Magna International (TSE:MG)
NYSE:MG
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Magna International
(NYSE:MG)
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Rating:71Outperform
Price Target:
C$99.00
▲(19.23% Upside)
Action:Reiterated
Date:05/04/26
The score is driven primarily by improving financial performance (notably stronger TTM free cash flow and manageable leverage) and supportive technical momentum (price above major moving averages with a positive MACD). Guidance was reaffirmed with strong cash/capital return signals, but thin net margins and production/margin uncertainties limit upside, while valuation is constrained by a negative P/E despite a solid dividend yield.
Positive Factors
Strong free cash flow generation
Sustained, outsized free cash flow strengthens liquidity and funds capital returns, repurchases, and reinvestment without reliance on new financing. Over 2–6 months this improves flexibility to deleverage, support launches, and absorb cyclical OEM volume swings while preserving strategy execution.
Negative Factors
Thin net margin and muted ROE
Persistently low net margins and modest ROE suggest limited bottom-line conversion and suboptimal capital efficiency. Over months this constrains the company's ability to generate shareholder returns from growth, reduces cushion for cost shocks, and limits reinvestment capacity relative to peers.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Sustained, outsized free cash flow strengthens liquidity and funds capital returns, repurchases, and reinvestment without reliance on new financing. Over 2–6 months this improves flexibility to deleverage, support launches, and absorb cyclical OEM volume swings while preserving strategy execution.
Read all positive factors
Magna International (MG) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$24.91B
Dividend Yield3.69%
Average Volume (3M)1.46M
Price to Earnings (P/E)26.8
Beta (1Y)1.35
Revenue Growth0.29%
EPS Growth-40.45%
CountryCA
Employees167,000
SectorConsumer Cyclical
Sector Strength84
IndustryAuto - Parts
Share Statistics
EPS (TTM)2.35
Shares Outstanding278,795,470
10 Day Avg. Volume1,484,194
30 Day Avg. Volume1,462,047
Financial Highlights & Ratios
PEG Ratio-1.18
Price to Book (P/B)1.20
Price to Sales (P/S)0.35
P/FCF Ratio8.26
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$84.22Price Target Upside1.43% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)9.25
Revenue Forecast (FY)C$57.64B
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 &...
How the Company Makes Money
Magna makes money primarily by selling automotive parts, systems, and engineering/manufacturing services to vehicle OEMs under supply and program contracts tied to specific vehicle platforms and production volumes. Its key revenue streams include ...
Magna International Earnings Call Summary
Earnings Call Date:May 01, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 31, 2026
Earnings Call Sentiment Positive
The call highlighted significant operational and financial progress: strong revenue growth, outsized adjusted EBIT and EPS growth, record Q1 cash generation, successful commercial recoveries, continued operational-excellence momentum and active capital returns. These positives were balanced against tangible headwinds: weaker underlying production and organic sales (when excluding FX), Complete Vehicles softness, a sizeable GAAP impairment tied to divestitures, input-cost and tariff exposures, and geopolitical/supply-chain uncertainties that could create near-term volatility. Management reaffirmed full-year targets but took a measured near-term tone (Q2 margin flat, back-half weighted EBIT). Overall, strong execution and balance-sheet strength dominate the narrative, though several risks require watching.Positive Updates
Revenue and Profit Growth
Sales of $10.4B in Q1, up 3% year-over-year; adjusted EBIT $558M, up 58% YoY; adjusted EBIT margin expanded 190 basis points to 5.4%; adjusted EPS $1.38, up 77% YoY.
Negative Updates
Weaker Underlying Production and Organic Sales
Global light vehicle production declined ~7% in the quarter and Magna-weighted production declined ~5%; excluding foreign exchange, consolidated sales were down about 2% YoY, signaling weaker organic demand.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue and Profit Growth
Sales of $10.4B in Q1, up 3% year-over-year; adjusted EBIT $558M, up 58% YoY; adjusted EBIT margin expanded 190 basis points to 5.4%; adjusted EPS $1.38, up 77% YoY.
