Magna International (MG) AI Stock Analysis

• Market Cap: C$22.03B
• Dividend Yield: 3.69%
• Average Volume (3M): 912.64K
• Price to Earnings (P/E): 15.4
• Beta (1Y): 1.25
• Revenue Growth: 0.66%
• EPS Growth: -0.61%
• Country: CA
• Employees: 167,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Auto - Parts
• EPS (TTM): 1.86
• Shares Outstanding: 281,814,270
• 10 Day Avg. Volume: 592,877
• 30 Day Avg. Volume: 912,645
• PEG Ratio: -0.71
• Price to Book (P/B): 1.04
• Price to Sales (P/S): 0.28
• P/FCF Ratio: 8.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$74.48
• Price Target Upside: -4.91% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): 8.31
• Revenue Forecast (FY): C$58.70B

• Rating: 77 Outperform
• Price Target: C$89.00 ▲(13.62% Upside)

Magna International's overall stock score is driven by strong financial performance and attractive valuation. The positive technical indicators and optimistic earnings call further bolster the stock's outlook. Recent corporate events, including strategic leadership changes, support the company's growth trajectory.

Positive Factors

Strong revenue growth

Sustained high revenue growth expands Magna's scale across body, power, seating and electrification. Growing top-line supports long-term contract leverage, R&D funding and plant utilization, reinforcing competitive position with OEMs and enabling durable investment in EV technologies.

Improving free cash flow

Material FCF growth and nearly $400M FCF improvement provide durable funding for capex, product launches and debt reduction. Reduced capex outlook to ~$1.5B boosts recurring cash generation, strengthening financial flexibility for strategic investments and shareholder returns.

Expanding EV manufacturing footprint

Concrete expansion in China and European vehicle assembly deals anchor Magna in EV supply chains. Localized eDrive production and in-region assembly deepen OEM partnerships, capture EV content growth and position Magna for structural demand as automakers accelerate electrification globally.

Negative Factors

Modest profitability margins

Low net and EBIT margins limit Magna's ability to weather industry cyclicality and absorb cost inflation. Narrow operating margins increase reliance on volume growth and operational improvements to convert strong revenues into durable returns and shareholder cash generation.

Elevated leverage target

Management's leverage-reduction target implies currently elevated indebtedness that could constrain strategic flexibility. Higher leverage increases refinancing and interest risk, limiting ability to fund capex, M&A or absorb shocks until net leverage is demonstrably reduced.

Power & Vision segment headwinds

Persistent margin pressure in a key segment from lower volumes, adverse commercial items and tariffs highlights structural exposure to OEM order swings and trade policy. Ongoing weakness here can meaningfully drag consolidated margins and cash generation over multiple quarters.

Magna International Business Overview & Revenue Model

Company Description

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. The Power & Vision segment offers hybrid and electric drive systems, motors, inverters, onboard chargers, and e-clutch; dedicated hybrid, dual and hybrid dual, and manual transmissions; AWD/4WD products and rear drive modules; transmission, engine, driveline components, engine drive plates, and accessories; engineering services; advanced driver assistance systems and sensors, and electronic control units; interior and exterior mirrors, camera and driver monitoring systems and electronics, actuators, door handles, and overhead consoles; forward, rear, and auxiliary lighting products; latching, door modules, window, power closure, and hinges and wire forming systems; and modular and textile folding roofs, and hard and soft tops. The Seating Systems segment provides seat structures, mechanism and hardware solutions, and foam and trim products. The Complete Vehicles segment offers vehicle engineering and manufacturing services. The company also designs, engineers, and manufactures tooling products. Magna International Inc. was founded in 1957 and is headquartered in Aurora, Canada.

How the Company Makes Money

Magna International generates revenue primarily through the manufacturing and sale of automotive parts and systems to original equipment manufacturers (OEMs) and the aftermarket. Its revenue model is diversified across several key segments, including Body Exteriors and Structures, Power and Vision, and Seating Systems. The company earns money by supplying components such as vehicle body structures, mirrors, and seating systems, often under long-term contracts with major automotive brands. Additionally, Magna benefits from economies of scale and operational efficiencies, allowing it to maintain competitive pricing. Strategic partnerships with leading automotive manufacturers and investments in electric vehicle technologies and autonomous driving systems further enhance its revenue potential. The company's focus on innovation and sustainability also positions it well to capitalize on emerging market trends, contributing to its overall earnings.

