MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGA - CA5592224011 - Common Stock
53.64 USD
-0.13 (-0.24%)
53.64 USD
0 (0%)
Overall MGA gets a fundamental rating of 5 out of 10. We evaluated MGA against 43 industry peers in the Automobile Components industry. MGA has only an average score on both its financial health and profitability. MGA has a bad growth rate and is valued cheaply. Finally MGA also has an excellent dividend rating. These ratings would make MGA suitable for value and dividend investing!
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.
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
With a decent Return On Assets value of 3.14%, MGA is doing good in the industry, outperforming 74.42% of the companies in the same industry.
Looking at the Return On Equity, with a value of 8.20%, MGA is in the better half of the industry, outperforming 79.07% of the companies in the same industry.
The Return On Invested Capital of MGA (7.07%) is better than 62.79% 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 9.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 8.2% | ||
| ROIC | 7.07% |
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 2.47%. This is in the better half of the industry: MGA outperforms 72.09% of its industry peers.
MGA's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 4.76%, MGA is in the better half of the industry, outperforming 60.47% of the companies in the same industry.
In the last couple of years the Operating Margin of MGA has declined.
MGA has a Gross Margin of 13.86%. This is in the lower half of the industry: MGA underperforms 67.44% 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 | 4.76% | ||
| PM (TTM) | 2.47% | ||
| GM | 13.86% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MGA is destroying value.
MGA has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MGA has less shares outstanding
Compared to 1 year ago, MGA has an improved debt to assets ratio.
2.2 Solvency
MGA has an Altman-Z score of 2.42. This is not the best score and indicates that MGA is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.42, MGA perfoms like the industry average, outperforming 58.14% of the companies in the same industry.
The Debt to FCF ratio of MGA is 2.67, which is a good value as it means it would take MGA, 2.67 years of fcf income to pay off all of its debts.
MGA's Debt to FCF ratio of 2.67 is amongst the best of the industry. MGA outperforms 86.05% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that MGA is not too dependend on debt financing.
MGA has a Debt to Equity ratio (0.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.84
WACC8.41%
2.3 Liquidity
MGA has a Current Ratio of 1.18. 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 1.18 is on the low side compared to the rest of the industry. MGA is outperformed by 79.07% of its industry peers.
MGA has a Quick Ratio of 1.18. This is a bad value and indicates that MGA is not financially healthy enough and could expect problems in meeting its short term obligations.
MGA's Quick ratio of 0.83 is on the low side compared to the rest of the industry. MGA is outperformed by 72.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
MGA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.97%.
The Earnings Per Share has been decreasing by -2.22% on average over the past years.
MGA shows a decrease in Revenue. In the last year, the revenue decreased by -2.04%.
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)-2.04%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%1.77%
3.2 Future
The Earnings Per Share is expected to grow by 10.17% 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 1.00% on average per year.
EPS Next Y1.49%
EPS Next 2Y6.7%
EPS Next 3Y8.6%
EPS Next 5Y10.17%
Revenue Next Year-2.05%
Revenue Next 2Y-0.53%
Revenue Next 3Y0.56%
Revenue Next 5Y1%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
MGA is valuated reasonably with a Price/Earnings ratio of 10.24.
Based on the Price/Earnings ratio, MGA is valued cheaply inside the industry as 81.40% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.77. MGA is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.72, the valuation of MGA can be described as reasonable.
Based on the Price/Forward Earnings ratio, MGA is valued cheaper than 88.37% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.35, MGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 8.72 |
4.2 Price Multiples
MGA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MGA is cheaper than 86.05% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MGA is valued cheaply inside the industry as 88.37% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.42 | ||
| EV/EBITDA | 5.19 |
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)6.88
PEG (5Y)N/A
EPS Next 2Y6.7%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
MGA has a Yearly Dividend Yield of 3.69%. Purely for dividend investing, there may be better candidates out there.
MGA's Dividend Yield is rather good when compared to the industry average which is at 0.64. MGA pays more dividend than 97.67% of the companies in the same industry.
MGA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
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 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
52.47% 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.