Read all positive updates
Company Guidance
Magna reaffirmed its 2026 outlook and key targets: weighted sales growth over market of about 1.5% at the midpoint, adjusted EBIT margin of 6.0–6.6%, adjusted EPS $6.25–$7.25 and free cash flow $1.6–$1.8 billion, while trimming North America production to ~14.9M units (‑100k) and Europe to ~16.6M units (‑200k) with China unchanged; it expects an adjusted tax rate of ~23% (Q1 was 23.8%), slightly lower interest expense for the year, a roughly neutral net tariff impact to 2026 EBIT (gross exposure now ~ $160M; net margin effect <10 bps), and a back‑half weighted EBIT cadence (first half ~43–45% of full‑year EBIT); the company also removed ~ $350M of sales for divestitures (minimal earnings/FCF impact), plans to repurchase the remaining ~17M NCIB shares during 2026, and expects closing of lighting/rooftop disposals in H2.Magna International Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
72
Positive
Cash Flow
78
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 42.32B | 42.75B | 42.84B | 42.80B | 37.84B | 36.24B |
| Gross Profit | 5.32B | 4.41B | 5.80B | 5.61B | 4.65B | 5.14B |
| EBITDA | 3.60B | 3.83B | 3.78B | 3.79B | 3.16B | 3.58B |
| Net Income | 671.18M | 843.51M | 1.01B | 1.21B | 592.00M | 1.51B |
Balance Sheet | ||||||
| Total Assets | 31.68B | 31.36B | 31.04B | 32.26B | 27.79B | 29.09B |
| Cash, Cash Equivalents and Short-Term Investments | 1.63B | 1.61B | 1.25B | 1.20B | 1.23B | 2.95B |
| Total Debt | 6.70B | 8.32B | 7.07B | 7.22B | 5.07B | 5.67B |
| Total Liabilities | 19.40B | 18.54B | 19.10B | 19.98B | 16.45B | 16.86B |
| Stockholders Equity | 11.92B | 12.47B | 11.52B | 11.88B | 10.94B | 11.84B |
Cash Flow | ||||||
| Free Cash Flow | 2.79B | 1.82B | 1.46B | 601.00M | 414.00M | 1.57B |
| Operating Cash Flow | 4.22B | 3.66B | 3.63B | 3.15B | 2.10B | 2.94B |
| Investing Cash Flow | -1.58B | -1.73B | -2.59B | -4.50B | -2.04B | -2.28B |
| Financing Cash Flow | -2.08B | -1.56B | -989.00M | 1.34B | -1.73B | -1.11B |
Magna International Technical Analysis
Positive
83.03
Price Trends
81.61
Positive
79.77
Positive
72.57
Positive
Market Momentum
2.34
Negative
59.50
Neutral
85.35
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 83.03 is below the 20-day moving average (MA) of 85.75, above the 50-day MA of 81.61, and above the 200-day MA of 72.57, indicating a bullish trend. The MACD of 2.34 indicates Negative momentum. The RSI at 59.50 is Neutral, neither overbought nor oversold. The STOCH value of 85.35 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$6.06B | 9.66 | 10.37% | 1.32% | 2.38% | 149.43% | |
71 Outperform | C$24.91B | 26.83 | 5.42% | 3.69% | 0.29% | -40.45% | |
71 Outperform | C$286.87M | 11.91 | 6.05% | 6.21% | -2.28% | -7.56% | |
70 Outperform | C$15.25B | 19.27 | 14.41% | 1.44% | 4.34% | -4.98% | |
65 Neutral | C$814.57M | 7.03 | 7.74% | 1.93% | -1.63% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
46 Neutral | C$506.99M | 20.38 | 5.29% | ― | -6.30% | ― |
* Consumer Cyclical Sector Average
TSE:MG
Magna International
89.35
42.39
90.26%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.