MAGNA INTERNATIONAL INC (MGA)
CA5592224011 - Common Stock
Overall MGA gets a fundamental rating of 4 out of 10. We evaluated MGA against 81 industry peers in the Automobile Components industry. MGA may be in some trouble as it scores bad on both profitability and health. MGA has a correct valuation and a medium growth rate. MGA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MGA had positive earnings in the past year.
MGA had a positive operating cash flow in the past year.
MGA had positive earnings in each of the past 5 years.
In the past 5 years MGA always reported a positive cash flow from operatings.
1.2 Ratios
MGA has a Return On Assets of 3.09%. This is in the lower half of the industry: MGA underperforms 69.14% of its industry peers.
The Return On Equity of MGA (8.49%) is worse than 66.67% of its industry peers.
MGA's Return On Invested Capital of 7.56% is on the low side compared to the rest of the industry. MGA is outperformed by 65.43% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MGA is in line with the industry average of 9.39%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 8.49% | ||
| ROIC | 7.56% |
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
The Profit Margin of MGA (2.29%) is worse than 72.84% of its industry peers.
In the last couple of years the Profit Margin of MGA has declined.
MGA has a Operating Margin of 4.68%. This is in the lower half of the industry: MGA underperforms 72.84% of its industry peers.
MGA's Operating Margin has declined in the last couple of years.
The Gross Margin of MGA (13.26%) is worse than 82.72% of its industry peers.
MGA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.68% | ||
| PM (TTM) | 2.29% | ||
| GM | 13.26% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), MGA is creating some value.
MGA has more shares outstanding than it did 1 year ago.
The number of shares outstanding for MGA has been reduced compared to 5 years ago.
Compared to 1 year ago, MGA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.39 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 2.39, MGA perfoms like the industry average, outperforming 44.44% of the companies in the same industry.
MGA has a debt to FCF ratio of 7.18. This is a slightly negative value and a sign of low solvency as MGA would need 7.18 years to pay back of all of its debts.
With a Debt to FCF ratio value of 7.18, MGA is not doing good in the industry: 75.31% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.49 indicates that MGA is not too dependend on debt financing.
MGA has a Debt to Equity ratio of 0.49. This is in the lower half of the industry: MGA underperforms 74.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 7.18 | ||
| Altman-Z | 2.39 |
ROIC/WACC1.01
WACC7.52%
2.3 Liquidity
MGA has a Current Ratio of 1.12. This is a normal value and indicates that MGA is financially healthy and should not expect problems in meeting its short term obligations.
MGA's Current ratio of 1.12 is on the low side compared to the rest of the industry. MGA is outperformed by 90.12% of its industry peers.
MGA has a Quick Ratio of 1.12. 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 (0.77) is worse than 87.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.77 |
3. Growth
3.1 Past
MGA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 13.73%, which is quite good.
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 6.37% in the last year.
The Revenue has been growing slightly by 0.95% on average over the past years.
EPS 1Y (TTM)13.73%
EPS 3Y6.5%
EPS 5Y-4.22%
EPS Q2Q%-10%
Revenue 1Y (TTM)6.37%
Revenue growth 3Y9.44%
Revenue growth 5Y0.95%
Sales Q2Q%-0.22%
3.2 Future
The Earnings Per Share is expected to grow by 13.29% 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 3.97% on average per year.
EPS Next Y4.63%
EPS Next 2Y10.7%
EPS Next 3Y11.26%
EPS Next 5Y13.29%
Revenue Next Year0.52%
Revenue Next 2Y1.32%
Revenue Next 3Y1.2%
Revenue Next 5Y3.97%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 8.23, the valuation of MGA can be described as reasonable.
Based on the Price/Earnings ratio, MGA is valued a bit cheaper than the industry average as 77.78% 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 31.09.
MGA is valuated cheaply with a Price/Forward Earnings ratio of 6.49.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGA indicates a somewhat cheap valuation: MGA is cheaper than 74.07% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.57. MGA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 6.49 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGA is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
MGA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.33 | ||
| EV/EBITDA | 4.5 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.78
PEG (5Y)N/A
EPS Next 2Y10.7%
EPS Next 3Y11.26%
5. Dividend
5.1 Amount
MGA has a Yearly Dividend Yield of 4.23%, which is a nice return.
MGA's Dividend Yield is comparable with the industry average which is at 4.32.
MGA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
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 their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.87%
Div Incr Years14
Div Non Decr Years14
5.3 Sustainability
53.60% 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.
DP53.6%
EPS Next 2Y10.7%
EPS Next 3Y11.26%
MAGNA INTERNATIONAL INC
NYSE:MGA (10/28/2024, 8:04:00 PM)
After market: 42.96 0 (0%)42.96
+0.98 (+2.33%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap12.34B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.23% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.23 | ||
| Fwd PE | 6.49 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.78
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 8.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.68% | ||
| PM (TTM) | 2.29% | ||
| GM | 13.26% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.12 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)13.73%
EPS 3Y6.5%
EPS 5Y
EPS Q2Q%
EPS Next Y4.63%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)6.37%
Revenue growth 3Y9.44%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y