Magna International
Market Cap
US$28.0b
Last Updated
2021/05/12 23:40 UTC
Data Sources
Company Financials +
Executive Summary
Magna International Inc. designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet established 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: MGA is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.
Volatility Over Time: MGA's weekly volatility (6%) has been stable over the past year.
Market Performance
7 Day Return
-1.5%
MGA
-5.2%
US Auto Components
-2.8%
US Market
1 Year Return
156.4%
MGA
109.2%
US Auto Components
49.4%
US Market
Return vs Industry: MGA exceeded the US Auto Components industry which returned 104.2% over the past year.
Return vs Market: MGA exceeded the US Market which returned 48.6% over the past year.
Shareholder returns
| MGA | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.5% | -5.2% | -2.8% |
| 30 Day | 3.4% | -5.7% | -2.3% |
| 90 Day | 19.2% | -9.6% | -1.3% |
| 1 Year | 164.1%156.4% | 110.4%109.2% | 51.8%49.4% |
| 3 Year | 52.0%39.6% | 18.6%10.7% | 57.5%47.6% |
| 5 Year | 165.2%132.0% | 80.9%55.9% | 121.7%97.1% |
Long-Term 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
3 years ago | Simply Wall St
Is Magna International Inc's (NYSE:MGA) Balance Sheet A Threat To Its Future?3 years ago | Simply Wall St
Is Magna International Inc (NYSE:MGA) Undervalued?3 years ago | Simply Wall St
Should You Buy Magna International Inc (MGA) At This PE Ratio?Valuation
Is Magna International undervalued compared to its fair value and its price relative to the market?
23.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MGA ($92.5) is trading below our estimate of fair value ($120.42)
Significantly Below Fair Value: MGA is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: MGA is good value based on its PE Ratio (25x) compared to the US Auto Components industry average (30.6x).
PE vs Market: MGA is poor value based on its PE Ratio (25x) compared to the US market (19.9x).
Price to Earnings Growth Ratio
PEG Ratio: MGA is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: MGA's PB Ratio (2.4x) is in line with the US Auto Components industry average.
Future Growth
How is Magna International forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?
15.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MGA's forecast earnings growth (15.6% per year) is above the savings rate (2%).
Earnings vs Market: MGA's earnings (15.6% per year) are forecast to grow faster than the US market (15.4% per year).
High Growth Earnings: MGA's earnings are forecast to grow, but not significantly.
Revenue vs Market: MGA's revenue (4.9% per year) is forecast to grow slower than the US market (8.8% per year).
High Growth Revenue: MGA's revenue (4.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: MGA's Return on Equity is forecast to be low in 3 years time (19.4%).
Past Performance
How has Magna International performed over the past 5 years?
-16.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MGA has a large one-off loss of $526.0M impacting its March 31 2021 financial results.
Growing Profit Margin: MGA's current net profit margins (3.3%) are higher than last year (2.5%).
Past Earnings Growth Analysis
Earnings Trend: MGA's earnings have declined by 16.1% per year over the past 5 years.
Accelerating Growth: MGA's earnings growth over the past year (20.8%) exceeds its 5-year average (-16.1% per year).
Earnings vs Industry: MGA earnings growth over the past year (20.8%) underperformed the Auto Components industry 43.2%.
Return on Equity
High ROE: MGA's Return on Equity (8.7%) is considered low.
Financial Health
How is Magna International's financial position?
Financial Position Analysis
Short Term Liabilities: MGA's short term assets ($14.6B) exceed its short term liabilities ($10.5B).
Long Term Liabilities: MGA's short term assets ($14.6B) exceed its long term liabilities ($7.2B).
Debt to Equity History and Analysis
Debt Level: MGA's debt to equity ratio (33.8%) is considered satisfactory.
Reducing Debt: MGA's debt to equity ratio has increased from 31.9% to 33.8% over the past 5 years.
Debt Coverage: MGA's debt is well covered by operating cash flow (81%).
Interest Coverage: MGA's interest payments on its debt are well covered by EBIT (20x coverage).
Balance Sheet
Dividend
What is Magna International current dividend yield, its reliability and sustainability?
1.85%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: MGA's dividend (1.85%) is higher than the bottom 25% of dividend payers in the US market (1.25%).
High Dividend: MGA's dividend (1.85%) is low compared to the top 25% of dividend payers in the US market (3.43%).
Stability and Growth of Payments
Stable Dividend: MGA's dividends per share have been stable 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 reasonably low payout ratio (44.7%), 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 (19.5% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.3yrs
Average management tenure
CEO
Swamy Kotagiri
0.33
Tenure
US$7,452,000
Compensation
Mr. Seetarama Swamy Kotagiri, also known as Swamy, serves as Chief Executive Officer and Director at Magna International Inc. since January 1, 2021. Mr. Kotagiri serves as President at Magna International ...
CEO Compensation Analysis
Compensation vs Market: Swamy's total compensation ($USD7.45M) is below average for companies of similar size in the US market ($USD11.16M).
Compensation vs Earnings: Swamy's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: MGA's management team is considered experienced (2.3 years average tenure).
Board Members
Experienced Board: MGA'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: MGA 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 company bio, employee growth, exchange listings and data sources
Key Information
- Name: Magna International Inc.
- Ticker: MGA
- Exchange: NYSE
- Founded: 1957
- Industry: Auto Parts and Equipment
- Sector: Automobiles
- Market Cap: CA$33.848b
- Listing Market Cap: CA$27.981b
- Shares outstanding: 301.51m
- Website: https://www.magna.com
Number of Employees
Location
- Magna International Inc.
- 337 Magna Drive
- Aurora
- Ontario
- L4G 7K1
- Canada
Listings
Biography
Magna International Inc. designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. The compa...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/05/12 23:40 |
| End of Day Share Price | 2021/05/12 00:00 |
| Earnings | 2021/03/31 |
| Annual Earnings | 2020/12/31 |
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.