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Magna International

Market Cap

CA$33.9b

Last Updated

2021/04/13 22:06 UTC

Data Sources

Company Financials +

Executive Summary

Magna International Inc. designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. More Details


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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: MG's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

3.9%

MG

2.8%

CA Auto Components

0.08%

CA Market


1 Year Return

133.1%

MG

127.3%

CA Auto Components

38.6%

CA Market

Return vs Industry: MG exceeded the Canadian Auto Components industry which returned 119.6% over the past year.

Return vs Market: MG exceeded the Canadian Market which returned 40.1% over the past year.


Shareholder returns

MGIndustryMarket
7 Day3.9%2.8%0.08%
30 Day2.0%-0.8%1.1%
90 Day23.1%18.2%7.8%
1 Year140.1%133.1%133.3%127.3%43.2%38.6%
3 Year67.6%53.9%51.3%40.5%31.5%18.9%
5 Year149.8%118.6%116.2%92.7%56.4%32.8%

Long-Term 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

Valuation

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

8.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MG (CA$112.39) is trading below our estimate of fair value (CA$127.9)

Significantly Below Fair Value: MG is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MG is poor value based on its PE Ratio (35.4x) compared to the XN Auto Components industry average (25.4x).

PE vs Market: MG is poor value based on its PE Ratio (35.4x) compared to the Canadian market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: MG is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: MG is overvalued based on its PB Ratio (2.4x) compared to the CA Auto Components industry average (1.2x).


Future Growth

How is Magna International forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

19.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MG's forecast earnings growth (19.6% per year) is above the savings rate (1.5%).

Earnings vs Market: MG's earnings (19.6% per year) are forecast to grow slower than the Canadian market (21.7% per year).

High Growth Earnings: MG's earnings are forecast to grow, but not significantly.

Revenue vs Market: MG's revenue (7.3% per year) is forecast to grow faster than the Canadian market (7.2% per year).

High Growth Revenue: MG's revenue (7.3% 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 low in 3 years time (17.8%).


Past Performance

How has Magna International performed over the past 5 years?

-14.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MG has a large one-off loss of $584.0M impacting its December 31 2020 financial results.

Growing Profit Margin: MG's current net profit margins (2.3%) are lower than last year (4.5%).


Past Earnings Growth Analysis

Earnings Trend: MG's earnings have declined by 14% 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 (-56.9%) over the past year, making it difficult to compare to the Auto Components industry average (8.4%).


Return on Equity

High ROE: MG's Return on Equity (5.8%) is considered low.


Financial Health

How is Magna International's financial position?


Financial Position Analysis

Short Term Liabilities: MG's short term assets ($13.4B) exceed its short term liabilities ($9.7B).

Long Term Liabilities: MG's short term assets ($13.4B) exceed its long term liabilities ($7.1B).


Debt to Equity History and Analysis

Debt Level: MG's debt to equity ratio (35%) is considered satisfactory.

Reducing Debt: MG's debt to equity ratio has increased from 28.2% to 35% over the past 5 years.

Debt Coverage: MG's debt is well covered by operating cash flow (79.9%).

Interest Coverage: MG's interest payments on its debt are well covered by EBIT (17.3x coverage).


Balance Sheet


Dividend

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

1.84%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MG's dividend (1.92%) is higher than the bottom 25% of dividend payers in the Canadian market (1.5%).

High Dividend: MG's dividend (1.92%) is low compared to the top 25% of dividend payers in the Canadian market (4.72%).


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 reasonable payout ratio (64.5%), MG's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MG's dividends in 3 years are forecast to be well covered by earnings (20.2% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Swamy Kotagiri

0.25

Tenure

US$7,452,000

Compensation

Mr. Seetarama Swamy Kotagiri, also known as Swamy, serves as Chief Executive Officer and Director at Magna International Inc. since January 1, 2021. Mr. Kotagiri serves as President at Magna International ...


CEO Compensation Analysis

Compensation vs Market: Swamy's total compensation ($USD7.45M) is about average for companies of similar size in the Canadian market ($USD7.04M).

Compensation vs Earnings: Swamy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

Experienced Management: MG's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: MG's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: MG insiders have bought more shares than they have sold 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$33.870b
  • Shares outstanding: 301.36m
  • Website: https://www.magna.com

Number of Employees


Location

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

Listings


Biography

Magna International Inc. designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. The compa...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/13 22:06
End of Day Share Price2021/04/13 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.