MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - NYSE:MGA - CA5592224011 - Common Stock
47.33 USD
+0.58 (+1.24%)
47.33 USD
0 (0%)
MGA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 80 industry peers in the Automobile Components industry. While MGA seems to be doing ok healthwise, there are quite some concerns on its profitability. MGA is valued correctly, but it does not seem to be growing. MGA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MGA was profitable.
In the past year MGA had a positive cash flow from operations.
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 worse Return On Assets (3.65%) than 61.25% of its industry peers.
With an excellent Return On Equity value of 9.71%, MGA belongs to the best of the industry, outperforming 88.75% of the companies in the same industry.
MGA has a Return On Invested Capital of 7.13%. This is in the lower half of the industry: MGA underperforms 65.00% of its industry peers.
MGA had an Average Return On Invested Capital over the past 3 years of 7.76%. This is in line with the industry average of 8.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 9.71% | ||
| ROIC | 7.13% |
ROA(3y)3.05%
ROA(5y)3.4%
ROE(3y)8.13%
ROE(5y)8.77%
ROIC(3y)7.76%
ROIC(5y)7.4%
1.3 Margins
With a Profit Margin value of 2.91%, MGA is not doing good in the industry: 65.00% of the companies in the same industry are doing better.
MGA's Profit Margin has declined in the last couple of years.
MGA has a Operating Margin of 4.80%. This is in the lower half of the industry: MGA underperforms 68.75% of its industry peers.
In the last couple of years the Operating Margin of MGA has declined.
MGA's Gross Margin of 13.83% is on the low side compared to the rest of the industry. MGA is outperformed by 83.75% of its industry peers.
MGA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.8% | ||
| PM (TTM) | 2.91% | ||
| GM | 13.83% |
OM growth 3Y-2.24%
OM growth 5Y-3.82%
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.
Compared to 1 year ago, MGA has an improved debt to assets ratio.
2.2 Solvency
MGA has an Altman-Z score of 2.32. 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 (2.32) is worse than 60.00% of its industry peers.
The Debt to FCF ratio of MGA is 3.68, which is a good value as it means it would take MGA, 3.68 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MGA (3.68) is better than 88.75% 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 has a worse Debt to Equity ratio (0.43) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.8
WACC8.96%
2.3 Liquidity
MGA has a Current Ratio of 1.16. This is a normal value and indicates that MGA is financially healthy and should not expect problems in meeting its short term obligations.
MGA's Current ratio of 1.16 is on the low side compared to the rest of the industry. MGA is outperformed by 90.00% of its industry peers.
MGA has a Quick Ratio of 1.16. This is a bad value and indicates that MGA is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.82, MGA is doing worse than 86.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
MGA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.57%.
MGA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.22% yearly.
The Revenue has decreased by -3.39% in the past 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)-0.57%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%6.67%
Revenue 1Y (TTM)-3.39%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-2.98%
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 11.06% yearly.
Based on estimates for the next years, MGA will show a small growth in Revenue. The Revenue will grow by 0.62% on average per year.
EPS Next Y-3.56%
EPS Next 2Y5.28%
EPS Next 3Y7.68%
EPS Next 5Y11.06%
Revenue Next Year-3.63%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.13%
Revenue Next 5Y0.62%
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
The Price/Earnings ratio is 9.12, which indicates a very decent valuation of MGA.
82.50% of the companies in the same industry are more expensive than MGA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MGA to the average of the S&P500 Index (27.41), we can say MGA is valued rather cheaply.
A Price/Forward Earnings ratio of 7.91 indicates a rather cheap valuation of MGA.
MGA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MGA is cheaper than 73.75% of the companies in the same industry.
MGA is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.12 | ||
| Fwd PE | 7.91 |
4.2 Price Multiples
73.75% of the companies in the same industry are more expensive than MGA, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MGA is valued cheaper than 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.12 | ||
| EV/EBITDA | 4.78 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.28%
EPS Next 3Y7.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.19%, MGA is a good candidate for dividend investing.
MGA's Dividend Yield is comparable with the industry average which is at 3.89.
