MAGNA INTERNATIONAL INC (MG.CA) Fundamental Analysis & Valuation

TSX:MG • CA5592224011

Current stock price

76.78 CAD
-0.73 (-0.94%)
Last:

This MG.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

4

1. MG.CA Profitability Analysis

1.1 Basic Checks

  • MG had positive earnings in the past year.
  • MG had a positive operating cash flow in the past year.
  • MG had positive earnings in each of the past 5 years.
  • MG had a positive operating cash flow in each of the past 5 years.
MG.CA Yearly Net Income VS EBIT VS OCF VS FCFMG.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

1.2 Ratios

  • MG has a Return On Assets of 2.64%. This is amonst the worse of the industry: MG underperforms 80.00% of its industry peers.
  • 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 RankSector 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%
MG.CA Yearly ROA, ROE, ROICMG.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15 20

1.3 Margins

  • MG's Profit Margin of 1.97% 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 Profit Margin of MG has declined.
  • MG has a worse Operating Margin (5.00%) than 80.00% of its industry peers.
  • In the last couple of years the Operating Margin of MG has grown nicely.
  • MG's Gross Margin of 14.26% is on the low side compared to the rest of the industry. MG is outperformed by 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 RankSector 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%
MG.CA Yearly Profit, Operating, Gross MarginsMG.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

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5

2. MG.CA Health Analysis

2.1 Basic Checks

  • MG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • Compared to 1 year ago, MG has less shares outstanding
  • The number of shares outstanding for MG has been reduced compared to 5 years ago.
  • Compared to 1 year ago, MG has an improved debt to assets ratio.
MG.CA Yearly Shares OutstandingMG.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 100M 200M 300M
MG.CA Yearly Total Debt VS Total AssetsMG.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10B 20B 30B

2.2 Solvency

  • An Altman-Z score of 2.59 indicates that MG is not a great score, but indicates only limited risk for bankruptcy at the moment.
  • MG's Altman-Z score of 2.59 is on the low side compared to the rest of the industry. MG is outperformed by 60.00% of its industry peers.
  • 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.
  • With a decent Debt to FCF ratio value of 2.06, MG is doing good in 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.
  • Looking at the Debt to Equity ratio, with a value of 0.38, MG is doing worse than 60.00% of the companies in the same industry.
  • Even though the debt/equity ratio score it not favorable for MG, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.38
Debt/FCF 2.06
Altman-Z 2.59
ROIC/WACC0.86
WACC8.29%
MG.CA Yearly LT Debt VS Equity VS FCFMG.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.3 Liquidity

  • A Current Ratio of 1.25 indicates that MG should not have too much problems paying its short term obligations.
  • MG's Current ratio of 1.25 is on the low side compared to the rest of the industry. MG is outperformed by 60.00% of its industry peers.
  • A Quick Ratio of 0.87 indicates that MG may have some problems paying its short term obligations.
  • The Quick ratio of MG (0.87) is worse than 60.00% of its industry peers.
Industry RankSector Rank
Current Ratio 1.25
Quick Ratio 0.87
MG.CA Yearly Current Assets VS Current LiabilitesMG.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. MG.CA Growth Analysis

3.1 Past

  • The Earnings Per Share has been growing slightly by 6.11% over the past year.
  • 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.
  • The Revenue has decreased by -1.93% in the past year.
  • The Revenue has been growing slightly by 5.17% on average over the past years.
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

  • Based on estimates for the next years, MG will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.79% on average per year.
  • MG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.98% yearly.
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

  • 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.
MG.CA Yearly Revenue VS EstimatesMG.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 10B 20B 30B 40B
MG.CA Yearly EPS VS EstimatesMG.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2 4 6 8

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5

4. MG.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 9.68, the valuation of MG can be described as reasonable.
  • The rest of the industry has a similar Price/Earnings ratio as MG.
  • Compared to an average S&P500 Price/Earnings ratio of 24.88, MG is valued rather cheaply.
  • The Price/Forward Earnings ratio is 7.95, which indicates a rather cheap valuation of MG.
  • 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's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.19.
Industry RankSector Rank
PE 9.68
Fwd PE 7.95
MG.CA Price Earnings VS Forward Price EarningsMG.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20

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.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of MG is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 6.77
EV/EBITDA 4.94
MG.CA Per share dataMG.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 50 100 150 200

4.3 Compensation for Growth

  • MG's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as MG's earnings are expected to grow with 13.21% in the coming years.
PEG (NY)0.44
PEG (5Y)1.9
EPS Next 2Y17.71%
EPS Next 3Y13.21%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

7

5. MG.CA Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 3.75%, MG has a reasonable but not impressive dividend return.
  • Compared to an average industry Dividend Yield of 2.71, MG pays a bit more dividend than its industry peers.
  • MG's Dividend Yield is rather good when compared to the S&P500 average which is at 1.90.
Industry RankSector Rank
Dividend Yield 3.75%

5.2 History

  • The dividend of MG has a limited annual growth rate of 4.55%.
  • 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)4.55%
Div Incr Years15
Div Non Decr Years15
MG.CA Yearly Dividends per shareMG.CA Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5

5.3 Sustainability

  • MG pays out 65.62% of its income as dividend. 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 Yearly Income VS Free CF VS DividendMG.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B
MG.CA Dividend Payout.MG.CA Dividend Payout, showing the Payout Ratio.MG.CA Dividend Payout.PayoutRetained Earnings

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MG.CA Fundamentals: All Metrics, Ratios and Statistics

MAGNA INTERNATIONAL INC

TSX:MG (3/26/2026, 7:00:00 PM)

76.78

-0.73 (-0.94%)

Chartmill FA Rating
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)02-13
Earnings (Next)04-30
Inst Owners79.25%
Inst Owner ChangeN/A
Ins Owners0.18%
Ins Owner ChangeN/A
Market Cap21.41B
Revenue(TTM)42.01B
Net Income(TTM)829.00M
Analysts72
Price Target71.31 (-7.12%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.75%
Yearly Dividend2.65
Dividend Growth(5Y)4.55%
DP65.62%
Div Incr Years15
Div Non Decr Years15
Ex-Date02-27
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)24.2%
PT rev (3m)32.27%
EPS NQ rev (1m)-10.19%
EPS NQ rev (3m)-12.43%
EPS NY rev (1m)13.66%
EPS NY rev (3m)13.53%
Revenue NQ rev (1m)1.13%
Revenue NQ rev (3m)0.54%
Revenue NY rev (1m)1.22%
Revenue NY rev (3m)1.22%
Valuation
Industry RankSector Rank
PE 9.68
Fwd PE 7.95
P/S 0.37
P/FCF 6.77
P/OCF 4.3
P/B 1.24
P/tB 1.63
EV/EBITDA 4.94
EPS(TTM)7.93
EY10.33%
EPS(NY)9.66
Fwd EY12.58%
FCF(TTM)11.34
FCFY14.77%
OCF(TTM)17.85
OCFY23.25%
SpS208.47
BVpS61.99
TBVpS47.1
PEG (NY)0.44
PEG (5Y)1.9
Graham Number105.17
Profitability
Industry RankSector 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 RankSector 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 2.59
F-Score6
WACC8.29%
ROIC/WACC0.86
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 9.68 and the Price/Book (PB) ratio is 1.24.


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.