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MG

Magna International TSX:MG Stock Report

Last Price

CA$81.38

Market Cap

CA$23.8b

7D

3.2%

1Y

-33.0%

Updated

28 May, 2022

Data

Company Financials +
MG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth3/6
Past Performance4/6
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$81.38
52 Week HighCA$126.00
52 Week LowCA$70.16
Beta1.49
1 Month Change1.83%
3 Month Change-15.81%
1 Year Change-33.01%
3 Year Change40.58%
5 Year Change30.00%
Change since IPO3,784.49%

Recent News & Updates

Shareholder Returns

MGCA Auto ComponentsCA Market
7D3.2%3.2%2.8%
1Y-33.0%-32.9%5.7%

Return vs Industry: MG matched the Canadian Auto Components industry which returned -32.9% over the past year.

Return vs Market: MG underperformed the Canadian Market which returned 5.7% over the past year.

Price Volatility

Is MG's price volatile compared to industry and market?
MG volatility
MG Average Weekly Movement5.8%
Auto Components Industry Average Movement6.3%
Market Average Movement9.9%
10% most volatile stocks in CA Market17.0%
10% least volatile stocks in CA Market4.3%

Stable Share Price: MG is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MG's weekly volatility (6%) 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 CapUS$18.66b
Earnings (TTM)US$1.26b
Revenue (TTM)US$35.71b

14.8x

P/E Ratio

0.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MG income statement (TTM)
RevenueUS$35.71b
Cost of RevenueUS$30.84b
Gross ProfitUS$4.87b
Other ExpensesUS$3.61b
EarningsUS$1.26b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.32
Gross Margin13.64%
Net Profit Margin3.54%
Debt/Equity Ratio30.1%

How did MG perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

42%

Payout Ratio

Valuation

Is Magna International undervalued compared to its fair value and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: MG (CA$81.38) is trading below our estimate of fair value (CA$177.77)

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 Price-To-Earnings Ratio (14.8x) compared to the Canadian Auto Components industry average (14.1x).

PE vs Market: MG is poor value based on its Price-To-Earnings Ratio (14.8x) compared to the Canadian market (11.8x).


Price to Earnings Growth Ratio

PEG Ratio: MG is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: MG is overvalued based on its Price-To-Book Ratio (1.6x) compared to the CA Auto Components industry average (1.4x).


Future Growth

How is Magna International forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


23.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MG's forecast earnings growth (23.5% per year) is above the savings rate (1.6%).

Earnings vs Market: MG's earnings (23.5% per year) are forecast to grow faster than the Canadian market (6.9% per year).

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

Revenue vs Market: MG's revenue (6.2% per year) is forecast to grow slower than the Canadian market (6.5% per year).

High Growth Revenue: MG's revenue (6.2% 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 (17.3%).


Past Performance

How has Magna International performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-15.1%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MG has high quality earnings.

Growing Profit Margin: MG's current net profit margins (3.5%) are higher than last year (3.3%).


Past Earnings Growth Analysis

Earnings Trend: MG's earnings have declined by 15.1% per year over the past 5 years.

Accelerating Growth: MG's earnings growth over the past year (13.7%) exceeds its 5-year average (-15.1% per year).

Earnings vs Industry: MG earnings growth over the past year (13.7%) exceeded the Auto Components industry 9.5%.


Return on Equity

High ROE: MG's Return on Equity (10.9%) is considered low.


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 ($13.6B) exceed its short term liabilities ($10.4B).

Long Term Liabilities: MG's short term assets ($13.6B) exceed its long term liabilities ($6.3B).


Debt to Equity History and Analysis

Debt Level: MG's net debt to equity ratio (13.6%) is considered satisfactory.

Reducing Debt: MG's debt to equity ratio has increased from 28.1% to 30.1% over the past 5 years.

Debt Coverage: MG's debt is well covered by operating cash flow (67.8%).

Interest Coverage: MG's interest payments on its debt are well covered by EBIT (20.7x coverage).


Balance Sheet


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

  • Future Dividend Coverage


2.82%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MG's dividend (2.82%) is higher than the bottom 25% of dividend payers in the Canadian market (1.79%).

High Dividend: MG's dividend (2.82%) is low compared to the top 25% of dividend payers in the Canadian market (4.86%).


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: With its reasonably low payout ratio (41.7%), MG's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (49.6%), MG's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

1.3yrs

Average management tenure


CEO

Swamy Kotagiri

1.33yrs

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

Compensation vs Market: Swamy's total compensation ($USD10.87M) is above average for companies of similar size in the Canadian market ($USD7.43M).

Compensation vs Earnings: Swamy's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: MG's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: MG's board of directors are considered experienced (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 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
  • Implied Market Cap: CA$23.789b
  • Shares outstanding: 292.32m
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/28 00:00
End of Day Share Price2022/05/27 00:00
Earnings2022/03/31
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.