DP52.47%
EPS Next 2Y6.7%
EPS Next 3Y8.6%
53.64
-0.13 (-0.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners73.71%
Inst Owner Change-0.59%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap15.12B
Revenue(TTM)41.79B
Net Income(TTM)1.03B
Analysts72.63
Price Target38.9 (-27.48%)
Short Float %2.9%
Short Ratio5.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.69% |
Yearly Dividend1.89
Dividend Growth(5Y)5.84%
DP52.47%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.25%
Min EPS beat(2)6.28%
Max EPS beat(2)22.22%
EPS beat(4)3
Avg EPS beat(4)5.04%
Min EPS beat(4)-15.82%
Max EPS beat(4)22.22%
EPS beat(8)3
Avg EPS beat(8)-3.56%
EPS beat(12)6
Avg EPS beat(12)1.13%
EPS beat(16)8
Avg EPS beat(16)3.3%
Revenue beat(2)2
Avg Revenue beat(2)0.56%
Min Revenue beat(2)0.19%
Max Revenue beat(2)0.93%
Revenue beat(4)4
Avg Revenue beat(4)0.56%
Min Revenue beat(4)0.19%
Max Revenue beat(4)0.93%
Revenue beat(8)4
Avg Revenue beat(8)-1.28%
Revenue beat(12)6
Avg Revenue beat(12)-0.37%
Revenue beat(16)8
Avg Revenue beat(16)-0.26%
PT rev (1m)1.28%
PT rev (3m)10.38%
EPS NQ rev (1m)0%
EPS NQ rev (3m)7.83%
EPS NY rev (1m)2.37%
EPS NY rev (3m)5.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.68%
Revenue NY rev (3m)1.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.24 | ||
| Fwd PE | 8.72 | ||
| P/S | 0.36 | ||
| P/FCF | 7.42 | ||
| P/OCF | 4.29 | ||
| P/B | 1.2 | ||
| P/tB | 1.68 | ||
| EV/EBITDA | 5.19 |
EPS(TTM)5.24
EY9.77%
EPS(NY)6.15
Fwd EY11.46%
FCF(TTM)7.22
FCFY13.47%
OCF(TTM)12.51
OCFY23.33%
SpS148.29
BVpS44.71
TBVpS32
PEG (NY)6.88
PEG (5Y)N/A
Graham Number72.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 8.2% | ||
| ROCE | 9.55% | ||
| ROIC | 7.07% | ||
| ROICexc | 7.54% | ||
| ROICexgc | 9.19% | ||
| OM | 4.76% | ||
| PM (TTM) | 2.47% | ||
| GM | 13.86% | ||
| FCFM | 4.87% |
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-Score6
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.67 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 91.3% | ||
| Cap/Sales | 3.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.32% | ||
| Profit Quality | 197.1% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 2.42 |
F-Score6
WACC8.41%
ROIC/WACC0.84
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 Y1.49%
EPS Next 2Y6.7%
EPS Next 3Y8.6%
EPS Next 5Y10.17%
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%1.77%
Revenue Next Year-2.05%
Revenue Next 2Y-0.53%
Revenue Next 3Y0.56%
Revenue Next 5Y1%
EBIT growth 1Y-1.63%
EBIT growth 3Y3.64%
EBIT growth 5Y-2.06%
EBIT Next Year72.06%
EBIT Next 3Y23.5%
EBIT Next 5Y14.63%
FCF growth 1Y290.79%
FCF growth 3Y-2.44%
FCF growth 5Y-10.38%
OCF growth 1Y24.73%
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 5 / 10 to MGA.
Can you provide the valuation status for MAGNA INTERNATIONAL INC?
ChartMill assigns a valuation rating of 7 / 10 to MAGNA INTERNATIONAL INC (MGA). This can be considered as Undervalued.
How profitable is MAGNA INTERNATIONAL INC (MGA) stock?
MAGNA INTERNATIONAL INC (MGA) has a profitability rating of 5 / 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 10.24 and the Price/Book (PB) ratio is 1.2.
What is the earnings growth outlook for MAGNA INTERNATIONAL INC?
The Earnings per Share (EPS) of MAGNA INTERNATIONAL INC (MGA) is expected to grow by 1.49% in the next year.