Magna International
Market Cap
CA$20.7b
Last Updated
2020/02/24 01:14 UTC
Data Sources
Company Financials +
Executive Summary
Magna International Inc. designs, develops, and manufactures automotive systems, assemblies, modules, and components in North America, Europe, Asia Pacific, and internationally.
Rewards
Risk Analysis
No risks detected for MG from our risk checks.
Snowflake Analysis
Excellent balance sheet established dividend payer.
Similar Companies
Share Price & News
How has Magna International's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MG has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
0.5%
MG
-0.6%
CA Auto Components
0.1%
CA Market
1 Year Return
-3.3%
MG
-8.6%
CA Auto Components
4.5%
CA Market
Return vs Industry: MG exceeded the Canadian Auto Components industry which returned -8.6% over the past year.
Return vs Market: MG underperformed the Canadian Market which returned 4.5% over the past year.
Shareholder returns
| MG | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | -0.6% | 0.1% |
| 30 Day | -1.9% | -3.2% | 0.9% |
| 90 Day | -7.5% | -5.7% | 3.7% |
| 1 Year | -0.4%-3.3% | -7.0%-8.6% | 7.8%4.5% |
| 3 Year | 28.9%19.3% | -4.5%-13.6% | 18.2%7.5% |
| 5 Year | 11.4%-1.2% | 1.3%-12.3% | 33.7%14.2% |
Price Volatility Vs. Market
How volatile is Magna International's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Read This Before You Buy Magna International Inc. (TSE:MG) Because Of Its P/E Ratio4 weeks ago | Simply Wall St
With A Return On Equity Of 15%, Has Magna International Inc.'s (TSE:MG) Management Done Well?1 month ago | Simply Wall St
Have Insiders Been Selling Magna International Inc. (TSE:MG) Shares This Year?Valuation
Is Magna International undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MG (CA$68.23) is trading below our estimate of fair value (CA$234.43)
Significantly Below Fair Value: MG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MG is good value based on its PE Ratio (9.2x) compared to the Auto Components industry average (13.6x).
PE vs Market: MG is good value based on its PE Ratio (9.2x) compared to the Canadian market (16.2x).
Price to Earnings Growth Ratio
PEG Ratio: MG is poor value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: MG is overvalued based on its PB Ratio (1.4x) compared to the XN Auto Components industry average (1.3x).
Next Steps
Future Growth
How is Magna International forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
9.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MG's forecast earnings growth (9.1% per year) is above the savings rate (1.4%).
Earnings vs Market: MG's earnings (9.1% per year) are forecast to grow slower than the Canadian market (10.9% per year).
High Growth Earnings: MG's earnings are forecast to grow, but not significantly.
Revenue vs Market: MG's revenue (0.8% per year) is forecast to grow slower than the Canadian market (4.7% per year).
High Growth Revenue: MG's revenue (0.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MG's Return on Equity is forecast to be high in 3 years time (20.2%)
Next Steps
Past Performance
How has Magna International performed over the past 5 years?
3.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MG has high quality earnings.
Growing Profit Margin: MG's current net profit margins (4.5%) are lower than last year (5.6%).
Past Earnings Growth Analysis
Earnings Trend: MG's earnings have grown by 3.2% per year over the past 5 years.
Accelerating Growth: MG's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: MG had negative earnings growth (-23.1%) over the past year, making it difficult to compare to the Auto Components industry average (-7%).
Return on Equity
High ROE: MG's Return on Equity (14.7%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Magna International's financial position?
Financial Position Analysis
Short Term Liabilities: MG's short term assets ($10.7B) exceed its short term liabilities ($8.5B).
Long Term Liabilities: MG's short term assets ($10.7B) exceed its long term liabilities ($5.8B).
Debt to Equity History and Analysis
Debt Level: MG's debt to equity ratio (28.5%) is considered satisfactory.
Reducing Debt: MG's debt to equity ratio has increased from 11.8% to 28.5% over the past 5 years.
Debt Coverage: MG's debt is well covered by operating cash flow (125%).
Interest Coverage: MG's interest payments on its debt are well covered by EBIT (28.9x coverage).
Balance Sheet
Inventory Level: MG has a high level of physical assets or inventory.
Debt Coverage by Assets: MG's debt is covered by short term assets (assets are 3.4x debt).
Next Steps
Dividend
What is Magna International's current dividend yield, its reliability and sustainability?
3.10%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Magna International before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: MG's dividend (3.1%) is higher than the bottom 25% of dividend payers in the Canadian market (2.01%).
High Dividend: MG's dividend (3.1%) is low compared to the top 25% of dividend payers in the Canadian market (5.38%).
Stability and Growth of Payments
Stable Dividend: MG's dividends per share have been stable in the past 10 years.
