MAGNA INTERNATIONAL INC (MG.CA) Stock Fundamental Analysis
TSX:MG - Toronto Stock Exchange - CA5592224011 - Common Stock - Currency: CAD
MG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals 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 is valued correctly, 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.
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
The Return On Assets of MG (3.57%) 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.
MG has a Return On Invested Capital of 7.52%. This is amongst the best in the industry. MG outperforms 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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.
In the last couple of years the Profit Margin of MG has declined.
MG has a worse Operating Margin (4.65%) than 80.00% of its industry peers.
MG's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 13.62%, MG is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
MG's Gross Margin has been stable in the last couple of years.
| 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.
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
An Altman-Z score of 2.31 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 (2.31) than 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.
The Debt to FCF ratio of MG (3.68) is worse than 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's Debt to Equity ratio of 0.38 is on the low side compared to the rest of the industry. MG is outperformed by 60.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.87
WACC8.65%
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.
MG has a Current ratio of 1.06. This is amonst the worse of the industry: MG underperforms 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.
The Quick ratio of MG (0.74) is worse than 80.00% of its industry peers.
| 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 10.35% on average over the next years. This is quite good.
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
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
A Price/Earnings ratio of 8.36 indicates a reasonable valuation of MG.
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.
The average S&P500 Price/Earnings ratio is at 28.05. MG is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 6.79, the valuation of MG can be described as very cheap.
60.00% of the companies in the same industry are cheaper than MG, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.67, MG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.36 | ||
| Fwd PE | 6.79 |
4.2 Price Multiples
60.00% of the companies in the same industry are cheaper than MG, based on the Enterprise Value to EBITDA ratio.
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 | 8.03 | ||
| EV/EBITDA | 4.45 |
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.
Compared to an average industry Dividend Yield of 3.74, MG pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.30, 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 been paying a dividend for at least 10 years, so it has 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
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 (7/25/2025, 7:00:00 PM)
58.36
+0.02 (+0.03%)
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 Cap16.44B
Analysts72
Price Target40.67 (-30.31%)
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 | 8.36 | ||
| Fwd PE | 6.79 | ||
| P/S | 0.29 | ||
| P/FCF | 8.03 | ||
| P/OCF | 3.48 | ||
| P/B | 1.02 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 4.45 |
EPS(TTM)6.98
EY11.96%
EPS(NY)8.59
Fwd EY14.72%
FCF(TTM)7.27
FCFY12.45%
OCF(TTM)16.75
OCFY28.7%
SpS203.57
BVpS56.99
TBVpS40.15
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 | 2.31 |
F-Score7
WACC8.65%
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%