MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
NYSE:MGA - CA5592224011 - Common Stock
46.29 USD
-0.06 (-0.13%)
46.29 USD
0 (0%)
Overall MGA gets a fundamental rating of 4 out of 10. We evaluated MGA against 80 industry peers in the Automobile Components industry. While MGA seems to be doing ok healthwise, there are quite some concerns on its profitability. MGA is valued correctly, but it does not seem to be growing. Finally MGA also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
MGA had positive earnings in the past year.
In the past year MGA had a positive cash flow from operations.
Each year in the past 5 years MGA has been profitable.
Each year in the past 5 years MGA had a positive operating cash flow.
1.2 Ratios
MGA has a worse Return On Assets (3.65%) than 61.25% of its industry peers.
With an excellent Return On Equity value of 9.71%, MGA belongs to the best of the industry, outperforming 88.75% 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: 65.00% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for MGA is in line with the industry average of 8.49%.
| 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
The Profit Margin of MGA (2.91%) is worse than 65.00% of its industry peers.
MGA's Profit Margin has declined in the last couple of years.
MGA has a worse Operating Margin (4.80%) than 68.75% of its industry peers.
MGA's Operating Margin has declined in the last couple of years.
MGA has a worse Gross Margin (13.83%) than 83.75% 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
MGA 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 MGA has been reduced compared to 1 year ago.
MGA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MGA has an improved debt to assets ratio.
2.2 Solvency
MGA has an Altman-Z score of 2.32. 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 worse Altman-Z score (2.32) than 61.25% of its industry peers.
MGA has a debt to FCF ratio of 3.68. This is a good value and a sign of high solvency as MGA would need 3.68 years to pay back of all of its debts.
MGA has a better Debt to FCF ratio (3.68) than 88.75% 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 in the lower half of the industry: MGA underperforms 67.50% of its industry peers.
| 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.
MGA's Current ratio of 1.16 is on the low side compared to the rest of the industry. MGA is outperformed by 90.00% of its industry peers.
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: 86.25% 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
The earnings per share for MGA have decreased by -0.57% in the last 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 -3.39%.
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-3.64%
Revenue Next 2Y-1.11%
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
MGA is valuated reasonably with a Price/Earnings ratio of 8.92.
MGA's Price/Earnings ratio is rather cheap when compared to the industry. MGA is cheaper than 82.50% of the companies in the same industry.
When comparing the Price/Earnings ratio of MGA to the average of the S&P500 Index (27.14), we can say MGA is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 7.73, the valuation of MGA can be described as very cheap.
76.25% of the companies in the same industry are more expensive than MGA, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of MGA to the average of the S&P500 Index (22.80), we can say MGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 7.73 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGA is valued a bit cheaper than 76.25% of the companies in the same industry.
92.50% 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 | 7.94 | ||
| EV/EBITDA | 4.74 |
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 4.41%, which is a nice return.
Compared to an average industry Dividend Yield of 3.82, MGA pays a better dividend. On top of this MGA pays more dividend than 98.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.34, MGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
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%
46.29
-0.06 (-0.13%)
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 Cap13.04B
Analysts72.63
Price Target34.32 (-25.86%)
Short Float %2.96%
Short Ratio5.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.41% |
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)15.85%
PT rev (3m)4.12%
EPS NQ rev (1m)-15.21%
EPS NQ rev (3m)-23.03%
EPS NY rev (1m)4.71%
EPS NY rev (3m)4.71%
Revenue NQ rev (1m)1.78%
Revenue NQ rev (3m)-3.6%
Revenue NY rev (1m)2.94%
Revenue NY rev (3m)2.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.92 | ||
| Fwd PE | 7.73 | ||
| P/S | 0.31 | ||
| P/FCF | 7.94 | ||
| P/OCF | 3.9 | ||
| P/B | 1.04 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 4.74 |
EPS(TTM)5.19
EY11.21%
EPS(NY)5.99
Fwd EY12.93%
FCF(TTM)5.83
FCFY12.59%
OCF(TTM)11.86
OCFY25.61%
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-3.64%
Revenue Next 2Y-1.11%
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%