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Magna International Inc.NYSE:MGA Stock Report

Market Cap US$17.9b
Share Price
n/a
1Y58.0%
7D1.7%
1D2.3%
Portfolio Value
​
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Magna International Inc.

NYSE:MGA Stock Report

Market Cap: US$17.9b

Magna International (MGA) Stock Overview

Operates as an automotive supplier in North America, Europe, the Asia Pacific, and internationally. More details

MGA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance0/6
Financial Health5/6
Dividends5/6

Rewards

Trading at 28.8% below our estimate of its fair value

Earnings are forecast to grow 18.72% per year

Pays a reliable dividend of 2.95%

Risk Analysis

Large one-off items impacting financial results

Profit margins (1.6%) are lower than last year (2.7%)


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Magna International Inc. Competitors

Price History & Performance

Summary of share price highs, lows and changes for Magna International
Historical stock prices
Current Share PriceCA$67.16
52 Week HighCA$69.94
52 Week LowCA$40.51
Beta1.86
1 Month Change4.03%
3 Month Change8.46%
1 Year Change57.99%
3 Year Change4.40%
5 Year Change-20.38%
Change since IPO1,661.57%

Recent News & Updates

Seeking Alpha • Jul 21

Magna International: The Bull Case Looks Alive And Well Ahead Of Earnings

Summary Magna International Inc. is rated a Buy, trading at 9.75x FWD earnings with strong operating income growth and compelling valuation. MGA's Power & Vision segment is driving EBIT expansion, benefiting from rising ADAS content per vehicle and regulatory tailwinds through 2029. Capital allocation is robust, with a 3% dividend yield, accelerating buybacks (2.4% of market cap in Q1), and total return potential of 12.7%. Key risks include potential declines in vehicle unit sales if interest rates rise or gas prices remain elevated, placing pressure on Power & Vision performance. Read the full article on Seeking Alpha

Recent updates

Seeking Alpha • Jul 21

Magna International: The Bull Case Looks Alive And Well Ahead Of Earnings

Summary Magna International Inc. is rated a Buy, trading at 9.75x FWD earnings with strong operating income growth and compelling valuation. MGA's Power & Vision segment is driving EBIT expansion, benefiting from rising ADAS content per vehicle and regulatory tailwinds through 2029. Capital allocation is robust, with a 3% dividend yield, accelerating buybacks (2.4% of market cap in Q1), and total return potential of 12.7%. Key risks include potential declines in vehicle unit sales if interest rates rise or gas prices remain elevated, placing pressure on Power & Vision performance. Read the full article on Seeking Alpha
Seeking Alpha • Feb 21

Magna International: Pivoting Strong Towards A Positive 2026

Summary Magna International posted a positive FY 2024 report, beating analysts’ EPS consensus estimate, and showing improved EBIT and effective cost management. The company is undervalued with a trailing P/E of 7.01x and EV/EBITDA of 4.55x, presenting a 23% margin of safety. MGA's positive FCF outlook and robust dividend yield, supported by strong liquidity and cash flow, make it an attractive buy despite short-term weaknesses. Key risks include global revenue exposure, but MGA's diversified manufacturing facilities and experienced management mitigate potential pressures on operating margins. Read the full article on Seeking Alpha
Seeking Alpha • Dec 16

Magna International: Weak Customer Positioning Creates Uncertain Future

Summary Magna International Inc. has a weak earnings history, and has had to draw on debt to keep increasing its dividend. A weak positioning in the EV market, especially in China, poses further issues for Magna. Slowdown in global car manufacturing has affected Magna's short-term earnings further, with a -3.8% revenue decline in Q3. The market already prices in weak growth from MGA. Read the full article on Seeking Alpha
Seeking Alpha • Oct 14

Magna International: An Undervalued Stock With Double-Digit Long-Term Dividend Growth Rate

