MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGA - CA5592224011 - Common Stock
53.23 USD
-0.18 (-0.34%)
53.23 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. Both the profitability and the financial health of MGA get a neutral evaluation. Nothing too spectacular is happening here. 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.
- In the past year MGA had a positive cash flow from operations.
- MGA had positive earnings in each of the past 5 years.
- 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.
- With a decent Return On Equity value of 8.20%, MGA is doing good in the industry, outperforming 78.57% of the companies in the same industry.
- MGA has a Return On Invested Capital of 7.07%. This is in the better half of the industry: MGA outperforms 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
- MGA has a better Profit Margin (2.47%) than 71.43% of its industry peers.
- In the last couple of years the Profit Margin of MGA has declined.
- The Operating Margin of MGA (4.76%) is comparable to the rest of the industry.
- 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.
- 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.
- MGA has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for MGA has been reduced compared to a year ago.
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.
- The Altman-Z score of MGA (2.42) is comparable to the rest of the industry.
- MGA has a debt to FCF ratio of 2.67. This is a good value and a sign of high solvency as MGA would need 2.67 years to pay back of 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 of 0.43. This is comparable 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 | 2.42 |
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.
- With a Current ratio value of 1.18, MGA is not doing good in the industry: 80.95% of the companies in the same industry are doing better.
- A Quick Ratio of 0.83 indicates that MGA may have some problems paying its short term obligations.
- With a Quick ratio value of 0.83, MGA is not doing good in the industry: 73.81% of the companies in the same industry are doing better.
| 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.
- Measured over the past years, MGA shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.22% on average per year.
- 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.
- 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
- 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
- With a Price/Earnings ratio of 10.16, the valuation of MGA can be described as very reasonable.
- MGA's Price/Earnings ratio is rather cheap when compared to the industry. MGA is cheaper than 85.71% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, MGA is valued rather cheaply.
- The Price/Forward Earnings ratio is 8.67, which indicates a very decent valuation of MGA.
- 88.10% of the companies in the same industry are more expensive than MGA, based on the Price/Forward Earnings ratio.
- MGA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 8.67 |
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 | 7.37 | ||
| EV/EBITDA | 5.15 |
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)6.59
PEG (5Y)N/A
EPS Next 2Y6.65%
EPS Next 3Y8.52%
5. Dividend
5.1 Amount
- MGA has a Yearly Dividend Yield of 3.68%. Purely for dividend investing, there may be better candidates out there.
- 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 1.81, 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 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 2Y6.65%
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%.