Magna International
Market Cap
CA$21.9b
Last Updated
2019/10/19 23:37 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.
Snowflake
Fundamentals
Excellent balance sheet with solid track record and pays a dividend.
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
Market Performance
7 Day Return
2.4%
MG
2.7%
CA Auto Components
-0.2%
CA Market
1 Year Return
12.5%
MG
7.0%
CA Auto Components
1.1%
CA Market
Return vs Industry: MG exceeded the Canadian Auto Components industry which returned 7% over the past year.
Return vs Market: MG exceeded the Canadian Market which returned 1.1% over the past year.
Shareholder returns
| MG | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.4% | 2.7% | -0.2% |
| 30 Day | -0.9% | -1.2% | -3.3% |
| 90 Day | 11.4% | 9.1% | -1.6% |
| 1 Year | 15.9%12.5% | 9.9%7.0% | 4.6%1.1% |
| 3 Year | 41.0%30.6% | 14.5%3.4% | 13.1%3.1% |
| 5 Year | 45.4%29.4% | 21.5%5.7% | 24.7%6.7% |
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
Should You Be Impressed By Magna International Inc.'s (TSE:MG) ROE?2 weeks ago | Simply Wall St
What Kind Of Shareholder Owns Most Magna International Inc. (TSE:MG) Stock?3 weeks ago | Simply Wall St
Should You Worry About Magna International Inc.'s (TSE:MG) CEO Pay?Valuation
Is Magna International undervalued compared to its fair value and its price relative to the market?
15.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Undervalued: MG (CA$70.11) is trading below our estimate of fair value (CA$83.28)
Significantly Undervalued: MG is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MG is good value based on its PE Ratio (6.8x) compared to the Auto Components industry average (11.4x).
PE vs Market: MG is good value based on its PE Ratio (6.8x) compared to the Canadian market (13.7x).
Price to Earnings Growth Ratio
Low PEG Ratio: MG's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: MG is overvalued based on its PB Ratio (1.5x) compared to the CA Auto Components industry average (0.7x).
Next Steps
Future Growth
How is Magna International forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
-8.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MG's earnings are forecast to decline over the next 3 years (-8.6% per year).
Earnings vs Market: MG's earnings are forecast to decline over the next 3 years (-8.6% per year).
High Growth Earnings: MG's earnings are forecast to decline over the next 3 years.
Revenue vs Market: MG's revenue (1.5% per year) is forecast to grow slower than the Canadian market (5.7% per year).
High Growth Revenue: MG's revenue (1.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: MG's Return on Equity is forecast to be low in 3 years time (16.8%).
Next Steps
Past Performance
How has Magna International performed over the past 5 years?
6.8%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: MG's earnings have grown by 6.8% per year over the past 5 years.
Accelerating Growth: MG's earnings growth over the past year (9%) exceeds its 5-year average (6.8% per year).
Earnings vs Industry: MG earnings growth over the past year (9%) exceeded the Auto Components industry 4.3%.
Return on Equity
High ROE: MG's Return on Equity (21.6%) is considered high.
Return on Assets
ROA vs Industry: MG has a higher Return on Assets than the Auto Components industry average last year.
Return on Capital Employed
ROCE Improving: MG's Return on Capital Employed has declined over the past 3 years.
Next Steps
Financial Health
How is Magna International's financial position?
Financial Position Analysis
Short Term Liabilities: MG's short term assets ($11.6B) exceeds its short term liabilities ($9.6B)
Long Term Liabilities: MG's short term assets (11.6B) exceeds its long term liabilities (6.1B)
Debt to Equity History and Analysis
Debt Level: MG's debt to equity ratio (28.3%) is considered satisfactory
Reducing Debt: MG's debt to equity ratio has increased from 11.4% to 28.3% over the past 5 years.
Debt Coverage: MG's debt is well covered by operating cash flow (123.8%).
Interest Coverage: MG's interest payments on its debt are well covered by EBIT (27.9x 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 3.419860x debt).
Next Steps
Dividend
What is Magna International's current dividend yield, its reliability and sustainability?
2.74%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: MG's dividend (2.74%) is higher than the bottom 25% of dividend payers in the Canadian market (2.04%).
High Dividend: MG's dividend (2.74%) is low compared to the top 25% of dividend payers in the Canadian market (6.03%).
