Magna International
Market Cap
CA$20.7b
Last Updated
2020/10/28 23:33 UTC
Data Sources
Company Financials +
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
Rewards
Risk Analysis
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
| MG | Industry | Market | |
|---|---|---|---|
| 7 Day | -9.3% | -4.7% | -1.6% |
| 30 Day | 7.6% | 13.2% | -0.8% |
| 90 Day | 3.2% | 9.4% | -0.7% |
| 1 Year | -4.6%-7.7% | 0.8%-2.2% | -2.9%-6.3% |
| 3 Year | 1.4%-6.8% | -4.0%-10.8% | 3.4%-6.6% |
| 5 Year | 8.6%-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
2 days ago | Simply Wall St
How Much Of Magna International Inc. (TSE:MG) Do Institutions Own?2 weeks ago | Simply Wall St
A Look At The Intrinsic Value Of Magna International Inc. (TSE:MG)1 month ago | Simply Wall St
Need To Know: Magna International Inc. (TSE:MG) Insiders Have Been Selling SharesValuation
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 9.92yrs | US$18.21m | 0.59% $ 122.2m | |
| President and President of Magna Power & Vision | 0.75yr | US$3.67m | 0.023% $ 4.7m | |
| Executive VP & CFO | 22.83yrs | US$7.33m | 0.28% $ 57.5m | |
| Executive VP | 13.42yrs | US$7.28m | 0% $ 0 | |
| Executive Vice President | 12.83yrs | US$2.93m | 0.018% $ 3.7m | |
| Vice President of Investor Relations | 16.92yrs | no data | no data | |
| Executive VP & Chief Legal Officer | 0.75yr | no data | 0.010% $ 2.1m | |
| Chief Compliance Officer | no data | no data | no data | |
| Vice President of Corporate Communications & PR | no data | no data | no data | |
| Executive VP and Chief Sales & Marketing Officer | 0.75yr | no data | 0.0071% $ 1.5m | |
| Executive VP & Chief Human Resources Officer | 1.75yrs | no data | 0.0016% $ 340.9k | |
| Senior Vice President of Finance | 1.75yrs | no data | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 9.92yrs | US$18.21m | 0.59% $ 122.2m | |
| Independent Chairman of the Board | 8.42yrs | US$500.00k | 0.00062% $ 128.1k | |
| Independent Director | 2.42yrs | US$230.00k | no data | |
| Independent Director | 3.42yrs | US$265.00k | no data | |
| Non-Independent & Non-Executive Director | 8.42yrs | US$822.00k | no data | |
| Independent Director | 9.42yrs | US$323.00k | 0.000040% $ 8.3k | |
| Independent Director | 6.42yrs | US$225.00k | 0.0022% $ 456.6k | |
| Independent Director | 0.75yr | US$87.00k | no data | |
| Independent Director | 6.42yrs | US$253.00k | no data | |
| Independent Director | 1.42yrs | US$145.00k | 0.00067% $ 138.4k | |
| Independent Director | 3.17yrs | US$244.00k | no data | |
| Independent Director | 8.42yrs | US$221.00k | 0.0023% $ 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
| 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, 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/28 23:33 |
| End of Day Share Price | 2020/10/28 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.