MAGNA INTERNATIONAL INC (MG.CA) Stock Fundamental Analysis
TSX:MG - Toronto Stock Exchange - CA5592224011 - Common Stock - Currency: CAD
We assign a fundamental rating of 4 out of 10 to MG. MG was compared to 5 industry peers in the Automobile Components industry. There are concerns on the financial health of MG while its profitability can be described as average. MG has a valuation in line with the averages, but on the other hand it scores bad on growth. Finally MG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MG had positive earnings in the past year.
In the past year MG had a positive cash flow from operations.
In the past 5 years MG has always been profitable.
MG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MG (3.57%) is comparable to the rest of the industry.
MG's Return On Equity of 9.76% is amongst the best of the industry. MG outperforms 100.00% of its industry peers.
The Return On Invested Capital of MG (7.52%) is better than 100.00% of its industry peers.
MG had an Average Return On Invested Capital over the past 3 years of 7.69%. This is in line with the industry average of 7.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 9.76% | ||
| ROIC | 7.52% |
ROA(3y)3.05%
ROA(5y)3.4%
ROE(3y)8.13%
ROE(5y)8.77%
ROIC(3y)7.69%
ROIC(5y)7.35%
1.3 Margins
MG has a Profit Margin (2.73%) which is in line with its industry peers.
In the last couple of years the Profit Margin of MG has declined.
MG has a worse Operating Margin (4.65%) than 80.00% of its industry peers.
MG's Operating Margin has declined in the last couple of years.
The Gross Margin of MG (13.62%) is worse than 60.00% of its industry peers.
MG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.65% | ||
| PM (TTM) | 2.73% | ||
| GM | 13.62% |
OM growth 3Y-3.12%
OM growth 5Y-4.35%
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), MG is destroying value.
Compared to 1 year ago, MG has less shares outstanding
MG has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.31 indicates that MG is not a great score, but indicates only limited risk for bankruptcy at the moment.
MG has a worse Altman-Z score (2.31) than 60.00% of its industry peers.
MG has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as MG would need 3.68 years to pay back of all of its debts.
The Debt to FCF ratio of MG (3.68) is worse than 60.00% of its industry peers.
MG has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
MG has a Debt to Equity ratio of 0.38. This is in the lower half of the industry: MG underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.87
WACC8.65%
2.3 Liquidity
A Current Ratio of 1.06 indicates that MG should not have too much problems paying its short term obligations.
The Current ratio of MG (1.06) is worse than 80.00% of its industry peers.
A Quick Ratio of 0.74 indicates that MG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.74, MG is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
MG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.03%.
Measured over the past years, MG shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.22% on average per year.
The Revenue has decreased by -2.69% in the past year.
MG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.67% yearly.
EPS 1Y (TTM)-5.03%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%-27.78%
Revenue 1Y (TTM)-2.69%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-8.21%
3.2 Future
Based on estimates for the next years, MG will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.35% on average per year.
MG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.21% yearly.
EPS Next Y-7.89%
EPS Next 2Y7.86%
EPS Next 3Y9.2%
EPS Next 5Y10.35%
Revenue Next Year-6.41%
Revenue Next 2Y-1.98%
Revenue Next 3Y-0.82%
Revenue Next 5Y0.21%
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 8.36, the valuation of MG can be described as very reasonable.
80.00% of the companies in the same industry are more expensive than MG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MG to the average of the S&P500 Index (27.93), we can say MG is valued rather cheaply.
The Price/Forward Earnings ratio is 6.79, which indicates a rather cheap valuation of MG.
MG's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. MG is more expensive than 60.00% of the companies in the same industry.
MG is valuated cheaply when we compare the Price/Forward Earnings ratio to 37.78, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.36 | ||
| Fwd PE | 6.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MG is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
60.00% of the companies in the same industry are cheaper than MG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.03 | ||
| EV/EBITDA | 4.45 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.86%
EPS Next 3Y9.2%
5. Dividend
5.1 Amount
MG has a Yearly Dividend Yield of 4.65%, which is a nice return.
Compared to an average industry Dividend Yield of 3.74, MG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.32, MG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
5.2 History
The dividend of MG has a limited annual growth rate of 5.84%.
