MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
NYSE:MGA - New York Stock Exchange, Inc. - CA5592224011 - Common Stock - Currency: USD
Taking everything into account, MGA scores 4 out of 10 in our fundamental rating. MGA was compared to 80 industry peers in the Automobile Components industry. The financial health of MGA is average, but there are quite some concerns on its profitability. MGA is valued correctly, 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.
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 worse Return On Assets (3.57%) than 63.75% of its industry peers.
MGA's Return On Equity of 9.76% is on the low side compared to the rest of the industry. MGA is outperformed by 61.25% of its industry peers.
With a Return On Invested Capital value of 7.52%, MGA is not doing good in the industry: 63.75% of the companies in the same industry are doing better.
MGA had an Average Return On Invested Capital over the past 3 years of 7.69%. This is in line with the industry average of 9.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 9.76% | ||
| ROIC | 7.52% |
ROA(3y)3.05%
ROA(5y)3.4%
ROE(3y)8.13%
ROE(5y)8.77%
ROIC(3y)7.69%
ROIC(5y)7.35%
1.3 Margins
The Profit Margin of MGA (2.73%) is worse than 65.00% of its industry peers.
In the last couple of years the Profit Margin of MGA has declined.
The Operating Margin of MGA (4.65%) is worse than 70.00% of its industry peers.
MGA's Operating Margin has declined in the last couple of years.
MGA has a worse Gross Margin (13.62%) than 83.75% of its industry peers.
MGA's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.65% | ||
| PM (TTM) | 2.73% | ||
| GM | 13.62% |
OM growth 3Y-3.12%
OM growth 5Y-4.35%
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 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
An Altman-Z score of 2.30 indicates that MGA is not a great score, but indicates only limited risk for bankruptcy at the moment.
MGA's Altman-Z score of 2.30 is in line compared to the rest of the industry. MGA outperforms 45.00% 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's Debt to FCF ratio of 3.68 is in line compared to the rest of the industry. MGA outperforms 41.25% of its industry peers.
MGA has a Debt/Equity ratio of 0.38. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MGA (0.38) is worse than 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.3 |
ROIC/WACC0.88
WACC8.54%
2.3 Liquidity
MGA has a Current Ratio of 1.06. 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 1.06 is on the low side compared to the rest of the industry. MGA is outperformed by 92.50% of its industry peers.
A Quick Ratio of 0.74 indicates that MGA may have some problems paying its short term obligations.
MGA's Quick ratio of 0.74 is on the low side compared to the rest of the industry. MGA is outperformed by 90.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The earnings per share for MGA have decreased by -5.03% 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.
The Revenue has decreased by -2.69% in the past year.
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)-5.03%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%-27.78%
Revenue 1Y (TTM)-2.69%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-8.21%
3.2 Future
Based on estimates for the next years, MGA will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.35% on average per year.
Based on estimates for the next years, MGA will show a small growth in Revenue. The Revenue will grow by 0.21% on average per year.
EPS Next Y-7.89%
EPS Next 2Y7.86%
EPS Next 3Y9.2%
EPS Next 5Y10.35%
Revenue Next Year-6.41%
Revenue Next 2Y-1.98%
Revenue Next 3Y-0.82%
Revenue Next 5Y0.21%
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
The Price/Earnings ratio is 8.16, which indicates a very decent valuation of MGA.
MGA's Price/Earnings ratio is a bit cheaper when compared to the industry. MGA is cheaper than 80.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.46, MGA is valued rather cheaply.
A Price/Forward Earnings ratio of 6.63 indicates a rather cheap valuation of MGA.
Based on the Price/Forward Earnings ratio, MGA is valued a bit cheaper than 78.75% of the companies 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 36.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.16 | ||
| Fwd PE | 6.63 |
4.2 Price Multiples
MGA's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MGA is cheaper than 73.75% of the companies in the same industry.
MGA's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MGA is cheaper than 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.83 | ||
| EV/EBITDA | 4.35 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.86%
EPS Next 3Y9.2%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.22%, MGA is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 4.24, 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 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
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
47.21% of the earnings are spent on dividend by MGA. 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.
