MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - NYSE:MGA - CA5592224011 - Common Stock
46.94 USD
-0.39 (-0.82%)
47.0183 USD
+0.08 (+0.17%)
MGA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 81 industry peers in the Automobile Components industry. While MGA seems to be doing ok healthwise, there are quite some concerns on its profitability. MGA has a valuation in line with the averages, but it does not seem to be growing. Finally MGA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year MGA was profitable.
MGA had a positive operating cash flow in the past year.
MGA had positive earnings in each of the past 5 years.
In the past 5 years MGA always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MGA (3.65%) is worse than 60.49% of its industry peers.
Looking at the Return On Equity, with a value of 9.71%, MGA belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
With a Return On Invested Capital value of 7.13%, MGA is not doing good in the industry: 64.20% of the companies in the same industry are doing better.
MGA had an Average Return On Invested Capital over the past 3 years of 7.76%. This is in line with the industry average of 8.51%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 9.71% | ||
| ROIC | 7.13% |
ROA(3y)3.05%
ROA(5y)3.4%
ROE(3y)8.13%
ROE(5y)8.77%
ROIC(3y)7.76%
ROIC(5y)7.4%
1.3 Margins
With a Profit Margin value of 2.91%, MGA is not doing good in the industry: 64.20% of the companies in the same industry are doing better.
MGA's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.80%, MGA is not doing good in the industry: 67.90% of the companies in the same industry are doing better.
In the last couple of years the Operating Margin of MGA has declined.
The Gross Margin of MGA (13.83%) is worse than 82.72% 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 | 4.8% | ||
| PM (TTM) | 2.91% | ||
| GM | 13.83% |
OM growth 3Y-2.24%
OM growth 5Y-3.82%
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MGA is destroying value.
The number of shares outstanding for MGA has been reduced compared to 1 year ago.
Compared to 5 years ago, MGA has less shares outstanding
MGA has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.32 indicates that MGA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.32, MGA perfoms like the industry average, outperforming 40.74% of the companies in the same industry.
The Debt to FCF ratio of MGA is 3.68, which is a good value as it means it would take MGA, 3.68 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.68, MGA belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
MGA has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.43, MGA is doing worse than 67.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.8
WACC8.9%
2.3 Liquidity
MGA has a Current Ratio of 1.16. This is a normal value and indicates that MGA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.16, MGA is doing worse than 88.89% of the companies in the same industry.
MGA has a Quick Ratio of 1.16. This is a bad value and indicates that MGA is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.82, MGA is not doing good in the industry: 85.19% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.82 |
3. Growth
3.1 Past
MGA shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.57%.
MGA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.22% yearly.
The Revenue has decreased by -3.39% in the past year.
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)-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
MGA is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.06% yearly.
The Revenue is expected to grow by 0.62% on average over the next years.
EPS Next Y-3.56%
EPS Next 2Y5.28%
EPS Next 3Y7.68%
EPS Next 5Y11.06%
Revenue Next Year-3.63%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.13%
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.
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
The Price/Earnings ratio is 9.04, which indicates a very decent valuation of MGA.
82.72% of the companies in the same industry are more expensive than MGA, based on the Price/Earnings ratio.
MGA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.38.
The Price/Forward Earnings ratio is 7.84, which indicates a rather cheap valuation of MGA.
74.07% of the companies in the same industry are more expensive than MGA, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.86, MGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 7.84 |
4.2 Price Multiples
MGA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MGA is cheaper than 74.07% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGA indicates a rather cheap valuation: MGA is cheaper than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.06 | ||
| EV/EBITDA | 4.79 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y5.28%
EPS Next 3Y7.68%
5. Dividend
5.1 Amount
MGA has a Yearly Dividend Yield of 4.16%, which is a nice return.
MGA's Dividend Yield is comparable with the industry average which is at 3.95.
Compared to an average S&P500 Dividend Yield of 2.38, MGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
5.2 History
The dividend of MGA has a limited annual growth rate of 5.84%.
MGA has paid a dividend for at least 10 years, which is 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
44.88% of the earnings are spent on dividend by MGA. 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.
DP44.88%
EPS Next 2Y5.28%
EPS Next 3Y7.68%
46.94
-0.39 (-0.82%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners78.19%
Inst Owner Change-3.14%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap13.23B
Analysts72.63
Price Target35.24 (-24.93%)
Short Float %2.71%
Short Ratio5.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
Yearly Dividend1.89
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)5.52%
PT rev (3m)19.91%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)-22.38%
EPS NY rev (1m)0%
EPS NY rev (3m)4.71%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-3.52%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 7.84 | ||
| P/S | 0.32 | ||
| P/FCF | 8.06 | ||
| P/OCF | 3.96 | ||
| P/B | 1.06 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 4.79 |
EPS(TTM)5.19
EY11.06%
EPS(NY)5.99
Fwd EY12.75%
FCF(TTM)5.83
FCFY12.41%
OCF(TTM)11.86
OCFY25.26%
SpS147.66
BVpS44.3
TBVpS31.45
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.65% | ||
| ROE | 9.71% | ||
| ROCE | 9.6% | ||
| ROIC | 7.13% | ||
| ROICexc | 7.69% | ||
| ROICexgc | 9.43% | ||
| OM | 4.8% | ||
| 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)7.76%
ROIC(5y)7.4%
ROICexc(3y)8.31%
ROICexc(5y)8.27%
ROICexgc(3y)10.19%
ROICexgc(5y)10.05%
ROCE(3y)10.42%
ROCE(5y)9.88%
ROICexcg growth 3Y-0.14%
ROICexcg growth 5Y-3.64%
ROICexc growth 3Y-1.1%
ROICexc growth 5Y-4.48%
OM growth 3Y-2.24%
OM growth 5Y-3.82%
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 | 92.11% | ||
| Profit Quality | 135.48% | ||
| Current Ratio | 1.16 | ||
| Quick Ratio | 0.82 | ||
| Altman-Z | 2.32 |
F-Score8
WACC8.9%
ROIC/WACC0.8
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-3.56%
EPS Next 2Y5.28%
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-3.63%
Revenue Next 2Y-1.13%
Revenue Next 3Y0.13%
Revenue Next 5Y0.62%
EBIT growth 1Y-0.74%
EBIT growth 3Y3.36%
EBIT growth 5Y-2.22%
EBIT Next Year61.71%
EBIT Next 3Y21.26%
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%