Magna International (MG) AI Stock Analysis

• Market Cap: $18.08B
• Dividend Yield: 4.23%
• Average Volume (3M): 858.76K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 1.31
• Revenue Growth: -0.54%
• EPS Growth: 26.31%
• Country: CA
• Employees: 167,000
• Sector: Consumer Cyclical
• Sector Strength: 82
• Industry: Auto - Parts
• EPS (TTM): 1.99
• Shares Outstanding: 281,778,780
• 10 Day Avg. Volume: 864,994
• 30 Day Avg. Volume: 858,762
• 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: 1.35
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 4.24
• Enterprise Value/Ebitda: 6.03
• 1Y Price Target: $62.03
• Price Target Upside: -3.34% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 78 Outperform
• Price Target: C$73.00 ▲(13.74% Upside)

Magna International's overall stock score is driven by its solid financial performance and attractive valuation. The company's strong technical indicators and positive earnings call further support its position. However, challenges such as declining sales and moderate debt reliance slightly temper the outlook.

Positive Factors

Cost Management

There are positive incrementals for MGA: some more cost reductions, and lower capex.

Trade Conditions

USMCA auto parts are exempt from tariffs; a significant relief vs. prior fears.

Negative Factors

Currency Impact

Stronger EUR means more EUR-denominated earnings that are lower margin than North America.

Market Expectations

MGA still expects significant q/q margin expansion in Q2 but magnitude is a touch lower than beginning of year expectations.

Volume Uncertainty

There is downside risk if volumes going forward are negatively affected because of tariffs.

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 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: 64.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 64.18 is above the 20-day moving average (MA) of 59.67, above the 50-day MA of 56.71, and above the 200-day MA of 53.84, indicating a bullish trend. The MACD of 2.01 indicates Negative momentum. The RSI at 78.62 is Negative, neither overbought nor oversold. The STOCH value of 93.26 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	78 Outperform	$18.08B	10.86	10.06%	4.23%	-0.54%	26.31%
Sector *	61 Neutral	$17.75B	12.51	-5.49%	3.06%	1.43%	-14.10%
EXCOF	―	$186.37M	10.69	6.01%	6.34%	―	―
LIMAF	―	$3.21B	21.06	3.61%	1.44%	―	―
MRETF	―	$508.52M	5.32	-4.10%	2.08%	―	―
CCL.A	78 Outperform	C$14.23B	18.63	15.20%	1.46%	7.90%	19.55%
NFI	53 Neutral	C$2.19B	―	-26.25%	―	9.12%	-182.49%

Magna International Corporate Events

Magna International Reports Strong Q2 2025 Results Amid Industry Challenges

Magna International reported a strong second quarter in 2025, with a 16% increase in income from operations before taxes, despite a 3% decline in sales compared to the previous year. The company’s performance was driven by operational excellence, restructuring efforts, and commercial recoveries, resulting in an improved EBIT margin. Magna returned $324 million to shareholders and updated its 2025 outlook to reflect anticipated increases in total sales, adjusted EBIT margin, and net income, despite challenges such as declining vehicle production in North America and Europe and trade policy uncertainties.

The most recent analyst rating on (TSE:MG) stock is a Buy with a C$52.00 price target. To see the full list of analyst forecasts on Magna International stock, see the TSE:MG Stock Forecast page.

Magna International Announces Senior Notes Offerings to Bolster Financial Flexibility

Magna International Inc. announced the offering of Euro and U.S. dollar denominated senior notes, with the proceeds intended for general corporate purposes, including debt repayment. This strategic financial move, involving major financial institutions as joint book-running managers, is expected to enhance Magna’s financial flexibility and support its operations, potentially impacting its market positioning positively.

The most recent analyst rating on (TSE:MG) stock is a Hold with a C$48.00 price target. To see the full list of analyst forecasts on Magna International stock, see the TSE:MG Stock Forecast page.