MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGA - CA5592224011 - Common Stock
54.66 USD
+1.36 (+2.55%)
55.2 USD
+0.54 (+0.99%)
Overall MGA gets a fundamental rating of 5 out of 10. We evaluated MGA against 42 industry peers in the Automobile Components industry. MGA has an average financial health and profitability rating. MGA is valued quite cheap, but it does not seem to be growing. MGA also has an excellent dividend rating. With these ratings, MGA could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
MGA had positive earnings in the past year.
MGA had a positive operating cash flow in the past year.
In the past 5 years MGA has always been profitable.
In the past 5 years MGA always reported a positive cash flow from operatings.
1.2 Ratios
MGA has a better Return On Assets (3.14%) than 73.81% of its industry peers.
With a decent Return On Equity value of 8.20%, MGA is doing good in the industry, outperforming 78.57% of the companies in the same industry.
The Return On Invested Capital of MGA (7.07%) is better than 61.90% of its industry peers.
MGA had an Average Return On Invested Capital over the past 3 years of 7.78%. This is in line with the industry average of 9.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 8.2% | ||
| ROIC | 7.07% |
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
MGA has a Profit Margin of 2.47%. This is in the better half of the industry: MGA outperforms 71.43% of its industry peers.
MGA's Profit Margin has declined in the last couple of years.
MGA has a Operating Margin of 4.76%. This is comparable to the rest of the industry: MGA outperforms 59.52% of its industry peers.
In the last couple of years the Operating Margin of MGA has declined.
MGA's Gross Margin of 13.86% is on the low side compared to the rest of the industry. MGA is outperformed by 69.05% of its industry peers.
In the last couple of years the Gross Margin of MGA has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.76% | ||
| PM (TTM) | 2.47% | ||
| GM | 13.86% |
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MGA is destroying value.
The number of shares outstanding for MGA has been reduced compared to 1 year ago.
The number of shares outstanding for MGA has been reduced compared to 5 years ago.
MGA has a better debt/assets ratio than last year.
2.2 Solvency
MGA has an Altman-Z score of 2.43. This is not the best score and indicates that MGA is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.43, MGA is in line with its industry, outperforming 57.14% of the companies in the same industry.
MGA has a debt to FCF ratio of 2.67. This is a good value and a sign of high solvency as MGA would need 2.67 years to pay back of all of its debts.
MGA has a better Debt to FCF ratio (2.67) than 85.71% of its industry peers.
A Debt/Equity ratio of 0.43 indicates that MGA is not too dependend on debt financing.
MGA has a Debt to Equity ratio of 0.43. This is comparable to the rest of the industry: MGA outperforms 59.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.43 |
ROIC/WACC0.85
WACC8.33%
2.3 Liquidity
MGA has a Current Ratio of 1.18. This is a normal value and indicates that MGA is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.18, MGA is not doing good in the industry: 78.57% of the companies in the same industry are doing better.
MGA has a Quick Ratio of 1.18. This is a bad value and indicates that MGA is not financially healthy enough and could expect problems in meeting its short term obligations.
MGA has a worse Quick ratio (0.83) than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.97% over the past year.
Measured over the past years, MGA shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.22% on average per year.
MGA shows a decrease in Revenue. In the last year, the revenue decreased by -2.04%.
Measured over the past years, MGA shows a small growth in Revenue. The Revenue has been growing by 1.67% on average per year.
EPS 1Y (TTM)3.97%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%3.91%
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%1.77%
3.2 Future
Based on estimates for the next years, MGA will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.17% on average per year.
Based on estimates for the next years, MGA will show a small growth in Revenue. The Revenue will grow by 1.00% on average per year.
EPS Next Y1.49%
EPS Next 2Y6.7%
EPS Next 3Y8.6%
EPS Next 5Y10.17%
Revenue Next Year-2.05%
Revenue Next 2Y-0.53%
Revenue Next 3Y0.56%
Revenue Next 5Y1%
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
With a Price/Earnings ratio of 10.43, the valuation of MGA can be described as very reasonable.
80.95% of the companies in the same industry are more expensive than MGA, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of MGA to the average of the S&P500 Index (26.60), we can say MGA is valued rather cheaply.
A Price/Forward Earnings ratio of 8.89 indicates a reasonable valuation of MGA.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGA indicates a rather cheap valuation: MGA is cheaper than 88.10% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.23. MGA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.43 | ||
| Fwd PE | 8.89 |
4.2 Price Multiples
MGA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MGA is cheaper than 85.71% of the companies in the same industry.
85.71% of the companies in the same industry are more expensive than MGA, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.57 | ||
| EV/EBITDA | 5.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)7.01
PEG (5Y)N/A
EPS Next 2Y6.7%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
MGA has a Yearly Dividend Yield of 3.71%.
Compared to an average industry Dividend Yield of 0.66, MGA pays a better dividend. On top of this MGA pays more dividend than 97.62% of the companies listed in the same industry.
