MAGNA INTERNATIONAL INC (MGA)
CA5592224011 - Common Stock
We assign a fundamental rating of 5 out of 10 to MGA. MGA was compared to 41 industry peers in the Automobile Components industry. Both the profitability and the financial health of MGA get a neutral evaluation. Nothing too spectacular is happening here. MGA is valued quite cheap, while showing a decent growth score. This is a good combination! 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.
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 (3.27%) is better than 63.41% of its industry peers.
The Return On Equity of MGA (9.11%) is better than 63.41% of its industry peers.
MGA's Return On Invested Capital of 7.64% is fine compared to the rest of the industry. MGA outperforms 60.98% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MGA is below the industry average of 9.71%.
The last Return On Invested Capital (7.64%) for MGA is above the 3 year average (7.00%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 9.11% | ||
| ROIC | 7.64% |
ROA(3y)3.33%
ROA(5y)5.14%
ROE(3y)8.29%
ROE(5y)12.52%
ROIC(3y)7%
ROIC(5y)8.88%
1.3 Margins
MGA's Profit Margin of 2.47% is fine compared to the rest of the industry. MGA outperforms 63.41% of its industry peers.
In the last couple of years the Profit Margin of MGA has declined.
Looking at the Operating Margin, with a value of 4.42%, MGA is in line with its industry, outperforming 51.22% of the companies in the same industry.
In the last couple of years the Operating Margin of MGA has declined.
With a Gross Margin value of 12.61%, MGA is not doing good in the industry: 68.29% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of MGA has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.42% | ||
| PM (TTM) | 2.47% | ||
| GM | 12.61% |
OM growth 3Y-11.53%
OM growth 5Y-11.75%
PM growth 3Y-29.56%
PM growth 5Y-23.58%
GM growth 3Y-3.59%
GM growth 5Y-4.6%
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
The debt/assets ratio for MGA has been reduced compared to a year ago.
2.2 Solvency
MGA has an Altman-Z score of 2.43. 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 (2.43) which is in line with its industry peers.
The Debt to FCF ratio of MGA is 10.62, which is on the high side as it means it would take MGA, 10.62 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MGA (10.62) is comparable to the rest of the industry.
MGA has a Debt/Equity ratio of 0.36. This is a healthy value indicating a solid balance between debt and equity.
MGA has a Debt to Equity ratio of 0.36. This is comparable to the rest of the industry: MGA outperforms 53.66% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 10.62 | ||
| Altman-Z | 2.43 |
ROIC/WACC0.79
WACC9.73%
2.3 Liquidity
A Current Ratio of 1.11 indicates that MGA should not have too much problems paying its short term obligations.
The Current ratio of MGA (1.11) is worse than 87.80% of its industry peers.
A Quick Ratio of 0.75 indicates that MGA may have some problems paying its short term obligations.
With a Quick ratio value of 0.75, MGA is not doing good in the industry: 80.49% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.75 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.16% over the past year.
MGA shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -7.29% yearly.
Looking at the last year, MGA shows a quite strong growth in Revenue. The Revenue has grown by 12.12% in the last year.
MGA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 0.68% yearly.
EPS 1Y (TTM)11.16%
EPS 3Y-12.19%
EPS 5Y-7.29%
EPS growth Q2Q36.45%
Revenue 1Y (TTM)12.12%
Revenue growth 3Y-1.36%
Revenue growth 5Y0.68%
Revenue growth Q2Q15.32%
3.2 Future
The Earnings Per Share is expected to grow by 20.19% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 6.54% on average over the next years.
EPS Next Y33.29%
EPS Next 2Y28.93%
EPS Next 3Y29.12%
EPS Next 5Y20.19%
Revenue Next Year13%
Revenue Next 2Y9.4%
Revenue Next 3Y8.13%
Revenue Next 5Y6.54%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
Based on the Price/Earnings ratio of 10.89, the valuation of MGA can be described as reasonable.
87.80% of the companies in the same industry are more expensive than MGA, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 24.54. MGA is valued rather cheaply when compared to this.
MGA is valuated cheaply with a Price/Forward Earnings ratio of 7.97.
Based on the Price/Forward Earnings ratio, MGA is valued cheaply inside the industry as 87.80% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 19.65. MGA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 7.97 |
4.2 Price Multiples
MGA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MGA is cheaper than 70.73% of the companies in the same industry.
MGA's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.8 | ||
| EV/EBITDA | 5.99 |
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's earnings are expected to grow with 29.12% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y28.93%
EPS Next 3Y29.12%
5. Dividend
5.1 Amount
MGA has a Yearly Dividend Yield of 3.32%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.91, MGA pays a better dividend. On top of this MGA pays more dividend than 92.68% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.63, MGA pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
5.2 History
On average, the dividend of MGA grows each year by 10.25%, which is quite nice.
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)10.25%
Div Incr Years3
Div Non Decr Years3
5.3 Sustainability
49.66% 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.
