based on estimates for the next years, MGA will show a small growth in Revenue. The Revenue will grow by 1.00% on average per year.
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 10.30, the valuation of MGA can be described as reasonable.
Based on the Price/Earnings ratio, MGA is valued cheaply inside the industry as 81.40% of the companies are valued more expensively.
MGA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.57.
The Price/Forward Earnings ratio is 8.78, which indicates a very decent valuation of MGA.
Based on the Price/Forward Earnings ratio, MGA is valued cheaply inside the industry as 88.37% of the companies are valued more expensively.
MGA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.04.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.3 | ||
| Fwd PE | 8.78 |
4.2 Price Multiples
MGA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MGA is cheaper than 86.05% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MGA is valued cheaply inside the industry as 88.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.47 | ||
| EV/EBITDA | 5.2 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MGA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)6.93
PEG (5Y)N/A
EPS Next 2Y6.7%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
MGA has a Yearly Dividend Yield of 3.61%. Purely for dividend investing, there may be better candidates out there.
MGA's Dividend Yield is rather good when compared to the industry average which is at 0.64. MGA pays more dividend than 97.67% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.88, MGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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
52.47% 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.
DP52.47%
EPS Next 2Y6.7%
EPS Next 3Y8.6%
53.99
+0.21 (+0.39%)
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 Cap15.21B
Revenue(TTM)41.79B
Net Income(TTM)1.03B
Analysts72.63
Price TargetN/A
Short Float %2.85%
Short Ratio5.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.61% |
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)8.51%
PT rev (3m)9.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.83%
EPS NY rev (1m)2.37%
EPS NY rev (3m)5.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.3 | ||
| Fwd PE | 8.78 | ||
| P/S | 0.36 | ||
| P/FCF | 7.47 | ||
| P/OCF | 4.32 | ||
| P/B | 1.21 | ||
| P/tB | 1.69 | ||
| EV/EBITDA | 5.2 |
EPS(TTM)5.24
EY9.71%
EPS(NY)6.15
Fwd EY11.39%
FCF(TTM)7.22
FCFY13.38%
OCF(TTM)12.51
OCFY23.17%
SpS148.29
BVpS44.71
TBVpS32
PEG (NY)6.93
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
WACC8.17%
ROIC/WACC0.87
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 5 / 10 to MGA.
Can you provide the valuation status for MAGNA INTERNATIONAL INC?
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.
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 10.3 and the Price/Book (PB) ratio is 1.21.
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.