Magna International Financial Statement Overview

Summary

Magna International demonstrates solid financial health with stable profitability and efficient cash flow management. The company maintains a consistent revenue base, though revenue growth has slightly declined. The balance sheet is strong with manageable leverage, and cash flow conversion is robust, ensuring liquidity for future investments.

Income Statement

Magna International exhibits stable profitability with a Gross Profit Margin of 13.63% and a Net Profit Margin of 2.73% in TTM (Trailing-Twelve-Months). While the company has maintained a consistent revenue base, the Revenue Growth Rate shows a decline of 2.1% compared to the previous year. EBIT and EBITDA margins are healthy at 4.45% and 9.44% respectively, indicating efficient operational management despite slight pressure on margins.

Balance Sheet

The Balance Sheet reflects a solid equity base with an Equity Ratio of 36.60%, providing a cushion against liabilities. However, the Debt-to-Equity Ratio of 0.64 indicates moderate reliance on debt financing. Return on Equity stands at 9.76%, reflecting decent profitability given the industry conditions. The company's leverage is manageable but leaves room for improvement.

Cash Flow

Magna's cash flow is robust, with a Free Cash Flow to Net Income Ratio of 1.31, suggesting strong cash conversion capabilities. The Operating Cash Flow to Net Income Ratio is notably high at 3.01, indicating solid operational cash generation. Free Cash Flow Growth has been modest but stable, ensuring adequate liquidity for future investments and debt obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.79B	42.84B	42.80B	37.84B	36.24B	32.65B
Gross Profit	5.79B	5.80B	5.61B	4.65B	5.14B	4.44B
EBITDA	3.89B	3.78B	3.79B	3.16B	3.58B	2.48B
Net Income	1.03B	1.01B	1.21B	592.00M	1.51B	757.00M
Balance Sheet
Total Assets	32.87B	31.04B	32.26B	27.79B	29.09B	28.61B
Cash, Cash Equivalents and Short-Term Investments	1.33B	1.25B	1.20B	1.23B	2.95B	3.27B
Total Debt	7.47B	7.07B	7.22B	5.07B	5.67B	6.00B
Total Liabilities	19.95B	19.10B	19.98B	16.45B	16.86B	16.89B
Stockholders Equity	12.59B	11.52B	11.88B	10.94B	11.84B	11.37B
Cash Flow
Free Cash Flow	2.04B	1.46B	601.00M	414.00M	1.57B	2.13B
Operating Cash Flow	3.53B	3.63B	3.15B	2.10B	2.94B	3.28B
Investing Cash Flow	-1.93B	-2.59B	-4.50B	-2.04B	-2.28B	-1.40B
Financing Cash Flow	-1.32B	-989.00M	1.34B	-1.73B	-1.11B	81.00M

Magna International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 78.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MG, the sentiment is Positive. The current price of 78.33 is above the 20-day moving average (MA) of 74.80, above the 50-day MA of 70.81, and above the 200-day MA of 58.90, indicating a bullish trend. The MACD of 2.22 indicates Negative momentum. The RSI at 71.95 is Negative, neither overbought nor oversold. The STOCH value of 78.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MG.

Magna International Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MG	77 Outperform	C$22.03B	15.36	8.31%	3.69%	0.66%	-0.61%
CCL.A	74 Outperform	C$15.37B	19.45	15.16%	1.44%	7.12%	17.15%
LNR	73 Outperform	C$5.19B	21.16	4.01%	1.32%	-5.33%	-57.58%
XTC	71 Outperform	C$259.41M	10.80	6.05%	6.21%	-3.53%	-17.19%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MRE	51 Neutral	C$762.09M	-18.42	-2.64%	1.93%	-7.25%	-143.07%
ACQ	40 Underperform	C$573.20M	-72.71	18.07%	―	-26.93%	84.17%

Magna International Corporate Events

Magna International Reports Strong Q3 2025 Performance Amid Industry Challenges

Magna International reported a 2% increase in sales to $10.5 billion for the third quarter of 2025, driven by new program launches and favorable currency exchange rates, despite challenges such as lower vehicle assembly volumes. The company’s Adjusted EBIT rose by 3% to $613 million, reflecting productivity improvements and higher equity income, although income from operations before taxes fell due to the absence of prior year’s deferred revenue recognition. Looking forward, Magna has raised its 2025 outlook for sales and adjusted earnings, signaling confidence in its strategic execution and commitment to shareholder value.

The most recent analyst rating on (TSE:MG) stock is a Buy with a C$53.00 price target. To see the full list of analyst forecasts on Magna International stock, see the TSE:MG Stock Forecast page.