MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - NYSE:MGA - CA5592224011 - Common Stock
49.09 USD
-0.39 (-0.79%)
49.09 USD
0 (0%)
Taking everything into account, MGA scores 4 out of 10 in our fundamental rating. MGA was compared to 82 industry peers in the Automobile Components industry. While MGA seems to be doing ok healthwise, there are quite some concerns on its profitability. MGA has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally MGA also has an excellent dividend rating.
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
With a Return On Assets value of 3.14%, MGA is not doing good in the industry: 60.98% of the companies in the same industry are doing better.
MGA has a Return On Equity (8.20%) which is comparable to the rest of the industry.
With a Return On Invested Capital value of 7.07%, MGA is not doing good in the industry: 67.07% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for MGA is in line with the industry average of 8.55%.
| 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's Profit Margin of 2.47% is on the low side compared to the rest of the industry. MGA is outperformed by 62.20% of its industry peers.
MGA's Profit Margin has declined in the last couple of years.
The Operating Margin of MGA (4.76%) is worse than 68.29% of its industry peers.
MGA's Operating Margin has declined in the last couple of years.
MGA has a Gross Margin of 13.86%. This is amonst the worse of the industry: MGA underperforms 82.93% 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) just above the Cost of Capital (WACC), MGA is creating some value.
Compared to 1 year ago, MGA has less shares outstanding
The number of shares outstanding for MGA has been reduced compared to 5 years ago.
The debt/assets ratio for MGA has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.38 indicates that MGA is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of MGA (2.38) 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.
MGA has a better Debt to FCF ratio (2.67) than 92.68% 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.
MGA's Debt to Equity ratio of 0.43 is on the low side compared to the rest of the industry. MGA is outperformed by 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.91
WACC7.76%
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 89.02% 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.
The Quick ratio of MGA (0.83) is worse than 84.15% 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.
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.
Looking at the last year, MGA shows a decrease in Revenue. The Revenue has decreased by -2.04% in the last year.
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%-2.12%
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 Y-0.86%
EPS Next 2Y6.01%
EPS Next 3Y8.23%
EPS Next 5Y10.17%
Revenue Next Year-2.71%
Revenue Next 2Y-0.77%
Revenue Next 3Y0.45%
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
MGA is valuated reasonably with a Price/Earnings ratio of 9.37.
Based on the Price/Earnings ratio, MGA is valued cheaper than 80.49% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.89, MGA is valued rather cheaply.
MGA is valuated reasonably with a Price/Forward Earnings ratio of 8.09.
Based on the Price/Forward Earnings ratio, MGA is valued a bit cheaper than the industry average as 75.61% of the companies are valued more expensively.
MGA is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.59, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 8.09 |
4.2 Price Multiples
73.17% of the companies in the same industry are more expensive than MGA, based on the Enterprise Value to EBITDA ratio.
MGA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MGA is cheaper than 93.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.79 | ||
| EV/EBITDA | 4.83 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.01%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
MGA has a Yearly Dividend Yield of 3.91%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 4.20, MGA has a dividend in line with its industry peers.
MGA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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
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 2Y6.01%
EPS Next 3Y8.23%
49.09
-0.39 (-0.79%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners78.22%
Inst Owner Change-0.62%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap13.83B
Revenue(TTM)41.79B
Net Income(TTM)1.03B
Analysts72.63
Price Target35.56 (-27.56%)
Short Float %2.39%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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)12.65%
Min EPS beat(2)3.08%
Max EPS beat(2)22.22%
EPS beat(4)3
Avg EPS beat(4)4.24%
Min EPS beat(4)-15.82%
Max EPS beat(4)22.22%
EPS beat(8)3
Avg EPS beat(8)-3.96%
EPS beat(12)6
Avg EPS beat(12)0.86%
EPS beat(16)8
Avg EPS beat(16)3.1%
Revenue beat(2)1
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-4.13%
Max Revenue beat(2)0.93%
Revenue beat(4)3
Avg Revenue beat(4)-0.52%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)0.93%
Revenue beat(8)3
Avg Revenue beat(8)-1.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.73%
Revenue beat(16)7
Avg Revenue beat(16)-0.53%
PT rev (1m)0.51%
PT rev (3m)6.47%
EPS NQ rev (1m)1.98%
EPS NQ rev (3m)3.6%
EPS NY rev (1m)3.2%
EPS NY rev (3m)7.63%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)2.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.37 | ||
| Fwd PE | 8.09 | ||
| P/S | 0.33 | ||
| P/FCF | 6.79 | ||
| P/OCF | 3.92 | ||
| P/B | 1.1 | ||
| P/tB | 1.53 | ||
| EV/EBITDA | 4.83 |
EPS(TTM)5.24
EY10.67%
EPS(NY)6.07
Fwd EY12.36%
FCF(TTM)7.23
FCFY14.72%
OCF(TTM)12.51
OCFY25.49%
SpS148.31
BVpS44.71
TBVpS32
PEG (NY)N/A
PEG (5Y)N/A
Graham Number72.61
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 | 2.38 |
F-Score6
WACC7.76%
ROIC/WACC0.91
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 Y-0.86%
EPS Next 2Y6.01%
EPS Next 3Y8.23%
EPS Next 5Y10.17%
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-2.12%
Revenue Next Year-2.71%
Revenue Next 2Y-0.77%
Revenue Next 3Y0.45%
Revenue Next 5Y1%
EBIT growth 1Y-1.63%
EBIT growth 3Y3.64%
EBIT growth 5Y-2.06%
EBIT Next Year67.1%
EBIT Next 3Y22.77%
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 4 / 10 to MGA.
Can you provide the valuation status for MAGNA INTERNATIONAL INC?
ChartMill assigns a valuation rating of 6 / 10 to MAGNA INTERNATIONAL INC (MGA). This can be considered as Fairly Valued.
How profitable is MAGNA INTERNATIONAL INC (MGA) stock?
MAGNA INTERNATIONAL INC (MGA) has a profitability rating of 3 / 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 9.37 and the Price/Book (PB) ratio is 1.1.
What is the earnings growth outlook for MAGNA INTERNATIONAL INC?
The Earnings per Share (EPS) of MAGNA INTERNATIONAL INC (MGA) is expected to decline by -0.86% in the next year.