MAGNA INTERNATIONAL INC (MG.CA) Stock Fundamental Analysis
Canada - TSX:MG - CA5592224011 - Common Stock
62.86 CAD
-0.13 (-0.21%)
Overall MG gets a fundamental rating of 4 out of 10. We evaluated MG against 5 industry peers in the Automobile Components industry. There are concerns on the financial health of MG while its profitability can be described as average. 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
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.
In the past 5 years MG always reported a positive cash flow from operatings.
1.2 Ratios
MG has a Return On Assets of 3.65%. This is comparable to the rest of the industry: MG outperforms 60.00% of its industry peers.
MG's Return On Equity of 9.71% is amongst the best of the industry. MG outperforms 100.00% of its industry peers.
MG has a better Return On Invested Capital (7.15%) than 80.00% of its industry peers.
MG had an Average Return On Invested Capital over the past 3 years of 7.78%. This is in line with the industry average of 6.27%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 9.71% | ||
| ROIC | 7.15% |
ROA(3y)3.05%
ROA(5y)3.4%
ROE(3y)8.13%
ROE(5y)8.77%
ROIC(3y)7.78%
ROIC(5y)7.41%
1.3 Margins
MG has a Profit Margin (2.91%) which is in line with its industry peers.
MG's Profit Margin has declined in the last couple of years.
MG has a worse Operating Margin (4.81%) than 80.00% of its industry peers.
In the last couple of years the Operating Margin of MG has declined.
The Gross Margin of MG (13.83%) is worse than 60.00% of its industry peers.
MG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.81% | ||
| PM (TTM) | 2.91% | ||
| GM | 13.83% |
OM growth 3Y-1.98%
OM growth 5Y-3.67%
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
MG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
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.
With a Altman-Z score value of 2.31, MG is not doing good in the industry: 60.00% of the companies in the same industry are doing better.
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.
The Debt to FCF ratio of MG (3.68) is worse than 60.00% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that MG is not too dependend on debt financing.
MG's Debt to Equity ratio of 0.43 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 | 0.43 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.84
WACC8.51%
2.3 Liquidity
MG has a Current Ratio of 1.16. This is a normal value and indicates that MG is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MG (1.16) is worse than 80.00% of its industry peers.
A Quick Ratio of 0.82 indicates that MG may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.82, MG is doing worse than 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
The earnings per share for MG have decreased by -0.57% in the last year.
The Earnings Per Share has been decreasing by -2.22% on average over the past years.
The Revenue has decreased by -3.39% in the past year.
MG shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.67% yearly.
EPS 1Y (TTM)-0.57%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%6.67%
Revenue 1Y (TTM)-3.39%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-2.98%
3.2 Future
The Earnings Per Share is expected to grow by 11.06% on average over the next years. This is quite good.
The Revenue is expected to grow by 0.62% on average over the next years.
EPS Next Y-3.93%
EPS Next 2Y4.93%
EPS Next 3Y7.68%
EPS Next 5Y11.06%
Revenue Next Year-3.23%
Revenue Next 2Y-0.97%
Revenue Next 3Y0.25%
Revenue Next 5Y0.62%
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. Valuation
4.1 Price/Earnings Ratio
MG is valuated reasonably with a Price/Earnings ratio of 8.62.
Compared to the rest of the industry, the Price/Earnings ratio of MG indicates a somewhat cheap valuation: MG is cheaper than 80.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MG to the average of the S&P500 Index (27.31), we can say MG is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.53, 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.
MG is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.85, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.62 | ||
| Fwd PE | 7.53 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MG is on the same level as its industry peers.
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 | 7.68 | ||
| EV/EBITDA | 4.63 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.93%
EPS Next 3Y7.68%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.34%, MG is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.51, 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 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
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 44.88% of its income as dividend. This is a bit on the high side, but may be sustainable.
