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MG

Magna International TSX:MG Stock Report

Last Price

CA$67.30

Market Cap

CA$19.4b

7D

-3.9%

1Y

-30.9%

Updated

03 Oct, 2022

Data

Company Financials +
MG fundamental analysis
Snowflake Score
Valuation2/6
Future Growth4/6
Past Performance0/6
Financial Health5/6
Dividends5/6

MG Stock Overview

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

Magna International Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Magna International
Historical stock prices
Current Share PriceCA$67.30
52 Week HighCA$113.00
52 Week LowCA$64.49
Beta1.53
1 Month Change-9.24%
3 Month Change-5.81%
1 Year Change-30.94%
3 Year Change0.43%
5 Year Change-0.56%
Change since IPO3,112.41%

Recent News & Updates

Sep 20
We Think Magna International (TSE:MG) Can Stay On Top Of Its Debt

We Think Magna International (TSE:MG) Can Stay On Top Of Its Debt

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

MGCA Auto ComponentsCA Market
7D-3.9%-4.8%3.3%
1Y-30.9%-29.3%-4.0%

Return vs Industry: MG matched the Canadian Auto Components industry which returned -30.8% over the past year.

Return vs Market: MG underperformed the Canadian Market which returned -6.6% over the past year.

Price Volatility

Is MG's price volatile compared to industry and market?
MG volatility
MG Average Weekly Movement5.4%
Auto Components Industry Average Movement6.0%
Market Average Movement10.1%
10% most volatile stocks in CA Market18.4%
10% least volatile stocks in CA Market3.8%

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.

About the Company

FoundedEmployeesCEOWebsite
1957161,000Swamy Kotagirihttps://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. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The Body Exteriors & Structures segment provides body and chassis, exterior, and roof systems, as well as battery enclosures and engineering and testing services, 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.

Magna International Fundamentals Summary

How do Magna International's earnings and revenue compare to its market cap?
MG fundamental statistics
Market CapCA$19.45b
Earnings (TTM)CA$931.50m
Revenue (TTM)CA$49.14b

20.9x

P/E Ratio

0.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MG income statement (TTM)
RevenueUS$36.03b
Cost of RevenueUS$31.37b
Gross ProfitUS$4.67b
Other ExpensesUS$3.98b
EarningsUS$683.00m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.36
Gross Margin12.95%
Net Profit Margin1.90%
Debt/Equity Ratio31.0%

How did MG perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

77%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MG?

Other financial metrics that can be useful for relative valuation.

MG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.5x
Enterprise Value/EBITDA5.6x
PEG Ratio0.9x

Price to Earnings Ratio vs Peers

How does MG's PE Ratio compare to its peers?

MG PE Ratio vs Peers
The above table shows the PE ratio for MG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average19.5x
LNR Linamar
9.7xn/aCA$3.5b
MRE Martinrea International
29x119.6%CA$692.9m
XTC Exco Technologies
14.5x72.6%CA$297.7m
600660 Fuyao Glass Industry Group
24.9x21.9%CN¥89.2b
MG Magna International
20.9x23.1%CA$19.4b

Price-To-Earnings vs Peers: MG is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the peer average (19.5x).


Price to Earnings Ratio vs Industry

How does MG's PE Ratio compare vs other companies in the North American Auto Components Industry?

Price-To-Earnings vs Industry: MG is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the North American Auto Components industry average (17.3x)


Price to Earnings Ratio vs Fair Ratio

What is MG's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MG PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio20.9x
Fair PE Ratio11.8x

Price-To-Earnings vs Fair Ratio: MG is expensive based on its Price-To-Earnings Ratio (20.9x) compared to the estimated Fair Price-To-Earnings Ratio (11.8x).


Share Price vs Fair Value

What is the Fair Price of MG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MG (CA$67.3) is trading below our estimate of fair value (CA$202.56)

Significantly Below Fair Value: MG is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Magna International forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


23.1%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MG's forecast earnings growth (23.1% per year) is above the savings rate (1.6%).

Earnings vs Market: MG's earnings (23.1% per year) are forecast to grow faster than the Canadian market (7.5% per year).

High Growth Earnings: MG's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MG's revenue (6.9% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: MG's revenue (6.9% 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 (17.6%).


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Past Performance

How has Magna International performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-17.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MG has a large one-off loss of $577.0M impacting its June 30 2022 financial results.

Growing Profit Margin: MG's current net profit margins (1.9%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: MG's earnings have declined by 17.7% 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 (-68.7%) over the past year, making it difficult to compare to the Auto Components industry average (-51.3%).


Return on Equity

High ROE: MG's Return on Equity (6.4%) is considered low.


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Financial Health

How is Magna International's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MG's short term assets ($12.8B) exceed its short term liabilities ($9.8B).

Long Term Liabilities: MG's short term assets ($12.8B) exceed its long term liabilities ($6.1B).


Debt to Equity History and Analysis

Debt Level: MG's net debt to equity ratio (16.3%) is considered satisfactory.

Reducing Debt: MG's debt to equity ratio has increased from 30.6% to 31% over the past 5 years.

Debt Coverage: MG's debt is well covered by operating cash flow (67%).

Interest Coverage: MG's interest payments on its debt are well covered by EBIT (16.7x coverage).


Balance Sheet


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Dividend

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

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


3.65%

Current Dividend Yield

Dividend Yield vs Market

Magna International Dividend Yield vs Market
How does Magna International dividend yield compare to the market?
SegmentDividend Yield
Company (Magna International)3.6%
Market Bottom 25% (CA)1.9%
Market Top 25% (CA)6.0%
Industry Average (Auto Components)3.3%
Analyst forecast in 3 Years (Magna International)3.8%

Notable Dividend: MG's dividend (3.65%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: MG's dividend (3.65%) is low compared to the top 25% of dividend payers in the Canadian market (6.08%).


