MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - NYSE:MGA - CA5592224011 - Common Stock
47.21 USD
+2.56 (+5.73%)
47.21 USD
0 (0%)
MGA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Automobile Components industry. MGA has only an average score on both its financial health and profitability. MGA has a correct valuation and a medium growth rate. MGA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MGA was profitable.
MGA had a positive operating cash flow in the past year.
In the past 5 years MGA has always been profitable.
MGA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MGA has a Return On Assets of 3.65%. This is comparable to the rest of the industry: MGA outperforms 40.24% of its industry peers.
MGA's Return On Equity of 9.71% is amongst the best of the industry. MGA outperforms 90.24% of its industry peers.
The Return On Invested Capital of MGA (7.15%) is worse than 63.41% 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 8.50%.
| 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 has a Profit Margin of 2.91%. This is in the lower half of the industry: MGA underperforms 62.20% of its industry peers.
MGA's Profit Margin has declined in the last couple of years.
The Operating Margin of MGA (4.81%) is worse than 67.07% of its industry peers.
In the last couple of years the Operating Margin of MGA has declined.
MGA has a worse Gross Margin (13.83%) than 81.71% of its industry peers.
In the last couple of years the Gross Margin of MGA has remained more or less at the same level.
| 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.
MGA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MGA has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.32 indicates that MGA is not a great score, but indicates only limited risk for bankruptcy at the moment.
MGA has a Altman-Z score of 2.32. This is comparable to the rest of the industry: MGA outperforms 40.24% of its industry peers.
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 has a better Debt to FCF ratio (3.68) than 87.80% of its industry peers.
MGA has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.43, MGA is doing worse than 68.29% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.9
WACC7.96%
2.3 Liquidity
A Current Ratio of 1.16 indicates that MGA should not have too much problems paying its short term obligations.
MGA's Current ratio of 1.16 is on the low side compared to the rest of the industry. MGA is outperformed by 87.80% of its industry peers.
A Quick Ratio of 0.82 indicates that MGA may have some problems paying its short term obligations.
MGA's Quick ratio of 0.82 is on the low side compared to the rest of the industry. MGA is outperformed by 84.15% 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 has been growing slightly by 3.97% over the past year.
The Earnings Per Share has been decreasing by -2.22% on average over the past years.
Looking at the last year, MGA shows a small growth in Revenue. The Revenue has grown by 0.09% in the last 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)0.09%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-2.12%
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.
Based on estimates for the next years, MGA will show a small growth in Revenue. The Revenue will grow by 0.62% on average per year.
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
The Price/Earnings ratio is 9.01, which indicates a very decent valuation of MGA.
Compared to the rest of the industry, the Price/Earnings ratio of MGA indicates a rather cheap valuation: MGA is cheaper than 82.93% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.11. MGA is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 7.94, which indicates a rather cheap valuation of MGA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGA indicates a somewhat cheap valuation: MGA is cheaper than 75.61% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, MGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.01 | ||
| Fwd PE | 7.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MGA indicates a somewhat cheap valuation: MGA is cheaper than 74.39% of the companies listed in the same industry.
MGA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MGA is cheaper than 87.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.1 | ||
| EV/EBITDA | 4.81 |
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 4.34%, MGA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.33, MGA has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.37, MGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
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
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%
47.21
+2.56 (+5.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners78.22%
Inst Owner Change0.25%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap13.30B
Revenue(TTM)42.84B
Net Income(TTM)1.21B
Analysts72.63
Price Target35.83 (-24.11%)
Short Float %2.39%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
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)1.65%
PT rev (3m)20.94%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)-12.57%
EPS NY rev (1m)0%
EPS NY rev (3m)4.3%
Revenue NQ rev (1m)0.82%
Revenue NQ rev (3m)3.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.39%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.01 | ||
| Fwd PE | 7.94 | ||
| P/S | 0.32 | ||
| P/FCF | 8.1 | ||
| P/OCF | 3.98 | ||
| P/B | 1.07 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 4.81 |
EPS(TTM)5.24
EY11.1%
EPS(NY)5.95
Fwd EY12.59%
FCF(TTM)5.83
FCFY12.34%
OCF(TTM)11.86
OCFY25.12%
SpS147.66
BVpS44.3
TBVpS31.45
PEG (NY)N/A
PEG (5Y)N/A
Graham Number72.27
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%
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-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 | 2.32 |
F-Score8
WACC7.96%
ROIC/WACC0.9
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 Y-3.93%
EPS Next 2Y4.93%
EPS Next 3Y7.68%
EPS Next 5Y11.06%
Revenue 1Y (TTM)0.09%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-2.12%
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%
MAGNA INTERNATIONAL INC / MGA FAQ
Can you provide the ChartMill fundamental rating for MAGNA INTERNATIONAL INC?
ChartMill assigns a fundamental rating of 4 / 10 to MGA.
Can you provide the valuation status for MAGNA INTERNATIONAL INC?
ChartMill assigns a valuation rating of 6 / 10 to MAGNA INTERNATIONAL INC (MGA). This can be considered as Fairly Valued.
How profitable is MAGNA INTERNATIONAL INC (MGA) stock?
MAGNA INTERNATIONAL INC (MGA) has a profitability rating of 3 / 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 9.01 and the Price/Book (PB) ratio is 1.07.
What is the earnings growth outlook for MAGNA INTERNATIONAL INC?
The Earnings per Share (EPS) of MAGNA INTERNATIONAL INC (MGA) is expected to decline by -3.93% in the next year.