MG's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP44.88%
EPS Next 2Y4.93%
EPS Next 3Y7.68%
TSX:MG (10/16/2025, 7:00:00 PM)
62.86
-0.13 (-0.21%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners78.22%
Inst Owner ChangeN/A
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap17.71B
Analysts72.63
Price Target49.3 (-21.57%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.34% |
Yearly Dividend2.65
Dividend Growth(5Y)5.84%
DP44.88%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.2%
Min EPS beat(2)-15.82%
Max EPS beat(2)22.22%
EPS beat(4)2
Avg EPS beat(4)0.62%
Min EPS beat(4)-15.82%
Max EPS beat(4)22.22%
EPS beat(8)3
Avg EPS beat(8)-3.58%
EPS beat(12)5
Avg EPS beat(12)0.04%
EPS beat(16)7
Avg EPS beat(16)2.36%
Revenue beat(2)2
Avg Revenue beat(2)0.93%
Min Revenue beat(2)0.92%
Max Revenue beat(2)0.93%
Revenue beat(4)3
Avg Revenue beat(4)-0.39%
Min Revenue beat(4)-3.58%
Max Revenue beat(4)0.93%
Revenue beat(8)3
Avg Revenue beat(8)-1.32%
Revenue beat(12)5
Avg Revenue beat(12)-0.57%
Revenue beat(16)7
Avg Revenue beat(16)-0.43%
PT rev (1m)3.24%
PT rev (3m)22.38%
EPS NQ rev (1m)0.87%
EPS NQ rev (3m)-8.73%
EPS NY rev (1m)-0.39%
EPS NY rev (3m)4.3%
Revenue NQ rev (1m)0.9%
Revenue NQ rev (3m)2.71%
Revenue NY rev (1m)0.41%
Revenue NY rev (3m)3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.62 | ||
| Fwd PE | 7.53 | ||
| P/S | 0.3 | ||
| P/FCF | 7.68 | ||
| P/OCF | 3.77 | ||
| P/B | 1.01 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 4.63 |
EPS(TTM)7.29
EY11.6%
EPS(NY)8.35
Fwd EY13.28%
FCF(TTM)8.18
FCFY13.02%
OCF(TTM)16.65
OCFY26.49%
SpS207.39
BVpS62.21
TBVpS44.17
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 9.71% | ||
| ROCE | 9.61% | ||
| ROIC | 7.15% | ||
| ROICexc | 7.7% | ||
| ROICexgc | 9.45% | ||
| OM | 4.81% | ||
| PM (TTM) | 2.91% | ||
| GM | 13.83% | ||
| FCFM | 3.95% |
ROA(3y)3.05%
ROA(5y)3.4%
ROE(3y)8.13%
ROE(5y)8.77%
ROIC(3y)7.78%
ROIC(5y)7.41%
ROICexc(3y)8.34%
ROICexc(5y)8.28%
ROICexgc(3y)10.22%
ROICexgc(5y)10.06%
ROCE(3y)10.45%
ROCE(5y)9.9%
ROICexcg growth 3Y0.12%
ROICexcg growth 5Y-3.49%
ROICexc growth 3Y-0.84%
ROICexc growth 5Y-4.32%
OM growth 3Y-1.98%
OM growth 5Y-3.67%
PM growth 3Y-17.39%
PM growth 5Y-12.05%
GM growth 3Y-1.57%
GM growth 5Y-0.26%
F-Score8
Asset Turnover1.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 1.47 | ||
| Cap/Depr | 104.36% | ||
| Cap/Sales | 4.08% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 92.04% | ||
| Profit Quality | 135.48% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.31 |
F-Score8
WACC8.51%
ROIC/WACC0.84
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-3.93%
EPS Next 2Y4.93%
EPS Next 3Y7.68%
EPS Next 5Y11.06%
Revenue 1Y (TTM)-3.39%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-2.98%
Revenue Next Year-3.23%
Revenue Next 2Y-0.97%
Revenue Next 3Y0.25%
Revenue Next 5Y0.62%
EBIT growth 1Y-0.6%
EBIT growth 3Y3.64%
EBIT growth 5Y-2.06%
EBIT Next Year67.1%
EBIT Next 3Y22.77%
EBIT Next 5Y14.2%
FCF growth 1Y620.17%
FCF growth 3Y-2.44%
FCF growth 5Y-10.38%
OCF growth 1Y47.31%
OCF growth 3Y7.32%
OCF growth 5Y-1.7%