Growing Dividend: MG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (26.7%), MG's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: MG's dividends in 3 years are forecast to be well covered by earnings (22.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
10.7yrs
Average management tenure
CEO
Don Walker (62yo)
9.3yrs
Tenure
US$20,073,000
Compensation
Mr. Donald James Walker, also known as Don, PEng, has been the Chief Executive Officer of Magna International Inc. since November 15, 2010. Mr. Walker served as Co-Chief Executive Officer of Magna Internat ...
CEO Compensation Analysis
Compensation vs Market: Don's total compensation ($USD20.07M) is above average for companies of similar size in the Canadian market ($USD6.87M).
Compensation vs Earnings: Don's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 9.3yrs | US$20.07m | 0.58% $120.5m | |
| President | 0.08yrs | US$5.00m | 0.018% $3.7m | |
| Executive VP & CFO | 22.2yrs | US$8.86m | 0.26% $53.9m | |
| Executive VP | 12.8yrs | US$8.57m | 0.021% $4.2m | |
| Executive VP & President of Magna Asia | 12.2yrs | US$3.21m | 0.016% $3.3m | |
| Vice President of Investor Relations | 16.3yrs | no data | no data | |
| Executive VP & Chief Legal Officer | 1.8yrs | no data | 0.0057% $1.2m | |
| Chief Compliance Officer & VP of Ethics | 0yrs | no data | no data | |
| Vice President of Corporate Communications & PR | 0yrs | no data | no data | |
| Executive VP and Chief Sales & Marketing Officer | 0.08yrs | no data | no data |
10.7yrs
Average Tenure
Experienced Management: MG's management team is seasoned and experienced (10.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 9.3yrs | US$20.07m | 0.58% $120.5m | |
| Independent Chairman of the Board | 7.8yrs | US$500.00k | 0.00061% $126.2k | |
| Independent Director | 2.8yrs | US$264.00k | no data | |
| Non-Independent & Non-Executive Director | 7.8yrs | US$822.00k | no data | |
| Independent Director | 8.8yrs | US$275.00k | 0.000040% $8.3k | |
| Independent Director | 5.8yrs | US$222.00k | 0.0022% $451.1k | |
| Independent Director | 0.08yrs | US$87.00k | no data | |
| Independent Director | 5.8yrs | US$258.00k | no data | |
| Independent Director | 2.5yrs | US$234.00k | no data | |
| Independent Director | 7.8yrs | US$239.00k | 0.0023% $478.0k |
6.8yrs
Average Tenure
63yo
Average Age
Experienced Board: MG's board of directors are considered experienced (6.8 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: MG insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Magna International Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Magna International Inc.
- Ticker: MG
- Exchange: TSX
- Founded: 1957
- Industry: Auto Parts and Equipment
- Sector: Automobiles
- Market Cap: CA$20.691b
- Shares outstanding: 303.25m
- Website: https://www.magna.com
Number of Employees
Location
- Magna International Inc.
- 337 Magna Drive
- Aurora
- Ontario
- L4G 7K1
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| MGA | NYSE (New York Stock Exchange) | Yes | Common Shares | US | USD | Feb 1977 |
| MG | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Feb 1977 |
| MGA | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Feb 1977 |
| MGA N | BMV (Bolsa Mexicana de Valores) | Yes | Common Shares | MX | MXN | Feb 1977 |
| MG | SWX (SIX Swiss Exchange) | Yes | Common Shares | CH | CHF | Feb 1977 |
Biography
Magna International Inc. designs, develops, and manufactures automotive systems, assemblies, modules, and components in North America, Europe, Asia Pacific, and internationally. The Body Exteriors & Structures segment provides body structures; chassis structures, such as frame and structural assemblies, chassis subframes, and suspension systems; exterior systems and modules, including hoods, roofs, door panels, front end modules, liftgate modules, polycarbonate roof panels, liftgate sensor integration systems, and fascia; trim and automotive jewelry comprises engineered glass, trim and roof racks, and running boards; non-visible and visible active grille shutters, active air deflectors, and underbody panels; and fuel systems, pipes and components, and alternative energy storage systems. Its Power & Vision segment offers manual, hybrid, and dual-clutch transmissions systems; mild hybrid solutions; high voltage edrives and electrified components; chassis, glow plug control, powertrain control, and mechatronic control modules; four-wheel drive, all-wheel drive, and disconnect systems; thermal management and lubrication systems; transmission clutch/carrier components, precision stampings and shafts, and automated driving systems; latching systems, door modules, power closures, hinges and wireforming, and handles; interior and exterior mirrors, and actuators; and front and rear lighting, tail lamps, and other lighting products. The Seating Systems segment provides recliners, manual and power adjusters, and seat structures. Its Complete Vehicles segment offers modular solutions for system and parts, as well as complete vehicle manufacturing services. The company serves original equipment manufacturer and non-automotive customers, as well as tier 1 companies, and medium and heavy truck manufacturers. Magna International Inc. was founded in 1957 and is based in Aurora, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/24 01:14 |
| End of Day Share Price | 2020/02/21 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.