MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:MGA • CA5592224011
51.14 USD
-1.65 (-3.13%)
At close: Jan 30, 2026
51.14 USD
0 (0%)
After Hours: 1/30/2026, 5:26:15 PM
MGA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 42 industry peers in the Automobile Components industry. MGA has an average financial health and profitability rating. MGA has a bad growth rate and is valued cheaply. MGA also has an excellent dividend rating. These ratings would make MGA suitable for value and dividend investing!
1. Profitability
1.1 Basic Checks
- In the past year MGA was profitable.
- In the past year MGA had a positive cash flow from operations.
- In the past 5 years MGA has always been profitable.
- MGA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- MGA has a better Return On Assets (3.14%) than 73.81% of its industry peers.
- MGA has a better Return On Equity (8.20%) than 78.57% of its industry peers.
- MGA's Return On Invested Capital of 7.07% is fine compared to the rest of the industry. MGA outperforms 61.90% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for MGA 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
- With a decent Profit Margin value of 2.47%, MGA is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- In the last couple of years the Profit Margin of MGA has declined.
- Looking at the Operating Margin, with a value of 4.76%, MGA is in line with its industry, outperforming 59.52% of the companies in the same industry.
- In the last couple of years the Operating Margin of MGA has declined.
- MGA has a worse Gross Margin (13.86%) than 69.05% of its industry peers.
- MGA's Gross Margin has been stable in the last couple of years.
| 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
- 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.
- MGA has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for MGA has been reduced compared to a year ago.
2.2 Solvency
- MGA has an Altman-Z score of 2.41. 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.
- MGA has a Altman-Z score (2.41) which is comparable to the rest of the 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.
- MGA has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
- MGA's Debt to Equity ratio of 0.43 is in line compared 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 | 2.41 |
ROIC/WACC0.86
WACC8.26%
2.3 Liquidity
- A Current Ratio of 1.18 indicates that MGA should not have too much problems paying its short term obligations.
- Looking at the Current ratio, with a value of 1.18, MGA is doing worse than 80.95% of the companies in the same industry.
- 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.
- Looking at the Quick ratio, with a value of 0.83, MGA is doing worse than 73.81% of the companies in the same industry.
| 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.
- The Earnings Per Share has been decreasing by -2.22% on average over the past years.
- Looking at the last year, MGA shows a decrease in Revenue. The Revenue has decreased by -2.04% in the last year.
- MGA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.67% yearly.
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
- The Earnings Per Share is expected to grow by 10.17% on average over the next years. This is quite good.
- The Revenue is expected to grow by 1.00% on average over the next years.
EPS Next Y1.54%
EPS Next 2Y6.65%
EPS Next 3Y8.52%
EPS Next 5Y10.17%
Revenue Next Year-2.05%
Revenue Next 2Y-0.53%
Revenue Next 3Y0.56%
Revenue Next 5Y1%
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
- MGA is valuated reasonably with a Price/Earnings ratio of 9.76.
- MGA's Price/Earnings ratio is rather cheap when compared to the industry. MGA is cheaper than 90.48% of the companies in the same industry.
- When comparing the Price/Earnings ratio of MGA to the average of the S&P500 Index (28.30), we can say MGA is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 8.33, the valuation of MGA can be described as reasonable.
- MGA's Price/Forward Earnings ratio is rather cheap when compared to the industry. MGA is cheaper than 88.10% of the companies in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.57, MGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.76 | ||
| Fwd PE | 8.33 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MGA indicates a rather cheap valuation: MGA is cheaper than 85.71% of the companies listed in the same industry.
- MGA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MGA is cheaper than 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.08 | ||
| EV/EBITDA | 5.12 |
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)6.33
PEG (5Y)N/A
EPS Next 2Y6.65%
EPS Next 3Y8.52%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.68%, MGA has a reasonable but not impressive dividend return.
- MGA's Dividend Yield is rather good when compared to the industry average which is at 0.61. MGA pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.82, MGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
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.
- The dividend of MGA is growing, but earnings are growing more, so the dividend growth is sustainable.
DP52.47%
EPS Next 2Y6.65%
EPS Next 3Y8.52%
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%.