| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 2/6 |
| Past Performance | 2/6 |
| Financial Health | 6/6 |
| Dividends | 5/6 |
MG Overview
Magna International Inc. designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide.
Rewards
Risk Analysis
MG passed our risk checks.
Magna International Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | CA$98.51 |
| 52 Week High | CA$58.24 |
| 52 Week Low | CA$126.00 |
| Beta | 1.55 |
| 1 Month Change | -3.10% |
| 3 Month Change | -15.07% |
| 1 Year Change | 66.07% |
| 3 Year Change | 40.93% |
| 5 Year Change | 79.04% |
| Change since IPO | 4,602.15% |
Recent News & Updates
Shareholder Returns
| MG | CA Auto Components | CA Market | |
|---|---|---|---|
| 7D | 1.9% | 1.4% | -1.0% |
| 1Y | 66.1% | 65.8% | 31.4% |
Return vs Industry: MG exceeded the Canadian Auto Components industry which returned 63.7% over the past year.
Return vs Market: MG exceeded the Canadian Market which returned 32.3% over the past year.
Price Volatility
| MG volatility | |
|---|---|
| MG Beta | 1.55 |
| Industry Beta | 1.56 |
| Market Beta | 1 |
Stable Share Price: MG is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: MG's weekly volatility (4%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1957 | 158,000 | Swamy Kotagiri | https://www.magna.com |
Magna International Inc. designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. The company operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. Its Body Exteriors & Structures segment provides body and chassis systems, as well as engineering and testing services; exterior systems, including fascia and trims, front end modules, front integration panels, liftgate modules, active aerodynamics, engineered glass, running boards, truck bed access products, and side doors; and roof systems, such as modular and textile folding roofs, and hard and soft tops.
Magna International Fundamentals Summary
| MG fundamental statistics | |
|---|---|
| Market Cap | US$22.99b |
| Earnings (TTM) | US$2.18b |
| Revenue (TTM) | US$38.91b |
10.7x
P/E Ratio0.6x
P/S RatioIs MG overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| MG income statement (TTM) | |
|---|---|
| Revenue | US$38.91b |
| Cost of Revenue | US$32.82b |
| Gross Profit | US$6.09b |
| Expenses | US$3.90b |
| Earnings | US$2.18b |
Last Reported Earnings
Jun 30, 2021
Next Earnings Date
n/a
| Earnings per share (EPS) | 7.27 |
| Gross Margin | 15.64% |
| Net Profit Margin | 5.61% |
| Debt/Equity Ratio | 32.6% |
How did MG perform over the long term?
See historical performance and comparisonDividends
2.2%
Current Dividend Yield23%
Payout RatioValuation
Is Magna International undervalued compared to its fair value and its price relative to the market?
40.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MG (CA$98.51) is trading below our estimate of fair value (CA$166.74)
Significantly Below Fair Value: MG is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MG is poor value based on its PE Ratio (10.7x) compared to the Canadian Auto Components industry average (9.5x).
PE vs Market: MG is good value based on its PE Ratio (10.7x) compared to the Canadian market (12.9x).
Price to Earnings Growth Ratio
PEG Ratio: MG is poor value based on its PEG Ratio (2.3x)
Price to Book Ratio
PB vs Industry: MG is overvalued based on its PB Ratio (1.9x) compared to the CA Auto Components industry average (1.8x).
Future Growth
How is Magna International forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
4.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MG's forecast earnings growth (4.7% per year) is above the savings rate (1.5%).
Earnings vs Market: MG's earnings (4.7% per year) are forecast to grow slower than the Canadian market (12.1% per year).
High Growth Earnings: MG's earnings are forecast to grow, but not significantly.
Revenue vs Market: MG's revenue (7% per year) is forecast to grow faster than the Canadian market (6.1% per year).
High Growth Revenue: MG's revenue (7% 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 (18.7%).
Past Performance
How has Magna International performed over the past 5 years?
-14.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MG has high quality earnings.
Growing Profit Margin: MG became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: MG's earnings have declined by 14.3% per year over the past 5 years.
Accelerating Growth: MG has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.
Earnings vs Industry: MG has become profitable in the last year, making it difficult to compare its past year earnings growth to the Auto Components industry (123.4%).
Return on Equity
High ROE: MG's Return on Equity (17.2%) is considered low.
Financial Health
How is Magna International's financial position?
Financial Position Analysis
Short Term Liabilities: MG's short term assets ($14.3B) exceed its short term liabilities ($9.9B).
Long Term Liabilities: MG's short term assets ($14.3B) exceed its long term liabilities ($7.2B).
Debt to Equity History and Analysis
Debt Level: MG's debt to equity ratio (32.6%) is considered satisfactory.
Reducing Debt: MG's debt to equity ratio has reduced from 33.2% to 32.6% over the past 5 years.
Debt Coverage: MG's debt is well covered by operating cash flow (124.7%).
Interest Coverage: MG's interest payments on its debt are well covered by EBIT (36.3x coverage).
Balance Sheet
Dividend
What is Magna International current dividend yield, its reliability and sustainability?
2.21%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MG's dividend (2.21%) is higher than the bottom 25% of dividend payers in the Canadian market (1.65%).
High Dividend: MG's dividend (2.21%) is low compared to the top 25% of dividend payers in the Canadian market (4.54%).
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 low payout ratio (23.2%), 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 (18.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.7yrs
Average management tenure
CEO
Swamy Kotagiri
0.67
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 ($USD6.00M).
Compensation vs Earnings: Swamy's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: MG's management team is considered experienced (2.7 years average tenure).
Board Members
Experienced Board: MG's board of directors are considered experienced (4.2 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 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$29.127b
- Shares outstanding: 300.72m
- Website: https://www.magna.com
Number of Employees
Location
- Magna International Inc.
- 337 Magna Drive
- Aurora
- Ontario
- L4G 7K1
- Canada
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/09/23 22:56 |
| End of Day Share Price | 2021/09/23 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.