Magna International (MG) AI Stock Analysis

• Market Cap: $16.07B
• Dividend Yield: 4.72%
• Average Volume (3M): 952.87K
• Price to Earnings (P/E): 9.7
• Beta (1Y): 1.27
• Revenue Growth: -0.54%
• EPS Growth: 26.31%
• Country: CA
• Employees: 167,000
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Auto - Parts
• EPS (TTM): 1.99
• Shares Outstanding: 281,735,500
• 10 Day Avg. Volume: 890,138
• 30 Day Avg. Volume: 952,869
• 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: 1.52
• Enterprise Value/Revenue: 0.59
• Enterprise Value/Gross Profit: 4.24
• Enterprise Value/Ebitda: 6.03
• 1Y Price Target: $59.77
• Price Target Upside: 4.76% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 13

• Rating: 76 Outperform
• Price Target: C$64.00 ▲(12.18% Upside)

Magna International's robust financial performance, coupled with attractive valuation metrics, highlight its potential in the auto parts industry. Positive technical indicators and strategic corporate actions further enhance its outlook. However, challenges such as sales declines and production issues are areas to watch.

Positive Factors

Capital Return

MGA has emerged from its elevated capex cycle and plans to return capital to shareholders, with a focus on buybacks.

Cost Management

Positive incrementals for MGA in 2025 include cost reductions, lower capex, and resumption of buybacks.

Tariffs

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

Negative Factors

Exchange Rate Impact

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

Sales Forecast

MGA expects sales to decline between 6% and 10% in 2025 due to lower production volumes and FX translation headwinds.

Volume Decline

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. is a global automotive supplier headquartered in Aurora, Ontario, Canada. The company operates in various sectors of the automotive industry, including body exteriors and structures, power and vision technologies, seating systems, and complete vehicle engineering and assembly. Magna's core products and services encompass a wide range of automotive components and systems, making it a key player in the supply chain for major automotive manufacturers worldwide.

How the Company Makes Money

Magna International makes money through the design, engineering, and manufacturing of automotive systems and components for original equipment manufacturers (OEMs) globally. Their revenue model is primarily based on long-term contracts with these OEMs, supplying critical parts such as chassis, powertrains, and seating systems. Significant revenue streams include sales from its body exteriors and structures, power and vision technologies, and complete vehicle assembly. Partnerships with leading automotive brands and continuous innovation in advanced automotive technologies, such as electric and autonomous vehicles, also contribute to its earnings. Magna's diversified product portfolio and global presence help mitigate risks and sustain revenue growth in the competitive automotive industry.

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: 57.05
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 57.05 is below the 20-day moving average (MA) of 57.55, above the 50-day MA of 53.86, and above the 200-day MA of 54.03, indicating a neutral trend. The MACD of 0.94 indicates Positive momentum. The RSI at 54.54 is Neutral, neither overbought nor oversold. The STOCH value of 20.19 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	76 Outperform	$16.07B	9.68	10.06%	4.72%	-0.54%	26.31%
Sector *	64 Neutral	€17.74B	11.59	7.50%	3.58%	-0.01%	-87.77%
EXCOF	―	$184.49M	10.84	6.01%	6.26%	―	―
LIMAF	―	$2.91B	15.82	4.66%	1.51%	―	―
MRETF	―	$438.42M	5.32	-3.98%	2.40%	―	―
CCL.A	79 Outperform	C$13.31B	16.24	16.68%	1.54%	9.80%	60.44%
NFI	60 Neutral	C$2.23B	―	-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.

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.