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 4 out of 10 in our fundamental rating. MGA was compared to 83 industry peers in the Automobile Components industry. Both the profitability and financial health of MGA have multiple concerns. MGA is not valued too expensively and it also shows a decent growth rate. Finally MGA also has an excellent dividend rating.
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.
MGA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a Return On Assets value of 3.28%, MGA is not doing good in the industry: 67.47% of the companies in the same industry are doing better.
The Return On Equity of MGA (8.77%) is worse than 65.06% of its industry peers.
MGA's Return On Invested Capital of 7.37% is on the low side compared to the rest of the industry. MGA is outperformed by 63.86% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MGA is in line with the industry average of 9.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 8.77% | ||
| ROIC | 7.37% |
ROA(3y)3.7%
ROA(5y)4.12%
ROE(3y)9.47%
ROE(5y)10.27%
ROIC(3y)7.67%
ROIC(5y)7.91%
1.3 Margins
MGA has a Profit Margin of 2.52%. This is in the lower half of the industry: MGA underperforms 68.67% of its industry peers.
In the last couple of years the Profit Margin of MGA has declined.
MGA's Operating Margin of 4.74% is on the low side compared to the rest of the industry. MGA is outperformed by 69.88% of its industry peers.
In the last couple of years the Operating Margin of MGA has declined.
MGA's Gross Margin of 13.45% is on the low side compared to the rest of the industry. MGA is outperformed by 80.72% of its industry peers.
MGA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.74% | ||
| PM (TTM) | 2.52% | ||
| GM | 13.45% |
OM growth 3Y1.49%
OM growth 5Y-7.23%
PM growth 3Y6.92%
PM growth 5Y-12.81%
GM growth 3Y-1.21%
GM growth 5Y-1.49%
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 more shares outstanding
MGA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MGA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.33 indicates that MGA is not a great score, but indicates only limited risk for bankruptcy at the moment.
MGA has a Altman-Z score (2.33) which is in line with its industry peers.
The Debt to FCF ratio of MGA is 6.53, which is on the high side as it means it would take MGA, 6.53 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 6.53, MGA is doing worse than 68.67% of the companies in the same industry.
MGA has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
MGA's Debt to Equity ratio of 0.47 is on the low side compared to the rest of the industry. MGA is outperformed by 72.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.53 | ||
| Altman-Z | 2.33 |
ROIC/WACC0.99
WACC7.48%
2.3 Liquidity
A Current Ratio of 1.14 indicates that MGA should not have too much problems paying its short term obligations.
The Current ratio of MGA (1.14) is worse than 91.57% of its industry peers.
A Quick Ratio of 0.77 indicates that MGA may have some problems paying its short term obligations.
With a Quick ratio value of 0.77, MGA is not doing good in the industry: 87.95% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 1.20% over the past year.
Measured over the past years, MGA shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.22% on average per year.
Looking at the last year, MGA shows a small growth in Revenue. The Revenue has grown by 1.79% in the last year.
MGA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.95% yearly.
EPS 1Y (TTM)1.2%
EPS 3Y6.5%
EPS 5Y-4.22%
EPS Q2Q%-12.33%
Revenue 1Y (TTM)1.79%
Revenue growth 3Y9.44%
Revenue growth 5Y0.95%
Sales Q2Q%-3.82%
3.2 Future
The Earnings Per Share is expected to grow by 10.83% on average over the next years. This is quite good.
Based on estimates for the next years, MGA will show a small growth in Revenue. The Revenue will grow by 1.53% on average per year.
EPS Next Y0.25%
EPS Next 2Y7.23%
EPS Next 3Y9.37%
EPS Next 5Y10.83%
Revenue Next Year-0.48%
Revenue Next 2Y0%
Revenue Next 3Y0.82%
Revenue Next 5Y1.53%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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 8.15, the valuation of MGA can be described as reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of MGA indicates a somewhat cheap valuation: MGA is cheaper than 78.31% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.42, MGA is valued rather cheaply.
The Price/Forward Earnings ratio is 6.62, which indicates a rather cheap valuation of MGA.
Based on the Price/Forward Earnings ratio, MGA is valued a bit cheaper than the industry average as 79.52% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MGA to the average of the S&P500 Index (24.39), we can say MGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 6.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGA is valued a bit cheaper than 67.47% of the companies in the same industry.
MGA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.28 | ||
| EV/EBITDA | 4.35 |
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)32.18
PEG (5Y)N/A
EPS Next 2Y7.23%
EPS Next 3Y9.37%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.28%, MGA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.08, MGA pays a better dividend. On top of this MGA pays more dividend than 97.59% of the companies listed in the same industry.
MGA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
5.2 History
On average, the dividend of MGA grows each year by 6.87%, which is quite nice.
MGA has paid a dividend for at least 10 years, which is 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)6.87%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
50.05% of the earnings are spent on dividend by MGA. This is a bit on the high side, but may be sustainable.
