MAGNA INTERNATIONAL INC (MG.CA) Stock Fundamental Analysis
Canada - TSX:MG - CA5592224011 - Common Stock
64.21 CAD
-0.6 (-0.93%)
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 has a valuation in line with the averages, but it does not seem to be growing. 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.
Each year in the past 5 years MG has been profitable.
MG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.65%, MG is in line with its industry, outperforming 60.00% of the companies in the same industry.
The Return On Equity of MG (9.71%) is better than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.13%, MG is in the better half of 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 6.72%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 9.71% | ||
| ROIC | 7.13% |
ROA(3y)3.05%
ROA(5y)3.4%
ROE(3y)8.13%
ROE(5y)8.77%
ROIC(3y)7.76%
ROIC(5y)7.4%
1.3 Margins
MG has a Profit Margin of 2.91%. This is comparable to the rest of the industry: MG outperforms 60.00% of its industry peers.
MG's Profit Margin has declined in the last couple of years.
MG's Operating Margin of 4.80% is on the low side compared to the rest of the industry. MG is outperformed by 80.00% of its industry peers.
MG's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 13.83%, MG is doing worse than 60.00% of the companies in the same industry.
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 | 4.8% | ||
| PM (TTM) | 2.91% | ||
| GM | 13.83% |
OM growth 3Y-2.24%
OM growth 5Y-3.82%
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.
The number of shares outstanding for MG has been reduced compared to 1 year ago.
Compared to 5 years ago, MG has less shares outstanding
The debt/assets ratio for MG has been reduced compared to a year ago.
2.2 Solvency
MG has an Altman-Z score of 2.32. 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 2.32, MG is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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.
MG has a worse Debt to FCF ratio (3.68) than 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.
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 | 3.68 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.8
WACC8.92%
2.3 Liquidity
A Current Ratio of 1.16 indicates that MG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.16, MG is doing worse than 80.00% of the companies in the same industry.
A Quick Ratio of 0.82 indicates that MG may have some problems paying its short term obligations.
With a Quick ratio value of 0.82, 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 | 1.16 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
MG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.57%.
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 -3.39%.
MG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.67% yearly.
EPS 1Y (TTM)-0.57%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%6.67%
Revenue 1Y (TTM)-3.39%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-2.98%
3.2 Future
MG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.06% yearly.
The Revenue is expected to grow by 0.62% on average over the next years.
EPS Next Y-3.56%
EPS Next 2Y5.28%
EPS Next 3Y7.68%
EPS Next 5Y11.06%
Revenue Next Year-3.63%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.13%
Revenue Next 5Y0.62%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
MG is valuated reasonably with a Price/Earnings ratio of 8.96.
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.
MG is valuated cheaply when we compare the Price/Earnings ratio to 27.41, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 7.77, the valuation of MG can be described as very cheap.
Based on the Price/Forward Earnings ratio, MG is valued a bit more expensive than 60.00% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.87. MG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 7.77 |
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 | 7.98 | ||
| EV/EBITDA | 4.76 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.28%
EPS Next 3Y7.68%
5. Dividend
5.1 Amount
MG has a Yearly Dividend Yield of 4.16%, which is a nice return.
Compared to an average industry Dividend Yield of 3.38, MG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.38, MG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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 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
44.88% 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.
DP44.88%
EPS Next 2Y5.28%
EPS Next 3Y7.68%
TSX:MG (9/22/2025, 7:00:00 PM)
64.21
-0.6 (-0.93%)
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 Cap18.09B
Analysts72.63
Price Target48.77 (-24.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
Yearly Dividend2.62
Dividend Growth(5Y)5.84%
DP44.88%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.2%
Min EPS beat(2)-15.82%
Max EPS beat(2)22.22%
EPS beat(4)2
Avg EPS beat(4)0.62%
Min EPS beat(4)-15.82%
Max EPS beat(4)22.22%
EPS beat(8)3
Avg EPS beat(8)-3.58%
EPS beat(12)5
Avg EPS beat(12)0.04%
EPS beat(16)7
Avg EPS beat(16)2.36%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.92%
Max Revenue beat(2)0.93%
Revenue beat(4)3
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-3.58%
Max Revenue beat(4)0.93%
Revenue beat(8)3
Avg Revenue beat(8)-1.32%
Revenue beat(12)5
Avg Revenue beat(12)-0.57%
Revenue beat(16)7
Avg Revenue beat(16)-0.43%
PT rev (1m)6.02%
PT rev (3m)22.23%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)-22.38%
EPS NY rev (1m)0%
EPS NY rev (3m)4.71%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-3.52%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.96 | ||
| Fwd PE | 7.77 | ||
| P/S | 0.31 | ||
| P/FCF | 7.98 | ||
| P/OCF | 3.92 | ||
| P/B | 1.05 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 4.76 |
EPS(TTM)7.17
EY11.17%
EPS(NY)8.27
Fwd EY12.88%
FCF(TTM)8.05
FCFY12.53%
OCF(TTM)16.38
OCFY25.5%
SpS203.95
BVpS61.18
TBVpS43.43
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 9.71% | ||
| ROCE | 9.6% | ||
| ROIC | 7.13% | ||
| ROICexc | 7.69% | ||
| ROICexgc | 9.43% | ||
| OM | 4.8% | ||
| PM (TTM) | 2.91% | ||
| GM | 13.83% | ||
| FCFM | 3.95% |
ROA(3y)3.05%
ROA(5y)3.4%
ROE(3y)8.13%
ROE(5y)8.77%
ROIC(3y)7.76%
ROIC(5y)7.4%
ROICexc(3y)8.31%
ROICexc(5y)8.27%
ROICexgc(3y)10.19%
ROICexgc(5y)10.05%
ROCE(3y)10.42%
ROCE(5y)9.88%
ROICexcg growth 3Y-0.14%
ROICexcg growth 5Y-3.64%
ROICexc growth 3Y-1.1%
ROICexc growth 5Y-4.48%
OM growth 3Y-2.24%
OM growth 5Y-3.82%
PM growth 3Y-17.39%
PM growth 5Y-12.05%
GM growth 3Y-1.57%
GM growth 5Y-0.26%
F-Score8
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 104.36% | ||
| Cap/Sales | 4.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.11% | ||
| Profit Quality | 135.48% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.32 |
F-Score8
WACC8.92%
ROIC/WACC0.8
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)-0.57%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%6.67%
EPS Next Y-3.56%
EPS Next 2Y5.28%
EPS Next 3Y7.68%
EPS Next 5Y11.06%
Revenue 1Y (TTM)-3.39%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-2.98%
Revenue Next Year-3.63%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.13%
Revenue Next 5Y0.62%
EBIT growth 1Y-0.74%
EBIT growth 3Y3.36%
EBIT growth 5Y-2.22%
EBIT Next Year61.71%
EBIT Next 3Y21.26%
EBIT Next 5Y14.2%
FCF growth 1Y620.17%
FCF growth 3Y-2.44%
FCF growth 5Y-10.38%
OCF growth 1Y47.31%
OCF growth 3Y7.32%
OCF growth 5Y-1.7%