MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
NYSE:MGA - New York Stock Exchange, Inc. - CA5592224011 - Common Stock - Currency: USD
MGA gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 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 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.
In the past year MGA had a positive cash flow from operations.
Each year in the past 5 years MGA has been profitable.
Each year in the past 5 years MGA had a positive operating cash flow.
1.2 Ratios
MGA has a worse Return On Assets (3.57%) than 61.25% of its industry peers.
MGA's Return On Equity of 9.76% is amongst the best of the industry. MGA outperforms 88.75% of its industry peers.
MGA has a worse Return On Invested Capital (7.52%) than 65.00% 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 8.66%.
| 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
MGA's Profit Margin of 2.73% is on the low side compared to the rest of the industry. MGA is outperformed by 63.75% of its industry peers.
In the last couple of years the Profit Margin of MGA has declined.
With a Operating Margin value of 4.65%, MGA is not doing good in the industry: 68.75% of the companies in the same industry are doing better.
MGA's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 13.62%, MGA is doing worse than 83.75% of the companies in the same industry.
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 | 4.65% | ||
| 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
MGA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it 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
An Altman-Z score of 2.31 indicates that MGA is not a great score, but indicates only limited risk for bankruptcy at the moment.
With a Altman-Z score value of 2.31, MGA perfoms like the industry average, outperforming 41.25% of the companies in the same industry.
The Debt to FCF ratio of MGA is 3.68, which is a good value as it means it would take MGA, 3.68 years of fcf income to pay off all of its debts.
MGA has a better Debt to FCF ratio (3.68) than 88.75% of its industry peers.
A Debt/Equity ratio of 0.38 indicates that MGA is not too dependend on debt financing.
MGA has a worse Debt to Equity ratio (0.38) than 67.50% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.38 | ||
| Debt/FCF | 3.68 | ||
| Altman-Z | 2.31 |
ROIC/WACC0.87
WACC8.61%
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.
With a Current ratio value of 1.06, MGA is not doing good in the industry: 92.50% 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 0.74 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 -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.
MGA shows a small growth in Revenue. In the last year, the Revenue has grown by 0.09%.
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)-0.57%
EPS 3Y1.79%
EPS 5Y-2.22%
EPS Q2Q%6.67%
Revenue 1Y (TTM)0.09%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-2.98%
3.2 Future
The Earnings Per Share is expected to grow by 10.35% 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 0.21% yearly.
EPS Next Y-7.89%
EPS Next 2Y7.86%
EPS Next 3Y9.2%
EPS Next 5Y10.35%
Revenue Next Year-5.49%
Revenue Next 2Y-1.53%
Revenue Next 3Y-0.03%
Revenue Next 5Y0.21%
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
The Price/Earnings ratio is 8.18, which indicates a very decent valuation of MGA.
86.25% of the companies in the same industry are more expensive than MGA, based on the Price/Earnings ratio.
Compared to an average S&P500 Price/Earnings ratio of 26.51, MGA is valued rather cheaply.
MGA is valuated cheaply with a Price/Forward Earnings ratio of 6.76.
MGA's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MGA is cheaper than 76.25% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of MGA to the average of the S&P500 Index (34.09), we can say MGA is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 6.76 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MGA indicates a somewhat cheap valuation: MGA is cheaper than 75.00% of the companies listed in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGA indicates a rather cheap valuation: MGA is cheaper than 87.50% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.99 | ||
| EV/EBITDA | 4.44 |
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
MGA has a Yearly Dividend Yield of 4.64%, which is a nice return.
Compared to an average industry Dividend Yield of 3.98, MGA pays a better dividend. On top of this MGA pays more dividend than 98.75% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, MGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
5.2 History
The dividend of MGA has a limited annual growth rate of 5.84%.
MGA has been paying a dividend for at least 10 years, so it has 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%
42.47
-0.08 (-0.19%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupAutomobiles & Components
GICS IndustryAutomobile Components
Earnings (Last)
Earnings (Next)
Inst Owners78.19%
Inst Owner Change0.92%
Ins Owners0.15%
Ins Owner ChangeN/A
Market Cap11.97B
Analysts72.63
Price Target33.4 (-21.36%)
Short Float %3.09%
Short Ratio5.29
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.64% |
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)13.64%
PT rev (3m)1.33%
EPS NQ rev (1m)1.08%
EPS NQ rev (3m)-1.96%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)1.44%
Revenue NQ rev (3m)1.75%
Revenue NY rev (1m)0.96%
Revenue NY rev (3m)0.96%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.18 | ||
| Fwd PE | 6.76 | ||
| P/S | 0.29 | ||
| P/FCF | 7.99 | ||
| P/OCF | 3.47 | ||
| P/B | 1.02 | ||
| P/tB | 1.45 | ||
| EV/EBITDA | 4.44 |
EPS(TTM)5.19
EY12.22%
EPS(NY)6.28
Fwd EY14.79%
FCF(TTM)5.31
FCFY12.51%
OCF(TTM)12.25
OCFY28.83%
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 | 2.31 |
F-Score7
WACC8.61%
ROIC/WACC0.87
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-7.89%
EPS Next 2Y7.86%
EPS Next 3Y9.2%
EPS Next 5Y10.35%
Revenue 1Y (TTM)0.09%
Revenue growth 3Y5.73%
Revenue growth 5Y1.67%
Sales Q2Q%-2.98%
Revenue Next Year-5.49%
Revenue Next 2Y-1.53%
Revenue Next 3Y-0.03%
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%