DP49.66%
EPS Next 2Y28.93%
EPS Next 3Y29.12%
MAGNA INTERNATIONAL INC
NYSE:MGA (11/29/2023, 7:13:21 PM)
After market: 54.22 0 (0%)54.22
+0.46 (+0.86%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)11-03 2023-11-03/bmo
Earnings (Next)02-08 2024-02-08/amc
Inst Owners64.4%
Inst Owner Change1.71%
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap15.53B
Analysts78.1
Price Target52.35 (-3.45%)
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.32% |
Dividend Growth(5Y)10.25%
DP49.66%
Div Incr Years3
Div Non Decr Years3
Ex-Date11-16 2023-11-16 (0.46)
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.28%
Min EPS beat(2)6.13%
Max EPS beat(2)18.42%
EPS beat(4)3
Avg EPS beat(4)10.51%
Min EPS beat(4)-13.03%
Max EPS beat(4)30.5%
Revenue beat(2)1
Avg Revenue beat(2)1.6%
Min Revenue beat(2)-0.11%
Max Revenue beat(2)3.31%
Revenue beat(4)2
Avg Revenue beat(4)1.47%
Min Revenue beat(4)-2.47%
Max Revenue beat(4)5.14%
PT rev (1m)-1.92%
PT rev (3m)0.16%
EPS NQ rev (1m)11.9%
EPS NQ rev (3m)11.45%
EPS NY rev (1m)0%
EPS NY rev (3m)2.6%
Revenue NQ rev (1m)-2.57%
Revenue NQ rev (3m)-0.1%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.89 | ||
| Fwd PE | 7.97 | ||
| P/S | 0.37 | ||
| P/FCF | 29.8 | ||
| P/OCF | 5.49 | ||
| P/B | 1.36 | ||
| P/tB | 1.97 | ||
| EV/EBITDA | 5.99 |
EPS(TTM)4.98
EY9.18%
EPS(NY)6.8
Fwd EY12.54%
FCF(TTM)1.82
FCFY3.36%
OCF(TTM)9.87
OCFY18.21%
SpS146.36
BVpS39.74
TBVpS27.48
PEG (NY)0.33
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.27% | ||
| ROE | 9.11% | ||
| ROCE | 10.01% | ||
| ROIC | 7.64% | ||
| ROICexc | 8.09% | ||
| ROICexgc | 10.12% | ||
| OM | 4.42% | ||
| PM (TTM) | 2.47% | ||
| GM | 12.61% | ||
| FCFM | 1.24% |
ROA(3y)3.33%
ROA(5y)5.14%
ROE(3y)8.29%
ROE(5y)12.52%
ROIC(3y)7%
ROIC(5y)8.88%
ROICexc(3y)8.1%
ROICexc(5y)9.81%
ROICexgc(3y)9.69%
ROICexgc(5y)11.68%
ROCE(3y)9.17%
ROCE(5y)11.86%
ROICexcg growth 3Y-11.76%
ROICexcg growth 5Y-11.25%
ROICexc growth 3Y-11.96%
ROICexc growth 5Y-10.93%
OM growth 3Y-11.53%
OM growth 5Y-11.75%
PM growth 3Y-29.56%
PM growth 5Y-23.58%
GM growth 3Y-3.59%
GM growth 5Y-4.6%
F-Score3
Asset Turnover1.32
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.36 | ||
| Debt/FCF | 10.62 | ||
| Debt/EBITDA | 1.24 | ||
| Cap/Depr | 156.87% | ||
| Cap/Sales | 5.5% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 85.07% | ||
| Profit Quality | 50.24% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 0.75 | ||
| Altman-Z | 2.43 |
F-Score3
WACC9.73%
ROIC/WACC0.79
Cap/Depr(3y)97.68%
Cap/Depr(5y)105.85%
Cap/Sales(3y)3.91%
Cap/Sales(5y)3.89%
Profit Quality(3y)151.76%
Profit Quality(5y)137.61%
Growth
EPS 1Y (TTM)11.16%
EPS 3Y-12.19%
EPS 5Y-7.29%
EPS growth Q2Q36.45%
EPS Next Y33.29%
EPS Next 2Y28.93%
EPS Next 3Y29.12%
EPS Next 5Y20.19%
Revenue 1Y (TTM)12.12%
Revenue growth 3Y-1.36%
Revenue growth 5Y0.68%
Revenue growth Q2Q15.32%
Revenue Next Year13%
Revenue Next 2Y9.4%
Revenue Next 3Y8.13%
Revenue Next 5Y6.54%
EBIT growth 1Y7.8%
EBIT growth 3Y-12.73%
EBIT growth 5Y-11.15%
EBIT Next Year119.91%
EBIT Next 3Y44.27%
EBIT Next 5Y26.5%
FCF growth 1Y-78.86%
FCF growth 3Y-45.22%
FCF growth 5Y-22.4%
OCF growth 1Y-26.53%
OCF growth 3Y-19.12%
OCF growth 5Y-8.94%