MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - NYSE:MGA - CA5592224011 - Common Stock
46.22 USD
+1.4 (+3.12%)
46.22 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to MGA. MGA was compared to 83 industry peers in the Automobile Components industry. MGA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. 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
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's Return On Assets of 3.65% is on the low side compared to the rest of the industry. MGA is outperformed by 60.24% of its industry peers.
MGA has a better Return On Equity (9.71%) than 89.16% of its industry peers.
The Return On Invested Capital of MGA (7.15%) is worse than 62.65% of its industry peers.
MGA had an Average Return On Invested Capital over the past 3 years of 7.78%. This is in line with the industry average of 8.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 9.71% | ||
| ROIC | 7.15% |
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's Profit Margin of 2.91% is on the low side compared to the rest of the industry. MGA is outperformed by 62.65% of its industry peers.
MGA's Profit Margin has declined in the last couple of years.
MGA's Operating Margin of 4.81% is on the low side compared to the rest of the industry. MGA is outperformed by 66.27% of its industry peers.
MGA's Operating Margin has declined in the last couple of years.
MGA's Gross Margin of 13.83% 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 | 4.81% | ||
| PM (TTM) | 2.91% | ||
| GM | 13.83% |
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
MGA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MGA has been reduced compared to 1 year ago.
Compared to 5 years ago, MGA has less shares outstanding
The debt/assets ratio for MGA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.31 indicates that MGA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.31, MGA is not doing good in the industry: 61.45% of the companies in the same industry are doing better.
MGA has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as MGA would need 3.68 years to pay back of all of its debts.
MGA's Debt to FCF ratio of 3.68 is amongst the best of the industry. MGA outperforms 89.16% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that MGA is not too dependend on debt financing.
The Debt to Equity ratio of MGA (0.43) is worse than 67.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.87
WACC8.26%
2.3 Liquidity
A Current Ratio of 1.16 indicates that MGA should not have too much problems paying its short term obligations.
MGA has a worse Current ratio (1.16) than 86.75% of its industry peers.
A Quick Ratio of 0.82 indicates that MGA may have some problems paying its short term obligations.
MGA has a Quick ratio of 0.82. This is amonst the worse of the industry: MGA underperforms 83.13% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for MGA have decreased by -0.57% in the last year.
MGA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.22% yearly.
MGA shows a decrease in Revenue. In the last year, the revenue decreased by -3.39%.
MGA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.67% yearly.
EPS 1Y (TTM)-0.57%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%6.67%
Revenue 1Y (TTM)-3.39%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-2.98%
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 11.06% on average per year.
The Revenue is expected to grow by 0.62% on average over the next years.
EPS Next Y-3.93%
EPS Next 2Y4.93%
EPS Next 3Y7.68%
EPS Next 5Y11.06%
Revenue Next Year-3.23%
Revenue Next 2Y-0.97%
Revenue Next 3Y0.25%
Revenue Next 5Y0.62%
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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 8.91, the valuation of MGA can be described as very reasonable.
Based on the Price/Earnings ratio, MGA is valued cheaply inside the industry as 84.34% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 27.77, MGA is valued rather cheaply.
MGA is valuated cheaply with a Price/Forward Earnings ratio of 7.77.
Based on the Price/Forward Earnings ratio, MGA is valued a bit cheaper than 77.11% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MGA to the average of the S&P500 Index (23.23), we can say MGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 7.77 |
4.2 Price Multiples
74.70% of the companies in the same industry are more expensive than MGA, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGA indicates a rather cheap valuation: MGA is cheaper than 90.36% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.93 | ||
| EV/EBITDA | 4.62 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.93%
EPS Next 3Y7.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.32%, MGA is a good candidate for dividend investing.
MGA's Dividend Yield is comparable with the industry average which is at 4.48.
Compared to an average S&P500 Dividend Yield of 2.36, MGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
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
44.88% 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.
DP44.88%
EPS Next 2Y4.93%
EPS Next 3Y7.68%
46.22
+1.4 (+3.12%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners78.22%
Inst Owner Change0.01%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap13.02B
Analysts72.63
Price Target35.38 (-23.45%)
Short Float %2.68%
Short Ratio4.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
Yearly Dividend1.89
Dividend Growth(5Y)5.84%
DP44.88%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.2%
Min EPS beat(2)-15.82%
Max EPS beat(2)22.22%
EPS beat(4)2
Avg EPS beat(4)0.62%
Min EPS beat(4)-15.82%
Max EPS beat(4)22.22%
EPS beat(8)3
Avg EPS beat(8)-3.58%
EPS beat(12)5
Avg EPS beat(12)0.04%
EPS beat(16)7
Avg EPS beat(16)2.36%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.92%
Max Revenue beat(2)0.93%
Revenue beat(4)3
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-3.58%
Max Revenue beat(4)0.93%
Revenue beat(8)3
Avg Revenue beat(8)-1.32%
Revenue beat(12)5
Avg Revenue beat(12)-0.57%
Revenue beat(16)7
Avg Revenue beat(16)-0.43%
PT rev (1m)0.39%
PT rev (3m)19.43%
EPS NQ rev (1m)1.27%
EPS NQ rev (3m)-8.38%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)4.3%
Revenue NQ rev (1m)0.9%
Revenue NQ rev (3m)2.71%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.91 | ||
| Fwd PE | 7.77 | ||
| P/S | 0.31 | ||
| P/FCF | 7.93 | ||
| P/OCF | 3.9 | ||
| P/B | 1.04 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 4.62 |
EPS(TTM)5.19
EY11.23%
EPS(NY)5.95
Fwd EY12.86%
FCF(TTM)5.83
FCFY12.61%
OCF(TTM)11.86
OCFY25.65%
SpS147.66
BVpS44.3
TBVpS31.45
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 9.71% | ||
| ROCE | 9.61% | ||
| ROIC | 7.15% | ||
| ROICexc | 7.7% | ||
| ROICexgc | 9.45% | ||
| OM | 4.81% | ||
| PM (TTM) | 2.91% | ||
| GM | 13.83% | ||
| FCFM | 3.95% |
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%
ROICexcg growth 3Y0.12%
ROICexcg 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-Score8
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 104.36% | ||
| Cap/Sales | 4.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.04% | ||
| Profit Quality | 135.48% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.31 |
F-Score8
WACC8.26%
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)-0.57%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%6.67%
EPS Next Y-3.93%
EPS Next 2Y4.93%
EPS Next 3Y7.68%
EPS Next 5Y11.06%
Revenue 1Y (TTM)-3.39%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-2.98%
Revenue Next Year-3.23%
Revenue Next 2Y-0.97%
Revenue Next 3Y0.25%
Revenue Next 5Y0.62%
EBIT growth 1Y-0.6%
EBIT growth 3Y3.64%
EBIT growth 5Y-2.06%
EBIT Next Year67.1%
EBIT Next 3Y22.77%
EBIT Next 5Y14.2%
FCF growth 1Y620.17%
FCF growth 3Y-2.44%
FCF growth 5Y-10.38%
OCF growth 1Y47.31%
OCF growth 3Y7.32%
OCF growth 5Y-1.7%