MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGA - CA5592224011 - Common Stock
52.31 USD
-1.24 (-2.32%)
52.31 USD
0 (0%)
Overall MGA gets a fundamental rating of 5 out of 10. We evaluated MGA against 42 industry peers in the Automobile Components industry. MGA has only an average score on both its financial health and profitability. MGA is valued quite cheap, but it does not seem to be growing. 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
- MGA had positive earnings in the past year.
- MGA had a positive operating cash flow in the past year.
- In the past 5 years MGA has always been profitable.
- In the past 5 years MGA always reported a positive cash flow from operatings.
1.2 Ratios
- MGA's Return On Assets of 3.14% is fine compared to the rest of the industry. MGA outperforms 73.81% of its industry peers.
- The Return On Equity of MGA (8.20%) is better than 78.57% of its industry peers.
- MGA has a better Return On Invested Capital (7.07%) than 61.90% 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
- With a decent Profit Margin value of 2.47%, MGA is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- In the last couple of years the Profit Margin of MGA has declined.
- With a Operating Margin value of 4.76%, MGA perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
- In the last couple of years the Operating Margin of MGA has declined.
- The Gross Margin of MGA (13.86%) is worse 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.
- 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 2.41. 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 2.41. This is comparable to the rest of the industry: MGA outperforms 54.76% 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.
- MGA's Debt to FCF ratio of 2.67 is amongst the best of the industry. MGA outperforms 85.71% 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.
- With a Debt to Equity ratio value of 0.43, MGA perfoms like the industry average, outperforming 59.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.41 |
ROIC/WACC0.85
WACC8.28%
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.
- The Current ratio of MGA (1.18) is worse than 80.95% 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 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
- 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.
- 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
- 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 Y1.54%
EPS Next 2Y6.65%
EPS Next 3Y8.52%
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 9.98, the valuation of MGA can be described as very reasonable.
- Based on the Price/Earnings ratio, MGA is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
- When comparing the Price/Earnings ratio of MGA to the average of the S&P500 Index (28.60), we can say MGA is valued rather cheaply.
- MGA is valuated reasonably with a Price/Forward Earnings ratio of 8.52.
- Based on the Price/Forward Earnings ratio, MGA is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.83, MGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.98 | ||
| Fwd PE | 8.52 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MGA is valued cheaply inside the industry as 85.71% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, MGA is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.24 | ||
| EV/EBITDA | 5.08 |
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)6.47
PEG (5Y)N/A
EPS Next 2Y6.65%
EPS Next 3Y8.52%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.68%, MGA has a reasonable but not impressive dividend return.
- Compared to an average industry Dividend Yield of 0.61, MGA pays a better dividend. On top of this MGA pays more dividend than 100.00% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, MGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
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 their dividend for at least 10 years, which is a reliable track record.
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 2Y6.65%
EPS Next 3Y8.52%
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%.