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. 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.
MG had a positive operating cash flow in the past year.
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 of 3.57%. This is comparable to the rest of the industry: MG outperforms 60.00% of its industry peers.
MG has a better Return On Equity (9.76%) than 100.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.52%, MG belongs to the top of the industry, outperforming 100.00% 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 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 of 2.73%. 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 4.65%, MG is doing worse than 80.00% of the companies in the same industry.
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.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MG is destroying value.
MG has less shares outstanding than it did 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
An Altman-Z score of 2.29 indicates that MG is not a great score, but indicates only limited risk for bankruptcy at the moment.
MG's Altman-Z score of 2.29 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 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 Debt to FCF ratio of 3.68. This is in the lower half of the industry: MG underperforms 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 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 | 2.29 |
ROIC/WACC0.87
WACC8.63%
2.3 Liquidity
A Current Ratio of 1.06 indicates that MG should not have too much problems paying its short term obligations.
MG has a Current ratio of 1.06. This is amonst the worse of the industry: MG underperforms 80.00% of its industry peers.
A Quick Ratio of 0.74 indicates that MG may have some problems paying 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
The earnings per share for MG have decreased by -5.03% in the last year.
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.
Looking at the last year, MG shows a decrease in Revenue. The Revenue has decreased by -2.69% in the last year.
The Revenue has been growing slightly by 1.67% on average over the past years.
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.
The Revenue is expected to grow by 0.21% on average over the next years.
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.
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
Based on the Price/Earnings ratio of 8.08, the valuation of MG can be described as reasonable.
80.00% of the companies in the same industry are more expensive than MG, based on the Price/Earnings ratio.
MG is valuated cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 6.56, 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 the industry average as 60.00% of the companies are valued more cheaply.
When comparing the Price/Forward Earnings ratio of MG to the average of the S&P500 Index (36.80), we can say MG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.08 | ||
| Fwd PE | 6.56 |
4.2 Price Multiples
MG's Enterprise Value to EBITDA ratio is in line with the industry average.
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 | 7.75 | ||
| EV/EBITDA | 4.31 |
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.
MG's Dividend Yield is a higher than the industry average which is at 3.74.
Compared to an average S&P500 Dividend Yield of 2.34, 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 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
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 (7/31/2025, 7:00:00 PM)
56.82
+0.36 (+0.64%)
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 Cap16.01B
Analysts72
Price Target40.67 (-28.42%)
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 | 8.08 | ||
| Fwd PE | 6.56 | ||
| P/S | 0.28 | ||
| P/FCF | 7.75 | ||
| P/OCF | 3.36 | ||
| P/B | 0.99 | ||
| P/tB | 1.4 | ||
| EV/EBITDA | 4.31 |
EPS(TTM)7.03
EY12.37%
EPS(NY)8.67
Fwd EY15.25%
FCF(TTM)7.33
FCFY12.9%
OCF(TTM)16.89
OCFY29.73%
SpS205.31
BVpS57.48
TBVpS40.49
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 | 2.29 |
F-Score7
WACC8.63%
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%