MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGA - CA5592224011 - Common Stock
52.85 USD
-0.38 (-0.71%)
MGA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 42 industry peers in the Automobile Components industry. MGA has only an average score on both its financial health and profitability. MGA is cheap, but on the other hand it scores bad on growth. Finally MGA also has an excellent dividend rating. These ratings would make MGA suitable 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.
- Each year in the past 5 years MGA had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 3.14%, MGA is doing good in the industry, outperforming 73.81% of the companies in the same industry.
- The Return On Equity of MGA (8.20%) is better than 78.57% of its industry peers.
- 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
- The Profit Margin of MGA (2.47%) is better than 71.43% of its industry peers.
- 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.
- MGA's Operating Margin has declined in the last couple of years.
- MGA's Gross Margin of 13.86% is on the low side compared to the rest of the industry. MGA is outperformed by 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.
- The number of shares outstanding for MGA has been reduced compared to 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.
- MGA has a Altman-Z score (2.42) which is comparable to the rest of the industry.
- 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.
- The Debt to FCF ratio of MGA (2.67) is better than 85.71% of its industry peers.
- 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/WACC0.89
WACC7.96%
2.3 Liquidity
- A Current Ratio of 1.18 indicates that MGA should not have too much problems paying its short term obligations.
- MGA has a Current ratio of 1.18. This is amonst the worse of the industry: MGA underperforms 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 worse Quick ratio (0.83) than 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%.
- 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.
- The Revenue has decreased by -2.04% 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)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
- 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 10.09, the valuation of MGA can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of MGA indicates a rather cheap valuation: MGA is cheaper than 85.71% of the companies listed in the same industry.
- MGA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
- The Price/Forward Earnings ratio is 8.61, which indicates a very decent valuation of MGA.
- MGA's Price/Forward Earnings ratio is rather cheap when compared to the industry. MGA is cheaper than 88.10% of the companies 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 25.98.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.09 | ||
| Fwd PE | 8.61 |
4.2 Price Multiples
- 85.71% 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 cheaply inside the industry as 90.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.32 | ||
| 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)6.54
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.
- MGA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.81.
| 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
- MGA pays out 52.47% of its income as dividend. 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%.