Summary Magna International, a multinational mobility solutions and technology company for automakers, is now a $12 billion (by market cap) leading manufacturer. Manga increased its dividend for 15 consecutive years, with a 10-year dividend growth rate of 11.1%. Magna moved its revenue from $34.4 billion in FY 2014 to $42.8 billion in FY 2023, a compound annual growth rate of 2.5%. MGA's international footprint exposes it to geopolitical risks and currency exchange rates. Read the full article on Seeking Alpha
Seeking Alpha • Apr 15

Magna International: A Global Automotive Supplier Currently On An Upswing

Summary Magna International is one of the world’s largest manufacturers of OEM components for various automakers with a $15 billion market cap. To date, Magna has increased its dividend for 15 consecutive years with a 10-year dividend growth rate of 11.1%. MGA stock’s yield has risen to 3.8%, which is 110 basis points higher than its five-year average. Magna bumped its revenue from $34.4 billion in FY 2014 to $42.8 billion in FY 2023, a compound annual growth rate of 2.5%. Read the full article on Seeking Alpha
Seeking Alpha • Apr 07

Magna: Attractive Entry For Long Term Returns

Summary Magna International's Q4-2023 results were below consensus, with lower adjusted EBITDA and sales growth. The company's guidance for 2024 showed improvement in adjusted EBIT margin but still fell below consensus expectations. Despite disappointments, Magna's stock remains cheap and has potential for long-term returns, especially if paired with longer-dated covered calls. Read the full article on Seeking Alpha
Seeking Alpha • Jan 30

Magna International: Margins Need To Improve

Summary Magna International has been experiencing declining efficiency and profitability, with deteriorated margins and questionable top-line growth. The company's debt position is manageable and does not pose a significant risk, with low debt-to-assets and debt-to-equity ratios, as well as a strong interest coverage ratio. Magna's tight margins and declining efficiency have affected its valuation, and its return on total capital is lower compared to its peers. The company's revenue growth has been struggling, but recent years have shown some promising growth. Read the full article on Seeking Alpha
Seeking Alpha • Feb 16

Magna International: Management Needs To Step Up On Communication

Summary 4Q22 revenue was in line with expectations, but margins were weaker than expected due to higher engineering costs and operating inefficiencies. Despite challenges, MGA has the potential to overcome them and emerge stronger, particularly (I believe) through investments in electric vehicles and advanced driver assistance systems. However, MGA's management needs to improve communication with investors and provide a clear understanding of the company's strategy in order to regain credibility and put the company on a path. Summary In my opinion, Magna International (MGA) 4Q22 report was not very strong, particularly regarding margins. However, there is some positivity to be found as I think the disruption caused by COVID-19 could decrease in 2023 because of China's reopening. Despite my overall negative view of MGA's earnings in the fourth quarter of 2022, I still think the company has the ability to overcome these challenges and emerge stronger. In particular, I am of the belief that MGA's investments in electric vehicles and advanced driver assistance systems [ADAS] are the right decision for the long-term, as they provides additional revenue stream, extend growth runway. However, I do not plan on investing until I see signs of a turnaround from MGA. Earnings overview MGA's revenue for the fourth quarter of 2022 was $9.6 billion, which is similar to the expected revenue of $9.5 billion and aligns with the negative pre-announcement. MGA's sales grew organically by 13%, outperforming the 5% growth in global light vehicle production, which is weighted for MGA's exposure and represents an 8 point outperformance. In terms of sales by segment, Body Exteriors & Structures had an 11% increase y/y to $4 billion, Power & Vision had an 8% increase y/y to $3 billion, Seating Systems had a 4% increase y/y to $1.3 billion, while Complete Vehicle sales decreased by 12% to $1.3 billion. Adjusted EBIT margin was 3.7% coming in at $356 million, which was less than the $424 million expected by consensus. Higher engineering costs associated with MGA's electrification and ADAS business, as well as inefficiencies at a European facility, are to blame for the decline in adjusted EBIT. This was mitigated to some degree by the income from increased sales and the net favorable commercial resolutions. EPS came in at $0.91, >10% below the consensus estimate of $1.03. Earnings takeaway The FY23 guidance given by MGA came as a surprise to me, especially considering the multiple misses in FY22. That said, I have a view that this might be the trough for MGA given everything that could go bad has gone bad: MGA miss margins guidance, suspended buybacks, and guided to higher capital intensity. Worse off, MGA is facing several challenges that have hurt investors' confidence in the company's path forward. One of the key issues is the lack of a clear strategy that could help to reassure investors. In addition, execution-related margin headwinds plagued 2022, and MGA does not anticipate recovering those expenses in full by 2025. The good thing is, Although some of the headwinds are specific to MGA, such as lower sales and increased engineering costs, the entire industry is also facing similar challenges in production schedules and wage inflation. As such, there are two levers to propel MGA earnings from here. Although there are concerns about MGA's current situation, there are signs that the company's management is taking steps to improve communication with investors. For example, the recent profits warning has reset expectations which management can hit, as long as there are no major market disruptions beyond its control. However, it is important for the management to follow through on its commitments in order to regain credibility. This will require MGA to improve its EPS beyond the levels projected in the 2023 guidance, while also keeping capital intensity at a reasonable level, rather than at the elevated level that was previously guided. By delivering on its commitments, MGA can regain investor confidence and put itself on a path to sustainable growth. Restructuring
Seeking Alpha • Feb 09

