MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - NYSE:MGA - CA5592224011 - Common Stock
49.19 USD
-0.68 (-1.36%)
49.19 USD
0 (0%)
We assign a fundamental rating of 4 out of 10 to MGA. MGA was compared to 82 industry peers in the Automobile Components industry. The financial health of MGA is average, but 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. 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.
Each year in the past 5 years MGA has been profitable.
MGA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MGA (3.14%) is worse than 60.98% of its industry peers.
The Return On Equity of MGA (8.20%) is comparable to the rest of the industry.
MGA's Return On Invested Capital of 7.07% is on the low side compared to the rest of the industry. MGA is outperformed by 65.85% 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 8.54%.
| 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 worse Profit Margin (2.47%) than 62.20% of its industry peers.
MGA's Profit Margin has declined in the last couple of years.
The Operating Margin of MGA (4.76%) is worse than 67.07% of its industry peers.
MGA's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 13.86%, MGA is not doing good in the industry: 82.93% of the companies in the same industry are doing better.
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.
MGA has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MGA has been reduced compared to 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 2.39. 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 of 2.39. This is comparable to the rest of the industry: MGA outperforms 48.78% of its industry peers.
The Debt to FCF ratio of MGA is 2.67, which is a good value as it means it would take MGA, 2.67 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.67, MGA belongs to the best of the industry, outperforming 92.68% 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.
MGA's Debt to Equity ratio of 0.43 is on the low side compared to the rest of the industry. MGA is outperformed by 68.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.39 |
ROIC/WACC0.9
WACC7.85%
2.3 Liquidity
A Current Ratio of 1.18 indicates that MGA should not have too much problems paying its short term obligations.
MGA's Current ratio of 1.18 is on the low side compared to the rest of the industry. MGA is outperformed by 87.80% of its industry peers.
A Quick Ratio of 0.83 indicates that MGA may have some problems paying its short term obligations.
The Quick ratio of MGA (0.83) is worse than 84.15% 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.
MGA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.22% yearly.
Looking at the last year, MGA shows a decrease in Revenue. The Revenue has decreased by -2.04% in the last year.
The Revenue has been growing slightly by 1.67% on average over the past years.
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%-2.12%
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 10.17% yearly.
The Revenue is expected to grow by 1.00% on average over the next years.
EPS Next Y-0.86%
EPS Next 2Y6.01%
EPS Next 3Y8.23%
EPS Next 5Y10.17%
Revenue Next Year-2.71%
Revenue Next 2Y-0.77%
Revenue Next 3Y0.45%
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 9.39.
Based on the Price/Earnings ratio, MGA is valued a bit cheaper than 79.27% of the companies in the same industry.
MGA's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.28.
A Price/Forward Earnings ratio of 8.11 indicates a reasonable valuation of MGA.
75.61% of the companies in the same industry are more expensive than MGA, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 33.61. MGA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 8.11 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGA is valued a bit cheaper than 75.61% of the companies in the same industry.
MGA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. MGA is cheaper than 93.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 6.81 | ||
| EV/EBITDA | 4.89 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y6.01%
EPS Next 3Y8.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 3.87%, MGA has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.29, MGA has a dividend in line with its industry peers.
MGA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
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 its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)5.84%
Div Incr Years15
Div Non Decr Years15
5.3 Sustainability
52.47% 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.
DP52.47%
EPS Next 2Y6.01%
EPS Next 3Y8.23%
49.19
-0.68 (-1.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners78.22%
Inst Owner Change0%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap13.86B
Revenue(TTM)41.79B
Net Income(TTM)1.03B
Analysts72.63
Price Target35.83 (-27.16%)
Short Float %2.39%
Short Ratio4.48
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.87% |
Yearly Dividend1.89
Dividend Growth(5Y)5.84%
DP52.47%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.65%
Min EPS beat(2)3.08%
Max EPS beat(2)22.22%
EPS beat(4)3
Avg EPS beat(4)4.24%
Min EPS beat(4)-15.82%
Max EPS beat(4)22.22%
EPS beat(8)3
Avg EPS beat(8)-3.96%
EPS beat(12)6
Avg EPS beat(12)0.86%
EPS beat(16)8
Avg EPS beat(16)3.1%
Revenue beat(2)1
Avg Revenue beat(2)-1.6%
Min Revenue beat(2)-4.13%
Max Revenue beat(2)0.93%
Revenue beat(4)3
Avg Revenue beat(4)-0.52%
Min Revenue beat(4)-4.13%
Max Revenue beat(4)0.93%
Revenue beat(8)3
Avg Revenue beat(8)-1.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.73%
Revenue beat(16)7
Avg Revenue beat(16)-0.53%
PT rev (1m)1.26%
PT rev (3m)7.26%
EPS NQ rev (1m)2.56%
EPS NQ rev (3m)13.45%
EPS NY rev (1m)3.2%
EPS NY rev (3m)7.63%
Revenue NQ rev (1m)-0.43%
Revenue NQ rev (3m)2.04%
Revenue NY rev (1m)0.54%
Revenue NY rev (3m)2.94%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.39 | ||
| Fwd PE | 8.11 | ||
| P/S | 0.33 | ||
| P/FCF | 6.81 | ||
| P/OCF | 3.93 | ||
| P/B | 1.1 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 4.89 |
EPS(TTM)5.24
EY10.65%
EPS(NY)6.07
Fwd EY12.34%
FCF(TTM)7.23
FCFY14.69%
OCF(TTM)12.51
OCFY25.44%
SpS148.31
BVpS44.71
TBVpS32
PEG (NY)N/A
PEG (5Y)N/A
Graham Number72.61
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 | 2.39 |
F-Score6
WACC7.85%
ROIC/WACC0.9
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 Y-0.86%
EPS Next 2Y6.01%
EPS Next 3Y8.23%
EPS Next 5Y10.17%
Revenue 1Y (TTM)-2.04%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-2.12%
Revenue Next Year-2.71%
Revenue Next 2Y-0.77%
Revenue Next 3Y0.45%
Revenue Next 5Y1%
EBIT growth 1Y-1.63%
EBIT growth 3Y3.64%
EBIT growth 5Y-2.06%
EBIT Next Year67.1%
EBIT Next 3Y22.77%
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 4 / 10 to MGA.
Can you provide the valuation status for MAGNA INTERNATIONAL INC?
ChartMill assigns a valuation rating of 6 / 10 to MAGNA INTERNATIONAL INC (MGA). This can be considered as Fairly Valued.
How profitable is MAGNA INTERNATIONAL INC (MGA) stock?
MAGNA INTERNATIONAL INC (MGA) has a profitability rating of 3 / 10.
What is the valuation of MAGNA INTERNATIONAL INC based on its PE and PB ratios?
The Price/Earnings (PE) ratio for MAGNA INTERNATIONAL INC (MGA) is 9.39 and the Price/Book (PB) ratio is 1.1.
What is the earnings growth outlook for MAGNA INTERNATIONAL INC?
The Earnings per Share (EPS) of MAGNA INTERNATIONAL INC (MGA) is expected to decline by -0.86% in the next year.