TSX:MG

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Magna International

Executive Summary

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


Snowflake Analysis

Reasonable growth potential average 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

-9.3%

MG

-4.7%

CA Auto Components

-1.6%

CA Market


1 Year Return

-7.7%

MG

-2.2%

CA Auto Components

-6.3%

CA Market

Return vs Industry: MG underperformed the Canadian Auto Components industry which returned -0.8% over the past year.

Return vs Market: MG exceeded the Canadian Market which returned -5.5% over the past year.


Shareholder returns

MGIndustryMarket
7 Day-9.3%-4.7%-1.6%
30 Day7.6%13.2%-0.8%
90 Day3.2%9.4%-0.7%
1 Year-4.6%-7.7%0.8%-2.2%-2.9%-6.3%
3 Year1.4%-6.8%-4.0%-10.8%3.4%-6.6%
5 Year8.6%-5.0%1.9%-9.2%31.6%11.4%

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?

19.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MG (CA$69.19) is trading below our estimate of fair value (CA$80.81)

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 unprofitable, so we can't compare its PE Ratio to the XN Auto Components industry average.

PE vs Market: MG is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MG is overvalued based on its PB Ratio (1.6x) compared to the CA Auto Components industry average (0.9x).


Next Steps

Future Growth

How is Magna International forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

78.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: MG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MG's is expected to become profitable in the next 3 years.

Revenue vs Market: MG's revenue (11.9% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: MG's revenue (11.9% 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 (14.8%).


Next Steps

Past Performance

How has Magna International performed over the past 5 years?

-6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MG is currently unprofitable.

Growing Profit Margin: MG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MG is unprofitable, and losses have increased over the past 5 years at a rate of 6.4% per year.

Accelerating Growth: Unable to compare MG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MG is unprofitable, making it difficult to compare its past year earnings growth to the Auto Components industry (-22%).


Return on Equity

High ROE: MG has a negative Return on Equity (-3.21%), as it is currently unprofitable.


Next Steps

Financial Health

How is Magna International's financial position?


Financial Position Analysis

Short Term Liabilities: MG's short term assets ($9.6B) exceed its short term liabilities ($7.6B).

Long Term Liabilities: MG's short term assets ($9.6B) exceed its long term liabilities ($6.8B).


Debt to Equity History and Analysis

Debt Level: MG's debt to equity ratio (41.3%) is considered high.

Reducing Debt: MG's debt to equity ratio has increased from 11.6% to 41.3% over the past 5 years.

Debt Coverage: MG's debt is well covered by operating cash flow (45.1%).

Interest Coverage: MG is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

3.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MG's dividend (3.04%) is higher than the bottom 25% of dividend payers in the Canadian market (1.7%).

High Dividend: MG's dividend (3.04%) is low compared to the top 25% of dividend payers in the Canadian market (5.93%).


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: MG is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: MG's dividends in 3 years are forecast to be well covered by earnings (27.6% payout ratio).


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Don Walker (63 yo)

9.92yrs

Tenure

US$18,206,000

Compensation

Mr. Donald James Walker, also known as Don, PEng, serves on several boards including the Automotive Parts Manufacturers Association and the Humber College Foundation. He serves as Chief Executive Officer o ...


CEO Compensation Analysis

Compensation vs Market: Don's total compensation ($USD18.21M) is above average for companies of similar size in the Canadian market ($USD7.02M).

Compensation vs Earnings: Don's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Donald Walker
CEO & Director9.92yrsUS$18.21m0.59%
$ 122.2m
Seetarama Kotagiri
President and President of Magna Power & Vision0.75yrUS$3.67m0.023%
$ 4.7m
Vincent Galifi
Executive VP & CFO22.83yrsUS$7.33m0.28%
$ 57.5m
Tommy Skudutis
Executive VP13.42yrsUS$7.28m0%
$ 0
James Tobin
Executive Vice President12.83yrsUS$2.93m0.018%
$ 3.7m
Louis Tonelli
Vice President of Investor Relations16.92yrsno datano data
Bruce Cluney
Executive VP & Chief Legal Officer0.75yrno data0.010%
$ 2.1m
Joanne Horibe
Chief Compliance Officerno datano datano data
Tracy Fuerst
Vice President of Corporate Communications & PRno datano datano data
Eric Jon Wilds
Executive VP and Chief Sales & Marketing Officer0.75yrno data0.0071%
$ 1.5m
Aaron McCarthy
Executive VP & Chief Human Resources Officer1.75yrsno data0.0016%
$ 340.9k
Patrick W. McCann
Senior Vice President of Finance1.75yrsno datano data

5.8yrs

Average Tenure

60yo

Average Age

Experienced Management: MG's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Donald Walker
CEO & Director9.92yrsUS$18.21m0.59%
$ 122.2m
William Young
Independent Chairman of the Board8.42yrsUS$500.00k0.00062%
$ 128.1k
Robert MacLellan
Independent Director2.42yrsUS$230.00kno data
William Ruh
Independent Director3.42yrsUS$265.00kno data
Scott Bonham
Non-Independent & Non-Executive Director8.42yrsUS$822.00kno data
Kurt Lauk
Independent Director9.42yrsUS$323.00k0.000040%
$ 8.3k
Cynthia Niekamp
Independent Director6.42yrsUS$225.00k0.0022%
$ 456.6k
Vernon Harder
Independent Director0.75yrUS$87.00kno data
Indira Samarasekera
Independent Director6.42yrsUS$253.00kno data
Lisa Westlake
Independent Director1.42yrsUS$145.00k0.00067%
$ 138.4k
Mary Shio Chan
Independent Director3.17yrsUS$244.00kno data
Peter Bowie
Independent Director8.42yrsUS$221.00k0.0023%
$ 483.5k

6.4yrs

Average Tenure

64yo

Average Age

Experienced Board: MG's board of directors are considered experienced (6.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MG insiders have 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$20.662b
  • Shares outstanding: 298.62m
  • 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
MGSWX (SIX Swiss Exchange)YesCommon SharesCHCHFFeb 1977

Biography

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


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 23:33
End of Day Share Price2020/10/28 00:00
Earnings2020/06/30
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.