Stable Dividend: MG's dividend payments have been volatile 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 (18.3%), 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 (22.7% payout ratio).
Next Steps
Management
What is the CEO of Magna International's salary, the management and board of directors tenure and is there insider trading?
9.2yrs
Average management tenure
CEO
Don Walker (62yo)
8.9yrs
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 about average for companies of similar size in the Canadian market ($USD7.04M).
Compensation vs Earnings: Don's compensation has been consistent with company performance over the past year.
Management Age and Tenure
9.2yrs
Average Tenure
Experienced Management: MG's management team is seasoned and experienced (9.2 years average tenure).
Board Age and Tenure
6.4yrs
Average Tenure
63yo
Average Age
Experienced Board: MG's board of directors are considered experienced (6.4 years average tenure).
Insider Trading
Insider Buying: MG insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Chief Financial Officer Executive VP & CFO |
| Shares | 58,000 |
| Max Price | US$70.27 |
| Entity | Individual |
| Role | Chief Executive Officer CEO & Director |
| Shares | 100,000 |
| Max Price | US$68.97 |
| Entity | Individual |
| Role | Head of Marketing Chief Marketing Officer & President of Magna Asia |
| Shares | 9,000 |
| Max Price | US$64.55 |
| Entity | Individual |
| Role | Head of Marketing Chief Marketing Officer & President of Magna Asia |
| Shares | 5,002 |
| Max Price | US$65.71 |
| Entity | Individual |
| Role | Chief Executive Officer CEO & Director |
| Shares | 70,500 |
| Max Price | US$69.93 |
| Entity | Individual |
| Role | Chief Operating Officer Executive VP |
| Shares | 124,726 |
| Max Price | US$71.03 |
Ownership Breakdown
Management Team
Vincent Galifi (59yo)
Executive VP & CFO
- Tenure: 21.8yrs
- Compensation: US$8.86m
Don Walker (62yo)
CEO & Director
- Tenure: 8.9yrs
- Compensation: US$20.07m
Tom Skudutis
Executive VP
- Tenure: 12.4yrs
- Compensation: US$8.57m
Riccardo Trecroce
Executive VP & Chief Legal Officer
- Tenure: 1.4yrs
Louis Tonelli
Vice President of Investor Relations
- Tenure: 15.9yrs
Jim Tobin
Chief Marketing Officer & President of Magna Asia
- Tenure: 9.4yrs
- Compensation: US$3.21m
Tracy Fuerst
Global Director Corporate Communications & PR
- Tenure: 0yrs
Swamy Kotagiri
Executive VP
- Tenure: 5.8yrs
- Compensation: US$5.00m
Joanne Horibe
Chief Compliance Officer & VP of Ethics
- Tenure: 0yrs
Aaron McCarthy
Executive VP & Chief Human Resources Officer
- Tenure: 0.8yrs
Board Members
Bill Young (64yo)
Independent Chairman of the Board
- Tenure: 7.4yrs
- Compensation: US$500.00k
Rob MacLellan (64yo)
Independent Director
- Tenure: 1.4yrs
- Compensation: US$135.00k
Don Walker (62yo)
CEO & Director
- Tenure: 8.9yrs
- Compensation: US$20.07m
Bill Ruh (57yo)
Independent Director
- Tenure: 2.4yrs
- Compensation: US$264.00k
Scott Bonham (57yo)
Non-Independent & Non-Executive Director
- Tenure: 7.4yrs
- Compensation: US$822.00k
Kurt Lauk (72yo)
Independent Director
- Tenure: 8.4yrs
- Compensation: US$275.00k
Cindy Niekamp (59yo)
Independent Director
- Tenure: 5.4yrs
- Compensation: US$222.00k
Indira Samarasekera (66yo)
Independent Director
- Tenure: 5.4yrs
- Compensation: US$258.00k
Mary Shio Chan (56yo)
Independent Director
- Tenure: 2.2yrs
- Compensation: US$234.00k
Peter Bowie (72yo)
Independent Director
- Tenure: 7.4yrs
- Compensation: US$239.00k
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$21.893b
- Shares outstanding: 312.26m
- 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 & Struct ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/19 23:37 |
| End of Day Share Price | 2019/10/18 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.