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Magna International Inc MGA

Morningstar Rating
$54.19 +0.14 (0.26%)
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Company Report

Magna Earnings: UAW Strike Crimps Results and Margin Guidance Fails to Impress

No-moat-rated Magna reported fourth-quarter earnings per share before special items of $1.33, missing the $1.46 FactSet consensus by $0.13 but up $0.39 from $0.94 reported a year ago. Higher customer volumes on less supply chain disruption were partly offset by UAW strikes, increased engineering spending, and inflationary cost pressures. Revenue rose 9% to $10.5 billion, up from $9.6 billion in the prior year due to increased volume, new business backlog, and the Veoneer acquisition. The top line narrowly beat consensus by $13 million. Organic revenue increased 4%, 2 percentage points below a 6% increase in global production weighted to Magna's customer base, mainly due to the strike.

Price vs Fair Value

MGA is trading at a 24% discount.
Price
$54.19
Fair Value
$15.00
Uncertainty
High
1-Star Price
$236.26
5-Star Price
$78.30
Economic Moat
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Capital Allocation
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Bulls Say, Bears Say

Bulls

High switching costs and significant barriers to entry enable sticky market shares.

Bears

Magna relies heavily on a handful of automakers with its top five customers accounting for 69% of total 2022 revenue.

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News

Trading Information

Previous Close Price
$54.05
Day Range
$53.7354.41
52-Week Range
$46.7165.27
Bid/Ask
$53.15 / $58.00
Market Cap
$15.55 Bil
Volume/Avg
842,332 / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
10.82
Price/Sales
0.36
Dividend Yield (Trailing)
3.42%
Dividend Yield (Forward)
3.51%
Total Yield
3.51%

Company Profile

Magna International prides itself on a highly entrepreneurial culture and a corporate constitution that outlines distribution of profits to various stakeholders. This automotive supplier's product groups include exteriors, interiors, seating, roof systems, body and chassis, powertrain, vision and electronic systems, closure systems, electric vehicle systems, tooling and engineering, and contract vehicle assembly. In 2022, roughly 50% of Magna's revenue came from North America while Europe accounted for approximately 38%.
Sector
Consumer Cyclical
Industry
Auto Parts
Stock Style Box
Large Core
Total Number of Employees
179,000

Competitors

Valuation

Metric
MGA
FRVIA
APTV
Price/Earnings (Normalized)
10.826.9616.15
Price/Book Value
1.310.591.90
Price/Sales
0.360.101.11
Price/Cash Flow
5.301.349.92
Price/Earnings
MGA
FRVIA
APTV

Financial Strength

Metric
MGA
FRVIA
APTV
Quick Ratio
0.720.701.15
Current Ratio
1.110.981.72
Interest Coverage
9.477.345.30
Quick Ratio
MGA
FRVIA
APTV

Profitability

Metric
MGA
FRVIA
APTV
Return on Assets (Normalized)
4.91%1.64%14.60%
Return on Equity (Normalized)
13.23%11.57%33.67%
Return on Invested Capital (Normalized)
8.76%2.89%20.44%
Return on Assets
MGA
FRVIA
APTV
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