MAGNA INTERNATIONAL INC (MG.CA) Stock Fundamental Analysis
TSX:MG - Toronto Stock Exchange - CA5592224011 - Common Stock - Currency: CAD
Overall MG gets a fundamental rating of 4 out of 10. We evaluated MG against 5 industry peers in the Automobile Components industry. MG has a medium profitability rating, but doesn't score so well on its financial health evaluation. MG is valued correctly, but it does not seem to be growing. MG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MG was profitable.
In the past year MG had a positive cash flow from operations.
Each year in the past 5 years MG has 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 (3.57%) which is comparable to the rest of the industry.
MG has a Return On Equity of 9.76%. This is amongst the best in 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.
The Average Return On Invested Capital over the past 3 years for MG 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.
MG's Profit Margin has declined in the last couple of years.
MG has a Operating Margin of 4.65%. This is amonst the worse of the industry: MG underperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of MG has declined.
MG has a worse Gross Margin (13.62%) than 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 | 4.65% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MG is destroying value.
MG has less shares outstanding than it did 1 year ago.
MG has less shares outstanding than it did 5 years ago.
MG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.26 indicates that MG is not a great score, but indicates only limited risk for bankruptcy at the moment.
MG's Altman-Z score of 2.26 is on the low side compared to the rest of the industry. MG is outperformed by 60.00% of its industry peers.
The Debt to FCF ratio of MG is 3.68, which is a good value as it means it would take MG, 3.68 years of fcf income to pay off all of its debts.
MG has a worse Debt to FCF ratio (3.68) than 60.00% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that MG is not too dependend on debt financing.
MG has a worse Debt to Equity ratio (0.38) than 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.26 |
ROIC/WACC0.91
WACC8.23%
2.3 Liquidity
MG has a Current Ratio of 1.06. This is a normal value and indicates that MG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MG (1.06) is worse than 80.00% of its industry peers.
MG has a Quick Ratio of 1.06. 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 0.74, MG is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| 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%.
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 -2.69%.
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
The Earnings Per Share is expected to grow by 12.22% 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 0.06% yearly.
EPS Next Y-7.89%
EPS Next 2Y7.86%
EPS Next 3Y9.2%
EPS Next 5Y12.22%
Revenue Next Year-6.41%
Revenue Next 2Y-1.98%
Revenue Next 3Y-0.82%
Revenue Next 5Y0.06%
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 7.11, the valuation of MG can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of MG indicates a somewhat cheap valuation: MG is cheaper than 80.00% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.46. MG is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 5.78, which indicates a rather cheap valuation of MG.
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 22.30, MG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.11 | ||
| Fwd PE | 5.78 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MG is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as MG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.86 | ||
| EV/EBITDA | 3.96 |
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 4.92%, which is a nice return.
Compared to an average industry Dividend Yield of 3.84, MG pays a bit more dividend than its industry peers.
MG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
5.2 History
The dividend of MG has a limited annual growth rate of 5.84%.
MG has paid a dividend for at least 10 years, which is 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
47.21% of the earnings are spent on dividend by MG. 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 (6/3/2025, 7:00:00 PM)
49.87
+1.17 (+2.4%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners79.05%
Inst Owner ChangeN/A
Ins Owners0.13%
Ins Owner ChangeN/A
Market Cap14.11B
Analysts73
Price Target45.51 (-8.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.92% |
Yearly Dividend2.61
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)-6.45%
PT rev (3m)-14.92%
EPS NQ rev (1m)-6.62%
EPS NQ rev (3m)-26.77%
EPS NY rev (1m)0%
EPS NY rev (3m)-6.73%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)-6.27%
Revenue NY rev (1m)0.93%
Revenue NY rev (3m)-1.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.11 | ||
| Fwd PE | 5.78 | ||
| P/S | 0.24 | ||
| P/FCF | 6.86 | ||
| P/OCF | 2.98 | ||
| P/B | 0.87 | ||
| P/tB | 1.24 | ||
| EV/EBITDA | 3.96 |
EPS(TTM)7.01
EY14.06%
EPS(NY)8.63
Fwd EY17.31%
FCF(TTM)7.27
FCFY14.58%
OCF(TTM)16.76
OCFY33.6%
SpS203.67
BVpS57.02
TBVpS40.17
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 | 2.26 |
F-Score7
WACC8.23%
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)-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 5Y12.22%
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 5Y0.06%
EBIT growth 1Y-4.41%
EBIT growth 3Y2.43%
EBIT growth 5Y-2.75%
EBIT Next Year61.71%
EBIT Next 3Y21.26%
EBIT Next 5Y13.57%
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%