Stock Analysis Report

Magna International

Executive Summary

Magna International Inc. designs, develops, and manufactures automotive systems, assemblies, modules, and components in North America, Europe, Asia Pacific, and internationally.


Trading at 70.9% below its fair value

Earnings are forecast to grow 9.07% per year

Pays a high and reliable dividend of 3.1%

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




CA Auto Components


CA Market

1 Year Return




CA Auto Components


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

7 Day0.5%-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 Year28.9%19.3%-4.5%-13.6%18.2%7.5%
5 Year11.4%-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


Is Magna International undervalued compared to its fair value and its price relative to the market?


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?


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?


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


What is Magna International's current dividend yield, its reliability and sustainability?


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


How experienced are the management team and are they aligned to shareholders interests?


Average management tenure


Don Walker (62yo)





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

Donald Walker
CEO & Director9.3yrsUS$20.07m0.58% $120.5m
Seetarama Kotagiri
President0.08yrsUS$5.00m0.018% $3.7m
Vincent Galifi
Executive VP & CFO22.2yrsUS$8.86m0.26% $53.9m
Tommy Skudutis
Executive VP12.8yrsUS$8.57m0.021% $4.2m
James Tobin
Executive VP & President of Magna Asia12.2yrsUS$3.21m0.016% $3.3m
Louis Tonelli
Vice President of Investor Relations16.3yrsno datano data
Riccardo Trecroce
Executive VP & Chief Legal Officer1.8yrsno data0.0057% $1.2m
Joanne Horibe
Chief Compliance Officer & VP of Ethics0yrsno datano data
Tracy Fuerst
Vice President of Corporate Communications & PR0yrsno datano data
Eric WIlds
Executive VP and Chief Sales & Marketing Officer0.08yrsno datano data


Average Tenure

Experienced Management: MG's management team is seasoned and experienced (10.7 years average tenure).

Board Members

Donald Walker
CEO & Director9.3yrsUS$20.07m0.58% $120.5m
William Young
Independent Chairman of the Board7.8yrsUS$500.00k0.00061% $126.2k
William Ruh
Independent Director2.8yrsUS$264.00kno data
Scott Bonham
Non-Independent & Non-Executive Director7.8yrsUS$822.00kno data
Kurt Lauk
Independent Director8.8yrsUS$275.00k0.000040% $8.3k
Cynthia Niekamp
Independent Director5.8yrsUS$222.00k0.0022% $451.1k
Vernon Harder
Independent Director0.08yrsUS$87.00kno data
Indira Samarasekera
Independent Director5.8yrsUS$258.00kno data
Mary Shio Chan
Independent Director2.5yrsUS$234.00kno data
Peter Bowie
Independent Director7.8yrsUS$239.00k0.0023% $478.0k


Average Tenure


Average Age

Experienced Board: MG's board of directors are considered experienced (6.8 years average tenure).


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


  • Magna International Inc.
  • 337 Magna Drive
  • Aurora
  • Ontario
  • L4G 7K1
  • Canada


TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MGANYSE (New York Stock Exchange)YesCommon SharesUSUSDFeb 1977
MGTSX (The Toronto Stock Exchange)YesCommon SharesCACADFeb 1977
MGADB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 1977
MGA NBMV (Bolsa Mexicana de Valores)YesCommon SharesMXMXNFeb 1977
MGSWX (SIX Swiss Exchange)YesCommon SharesCHCHFFeb 1977


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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 01:14
End of Day Share Price2020/02/21 00:00
Annual Earnings2019/12/31

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.