MAGNA INTERNATIONAL INC (MG.CA) Fundamental Analysis & Valuation
TSX:MG • CA5592224011
Current stock price
74.49 CAD
-1.01 (-1.34%)
Last:
This MG.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. MG.CA Profitability Analysis
1.1 Basic Checks
- MG had positive earnings in the past year.
- In the past year MG had a positive cash flow from operations.
- MG had positive earnings in each of the past 5 years.
- In the past 5 years MG always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 2.64%, MG is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
- MG has a Return On Equity (6.64%) which is comparable to the rest of the industry.
- MG has a Return On Invested Capital of 7.13%. This is comparable to the rest of the industry: MG outperforms 60.00% 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 6.35%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 6.64% | ||
| ROIC | 7.13% |
ROA(3y)3.22%
ROA(5y)3.4%
ROE(3y)8.53%
ROE(5y)8.76%
ROIC(3y)7.35%
ROIC(5y)7.13%
1.3 Margins
- Looking at the Profit Margin, with a value of 1.97%, MG is doing worse than 80.00% of the companies in the same industry.
- In the last couple of years the Profit Margin of MG has declined.
- With a Operating Margin value of 5.00%, MG is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
- MG's Operating Margin has improved in the last couple of years.
- MG has a worse Gross Margin (14.26%) 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 | 5% | ||
| PM (TTM) | 1.97% | ||
| GM | 14.26% |
OM growth 3Y6.37%
OM growth 5Y1.9%
PM growth 3Y8.05%
PM growth 5Y-3.17%
GM growth 3Y5.06%
GM growth 5Y0.95%
2. MG.CA Health Analysis
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MG is destroying value.
- The number of shares outstanding for MG has been reduced compared to 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
- MG has an Altman-Z score of 2.57. 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 2.57, 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 2.06, which is a good value as it means it would take MG, 2.06 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.06, MG is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- 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 Debt to Equity ratio of 0.38. This is in the lower half of the industry: MG underperforms 60.00% of its industry peers.
- Although MG's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.06 | ||
| Altman-Z | 2.57 |
ROIC/WACC0.89
WACC8.04%
2.3 Liquidity
- A Current Ratio of 1.25 indicates that MG should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.25, MG is doing worse than 60.00% of the companies in the same industry.
- MG has a Quick Ratio of 1.25. 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's Quick ratio of 0.87 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 | ||
|---|---|---|---|
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.87 |
3. MG.CA Growth Analysis
3.1 Past
- MG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.11%.
- Measured over the past 5 years, MG shows a small growth in Earnings Per Share. The EPS has been growing by 5.09% on average per year.
- Looking at the last year, MG shows a decrease in Revenue. The Revenue has decreased by -1.93% in the last year.
- Measured over the past years, MG shows a small growth in Revenue. The Revenue has been growing by 5.17% on average per year.
EPS 1Y (TTM)6.11%
EPS 3Y11.89%
EPS 5Y5.09%
EPS Q2Q%28.99%
Revenue 1Y (TTM)-1.93%
Revenue growth 3Y3.55%
Revenue growth 5Y5.17%
Sales Q2Q%2.07%
3.2 Future
- The Earnings Per Share is expected to grow by 10.79% on average over the next years. This is quite good.
- Based on estimates for the next years, MG will show a small growth in Revenue. The Revenue will grow by 1.98% on average per year.
EPS Next Y21.82%
EPS Next 2Y17.71%
EPS Next 3Y13.21%
EPS Next 5Y10.79%
Revenue Next Year2.19%
Revenue Next 2Y2.27%
Revenue Next 3Y2.26%
Revenue Next 5Y1.98%
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.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. MG.CA Valuation Analysis
4.1 Price/Earnings Ratio
- MG is valuated reasonably with a Price/Earnings ratio of 9.33.
- The rest of the industry has a similar Price/Earnings ratio as MG.
- Compared to an average S&P500 Price/Earnings ratio of 24.75, MG is valued rather cheaply.
- MG is valuated cheaply with a Price/Forward Earnings ratio of 7.67.
- 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.
- MG's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 7.67 |
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.
- MG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.53 | ||
| EV/EBITDA | 4.79 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- MG's earnings are expected to grow with 13.21% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.43
PEG (5Y)1.83
EPS Next 2Y17.71%
EPS Next 3Y13.21%
5. MG.CA Dividend Analysis
5.1 Amount
- MG has a Yearly Dividend Yield of 3.53%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 2.65, MG pays a bit more dividend than its industry peers.
- Compared to an average S&P500 Dividend Yield of 1.89, MG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
5.2 History
- The dividend of MG has a limited annual growth rate of 4.55%.
- 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)4.55%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
- 65.62% of the earnings are spent on dividend by MG. This is not a sustainable payout ratio.
- The dividend of MG is growing, but earnings are growing more, so the dividend growth is sustainable.