DP47.21%
EPS Next 2Y7.86%
EPS Next 3Y9.2%
41.63
+0.23 (+0.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners78.19%
Inst Owner Change-0.05%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap11.73B
Analysts72
Price Target29.62 (-28.85%)
Short Float %3.12%
Short Ratio4.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.22% |
Yearly Dividend1.89
Dividend Growth(5Y)5.84%
DP47.21%
Div Incr Years15
Div Non Decr Years15
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-4.17%
Min EPS beat(2)-15.82%
Max EPS beat(2)7.47%
EPS beat(4)1
Avg EPS beat(4)-7.12%
Min EPS beat(4)-15.82%
Max EPS beat(4)7.47%
EPS beat(8)3
Avg EPS beat(8)-4.05%
EPS beat(12)4
Avg EPS beat(12)-2.89%
EPS beat(16)6
Avg EPS beat(16)0.9%
Revenue beat(2)2
Avg Revenue beat(2)0.56%
Min Revenue beat(2)0.19%
Max Revenue beat(2)0.92%
Revenue beat(4)2
Avg Revenue beat(4)-1.46%
Min Revenue beat(4)-3.58%
Max Revenue beat(4)0.92%
Revenue beat(8)3
Avg Revenue beat(8)-1.02%
Revenue beat(12)5
Avg Revenue beat(12)-0.6%
Revenue beat(16)6
Avg Revenue beat(16)-0.83%
PT rev (1m)1.95%
PT rev (3m)-16.02%
EPS NQ rev (1m)3.87%
EPS NQ rev (3m)-3%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.16 | ||
| Fwd PE | 6.63 | ||
| P/S | 0.28 | ||
| P/FCF | 7.83 | ||
| P/OCF | 3.4 | ||
| P/B | 1 | ||
| P/tB | 1.42 | ||
| EV/EBITDA | 4.35 |
EPS(TTM)5.1
EY12.25%
EPS(NY)6.28
Fwd EY15.09%
FCF(TTM)5.31
FCFY12.76%
OCF(TTM)12.25
OCFY29.41%
SpS148.84
BVpS41.67
TBVpS29.36
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.57% | ||
| ROE | 9.76% | ||
| ROCE | 10.27% | ||
| ROIC | 7.52% | ||
| ROICexc | 7.94% | ||
| ROICexgc | 9.77% | ||
| OM | 4.65% | ||
| PM (TTM) | 2.73% | ||
| GM | 13.62% | ||
| FCFM | 3.57% |
ROA(3y)3.05%
ROA(5y)3.4%
ROE(3y)8.13%
ROE(5y)8.77%
ROIC(3y)7.69%
ROIC(5y)7.35%
ROICexc(3y)8.23%
ROICexc(5y)8.22%
ROICexgc(3y)10.09%
ROICexgc(5y)9.99%
ROCE(3y)10.32%
ROCE(5y)9.82%
ROICexcg growth 3Y-1.05%
ROICexcg growth 5Y-4.17%
ROICexc growth 3Y-2%
ROICexc growth 5Y-5%
OM growth 3Y-3.12%
OM growth 5Y-4.35%
PM growth 3Y-17.39%
PM growth 5Y-12.05%
GM growth 3Y-1.57%
GM growth 5Y-0.26%
F-Score7
Asset Turnover1.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.68 | ||
| Debt/EBITDA | 1.26 | ||
| Cap/Depr | 121.15% | ||
| Cap/Sales | 4.66% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 96.83% | ||
| Profit Quality | 130.63% | ||
| Current Ratio | 1.06 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 2.3 |
F-Score7
WACC8.54%
ROIC/WACC0.88
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)-5.03%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%-27.78%
EPS Next Y-7.89%
EPS Next 2Y7.86%
EPS Next 3Y9.2%
EPS Next 5Y10.35%
Revenue 1Y (TTM)-2.69%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-8.21%
Revenue Next Year-6.41%
Revenue Next 2Y-1.98%
Revenue Next 3Y-0.82%
Revenue Next 5Y0.21%
EBIT growth 1Y-4.41%
EBIT growth 3Y2.43%
EBIT growth 5Y-2.75%
EBIT Next Year61.71%
EBIT Next 3Y21.26%
EBIT Next 5Y13.73%
FCF growth 1Y444.36%
FCF growth 3Y-2.44%
FCF growth 5Y-10.38%
OCF growth 1Y61.06%
OCF growth 3Y7.32%
OCF growth 5Y-1.7%