MAGNA INTERNATIONAL INC (MG.CA) Stock Fundamental Analysis
Canada - TSX:MG - CA5592224011 - Common Stock
67.16 CAD
-1.74 (-2.53%)
Overall MG gets a fundamental rating of 4 out of 10. We evaluated MG against 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 is valued correctly, but it does not seem to be growing. Finally 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.
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
MG has a Return On Assets (3.14%) which is comparable to the rest of the industry.
MG has a better Return On Equity (8.20%) than 100.00% of its industry peers.
With a decent Return On Invested Capital value of 7.07%, MG is doing good in the industry, outperforming 80.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for MG is in line with the industry average of 6.25%.
| 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.
MG's Operating Margin of 4.76% is on the low side compared to the rest of the industry. MG is outperformed by 80.00% of its industry peers.
In the last couple of years the Operating Margin of MG has declined.
The Gross Margin of MG (13.86%) is worse 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 | 4.76% | ||
| 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.
MG has a better debt/assets ratio than last year.
2.2 Solvency
MG has an Altman-Z score of 2.37. This is not the best score and indicates that MG is in the grey zone with still only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.37, MG is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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.
With a Debt to FCF ratio value of 2.67, MG is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
A Debt/Equity ratio of 0.43 indicates that MG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.43, MG is doing worse than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.37 |
ROIC/WACC0.91
WACC7.76%
2.3 Liquidity
A Current Ratio of 1.18 indicates that MG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.18, MG is doing worse than 80.00% of the companies in the same industry.
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.
MG has a Quick ratio of 0.83. This is in the lower half of the industry: MG underperforms 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.97% over the past year.
The Earnings Per Share has been decreasing by -2.22% on average over the past years.
MG shows a decrease in Revenue. In the last year, the revenue decreased by -2.04%.
The Revenue has been growing slightly by 1.67% on average over the past years.
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%-2.12%
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 10.17% on average per year.
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.14, the valuation of MG can be described as very reasonable.
Based on the Price/Earnings ratio, MG is valued a bit cheaper than the industry average as 80.00% of the companies are valued more expensively.
MG's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.51.
MG is valuated cheaply with a Price/Forward Earnings ratio of 7.89.
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.
MG is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 7.89 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MG is valued a bit more expensive than 60.00% of the companies in the same industry.
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 | 6.62 | ||
| EV/EBITDA | 4.74 |
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
MG has a Yearly Dividend Yield of 3.91%.
MG's Dividend Yield is a higher than the industry average which is at 3.41.
MG's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
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.
MG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.47%
EPS Next 2Y6.01%
EPS Next 3Y8.23%
TSX:MG (11/17/2025, 7:00:00 PM)
67.16
-1.74 (-2.53%)
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 Cap18.92B
Revenue(TTM)41.79B
Net Income(TTM)1.03B
Analysts72.63
Price Target49.89 (-25.71%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.91% |
Yearly Dividend2.65
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)12.65%
Min EPS beat(2)3.08%
Max EPS beat(2)22.22%
EPS beat(4)3
Avg EPS beat(4)4.24%
Min EPS beat(4)-15.82%
Max EPS beat(4)22.22%
EPS beat(8)3
Avg EPS beat(8)-3.96%
EPS beat(12)6
Avg EPS beat(12)0.86%
EPS beat(16)8
Avg EPS beat(16)3.1%
Revenue beat(2)1
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-4.13%
Max Revenue beat(2)0.93%
Revenue beat(4)3
Avg Revenue beat(4)-0.52%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)0.93%
Revenue beat(8)3
Avg Revenue beat(8)-1.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.73%
Revenue beat(16)7
Avg Revenue beat(16)-0.53%
PT rev (1m)1.21%
PT rev (3m)8.46%
EPS NQ rev (1m)1.98%
EPS NQ rev (3m)3.6%
EPS NY rev (1m)3.2%
EPS NY rev (3m)7.63%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)1%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)2.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.14 | ||
| Fwd PE | 7.89 | ||
| P/S | 0.32 | ||
| P/FCF | 6.62 | ||
| P/OCF | 3.82 | ||
| P/B | 1.07 | ||
| P/tB | 1.5 | ||
| EV/EBITDA | 4.74 |
EPS(TTM)7.35
EY10.94%
EPS(NY)8.52
Fwd EY12.68%
FCF(TTM)10.14
FCFY15.1%
OCF(TTM)17.56
OCFY26.15%
SpS208.14
BVpS62.75
TBVpS44.91
PEG (NY)N/A
PEG (5Y)N/A
Graham Number101.87
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 | 2.37 |
F-Score6
WACC7.76%
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%-2.12%
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 4 / 10 to MAGNA INTERNATIONAL INC (MG.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for MAGNA INTERNATIONAL INC?
MAGNA INTERNATIONAL INC (MG.CA) has a profitability rating of 4 / 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 7 / 10 and the dividend payout ratio is 52.47%.