Magna International Q4 2022 Earnings Preview

Magna International (NYSE:MGA) is scheduled to announce Q4 earnings results on Friday, February 10th, before market open. The consensus EPS Estimate is $1.08 (-16.9% Y/Y) and the consensus Revenue Estimate is $9.51B (+4.5% Y/Y). Over the last 2 years, MGA has beaten EPS estimates 50% of the time and has beaten revenue estimates 88% of the time. Over the last 3 months, EPS estimates have seen 4 upward revisions and 11 downward. Revenue estimates have seen 5 upward revisions and 2 downward.
Seeking Alpha • Jan 24

Magna guides 2022 EBIT margin below prior estimates

Magna International (NYSE:MGA) has reported prelim sales of ~$37.8B for 2022, compared to its guidance of $37.4B to $38.4B. Analysts project the firm to generate $4.57 EPS on revenue of $37.79B for the year. However, adj. EBIT margin is expected to be ~4.3%, which is below the company's 4.8%-5% guidance. The reduced margin reflects decreased contribution on lower sales, higher net engineering expense, operating underperformance at certain facilities, higher net warranty costs and higher labor and other operational inefficiencies. Adjusted net income attributable to Magna (MGA) is also impacted by the factors above. The firm is scheduled to report its financial results for the fourth quarter and full year 2022 on Feb. 10, 2023.
Seeking Alpha • Dec 20

Magna to acquire Veoneer Active Safety Business for $1.525B

Magna International (NYSE:MGA) has agreed to acquire the Veoneer Active Safety business from SSW Partners for $1.525B in cash. The transaction is expected to close near mid-year 2023, subject to certain regulatory approvals and other customary closing conditions. The acquisition expands Magna's (MGA) ADAS sensor and full systems capabilities and adds 2,200 engineers, including 1,800 for systems, software and sensor development. Veoneer Active Safety sales are projected to be ~$1.1B in 2022 and growing to ~$1.9B in 2024. The combined business is projected to generate ~$3B in sales in 2024.
Seeking Alpha • Nov 16

Magna International goes ex-dividend tomorrow

Magna International (NYSE:MGA) had declared $0.45/share quarterly dividend, in line with previous. Payable Dec. 2; for shareholders of record Nov. 18; ex-div Nov. 17. See MGA Dividend Scorecard, Yield Chart, & Dividend Growth.
Seeking Alpha • Nov 03

Magna International Q3 2022 Earnings Preview

Magna International (NYSE:MGA) is scheduled to announce Q3 earnings results on Friday, November 4th, before market open. The consensus EPS Estimate is $1.12 (+100.0% Y/Y) and the consensus Revenue Estimate is $9.15B (+15.8% Y/Y). Over the last 2 years, MGA has beaten EPS estimates 63% of the time and has beaten revenue estimates 88% of the time. Over the last 3 months, EPS estimates have seen 4 upward revisions and 10 downward. Revenue estimates have seen 3 upward revisions and 8 downward.
Seeking Alpha • Oct 26

