MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGA - CA5592224011 - Common Stock
53.41 USD
-0.85 (-1.57%)
53.43 USD
+0.02 (+0.04%)
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 an average financial health and profitability rating. MGA is cheap, but on the other hand it scores bad on growth. Finally MGA also has an excellent dividend rating. With these ratings, MGA could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
- In the past year MGA was profitable.
- MGA had a positive operating cash flow in the past year.
- Each year in the past 5 years MGA has been profitable.
- Each year in the past 5 years MGA had a positive operating cash flow.
1.2 Ratios
- The Return On Assets of MGA (3.14%) is better than 73.81% of its industry peers.
- MGA's Return On Equity of 8.20% is fine compared to the rest of the industry. MGA outperforms 78.57% of its industry peers.
- With a decent Return On Invested Capital value of 7.07%, MGA is doing good in the industry, outperforming 61.90% of the companies in the same industry.
- 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
- 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.
- MGA has a Operating Margin of 4.76%. This is comparable to the rest of the industry: MGA outperforms 59.52% of its industry peers.
- MGA's Operating Margin has declined in the last couple of years.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MGA is destroying value.
- Compared to 1 year ago, MGA has less shares outstanding
- 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
- 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.
- MGA has a Altman-Z score of 2.42. This is comparable to the rest of the industry: MGA outperforms 57.14% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 2.67, MGA belongs to the top of the industry, outperforming 85.71% of the companies in the same industry.
- 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/WACC0.85
WACC8.3%
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 has a worse Current ratio (1.18) than 80.95% 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 has a Quick ratio of 0.83. This is in the lower half of the industry: MGA underperforms 73.81% 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%.
- MGA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.22% yearly.
- MGA shows a decrease in Revenue. In the last year, the revenue decreased by -2.04%.
- 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
- 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
- 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 decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 10.19, the valuation of MGA can be described as very reasonable.
- 85.71% of the companies in the same industry are more expensive than MGA, based on the Price/Earnings ratio.
- MGA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.32.
- With a Price/Forward Earnings ratio of 8.69, the valuation of MGA can be described as very reasonable.
- Compared to the rest of the industry, the Price/Forward Earnings 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/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.19 | ||
| Fwd PE | 8.69 |
4.2 Price Multiples
- MGA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MGA is cheaper than 85.71% of the companies in the same industry.
- MGA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MGA is cheaper than 88.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.39 | ||
| EV/EBITDA | 5.17 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)6.85
PEG (5Y)N/A
EPS Next 2Y6.7%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.46%, MGA has a reasonable but not impressive dividend return.
- MGA's Dividend Yield is rather good when compared to the industry average which is at 0.61. 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 1.83.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.46% |
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.
- 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%
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%.