MG has been paying a dividend for at least 10 years, so it has a reliable track record.
MG 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
MG pays out 47.21% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of MG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP47.21%
EPS Next 2Y7.86%
EPS Next 3Y9.2%
TSX:MG (7/28/2025, 7:00:00 PM)
58.38
+0.02 (+0.03%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners78.19%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap16.45B
Analysts72
Price Target40.67 (-30.34%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.65% |
Yearly Dividend2.59
Dividend Growth(5Y)5.84%
DP47.21%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.17%
Min EPS beat(2)-15.82%
Max EPS beat(2)7.47%
EPS beat(4)1
Avg EPS beat(4)-7.12%
Min EPS beat(4)-15.82%
Max EPS beat(4)7.47%
EPS beat(8)3
Avg EPS beat(8)-4.05%
EPS beat(12)4
Avg EPS beat(12)-2.89%
EPS beat(16)6
Avg EPS beat(16)0.9%
Revenue beat(2)2
Avg Revenue beat(2)0.56%
Min Revenue beat(2)0.19%
Max Revenue beat(2)0.92%
Revenue beat(4)2
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-3.58%
Max Revenue beat(4)0.92%
Revenue beat(8)3
Avg Revenue beat(8)-1.02%
Revenue beat(12)5
Avg Revenue beat(12)-0.6%
Revenue beat(16)6
Avg Revenue beat(16)-0.83%
PT rev (1m)0.95%
PT rev (3m)-16.41%
EPS NQ rev (1m)4.92%
EPS NQ rev (3m)-2.02%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.69%
Revenue NQ rev (3m)0.82%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.36 | ||
| Fwd PE | 6.79 | ||
| P/S | 0.29 | ||
| P/FCF | 8.03 | ||
| P/OCF | 3.49 | ||
| P/B | 1.02 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 4.45 |
EPS(TTM)6.98
EY11.96%
EPS(NY)8.59
Fwd EY14.72%
FCF(TTM)7.27
FCFY12.45%
OCF(TTM)16.75
OCFY28.69%
SpS203.57
BVpS56.99
TBVpS40.15
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 9.76% | ||
| ROCE | 10.27% | ||
| ROIC | 7.52% | ||
| ROICexc | 7.94% | ||
| ROICexgc | 9.77% | ||
| OM | 4.65% | ||
| PM (TTM) | 2.73% | ||
| GM | 13.62% | ||
| FCFM | 3.57% |
ROA(3y)3.05%
ROA(5y)3.4%
ROE(3y)8.13%
ROE(5y)8.77%
ROIC(3y)7.69%
ROIC(5y)7.35%
ROICexc(3y)8.23%
ROICexc(5y)8.22%
ROICexgc(3y)10.09%
ROICexgc(5y)9.99%
ROCE(3y)10.32%
ROCE(5y)9.82%
ROICexcg growth 3Y-1.05%
ROICexcg growth 5Y-4.17%
ROICexc growth 3Y-2%
ROICexc growth 5Y-5%
OM growth 3Y-3.12%
OM growth 5Y-4.35%
PM growth 3Y-17.39%
PM growth 5Y-12.05%
GM growth 3Y-1.57%
GM growth 5Y-0.26%
F-Score7
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 121.15% | ||
| Cap/Sales | 4.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.83% | ||
| Profit Quality | 130.63% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.31 |
F-Score7
WACC8.65%
ROIC/WACC0.87
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)-5.03%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%-27.78%
EPS Next Y-7.89%
EPS Next 2Y7.86%
EPS Next 3Y9.2%
EPS Next 5Y10.35%
Revenue 1Y (TTM)-2.69%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-8.21%
Revenue Next Year-6.41%
Revenue Next 2Y-1.98%
Revenue Next 3Y-0.82%
Revenue Next 5Y0.21%
EBIT growth 1Y-4.41%
EBIT growth 3Y2.43%
EBIT growth 5Y-2.75%
EBIT Next Year61.71%
EBIT Next 3Y21.26%
EBIT Next 5Y13.73%
FCF growth 1Y444.36%
FCF growth 3Y-2.44%
FCF growth 5Y-10.38%
OCF growth 1Y61.06%
OCF growth 3Y7.32%
OCF growth 5Y-1.7%