MGA's Dividend Yield is rather good when compared to the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
5.2 History
The dividend of MGA has a limited annual growth rate of 5.84%.
MGA has been paying a dividend for at least 10 years, so it has a reliable track record.
MGA 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
MGA pays out 52.47% of its income as dividend. This is a bit on the high side, but may be sustainable.
MGA's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP52.47%
EPS Next 2Y6.7%
EPS Next 3Y8.6%
54.66
+1.36 (+2.55%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners73.86%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap15.40B
Revenue(TTM)41.79B
Net Income(TTM)1.03B
Analysts72.63
Price Target38.9 (-28.83%)
Short Float %2.9%
Short Ratio5.19
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.71% |
Yearly Dividend1.89
Dividend Growth(5Y)5.84%
DP52.47%
Div Incr Years15
Div Non Decr Years15
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)14.25%
Min EPS beat(2)6.28%
Max EPS beat(2)22.22%
EPS beat(4)3
Avg EPS beat(4)5.04%
Min EPS beat(4)-15.82%
Max EPS beat(4)22.22%
EPS beat(8)3
Avg EPS beat(8)-3.56%
EPS beat(12)6
Avg EPS beat(12)1.13%
EPS beat(16)8
Avg EPS beat(16)3.3%
Revenue beat(2)2
Avg Revenue beat(2)0.56%
Min Revenue beat(2)0.19%
Max Revenue beat(2)0.93%
Revenue beat(4)4
Avg Revenue beat(4)0.56%
Min Revenue beat(4)0.19%
Max Revenue beat(4)0.93%
Revenue beat(8)4
Avg Revenue beat(8)-1.28%
Revenue beat(12)6
Avg Revenue beat(12)-0.37%
Revenue beat(16)8
Avg Revenue beat(16)-0.26%
PT rev (1m)1.28%
PT rev (3m)9.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.64%
EPS NY rev (1m)0%
EPS NY rev (3m)5.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.18%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.43 | ||
| Fwd PE | 8.89 | ||
| P/S | 0.37 | ||
| P/FCF | 7.57 | ||
| P/OCF | 4.37 | ||
| P/B | 1.22 | ||
| P/tB | 1.71 | ||
| EV/EBITDA | 5.27 |
EPS(TTM)5.24
EY9.59%
EPS(NY)6.15
Fwd EY11.25%
FCF(TTM)7.22
FCFY13.22%
OCF(TTM)12.51
OCFY22.89%
SpS148.29
BVpS44.71
TBVpS32
PEG (NY)7.01
PEG (5Y)N/A
Graham Number72.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.14% | ||
| ROE | 8.2% | ||
| ROCE | 9.55% | ||
| ROIC | 7.07% | ||
| ROICexc | 7.54% | ||
| ROICexgc | 9.19% | ||
| OM | 4.76% | ||
| PM (TTM) | 2.47% | ||
| GM | 13.86% | ||
| FCFM | 4.87% |
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%
ROICexgc growth 3Y0.12%
ROICexgc 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-Score6
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.67 | ||
| Debt/EBITDA | 1.49 | ||
| Cap/Depr | 91.3% | ||
| Cap/Sales | 3.57% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.32% | ||
| Profit Quality | 197.1% | ||
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.83 | ||
| Altman-Z | 2.43 |
F-Score6
WACC8.33%
ROIC/WACC0.85
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)3.97%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%3.91%
EPS Next Y1.49%
EPS Next 2Y6.7%
EPS Next 3Y8.6%
EPS Next 5Y10.17%
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%1.77%
Revenue Next Year-2.05%
Revenue Next 2Y-0.53%
Revenue Next 3Y0.56%
Revenue Next 5Y1%
EBIT growth 1Y-1.63%
EBIT growth 3Y3.64%
EBIT growth 5Y-2.06%
EBIT Next Year72.06%
EBIT Next 3Y23.5%
EBIT Next 5Y14.63%
FCF growth 1Y290.79%
FCF growth 3Y-2.44%
FCF growth 5Y-10.38%
OCF growth 1Y24.73%
OCF growth 3Y7.32%
OCF growth 5Y-1.7%
MAGNA INTERNATIONAL INC / MGA FAQ
Can you provide the ChartMill fundamental rating for MAGNA INTERNATIONAL INC?
ChartMill assigns a fundamental rating of 5 / 10 to MGA.
What is the valuation status for MGA stock?
ChartMill assigns a valuation rating of 7 / 10 to MAGNA INTERNATIONAL INC (MGA). This can be considered as Undervalued.
How profitable is MAGNA INTERNATIONAL INC (MGA) stock?
MAGNA INTERNATIONAL INC (MGA) has a profitability rating of 5 / 10.
Can you provide the financial health for MGA stock?
The financial health rating of MAGNA INTERNATIONAL INC (MGA) is 5 / 10.
Is the dividend of MAGNA INTERNATIONAL INC sustainable?
The dividend rating of MAGNA INTERNATIONAL INC (MGA) is 8 / 10 and the dividend payout ratio is 52.47%.