Magna International (MG) AI Stock Analysis

• Market Cap: C$14.84B
• Dividend Yield: 5.04%
• Average Volume (3M): 2.35M
• Price to Earnings (P/E): 9.5
• Beta (1Y): 1.32
• Revenue Growth: 0.36%
• EPS Growth: 15.87%
• Country: CA
• Employees: 167,000
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Auto - Parts
• EPS (TTM): 1.07
• Shares Outstanding: 281,735,500
• 10 Day Avg. Volume: 2,297,452
• 30 Day Avg. Volume: 2,345,267
• PEG Ratio: -0.46
• Price to Book (P/B): 1.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 39.36
• Enterprise Value/Market Cap: 1.36
• Enterprise Value/Revenue: 0.12
• Enterprise Value/Gross Profit: 3.52
• Enterprise Value/Ebitda: 1.29
• 1Y Price Target: C$52.14
• Price Target Upside: -0.99% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 73 Outperform
• Price Target: C$56.00 ▲(6.34%Upside)

Magna International's overall stock score is driven primarily by its solid financial performance and attractive valuation, making it a stable investment in the auto parts industry. Technical analysis supports a moderately positive outlook, although macroeconomic challenges and trade impacts present risks. The company's strategic initiatives and governance are positive, reinforcing confidence in its long-term positioning.

Positive Factors

Capital Allocation

Magna has seen a 10% rise in shares following a better-than-feared guidance cut and management's positive message on capital allocation, including the resumption of buybacks.

Free Cash Flow

Magna International is in a position to support cash flow by significantly reducing capex and R&D spend, potentially adding $500M+ to free cash flow.

Tariffs

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

Negative Factors

European Market Exposure

Magna International is being downgraded to Sell due to its above average exposure to the European market, where weaker production is expected.

Production Volumes

MGA expects sales to decline between 6% and 10% due to lower production volumes and FX translation headwinds.

Volumes and Tariffs

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 manufacturing and sale of automotive components and systems to major automotive OEMs worldwide. The company's key revenue streams include the production of body exteriors and structures, powertrain systems, seating systems, and complete vehicle engineering and contract manufacturing. Magna also benefits from its innovations in automotive technology, including advancements in electronics and electrification, which are increasingly in demand as the industry shifts towards electric and autonomous vehicles. Strategic partnerships and joint ventures, such as collaborations with tech companies for advanced driver-assistance systems (ADAS), also significantly contribute to Magna's earnings by expanding its technological capabilities and market reach.

Magna International Financial Statement Overview

Summary

Magna International demonstrates solid financial health across all statements. The company maintains stable profitability and efficient cash flow management, with room for improvement in revenue growth and debt management. Overall, Magna is well-positioned in the auto parts industry with a strong operational framework and moderate financial leverage.

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
41.94B	42.84B	42.80B	37.84B	36.24B	32.65B
	Gross Profit
5.71B	5.80B	5.61B	4.65B	5.14B	4.44B
	EBIT
1.86B	2.12B	2.70B	1.71B	1.95B	1.70B
	EBITDA
3.96B	3.78B	3.79B	3.16B	3.58B	2.48B
	Net Income Common Stockholders
1.15B	1.01B	1.21B	592.00M	1.51B	757.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.06B	1.25B	1.20B	1.23B	2.95B	3.27B
	Total Assets
32.07B	31.04B	32.26B	27.79B	29.09B	28.61B
	Total Debt
7.56B	7.07B	7.22B	5.07B	5.67B	6.00B
	Net Debt
6.50B	5.82B	6.03B	3.84B	2.73B	2.73B
	Total Liabilities
19.91B	19.10B	19.98B	16.45B	16.86B	16.89B
	Stockholders Equity
11.74B	11.52B	11.88B	10.94B	11.84B	11.37B
Cash Flow		Free Cash Flow
1.50B	1.46B	601.00M	414.00M	1.57B	2.13B
	Operating Cash Flow
3.45B	3.63B	3.15B	2.10B	2.94B	3.28B
	Investing Cash Flow
-2.41B	-2.59B	-4.50B	-2.04B	-2.28B	-1.40B
	Financing Cash Flow
-1.50B	-989.00M	1.34B	-1.73B	-1.11B	81.00M

Magna International Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 52.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• 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 52.66 is above the 20-day moving average (MA) of 50.20, above the 50-day MA of 47.76, and below the 200-day MA of 53.75, indicating a neutral trend. The MACD of 0.88 indicates Negative momentum. The RSI at 64.05 is Neutral, neither overbought nor oversold. The STOCH value of 89.38 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
XTC	79 Outperform	$263.21M	9.97	6.86%	6.15%	-2.84%	-8.22%
CCL.A	78 Outperform	C$13.60B	16.12	16.68%	1.63%	9.80%	60.44%
MG	73 Outperform	C$14.84B	9.53	9.85%	5.04%	0.36%	15.87%
LNR	71 Outperform	$3.89B	15.40	4.66%	1.80%	2.26%	-54.00%
MRE	66 Neutral	$622.34M	5.65	-3.98%	2.21%	-9.36%	-145.18%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%
NFI	59 Neutral	C$1.82B	―	-0.03%	―	15.99%	99.83%

Magna International Corporate Events

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.

Magna International Reports 2025 Annual Meeting Outcomes

Magna International announced the results of its 2025 annual and special meeting of shareholders, where 78.66% of its common shares were represented. All 13 board nominees were elected, Deloitte was reappointed as auditor, the 2025 Stock Option Plan was ratified, and the ‘Say on Pay’ resolution was approved by a substantial majority. These results reinforce Magna’s strong governance and strategic direction, with key leadership positions confirmed for its board committees.

Magna International Reports First Quarter 2025 Financial Results

Magna International reported a decrease in sales by 8% to $10.1 billion for the first quarter of 2025 compared to the same period in 2024, primarily due to a decline in global light vehicle production and lower complete vehicle assembly volumes. Despite the sales drop, the company’s performance exceeded expectations due to strong incremental margins and better-than-anticipated vehicle production. Magna returned $187 million to shareholders and remains focused on operational excellence and restructuring to mitigate tariff impacts and drive long-term growth.