The dividend of MGA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP50.05%
EPS Next 2Y7.23%
EPS Next 3Y9.37%
MAGNA INTERNATIONAL INC
NYSE:MGA (1/28/2025, 8:04:00 PM)
After market: 41.09 0 (0%)41.09
-0.47 (-1.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners76.66%
Inst Owner Change-0.51%
Ins Owners0.12%
Ins Owner ChangeN/A
Market Cap11.81B
Analysts76.19
Price Target38.12 (-7.23%)
Short Float %2.58%
Short Ratio4.4
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.28% |
Yearly Dividend1.82
Dividend Growth(5Y)6.87%
DP50.05%
Div Incr Years15
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-10.07%
Min EPS beat(2)-11.39%
Max EPS beat(2)-8.75%
EPS beat(4)0
Avg EPS beat(4)-12.16%
Min EPS beat(4)-15.61%
Max EPS beat(4)-8.75%
EPS beat(8)3
Avg EPS beat(8)-0.83%
EPS beat(12)5
Avg EPS beat(12)2.72%
EPS beat(16)7
Avg EPS beat(16)4.83%
Revenue beat(2)0
Avg Revenue beat(2)-3.47%
Min Revenue beat(2)-3.58%
Max Revenue beat(2)-3.35%
Revenue beat(4)0
Avg Revenue beat(4)-3.13%
Min Revenue beat(4)-3.58%
Max Revenue beat(4)-2.65%
Revenue beat(8)2
Avg Revenue beat(8)-0.83%
Revenue beat(12)4
Avg Revenue beat(12)-0.53%
Revenue beat(16)6
Avg Revenue beat(16)-0.52%
PT rev (1m)-1.65%
PT rev (3m)-3.02%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.19%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.29%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)-1.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.15 | ||
| Fwd PE | 6.62 | ||
| P/S | 0.28 | ||
| P/FCF | 13.28 | ||
| P/OCF | 3.58 | ||
| P/B | 0.96 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 4.35 |
EPS(TTM)5.04
EY12.27%
EPS(NY)6.21
Fwd EY15.11%
FCF(TTM)3.09
FCFY7.53%
OCF(TTM)11.49
OCFY27.97%
SpS148.47
BVpS42.72
TBVpS30.12
PEG (NY)32.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.28% | ||
| ROE | 8.77% | ||
| ROCE | 10.02% | ||
| ROIC | 7.37% | ||
| ROICexc | 7.76% | ||
| ROICexgc | 9.48% | ||
| OM | 4.74% | ||
| PM (TTM) | 2.52% | ||
| GM | 13.45% | ||
| FCFM | 2.08% |
ROA(3y)3.7%
ROA(5y)4.12%
ROE(3y)9.47%
ROE(5y)10.27%
ROIC(3y)7.67%
ROIC(5y)7.91%
ROICexc(3y)8.52%
ROICexc(5y)8.84%
ROICexgc(3y)10.33%
ROICexgc(5y)10.63%
ROCE(3y)10.11%
ROCE(5y)10.39%
ROICexcg growth 3Y6.69%
ROICexcg growth 5Y-7.9%
ROICexc growth 3Y5.24%
ROICexc growth 5Y-8.81%
OM growth 3Y1.49%
OM growth 5Y-7.23%
PM growth 3Y6.92%
PM growth 5Y-12.81%
GM growth 3Y-1.21%
GM growth 5Y-1.49%
F-Score6
Asset Turnover1.3
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 6.53 | ||
| Debt/EBITDA | 1.58 | ||
| Cap/Depr | 148.86% | ||
| Cap/Sales | 5.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 90.59% | ||
| Profit Quality | 82.54% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 2.33 |
F-Score6
WACC7.48%
ROIC/WACC0.99
Cap/Depr(3y)124.42%
Cap/Depr(5y)112.84%
Cap/Sales(3y)4.69%
Cap/Sales(5y)4.25%
Profit Quality(3y)75.67%
Profit Quality(5y)130.3%
High Growth Momentum
Growth
EPS 1Y (TTM)1.2%
EPS 3Y6.5%
EPS 5Y-4.22%
EPS Q2Q%-12.33%
EPS Next Y0.25%
EPS Next 2Y7.23%
EPS Next 3Y9.37%
EPS Next 5Y10.83%
Revenue 1Y (TTM)1.79%
Revenue growth 3Y9.44%
Revenue growth 5Y0.95%
Sales Q2Q%-3.82%
Revenue Next Year-0.48%
Revenue Next 2Y0%
Revenue Next 3Y0.82%
Revenue Next 5Y1.53%
EBIT growth 1Y9.23%
EBIT growth 3Y11.08%
EBIT growth 5Y-6.36%
EBIT Next Year73.8%
EBIT Next 3Y25.93%
EBIT Next 5Y15.93%
FCF growth 1Y25.21%
FCF growth 3Y-32.74%
FCF growth 5Y-20.69%
OCF growth 1Y50.78%
OCF growth 3Y-1.33%
OCF growth 5Y-3.27%