DB:MGA

Stock Analysis Report

Magna International

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

5.7%

MGA

2.3%

DE Auto Components

1.4%

DE Market


1 Year Return

20.4%

MGA

-11.1%

DE Auto Components

3.7%

DE Market

Return vs Industry: MGA exceeded the German Auto Components industry which returned -11.1% over the past year.

Return vs Market: MGA exceeded the German Market which returned 3.7% over the past year.


Shareholder returns

MGAIndustryMarket
7 Day5.7%2.3%1.4%
30 Day-0.9%-2.7%1.3%
90 Day14.5%1.2%3.4%
1 Year24.1%20.4%-7.3%-11.1%7.0%3.7%
3 Year40.4%30.0%-24.5%-30.8%18.5%8.3%
5 Year45.9%29.8%-17.1%-25.6%42.2%22.9%

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

No news available

Valuation

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

19.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MGA (€48.2) is trading below our estimate of fair value (€59.79)

Significantly Undervalued: MGA is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MGA is good value based on its PE Ratio (6.8x) compared to the Auto Components industry average (13.1x).

PE vs Market: MGA is good value based on its PE Ratio (6.8x) compared to the German market (19.3x).


Price to Earnings Growth Ratio

Low PEG Ratio: MGA's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MGA is overvalued based on its PB Ratio (1.5x) compared to the DE Auto Components industry average (1.2x).


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: MGA's earnings are forecast to decline over the next 3 years (-8.6% per year).

Earnings vs Market: MGA's earnings are forecast to decline over the next 3 years (-8.6% per year).

High Growth Earnings: MGA's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MGA's revenue (1.5% per year) is forecast to grow slower than the German market (5% per year).

High Growth Revenue: MGA'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: MGA'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: MGA's earnings have grown by 6.8% per year over the past 5 years.

Accelerating Growth: MGA's earnings growth over the past year (9%) exceeds its 5-year average (6.8% per year).

Earnings vs Industry: MGA earnings growth over the past year (9%) exceeded the Auto Components industry -6.3%.


Return on Equity

High ROE: MGA's Return on Equity (21.6%) is considered high.


Return on Assets

ROA vs Industry: MGA has a higher Return on Assets than the Auto Components industry average last year.


Return on Capital Employed

ROCE Improving: MGA'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: MGA's short term assets ($11.6B) exceeds its short term liabilities ($9.6B)

Long Term Liabilities: MGA's short term assets (11.6B) exceeds its long term liabilities (6.1B)


Debt to Equity History and Analysis

Debt Level: MGA's debt to equity ratio (28.3%) is considered satisfactory

Reducing Debt: MGA's debt to equity ratio has increased from 11.4% to 28.3% over the past 5 years.

Debt Coverage: MGA's debt is well covered by operating cash flow (123.8%).

Interest Coverage: MGA's interest payments on its debt are well covered by EBIT (27.9x coverage).


Balance Sheet

Inventory Level: MGA has a high level of physical assets or inventory.

Debt Coverage by Assets: MGA'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

company2.7%marketbottom25%1.5%markettop25%3.8%industryaverage4.1%forecastin3Years2.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: MGA's dividend (2.74%) is higher than the bottom 25% of dividend payers in the German market (1.47%).

High Dividend: MGA's dividend (2.74%) is low compared to the top 25% of dividend payers in the German market (3.83%).

Stable Dividend: MGA's dividend payments have been volatile in the past 10 years.

Growing Dividend: MGA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.3%), MGA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MGA'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 ($USD20.07M) is about average for companies of similar size in the German market ($USD4.64M).

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


Insider Trading

Insider Buying: MGA insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$2,805,96011 Sep 19
Vincent Galifi
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares58,000
Max PriceUS$48.38
SellUS$4,558,35509 Sep 19
Donald Walker
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares100,000
Max PriceUS$47.42
SellUS$386,21425 Jun 19
James Tobin
EntityIndividual
Role
Head of Marketing
Chief Marketing Officer & President of Magna Asia
Shares9,000
Max PriceUS$42.91
SellUS$217,13521 Mar 19
James Tobin
EntityIndividual
Role
Head of Marketing
Chief Marketing Officer & President of Magna Asia
Shares5,002
Max PriceUS$43.41
SellUS$3,266,98404 Mar 19
Donald Walker
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares70,500
Max PriceUS$46.34
SellUS$5,136,98725 Feb 19
Tommy Skudutis
EntityIndividual
Role
Chief Operating Officer
Executive VP
Shares124,726
Max PriceUS$47.50

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: MGA
  • Exchange: DB
  • Founded: 1957
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: CA$21.893b
  • Listing Market Cap: CA$14.963b
  • 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

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, 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 20:37
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.