MAGNA INTERNATIONAL INC (MGA)
CA5592224011 - Common Stock
MGA gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 42 industry peers in the Automobile Components industry. There are concerns on the financial health of MGA while its profitability can be described as average. MGA may be a bit undervalued, certainly considering the very reasonable score on growth MGA also has an excellent dividend rating.
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.
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 (3.76%) is better than 66.67% of its industry peers.
The Return On Equity of MGA (10.21%) is better than 69.05% of its industry peers.
MGA's Return On Invested Capital of 7.99% is fine compared to the rest of the industry. MGA outperforms 71.43% of its industry peers.
MGA had an Average Return On Invested Capital over the past 3 years of 7.67%. This is in line with the industry average of 9.29%.
The last Return On Invested Capital (7.99%) for MGA is above the 3 year average (7.67%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 10.21% | ||
| ROIC | 7.99% |
ROA(3y)3.7%
ROA(5y)4.12%
ROE(3y)9.47%
ROE(5y)10.27%
ROIC(3y)7.67%
ROIC(5y)7.91%
1.3 Margins
With a decent Profit Margin value of 2.83%, MGA is doing good in the industry, outperforming 64.29% of the companies in the same industry.
In the last couple of years the Profit Margin of MGA has declined.
MGA has a Operating Margin of 4.76%. This is comparable to the rest of the industry: MGA outperforms 54.76% of its industry peers.
In the last couple of years the Operating Margin of MGA has declined.
The Gross Margin of MGA (13.11%) is worse than 64.29% 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) | 2.83% | ||
| GM | 13.11% |
OM growth 3Y1.49%
OM growth 5Y-7.23%
PM growth 3Y6.92%
PM growth 5Y-12.81%
GM growth 3Y-1.21%
GM growth 5Y-1.49%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MGA is destroying value.
MGA has more shares outstanding than it did 1 year ago.
MGA has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, MGA has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.39 indicates that MGA is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.39, 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 8.48. This is a slightly negative value and a sign of low solvency as MGA would need 8.48 years to pay back of all of its debts.
MGA has a Debt to FCF ratio (8.48) which is in line with its industry peers.
MGA has a Debt/Equity ratio of 0.39. This is a healthy value indicating a solid balance between debt and equity.
MGA has a Debt to Equity ratio of 0.39. This is comparable to the rest of the industry: MGA outperforms 59.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | 8.48 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.79
WACC10.08%
2.3 Liquidity
A Current Ratio of 1.06 indicates that MGA should not have too much problems paying its short term obligations.
With a Current ratio value of 1.06, MGA is not doing good in the industry: 88.10% of the companies in the same industry are doing better.
MGA has a Quick Ratio of 1.06. 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's Quick ratio of 0.71 is on the low side compared to the rest of the industry. MGA is outperformed by 88.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.71 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 32.03% over the past year.
Measured over the past years, MGA shows a decrease in Earnings Per Share. The EPS has been decreasing by -4.22% on average per year.
Looking at the last year, MGA shows a quite strong growth in Revenue. The Revenue has grown by 13.10% in the last year.
Measured over the past years, MGA shows a small growth in Revenue. The Revenue has been growing by 0.95% on average per year.
EPS 1Y (TTM)32.03%
EPS 3Y6.5%
EPS 5Y-4.22%
EPS growth Q2Q46.15%
Revenue 1Y (TTM)13.1%
Revenue growth 3Y9.44%
Revenue growth 5Y0.95%
Revenue growth Q2Q9.26%
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 16.99% yearly.
MGA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.69% yearly.
EPS Next Y15.53%
EPS Next 2Y19.48%
EPS Next 3Y18.64%
EPS Next 5Y16.99%
Revenue Next Year4.23%
Revenue Next 2Y4.38%
Revenue Next 3Y4.44%
Revenue Next 5Y4.69%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 9.11, the valuation of MGA can be described as very reasonable.
Based on the Price/Earnings ratio, MGA is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 25.25, MGA is valued rather cheaply.
MGA is valuated cheaply with a Price/Forward Earnings ratio of 7.89.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGA indicates a rather cheap valuation: MGA is cheaper than 92.86% of the companies listed in the same industry.
MGA's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.67.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.11 | ||
| Fwd PE | 7.89 |
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 83.33% of the companies listed in the same industry.
MGA's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.78 | ||
| EV/EBITDA | 5.03 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MGA has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as MGA's earnings are expected to grow with 18.64% in the coming years.
PEG (NY)0.59
PEG (5Y)N/A
EPS Next 2Y19.48%
EPS Next 3Y18.64%
5. Dividend
5.1 Amount
MGA has a Yearly Dividend Yield of 3.75%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.81, MGA pays a better dividend. On top of this MGA pays more dividend than 97.62% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.45, MGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
5.2 History
The dividend of MGA is nicely growing with an annual growth rate of 6.87%!
MGA has paid a dividend for at least 10 years, which is a reliable track record.
MGA has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)6.87%
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
43.03% 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.
DP43.03%
EPS Next 2Y19.48%
EPS Next 3Y18.64%
MAGNA INTERNATIONAL INC
NYSE:MGA (4/24/2024, 7:16:13 PM)
After market: 48.9 -0.31 (-0.63%)49.21
-0.56 (-1.13%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.14B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.75% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.11 | ||
| Fwd PE | 7.89 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.59
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.76% | ||
| ROE | 10.21% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.76% | ||
| PM (TTM) | 2.83% | ||
| GM | 13.11% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.39 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.71 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)32.03%
EPS 3Y6.5%
EPS 5Y
EPS growth Q2Q
EPS Next Y15.53%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.1%
Revenue growth 3Y9.44%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y