MAGNA INTERNATIONAL INC (MG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MG - CA5592224011 - Common Stock
68.03 CAD
+3.63 (+5.64%)
Overall MG gets a fundamental rating of 4 out of 10. We evaluated MG against 5 industry peers in the Automobile Components industry. While MG is still in line with the averages on profitability rating, there are concerns on its financial health. MG does not seem to be growing, but still is valued expensively. MG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MG was profitable.
MG had a positive operating cash flow in the past year.
In the past 5 years MG has always been profitable.
Each year in the past 5 years MG had a positive operating cash flow.
1.2 Ratios
MG has a Return On Assets (3.14%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 8.20%, MG belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
MG's Return On Invested Capital of 7.07% is amongst the best of the industry. MG outperforms 100.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MG is in line with the industry average of 6.23%.
| 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
MG has a Profit Margin of 2.47%. This is comparable to the rest of the industry: MG outperforms 60.00% of its industry peers.
In the last couple of years the Profit Margin of MG has declined.
Looking at the Operating Margin, with a value of 4.76%, MG is doing worse than 80.00% of the companies in the same industry.
In the last couple of years the Operating Margin of MG has declined.
MG's Gross Margin of 13.86% is on the low side compared to the rest of the industry. MG is outperformed by 60.00% of its industry peers.
In the last couple of years the Gross Margin of MG 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 just above the Cost of Capital (WACC), so MG is still creating some value.
Compared to 1 year ago, MG has less shares outstanding
MG has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.38 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 (2.38) than 60.00% of its industry peers.
The Debt to FCF ratio of MG is 2.67, which is a good value as it means it would take MG, 2.67 years of fcf income to pay off all of its debts.
MG's Debt to FCF ratio of 2.67 is on the low side compared to the rest of the industry. MG is outperformed by 60.00% of its industry peers.
MG has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.43, MG is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.38 |
ROIC/WACC0.91
WACC7.78%
2.3 Liquidity
MG has a Current Ratio of 1.18. This is a normal value and indicates that MG is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.18, MG is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
MG has a Quick Ratio of 1.18. This is a bad value and indicates that MG is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.83, MG is not doing good in the industry: 60.00% 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
MG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.97%.
MG shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.22% yearly.
MG shows a decrease in Revenue. In the last year, the revenue decreased by -2.04%.
MG 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.
MG 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
Based on the Price/Earnings ratio of 9.22, the valuation of MG can be described as reasonable.
MG's Price/Earnings is on the same level as the industry average.
MG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.65.
Based on the Price/Forward Earnings ratio of 7.96, the valuation of MG can be described as very cheap.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MG indicates a slightly more expensive valuation: MG is more expensive than 60.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.45, MG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 7.96 |
4.2 Price Multiples
MG's Enterprise Value to EBITDA ratio is rather expensive when compared to the industry. MG is more expensive than 80.00% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MG is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.68 | ||
| EV/EBITDA | 4.77 |
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
With a Yearly Dividend Yield of 4.21%, MG is a good candidate for dividend investing.
MG's Dividend Yield is a higher than the industry average which is at 3.52.
MG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
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 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
MG pays out 52.47% 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.
DP52.47%
EPS Next 2Y6.01%
EPS Next 3Y8.23%
TSX:MG (11/21/2025, 7:00:00 PM)
68.03
+3.63 (+5.64%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners78.22%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap19.17B
Revenue(TTM)41.79B
Net Income(TTM)1.03B
Analysts72.63
Price Target53.91 (-20.76%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.21% |
Yearly Dividend2.67
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)14.25%
Min EPS beat(2)6.28%
Max EPS beat(2)22.22%
EPS beat(4)3
Avg EPS beat(4)5.04%
Min EPS beat(4)-15.82%
Max EPS beat(4)22.22%
EPS beat(8)3
Avg EPS beat(8)-3.56%
EPS beat(12)6
Avg EPS beat(12)1.13%
EPS beat(16)8
Avg EPS beat(16)3.3%
Revenue beat(2)2
Avg Revenue beat(2)0.56%
Min Revenue beat(2)0.19%
Max Revenue beat(2)0.93%
Revenue beat(4)4
Avg Revenue beat(4)0.56%
Min Revenue beat(4)0.19%
Max Revenue beat(4)0.93%
Revenue beat(8)4
Avg Revenue beat(8)-1.28%
Revenue beat(12)6
Avg Revenue beat(12)-0.37%
Revenue beat(16)8
Avg Revenue beat(16)-0.26%
PT rev (1m)9.36%
PT rev (3m)13.24%
EPS NQ rev (1m)5.04%
EPS NQ rev (3m)6.71%
EPS NY rev (1m)3.2%
EPS NY rev (3m)2.8%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)1.26%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)0.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.22 | ||
| Fwd PE | 7.96 | ||
| P/S | 0.33 | ||
| P/FCF | 6.68 | ||
| P/OCF | 3.86 | ||
| P/B | 1.08 | ||
| P/tB | 1.51 | ||
| EV/EBITDA | 4.77 |
EPS(TTM)7.38
EY10.85%
EPS(NY)8.55
Fwd EY12.56%
FCF(TTM)10.18
FCFY14.96%
OCF(TTM)17.63
OCFY25.91%
SpS208.89
BVpS62.98
TBVpS45.07
PEG (NY)N/A
PEG (5Y)N/A
Graham Number102.26
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
WACC7.78%
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%1.77%
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 / MG.CA FAQ
What is the fundamental rating for MG stock?
ChartMill assigns a fundamental rating of 4 / 10 to MG.CA.
What is the valuation status of MAGNA INTERNATIONAL INC (MG.CA) stock?
ChartMill assigns a valuation rating of 3 / 10 to MAGNA INTERNATIONAL INC (MG.CA). This can be considered as Overvalued.
Can you provide the profitability details for MAGNA INTERNATIONAL INC?
MAGNA INTERNATIONAL INC (MG.CA) has a profitability rating of 5 / 10.
What is the earnings growth outlook for MAGNA INTERNATIONAL INC?
The Earnings per Share (EPS) of MAGNA INTERNATIONAL INC (MG.CA) is expected to decline by -0.86% in the next year.
How sustainable is the dividend of MAGNA INTERNATIONAL INC (MG.CA) stock?
The dividend rating of MAGNA INTERNATIONAL INC (MG.CA) is 8 / 10 and the dividend payout ratio is 52.47%.