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.


Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (77.4%), MG's payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (57.7%), MG's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

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

1.8yrs

Average management tenure


CEO

Swamy Kotagiri

1.75yrs

Tenure

US$10,870,000

Compensation

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


CEO Compensation Analysis

Swamy Kotagiri's Compensation vs Magna International Earnings
How has Swamy Kotagiri's remuneration changed compared to Magna International's earnings?
DateTotal Comp.SalaryCompany Earnings
Jun 30 2022n/an/a

US$683m

Mar 31 2022n/an/a

US$1b

Dec 31 2021US$11mUS$325k

US$2b

Sep 30 2021n/an/a

US$2b

Jun 30 2021n/an/a

US$2b

Mar 31 2021n/an/a

US$1b

Dec 31 2020US$7mUS$325k

US$757m

Sep 30 2020n/an/a

US$459m

Jun 30 2020n/an/a

-US$179m

Mar 31 2020n/an/a

US$920m

Dec 31 2019US$4mUS$325k

US$2b

Sep 30 2019n/an/a

US$2b

Jun 30 2019n/an/a

US$3b

Mar 31 2019n/an/a

US$3b

Dec 31 2018US$5mUS$325k

US$2b

Sep 30 2018n/an/a

US$2b

Jun 30 2018n/an/a

US$2b

Mar 31 2018n/an/a

US$2b

Dec 31 2017US$3mUS$325k

US$2b

Sep 30 2017n/an/a

US$2b

Jun 30 2017n/an/a

US$2b

Mar 31 2017n/an/a

US$2b

Dec 31 2016US$2mUS$325k

US$2b

Compensation vs Market: Swamy's total compensation ($USD10.87M) is above average for companies of similar size in the Canadian market ($USD8.12M).

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 not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: MG's board of directors are considered experienced (3.9 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

TSX:MG Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
07 Sep 22SellCA$251,455Aaron McCarthyIndividual3,425CA$73.42
11 Mar 22BuyCA$138,455Anton MayerIndividual1,830CA$75.66
01 Mar 22BuyCA$101,626Mary Lou MaherIndividual1,150CA$88.37
15 Feb 22SellCA$662,031Matteo Del SorboIndividual6,536CA$101.29
14 Feb 22BuyCA$97,400Mary Lou MaherIndividual1,000CA$97.40
10 Feb 22BuyCA$980,027Vincent GalifiIndividual9,498CA$103.18
01 Dec 21BuyCA$71,841Anton MayerIndividual730CA$98.41

Ownership Breakdown

What is the ownership structure of MG?
Owner TypeNumber of SharesOwnership Percentage
Public Companies1,2600.0004%
Employee Share Scheme6,6180.002%
Individual Insiders1,364,7680.5%
General Public97,391,75033.7%
Institutions190,198,02165.8%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 41.83% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
3.24%
The Vanguard Group, Inc.
9,358,587$629.8m0.27%0.01%
2.88%
Jarislowsky, Fraser Limited
8,310,223$559.3m15.5%2.41%
2.78%
RBC Dominion Securities Inc., Asset Management Arm
8,045,301$541.4m9.17%0.57%
2.78%
RBC Global Asset Management Inc.
8,036,648$540.9m5.69%0.3%
2.76%
Hotchkis and Wiley Capital Management, LLC
7,981,094$537.1m-4.46%1.52%
2.75%
T. Rowe Price Group, Inc.
7,936,862$534.2m-17.73%0.05%
2.74%
Beutel Goodman & Company Ltd.
7,931,388$533.8m5.33%2.22%
2.53%
Managed Account Advisors LLC
7,311,169$492.0m38.12%0.1%
2.11%
TD Asset Management, Inc.
6,090,223$409.9m-2.08%0.29%
1.82%
CIBC Asset Management Inc.
5,253,788$353.6m16.43%0.65%
1.59%
BMO Asset Management Corp.
4,601,282$309.7m-9.54%0.14%
1.42%
Lazard Asset Management LLC
4,106,607$276.4m17.09%0.2%
1.32%
Mackenzie Financial Corporation
3,817,416$256.9m-7%0.24%
1.31%
Principal Global Investors, LLC
3,796,170$255.5m0.05%0.13%
1.25%
Fidelity International Ltd
3,603,983$242.5m-30.77%0.09%
1.11%
The Bank of Nova Scotia, Banking Investments
3,196,871$215.1m6.01%0.4%
1%
Norges Bank Investment Management
2,895,727$194.9m0%0.02%
1%
ACR Alpine Capital Research, LLC
2,880,953$193.9m4.89%6.96%
0.93%
Letko, Brosseau & Associates Inc.
2,693,762$181.3m1.82%2.26%
0.93%
Canadian Imperial Bank of Commerce, Asset Management Arm
2,682,693$180.5m4.57%0.53%
0.76%
Turtle Creek Asset Management Inc.
2,188,104$147.3m-0.07%3.95%
0.73%
J.P. Morgan Asset Management, Inc.
2,114,960$142.3m-13.7%0.02%
0.71%
Manulife Asset Management
2,065,590$139.0m17.49%0.1%
0.71%
Amundi Asset Management
2,049,032$137.9m-7.34%0.03%
0.67%
Dimensional Fund Advisors LP
1,938,424$130.5m21.11%0.02%

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
  • Implied Market Cap: CA$19.447b
  • Shares outstanding: 288.96m
  • Website: https://www.magna.com

Number of Employees


Location

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


Listings

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

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/03 00:00
End of Day Share Price2022/10/03 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.