MAGNA INTERNATIONAL INC (MGA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:MGA - CA5592224011 - Common Stock
53.23 USD
-0.18 (-0.34%)
53.23 USD
0 (0%)
Taking everything into account, MGA scores 5 out of 10 in our fundamental rating. MGA was compared to 42 industry peers in the Automobile Components industry. MGA has an average financial health and profitability rating. MGA has a bad growth rate and is valued cheaply. MGA also has an excellent dividend rating. With these ratings, MGA could be worth investigating further for value and dividend investing!.
1. Profitability
1.1 Basic Checks
- MGA had positive earnings in the past year.
- MGA had a positive operating cash flow in the past year.
- 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
- Looking at the Return On Assets, with a value of 3.14%, MGA is in the better half of the industry, outperforming 73.81% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 8.20%, MGA is in the better half of the industry, outperforming 78.57% of the companies in the same industry.
- The Return On Invested Capital of MGA (7.07%) is better than 61.90% 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 9.10%.
| 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
- With a decent Profit Margin value of 2.47%, MGA is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- MGA's Profit Margin has declined in the last couple of years.
- MGA's Operating Margin of 4.76% is in line compared to the rest of the industry. MGA outperforms 59.52% of its industry peers.
- MGA's Operating Margin has declined in the last couple of years.
- MGA has a worse Gross Margin (13.86%) than 69.05% 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 | 4.76% | ||
| 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.
- Compared to 1 year ago, MGA has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 2.42 indicates that MGA is not a great score, but indicates only limited risk for bankruptcy at the moment.
- MGA's Altman-Z score of 2.42 is in line compared to the rest of the industry. MGA outperforms 57.14% 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.
- MGA has a better Debt to FCF ratio (2.67) than 85.71% of its industry peers.
- A Debt/Equity ratio of 0.43 indicates that MGA is not too dependend on debt financing.
- MGA has a Debt to Equity ratio (0.43) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.43 | ||
| Debt/FCF | 2.67 | ||
| Altman-Z | 2.42 |
ROIC/WACC0.89
WACC7.96%
2.3 Liquidity
- MGA has a Current Ratio of 1.18. This is a normal value and indicates that MGA is financially healthy and should not expect problems in meeting its short term obligations.
- MGA has a worse Current ratio (1.18) than 80.95% of its industry peers.
- A Quick Ratio of 0.83 indicates that MGA may have some problems paying its short term obligations.
- MGA has a Quick ratio of 0.83. This is in the lower half of the industry: MGA underperforms 73.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.18 | ||
| Quick Ratio | 0.83 |
3. Growth
3.1 Past
- MGA shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.97%.
- The Earnings Per Share has been decreasing by -2.22% on average over the past years.
- 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%1.77%
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 10.17% on average per year.
- MGA is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 1.00% yearly.
EPS Next Y1.54%
EPS Next 2Y6.65%
EPS Next 3Y8.52%
EPS Next 5Y10.17%
Revenue Next Year-2.05%
Revenue Next 2Y-0.53%
Revenue Next 3Y0.56%
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.
- 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
- Based on the Price/Earnings ratio of 10.16, the valuation of MGA can be described as reasonable.
- Based on the Price/Earnings ratio, MGA is valued cheaper than 85.71% of the companies in the same industry.
- When comparing the Price/Earnings ratio of MGA to the average of the S&P500 Index (27.21), we can say MGA is valued rather cheaply.
- Based on the Price/Forward Earnings ratio of 8.67, the valuation of MGA can be described as reasonable.
- Based on the Price/Forward Earnings ratio, MGA is valued cheaply inside the industry as 88.10% of the companies are valued more expensively.
- MGA is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.16 | ||
| Fwd PE | 8.67 |
4.2 Price Multiples
- MGA's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MGA is cheaper than 85.71% 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 90.48% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 7.37 | ||
| EV/EBITDA | 5.15 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MGA does not grow enough to justify the current Price/Earnings ratio.
PEG (NY)6.59
PEG (5Y)N/A
EPS Next 2Y6.65%
EPS Next 3Y8.52%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 3.68%, MGA has a reasonable but not impressive dividend return.
- MGA's Dividend Yield is rather good when compared to the industry average which is at 0.61. MGA pays more dividend than 100.00% of the companies in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.81, MGA pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.68% |
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
- 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 2Y6.65%
EPS Next 3Y8.52%
MAGNA INTERNATIONAL INC / MGA FAQ
Can you provide the ChartMill fundamental rating for MAGNA INTERNATIONAL INC?
ChartMill assigns a fundamental rating of 5 / 10 to MGA.
What is the valuation status for MGA stock?
ChartMill assigns a valuation rating of 7 / 10 to MAGNA INTERNATIONAL INC (MGA). This can be considered as Undervalued.
How profitable is MAGNA INTERNATIONAL INC (MGA) stock?
MAGNA INTERNATIONAL INC (MGA) has a profitability rating of 5 / 10.
Can you provide the financial health for MGA stock?
The financial health rating of MAGNA INTERNATIONAL INC (MGA) is 5 / 10.
Is the dividend of MAGNA INTERNATIONAL INC sustainable?
The dividend rating of MAGNA INTERNATIONAL INC (MGA) is 8 / 10 and the dividend payout ratio is 52.47%.