MAGNA INTERNATIONAL INC (MGA)
CA5592224011 - Common Stock
MGA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 43 industry peers in the Automobile Components industry. There are concerns on the financial health of MGA while its profitability can be described as average. MGA scores decently on growth, while it is valued quite cheap. This could make an interesting combination. 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.
Each year in the past 5 years MGA has been profitable.
In the past 5 years MGA always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.10%, MGA is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
The Return On Equity of MGA (8.79%) is better than 69.05% of its industry peers.
The Return On Invested Capital of MGA (7.83%) is better than 69.05% 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 9.38%.
The 3 year average ROIC (7.67%) for MGA is below the current ROIC(7.83%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 8.79% | ||
| ROIC | 7.83% |
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 2.35%. This is comparable to the rest of the industry: MGA outperforms 57.14% of its industry peers.
MGA's Profit Margin has declined in the last couple of years.
MGA has a Operating Margin (4.74%) which is in line with its industry peers.
In the last couple of years the Operating Margin of MGA has declined.
With a Gross Margin value of 13.19%, MGA is not doing good in the industry: 64.29% 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 | 4.74% | ||
| PM (TTM) | 2.35% | ||
| GM | 13.19% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MGA is destroying value.
Compared to 1 year ago, MGA has more shares outstanding
Compared to 5 years ago, MGA has less shares outstanding
The debt/assets ratio for MGA is higher 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.
MGA's Altman-Z score of 2.31 is in line compared to the rest of the industry. MGA outperforms 52.38% of its industry peers.
The Debt to FCF ratio of MGA is 10.12, which is on the high side as it means it would take MGA, 10.12 years of fcf income to pay off all of its debts.
MGA has a Debt to FCF ratio of 10.12. This is comparable to the rest of the industry: MGA outperforms 47.62% of its industry peers.
MGA has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MGA (0.47) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 10.12 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.8
WACC9.77%
2.3 Liquidity
MGA has a Current Ratio of 1.09. 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 1.09. This is amonst the worse of the industry: MGA underperforms 90.48% of its industry peers.
A Quick Ratio of 0.76 indicates that MGA may have some problems paying its short term obligations.
MGA has a Quick ratio of 0.76. This is amonst the worse of the industry: MGA underperforms 80.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
MGA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 36.99%, which is quite impressive.
MGA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -4.22% yearly.
MGA shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 10.86%.
Measured over the past years, MGA shows a small growth in Revenue. The Revenue has been growing by 0.95% on average per year.
EPS 1Y (TTM)36.99%
EPS 3Y6.5%
EPS 5Y-4.22%
EPS Q2Q%-2.7%
Revenue 1Y (TTM)10.86%
Revenue growth 3Y9.44%
Revenue growth 5Y0.95%
Sales Q2Q%2.78%
3.2 Future
The Earnings Per Share is expected to grow by 12.62% on average over the next years. This is quite good.
MGA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.86% yearly.
EPS Next Y8.89%
EPS Next 2Y15.26%
EPS Next 3Y17.44%
EPS Next 5Y12.62%
Revenue Next Year2.14%
Revenue Next 2Y3.14%
Revenue Next 3Y4.06%
Revenue Next 5Y3.86%
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.
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
MGA is valuated cheaply with a Price/Earnings ratio of 7.86.
Compared to the rest of the industry, the Price/Earnings ratio of MGA indicates a rather cheap valuation: MGA is cheaper than 92.86% of the companies listed in the same industry.
MGA is valuated cheaply when we compare the Price/Earnings ratio to 28.39, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 5.88 indicates a rather cheap valuation of MGA.
MGA's Price/Forward Earnings ratio is rather cheap when compared to the industry. MGA is cheaper than 95.24% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MGA to the average of the S&P500 Index (19.91), we can say MGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.86 | ||
| Fwd PE | 5.88 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MGA indicates a rather cheap valuation: MGA is cheaper than 88.10% of the companies listed in the same industry.
MGA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.74 | ||
| EV/EBITDA | 4.43 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MGA's earnings are expected to grow with 17.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.88
PEG (5Y)N/A
EPS Next 2Y15.26%
EPS Next 3Y17.44%
5. Dividend
5.1 Amount
MGA has a Yearly Dividend Yield of 4.21%, which is a nice return.
MGA's Dividend Yield is rather good when compared to the industry average which is at 2.83. MGA pays more dividend than 100.00% of the companies in the same industry.
MGA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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 Years14
Div Non Decr Years14
5.3 Sustainability
51.73% 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.
DP51.73%
EPS Next 2Y15.26%
EPS Next 3Y17.44%
MAGNA INTERNATIONAL INC
NYSE:MGA (6/14/2024, 7:22:23 PM)
After market: 42.19 0 (0%)42.19
-0.55 (-1.29%)
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 Cap12.12B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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 | 7.86 | ||
| Fwd PE | 5.88 | ||
| 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)0.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 8.79% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.74% | ||
| PM (TTM) | 2.35% | ||
| GM | 13.19% | ||
| 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 Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.09 | ||
| Quick Ratio | 0.76 | ||
| 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)36.99%
EPS 3Y6.5%
EPS 5Y
EPS Q2Q%
EPS Next Y8.89%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.86%
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