MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - NYSE:MGA - CA5592224011 - Common Stock
46.94 USD
-0.39 (-0.82%)
47.0183 USD
+0.08 (+0.17%)
Overall MGA gets a fundamental rating of 4 out of 10. We evaluated MGA against 81 industry peers in the Automobile Components industry. MGA scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MGA has a valuation in line with the averages, 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.
In the past 5 years MGA has always been profitable.
Each year in the past 5 years MGA had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.65%, MGA is doing worse than 60.49% of the companies in the same industry.
MGA's Return On Equity of 9.71% is amongst the best of the industry. MGA outperforms 88.89% of its industry peers.
MGA's Return On Invested Capital of 7.13% is on the low side compared to the rest of the industry. MGA is outperformed by 64.20% of its industry peers.
MGA had an Average Return On Invested Capital over the past 3 years of 7.76%. This is in line with the industry average of 8.51%.
| 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
With a Profit Margin value of 2.91%, MGA is not doing good in the industry: 64.20% of the companies in the same industry are doing better.
In the last couple of years the Profit Margin of MGA has declined.
The Operating Margin of MGA (4.80%) is worse than 67.90% of its industry peers.
In the last couple of years the Operating Margin of MGA has declined.
The Gross Margin of MGA (13.83%) is worse than 82.72% 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MGA is destroying value.
Compared to 1 year ago, MGA has less shares outstanding
MGA has less shares outstanding than it did 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 2.32 indicates that MGA is not a great score, but indicates only limited risk for bankruptcy at the moment.
MGA has a Altman-Z score (2.32) which is comparable to the rest of the industry.
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 Debt to FCF ratio of 3.68. This is amongst the best in the industry. MGA outperforms 88.89% of its industry peers.
MGA has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
MGA has a worse Debt to Equity ratio (0.43) than 67.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.32 |
ROIC/WACC0.8
WACC8.97%
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 88.89% of its industry peers.
A Quick Ratio of 0.82 indicates that MGA may have some problems paying its short term obligations.
MGA's Quick ratio of 0.82 is on the low side compared to the rest of the industry. MGA is outperformed by 85.19% of its industry peers.
| 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.
Looking at the last year, MGA shows a decrease in Revenue. The Revenue has decreased by -3.39% in the last year.
MGA shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.67% yearly.
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
The Earnings Per Share is expected to grow by 11.06% on average over the next years. This is quite good.
MGA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 0.62% yearly.
EPS Next Y-3.56%
EPS Next 2Y5.28%
EPS Next 3Y7.68%
EPS Next 5Y11.06%
Revenue Next Year-3.63%
Revenue Next 2Y-1.13%
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.
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
The Price/Earnings ratio is 9.04, which indicates a very decent valuation of MGA.
Based on the Price/Earnings ratio, MGA is valued cheaply inside the industry as 82.72% of the companies are valued more expensively.
MGA is valuated cheaply when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
MGA is valuated cheaply with a Price/Forward Earnings ratio of 7.84.
Based on the Price/Forward Earnings ratio, MGA is valued a bit cheaper than 74.07% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.86. MGA is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 7.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGA is valued a bit cheaper than the industry average as 74.07% of the companies are valued more expensively.
88.89% 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 | 8.06 | ||
| EV/EBITDA | 4.79 |
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 4.16%, which is a nice return.
MGA's Dividend Yield is comparable with the industry average which is at 3.94.
MGA's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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
MGA pays out 44.88% of its income as dividend. 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.
DP44.88%
EPS Next 2Y5.28%
EPS Next 3Y7.68%
46.94
-0.39 (-0.82%)
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 Cap13.23B
Analysts72.63
Price Target35.24 (-24.93%)
Short Float %2.71%
Short Ratio5.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.16% |
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)5.52%
PT rev (3m)19.91%
EPS NQ rev (1m)0.84%
EPS NQ rev (3m)-22.38%
EPS NY rev (1m)0%
EPS NY rev (3m)4.71%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-3.52%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)2.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.04 | ||
| Fwd PE | 7.84 | ||
| P/S | 0.32 | ||
| P/FCF | 8.06 | ||
| P/OCF | 3.96 | ||
| P/B | 1.06 | ||
| P/tB | 1.49 | ||
| EV/EBITDA | 4.79 |
EPS(TTM)5.19
EY11.06%
EPS(NY)5.99
Fwd EY12.75%
FCF(TTM)5.83
FCFY12.41%
OCF(TTM)11.86
OCFY25.26%
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
WACC8.97%
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-3.63%
Revenue Next 2Y-1.13%
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%