Magna’s 48-Volt hybrid transmission makes debut on Stellantis models

Magna's (NYSE:MGA) 48-Volt hybrid transmission has made its market debut on Stellantis' (NYSE:STLA) Jeep Renegade, Compass e-Hybrid, Fiat 500 X and Tipo models as part of a multi-program agreement. The 48V hybrid transmission, produced at Magna's Slovakia facility, is said to achieve stringent CO2 targets and offer improved driving dynamics due to electric torque vectoring and traction support. It provides a maximum torque of 320 Nm and torque-split technology to optimize the efficiencies of the combustion engine and the e-motor. Further 48V hybrid transmissions are expected to be adopted in additional future Stellantis (STLA) models.

Shareholder Returns

MGAUS Auto ComponentsUS Market
7D1.7%-2.6%-1.0%
1Y58.0%-8.7%14.7%

Return vs Industry: MGA exceeded the US Auto Components industry which returned -8.7% over the past year.

Return vs Market: MGA exceeded the US Market which returned 14.7% over the past year.

Price Volatility

Is MGA's price volatile compared to industry and market?
MGA volatility
MGA Average Weekly Movement4.8%
Auto Components Industry Average Movement7.2%
Market Average Movement7.1%
10% most volatile stocks in US Market16.0%
10% least volatile stocks in US Market3.2%

Stable Share Price: MGA has not had significant price volatility in the past 3 months compared to the US market.

Volatility Over Time: MGA's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1957156,000Swamy Kotagiriwww.magna.com

Magna International Inc. operates as an automotive supplier in North America, Europe, the Asia Pacific, and internationally. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The company offers design and vehicle concepts, complete vehicle engineering and integration, human-machine interface, developing modules and systems, platform solutions, prototyping and low-volume manufacturing, vehicle safety testing, aerospace, and integrating functionality, features, and ADAS; and complete vehicle solutions, body-in-white, paint, and assembly complete vehicle manufacturing products.

Magna International Inc. Fundamentals Summary

How do Magna International's earnings and revenue compare to its market cap?
MGA fundamental statistics
Market capUS$17.85b
Earnings (TTM)US$671.00m
Revenue (TTM)US$42.32b
27.3x
P/E Ratio
0.4x
P/S Ratio

Is MGA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
MGA income statement (TTM)
RevenueUS$42.32b
Cost of RevenueUS$36.15b
Gross ProfitUS$6.17b
Other ExpensesUS$5.50b
EarningsUS$671.00m

Last Reported Earnings

Mar 31, 2026

Next Earnings Date

Jul 31, 2026

Earnings per share (EPS)2.46
Gross Margin14.58%
Net Profit Margin1.59%
Debt/Equity Ratio39.1%

How did MGA perform over the long term?

See historical performance and comparison

Dividends

2.9%
Current Dividend Yield
82%
Payout Ratio

Company Analysis and Financial Data Status

DataLast Updated (UTC time)
Company Analysis2026/07/27 22:30
End of Day Share Price 2026/07/27 00:00
Earnings2026/03/31
Annual Earnings2025/12/31

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

PackageDataTimeframeExample US Source *
Company Financials10 years
  • Income statement
  • Cash flow statement
  • Balance sheet
Analyst Consensus Estimates+3 years
  • Forecast financials
  • Analyst price targets
Market Prices30 years
  • Stock prices
  • Dividends, Splits and Actions
Ownership10 years
  • Top shareholders
  • Insider trading
Management10 years
  • Leadership team
  • Board of directors
Key Developments10 years
  • Company announcements

* Example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on Github.

Analyst Sources

Magna International Inc. is covered by 36 analysts. 18 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

AnalystInstitution
Will ChienAccountability Research Corporation
David TyermanATB Cormark Historical (Cormark Securities)
Dan LevyBarclays