DP65.62%
EPS Next 2Y17.71%
EPS Next 3Y13.21%
MG.CA Fundamentals: All Metrics, Ratios and Statistics
TSX:MG (3/30/2026, 7:00:00 PM)
74.49
-1.01 (-1.34%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)02-13 2026-02-13/bmo
Earnings (Next)04-30 2026-04-30/bmo
Inst Owners79.25%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap20.77B
Revenue(TTM)42.01B
Net Income(TTM)829.00M
Analysts72
Price Target74.2 (-0.39%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.53% |
Yearly Dividend2.68
Dividend Growth(5Y)4.55%
DP65.62%
Div Incr Years15
Div Non Decr Years15
Ex-Date02-27 2026-02-27 (0.495)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.14%
Min EPS beat(2)6.28%
Max EPS beat(2)17.99%
EPS beat(4)3
Avg EPS beat(4)7.67%
Min EPS beat(4)-15.82%
Max EPS beat(4)22.22%
EPS beat(8)4
Avg EPS beat(8)0.3%
EPS beat(12)7
Avg EPS beat(12)3.71%
EPS beat(16)8
Avg EPS beat(16)1.39%
Revenue beat(2)2
Avg Revenue beat(2)0.27%
Min Revenue beat(2)0.19%
Max Revenue beat(2)0.35%
Revenue beat(4)4
Avg Revenue beat(4)0.6%
Min Revenue beat(4)0.19%
Max Revenue beat(4)0.93%
Revenue beat(8)5
Avg Revenue beat(8)-0.88%
Revenue beat(12)7
Avg Revenue beat(12)-0.13%
Revenue beat(16)9
Avg Revenue beat(16)-0.17%
PT rev (1m)4.06%
PT rev (3m)37.96%
EPS NQ rev (1m)0.4%
EPS NQ rev (3m)-12.43%
EPS NY rev (1m)13.66%
EPS NY rev (3m)13.53%
Revenue NQ rev (1m)-0.18%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)0.83%
Revenue NY rev (3m)1.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.33 | ||
| Fwd PE | 7.67 | ||
| P/S | 0.36 | ||
| P/FCF | 6.53 | ||
| P/OCF | 4.15 | ||
| P/B | 1.19 | ||
| P/tB | 1.57 | ||
| EV/EBITDA | 4.79 |
EPS(TTM)7.98
EY10.71%
EPS(NY)9.72
Fwd EY13.05%
FCF(TTM)11.41
FCFY15.32%
OCF(TTM)17.97
OCFY24.12%
SpS209.77
BVpS62.38
TBVpS47.39
PEG (NY)0.43
PEG (5Y)1.83
Graham Number105.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.64% | ||
| ROE | 6.64% | ||
| ROCE | 10.29% | ||
| ROIC | 7.13% | ||
| ROICexc | 7.74% | ||
| ROICexgc | 9.21% | ||
| OM | 5% | ||
| PM (TTM) | 1.97% | ||
| GM | 14.26% | ||
| FCFM | 5.44% |
ROA(3y)3.22%
ROA(5y)3.4%
ROE(3y)8.53%
ROE(5y)8.76%
ROIC(3y)7.35%
ROIC(5y)7.13%
ROICexc(3y)7.89%
ROICexc(5y)7.82%
ROICexgc(3y)9.66%
ROICexgc(5y)9.49%
ROCE(3y)10.76%
ROCE(5y)10.38%
ROICexgc growth 3Y3.4%
ROICexgc growth 5Y3.08%
ROICexc growth 3Y3.4%
ROICexc growth 5Y3.22%
OM growth 3Y6.37%
OM growth 5Y1.9%
PM growth 3Y8.05%
PM growth 5Y-3.17%
GM growth 3Y5.06%
GM growth 5Y0.95%
F-Score6
Asset Turnover1.34
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 2.06 | ||
| Debt/EBITDA | 1.25 | ||
| Cap/Depr | 79.19% | ||
| Cap/Sales | 3.13% | ||
| Interest Coverage | 7.79 | ||
| Cash Conversion | 95.69% | ||
| Profit Quality | 275.63% | ||
| Current Ratio | 1.25 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 2.57 |
F-Score6
WACC8.04%
ROIC/WACC0.89
Cap/Depr(3y)125.84%
Cap/Depr(5y)117.34%
Cap/Sales(3y)4.68%
Cap/Sales(5y)4.46%
Profit Quality(3y)157.81%
Profit Quality(5y)129.39%
High Growth Momentum
Growth
EPS 1Y (TTM)6.11%
EPS 3Y11.89%
EPS 5Y5.09%
EPS Q2Q%28.99%
EPS Next Y21.82%
EPS Next 2Y17.71%
EPS Next 3Y13.21%
EPS Next 5Y10.79%
Revenue 1Y (TTM)-1.93%
Revenue growth 3Y3.55%
Revenue growth 5Y5.17%
Sales Q2Q%2.07%
Revenue Next Year2.19%
Revenue Next 2Y2.27%
Revenue Next 3Y2.26%
Revenue Next 5Y1.98%
EBIT growth 1Y-1.18%
EBIT growth 3Y10.15%
EBIT growth 5Y7.17%
EBIT Next Year88.81%
EBIT Next 3Y25.1%
EBIT Next 5Y18.68%
FCF growth 1Y56.94%
FCF growth 3Y76.72%
FCF growth 5Y1.39%
OCF growth 1Y-0.99%
OCF growth 3Y19.75%
OCF growth 5Y1.88%
MAGNA INTERNATIONAL INC / MG.CA Fundamental Analysis FAQ
What is the fundamental rating for MG stock?
ChartMill assigns a fundamental rating of 5 / 10 to MG.CA.
What is the valuation status for MG stock?
ChartMill assigns a valuation rating of 5 / 10 to MAGNA INTERNATIONAL INC (MG.CA). This can be considered as Fairly Valued.
How profitable is MAGNA INTERNATIONAL INC (MG.CA) stock?
MAGNA INTERNATIONAL INC (MG.CA) has a profitability rating of 4 / 10.
What is the valuation of MAGNA INTERNATIONAL INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MAGNA INTERNATIONAL INC (MG.CA) is 9.33 and the Price/Book (PB) ratio is 1.19.
What is the financial health of MAGNA INTERNATIONAL INC (MG.CA) stock?
The financial health rating of MAGNA INTERNATIONAL INC (MG.CA) is 5 / 10.