MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGA - CA5592224011 - Common Stock
56.21 USD
+0.29 (+0.52%)
56.21 USD
0 (0%)
Taking everything into account, MGA scores 5 out of 10 in our fundamental rating. MGA was compared to 42 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. MGA also has an excellent dividend rating. This makes MGA very considerable for value and dividend investing!
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
MGA has a better Return On Assets (3.14%) than 73.81% of its industry peers.
Looking at the Return On Equity, with a value of 8.20%, MGA is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
MGA's Return On Invested Capital of 7.07% is fine compared to the rest of the industry. MGA outperforms 61.90% 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 9.10%.
| 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
The Profit Margin of MGA (2.47%) is better than 71.43% 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 line with its industry, outperforming 59.52% of the companies in the same industry.
In the last couple of years the Operating Margin of MGA has declined.
MGA has a worse Gross Margin (13.86%) than 69.05% of its industry peers.
MGA's Gross Margin has been stable in the last couple of years.
| 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
MGA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MGA has less shares outstanding
MGA has less shares outstanding than it did 5 years ago.
MGA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.44 indicates that MGA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of MGA (2.44) is comparable to the rest of the 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 85.71% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that MGA is not too dependend on debt financing.
MGA's Debt to Equity ratio of 0.43 is in line compared to the rest of the industry. MGA outperforms 59.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.44 |
ROIC/WACC0.85
WACC8.36%
2.3 Liquidity
A Current Ratio of 1.18 indicates that MGA should not have too much problems paying its short term obligations.
The Current ratio of MGA (1.18) is worse than 78.57% of its industry peers.
A Quick Ratio of 0.83 indicates that MGA may have some problems paying its short term obligations.
MGA has a worse Quick ratio (0.83) than 71.43% 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.
Looking at the last year, MGA shows a decrease in Revenue. The Revenue has decreased by -2.04% in the last year.
Measured over the past years, MGA shows a small growth in Revenue. The Revenue has been growing by 1.67% on average per year.
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
MGA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 10.17% yearly.
MGA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.00% yearly.
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.
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
Based on the Price/Earnings ratio of 10.73, the valuation of MGA can be described as reasonable.
MGA's Price/Earnings ratio is rather cheap when compared to the industry. MGA is cheaper than 83.33% of the companies in the same industry.
MGA is valuated cheaply when we compare the Price/Earnings ratio to 27.19, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 9.14 indicates a reasonable valuation of MGA.
MGA's Price/Forward Earnings ratio is rather cheap when compared to the industry. MGA is cheaper than 88.10% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.88. MGA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 9.14 |
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 85.71% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGA indicates a rather cheap valuation: MGA is cheaper than 90.48% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.78 | ||
| EV/EBITDA | 5.36 |
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)7.21
PEG (5Y)N/A
EPS Next 2Y6.7%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
MGA has a Yearly Dividend Yield of 3.50%.
MGA's Dividend Yield is rather good when compared to the industry average which is at 0.66. MGA pays more dividend than 97.62% of the companies in the same industry.
MGA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
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
MGA pays out 52.47% of its income as dividend. This is a bit on the high side, but may be sustainable.
MGA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.47%
EPS Next 2Y6.7%
EPS Next 3Y8.6%
56.21
+0.29 (+0.52%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners73.86%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap15.84B
Revenue(TTM)41.79B
Net Income(TTM)1.03B
Analysts72.63
Price Target38.9 (-30.8%)
Short Float %2.9%
Short Ratio5.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.5% |
Yearly Dividend1.89
Dividend Growth(5Y)5.84%
DP52.47%
Div Incr Years15
Div Non Decr Years15
Ex-DateN/A
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)9.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.64%
EPS NY rev (1m)0%
EPS NY rev (3m)5.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.73 | ||
| Fwd PE | 9.14 | ||
| P/S | 0.38 | ||
| P/FCF | 7.78 | ||
| P/OCF | 4.49 | ||
| P/B | 1.26 | ||
| P/tB | 1.76 | ||
| EV/EBITDA | 5.36 |
EPS(TTM)5.24
EY9.32%
EPS(NY)6.15
Fwd EY10.94%
FCF(TTM)7.22
FCFY12.85%
OCF(TTM)12.51
OCFY22.26%
SpS148.29
BVpS44.71
TBVpS32
PEG (NY)7.21
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 | 2.44 |
F-Score6
WACC8.36%
ROIC/WACC0.85
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.
What is the valuation status for MGA stock?
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.
Can you provide the financial health for MGA stock?
The financial health rating of MAGNA INTERNATIONAL INC (MGA) is 5 / 10.
Is the dividend of MAGNA INTERNATIONAL INC sustainable?
The dividend rating of MAGNA INTERNATIONAL INC (MGA) is 8 / 10 and the dividend payout ratio is 52.47%.