MGA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
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
44.88% 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.
DP44.88%
EPS Next 2Y5.28%
EPS Next 3Y7.68%
47.33
+0.58 (+1.24%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners78.19%
Inst Owner Change-3.14%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap13.34B
Analysts72.63
Price Target35.24 (-25.54%)
Short Float %2.71%
Short Ratio5.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.19% |
Yearly Dividend1.89
Dividend Growth(5Y)5.84%
DP44.88%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.2%
Min EPS beat(2)-15.82%
Max EPS beat(2)22.22%
EPS beat(4)2
Avg EPS beat(4)0.62%
Min EPS beat(4)-15.82%
Max EPS beat(4)22.22%
EPS beat(8)3
Avg EPS beat(8)-3.58%
EPS beat(12)5
Avg EPS beat(12)0.04%
EPS beat(16)7
Avg EPS beat(16)2.36%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.92%
Max Revenue beat(2)0.93%
Revenue beat(4)3
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-3.58%
Max Revenue beat(4)0.93%
Revenue beat(8)3
Avg Revenue beat(8)-1.32%
Revenue beat(12)5
Avg Revenue beat(12)-0.57%
Revenue beat(16)7
Avg Revenue beat(16)-0.43%
PT rev (1m)5.52%
PT rev (3m)21.29%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)-22.38%
EPS NY rev (1m)4.71%
EPS NY rev (3m)4.71%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-3.52%
Revenue NY rev (1m)1.97%
Revenue NY rev (3m)2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.12 | ||
| Fwd PE | 7.91 | ||
| P/S | 0.32 | ||
| P/FCF | 8.12 | ||
| P/OCF | 3.99 | ||
| P/B | 1.07 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 4.78 |
EPS(TTM)5.19
EY10.97%
EPS(NY)5.99
Fwd EY12.65%
FCF(TTM)5.83
FCFY12.31%
OCF(TTM)11.86
OCFY25.05%
SpS147.66
BVpS44.3
TBVpS31.45
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 9.71% | ||
| ROCE | 9.6% | ||
| ROIC | 7.13% | ||
| ROICexc | 7.69% | ||
| ROICexgc | 9.43% | ||
| OM | 4.8% | ||
| PM (TTM) | 2.91% | ||
| GM | 13.83% | ||
| FCFM | 3.95% |
ROA(3y)3.05%
ROA(5y)3.4%
ROE(3y)8.13%
ROE(5y)8.77%
ROIC(3y)7.76%
ROIC(5y)7.4%
ROICexc(3y)8.31%
ROICexc(5y)8.27%
ROICexgc(3y)10.19%
ROICexgc(5y)10.05%
ROCE(3y)10.42%
ROCE(5y)9.88%
ROICexcg growth 3Y-0.14%
ROICexcg growth 5Y-3.64%
ROICexc growth 3Y-1.1%
ROICexc growth 5Y-4.48%
OM growth 3Y-2.24%
OM growth 5Y-3.82%
PM growth 3Y-17.39%
PM growth 5Y-12.05%
GM growth 3Y-1.57%
GM growth 5Y-0.26%
F-Score8
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 104.36% | ||
| Cap/Sales | 4.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.11% | ||
| Profit Quality | 135.48% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.32 |
F-Score8
WACC8.96%
ROIC/WACC0.8
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)-0.57%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%6.67%
EPS Next Y-3.56%
EPS Next 2Y5.28%
EPS Next 3Y7.68%
EPS Next 5Y11.06%
Revenue 1Y (TTM)-3.39%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-2.98%
Revenue Next Year-3.63%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.13%
Revenue Next 5Y0.62%
EBIT growth 1Y-0.74%
EBIT growth 3Y3.36%
EBIT growth 5Y-2.22%
EBIT Next Year61.71%
EBIT Next 3Y21.26%
EBIT Next 5Y14.2%
FCF growth 1Y620.17%
FCF growth 3Y-2.44%
FCF growth 5Y-10.38%
OCF growth 1Y47.31%
OCF growth 3Y7.32%
OCF growth 5Y-1.7%