Magna International (MG) AI Stock Analysis

• Market Cap: $19.45B
• Dividend Yield: 3.93%
• Average Volume (3M): 1.06M
• Price to Earnings (P/E): 13.6
• Beta (1Y): 1.48
• 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: 281,778,780
• 10 Day Avg. Volume: 982,251
• 30 Day Avg. Volume: 1,057,796
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.25
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 4.24
• Enterprise Value/Ebitda: 6.03
• 1Y Price Target: $70.92
• Price Target Upside: 2.77% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 12
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: C$75.00 ▲(8.68% Upside)

Magna International's strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's solid technical indicators and attractive valuation further enhance its investment appeal. While some challenges persist in specific segments, the overall outlook remains positive.

Positive Factors

Strong Cash Flow

Robust cash flow generation enhances financial flexibility, enabling Magna to invest in growth opportunities and manage debt effectively.

Strategic Partnerships

Partnerships with OEMs like XPENG expand market reach and strengthen Magna's position in the European market, supporting long-term growth.

Operational Excellence

Continuous improvements in operational efficiency support margin sustainability, enhancing profitability and competitive advantage.

Negative Factors

Revenue Growth Decline

Declining revenue growth may limit future earnings potential and indicates challenges in maintaining market share or product demand.

Complete Vehicle Segment Decline

Decline in complete vehicle assembly impacts overall revenue and highlights dependency on specific product lines, posing a risk to diversification.

Challenges in Power & Vision Segment

Margin pressure in key segments like Power & Vision can affect overall profitability and indicates potential operational inefficiencies.

Magna International Business Overview & Revenue Model

Company Description

Magna International Inc. is a leading global automotive supplier headquartered in Aurora, Ontario, Canada. The company operates in various sectors of the automotive industry, including body and chassis, exterior, powertrain, seating, and electronic systems. Magna designs, engineers, and manufactures a wide range of automotive components and systems, serving a diverse clientele that includes major automakers worldwide. With a strong commitment to innovation and sustainability, Magna also focuses on advanced vehicle technologies, including electrification and autonomous driving solutions.

How the Company Makes Money

Magna International generates revenue primarily through the sale of automotive components and systems to original equipment manufacturers (OEMs) and automotive suppliers. The company's revenue model is largely based on long-term contracts and agreements with automotive manufacturers, providing a stable income stream. Key revenue streams include the production and supply of parts in categories such as body and chassis, powertrain, and seating systems. Additionally, Magna benefits from strategic partnerships and collaborations with major automotive brands, which enhance its market reach and technological capabilities. The company's investment in research and development also positions it to capitalize on emerging trends in the automotive industry, such as electric vehicles and smart mobility solutions, thereby contributing to its overall earnings.

Magna International Financial Statement Overview

Summary

Magna International demonstrates solid financial health across all statements. The company maintains stable profitability with a Gross Profit Margin of 13.63% and efficient cash flow management, evidenced by a high Operating Cash Flow to Net Income Ratio of 3.01. However, there's room for improvement in revenue growth and debt management.

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	41.61B	42.84B	42.80B	37.84B	36.24B	32.65B
Gross Profit	5.75B	5.80B	5.61B	4.65B	5.14B	4.44B
EBITDA	4.04B	3.78B	3.79B	3.16B	3.58B	2.48B
Net Income	1.21B	1.01B	1.21B	592.00M	1.51B	757.00M
Balance Sheet
Total Assets	33.17B	31.04B	32.26B	27.79B	29.09B	28.61B
Cash, Cash Equivalents and Short-Term Investments	1.54B	1.25B	1.20B	1.23B	2.95B	3.27B
Total Debt	8.12B	7.07B	7.22B	5.07B	5.67B	6.00B
Total Liabilities	20.27B	19.10B	19.98B	16.45B	16.86B	16.89B
Stockholders Equity	12.48B	11.52B	11.88B	10.94B	11.84B	11.37B
Cash Flow
Free Cash Flow	1.64B	1.46B	601.00M	414.00M	1.57B	2.13B
Operating Cash Flow	3.34B	3.63B	3.15B	2.10B	2.94B	3.28B
Investing Cash Flow	-2.06B	-2.59B	-4.50B	-2.04B	-2.28B	-1.40B
Financing Cash Flow	-746.00M	-989.00M	1.34B	-1.73B	-1.11B	81.00M

Magna International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 69.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 69.01 is above the 20-day moving average (MA) of 64.14, above the 50-day MA of 64.38, and above the 200-day MA of 55.13, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 65.94 is Neutral, neither overbought nor oversold. The STOCH value of 89.19 is Negative, 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	76 Outperform	$19.45B	13.56	8.31%	3.93%	0.66%	-0.61%
CCL.A	75 Outperform	C$13.54B	17.41	15.20%	1.67%	7.90%	19.55%
LNR	68 Neutral	$4.49B	21.39	3.61%	1.44%	-2.60%	-64.22%
XTC	64 Neutral	$245.31M	10.43	6.01%	6.51%	-3.50%	-22.76%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MRE	54 Neutral	$735.16M	-11.65	-4.10%	1.98%	-8.84%	-148.15%
NFI	44 Neutral	C$1.67B	-7.37	-26.25%	―	9.12%	-182.49%

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.

Magna International Appoints Philip D. Fracassa as New CFO

Magna International has appointed Philip D. Fracassa as Executive Vice-President and Chief Financial Officer, succeeding Patrick McCann, who is stepping down after a 26-year career with the company. Fracassa, who brings extensive experience from The Timken Company and other major corporations, is expected to drive Magna’s strategy of sustainable shareholder value through operational excellence and financial discipline, building on the company’s strong performance and long-term growth outlook.

The most recent analyst rating on (TSE:MG) stock is a Hold with a C$47.00 price target. To see the full list of analyst forecasts on Magna International stock, see the TSE:MG Stock Forecast page.