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. 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. Finally MG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MG was profitable.
In the past year MG had a positive cash flow from operations.
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 (3.57%) which is in line with its industry peers.
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.
The Return On Invested Capital of MG (7.52%) is better than 100.00% 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 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
Looking at the Profit Margin, with a value of 2.73%, MG is in line with its industry, outperforming 60.00% of the companies in the same industry.
In the last couple of years the Profit Margin of MG has declined.
The Operating Margin of MG (4.65%) is worse than 80.00% of its industry peers.
MG's Operating Margin has declined in the last couple of years.
MG's Gross Margin of 13.62% is on the low side compared to the rest of the industry. MG is outperformed by 60.00% of its industry peers.
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.
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
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.
Looking at the Altman-Z score, with a value of 2.31, MG is doing worse than 60.00% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 3.68, MG is doing worse than 60.00% 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'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/WACC0.88
WACC8.56%
2.3 Liquidity
A Current Ratio of 1.06 indicates that MG should not have too much problems paying its short term obligations.
The Current ratio of MG (1.06) is worse than 80.00% of its industry peers.
A Quick Ratio of 0.74 indicates that MG may have some problems paying its short term obligations.
MG's Quick ratio of 0.74 is on the low side compared to the rest of the industry. MG is outperformed by 80.00% of its industry peers.
| 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 -0.57% in the last year.
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 small growth in Revenue. In the last year, the Revenue has grown by 0.09%.
Measured over the past years, MG shows a small growth in Revenue. The Revenue has been growing by 1.67% on average per year.
EPS 1Y (TTM)-0.57%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%6.67%
Revenue 1Y (TTM)0.09%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-2.98%
3.2 Future
The Earnings Per Share is expected to grow by 10.35% on average over the next years. This is quite good.
MG is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.21% yearly.
EPS Next Y-7.89%
EPS Next 2Y7.86%
EPS Next 3Y9.2%
EPS Next 5Y10.35%
Revenue Next Year-5.49%
Revenue Next 2Y-1.53%
Revenue Next 3Y-0.03%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 8.21 indicates a reasonable valuation of MG.
Based on the Price/Earnings ratio, MG is valued a bit cheaper than 80.00% of the companies in the same industry.
When comparing the Price/Earnings ratio of MG to the average of the S&P500 Index (26.54), we can say MG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 6.78, the valuation of MG can be described as very cheap.
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.
When comparing the Price/Forward Earnings ratio of MG to the average of the S&P500 Index (35.28), we can say MG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 6.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MG is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, MG is valued more expensive than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.01 | ||
| EV/EBITDA | 4.44 |
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
With a Yearly Dividend Yield of 4.77%, MG is a good candidate for dividend investing.
MG's Dividend Yield is a higher than the industry average which is at 3.75.
Compared to an average S&P500 Dividend Yield of 2.40, MG pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
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 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 (8/7/2025, 7:00:00 PM)
58.52
+0.85 (+1.47%)
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 Cap16.49B
Analysts72
Price Target40.67 (-30.5%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.77% |
Yearly Dividend2.63
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)1.08%
EPS NQ rev (3m)-1.96%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.74%
Revenue NQ rev (3m)1.04%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.21 | ||
| Fwd PE | 6.78 | ||
| P/S | 0.29 | ||
| P/FCF | 8.01 | ||
| P/OCF | 3.48 | ||
| P/B | 1.02 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 4.44 |
EPS(TTM)7.13
EY12.18%
EPS(NY)8.63
Fwd EY14.75%
FCF(TTM)7.3
FCFY12.48%
OCF(TTM)16.83
OCFY28.76%
SpS204.56
BVpS57.27
TBVpS40.35
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
WACC8.56%
ROIC/WACC0.88
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-7.89%
EPS Next 2Y7.86%
EPS Next 3Y9.2%
EPS Next 5Y10.35%
Revenue 1Y (TTM)0.09%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-2.98%
Revenue Next Year-5.49%
Revenue Next 2Y-1.53%
Revenue Next 3Y-0.03%
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%