Skip to Content

Magna International Inc MGA

Morningstar Rating
$54.75 −0.25 (0.45%)
View Full Chart
Unlock Our Analysis with Morningstar Investor

Company Report

Magna Earnings: Despite UAW Strike, Reports Solid Results and Tweaks Guidance

No-moat-rated Magna reported third-quarter earnings per share before special items of $1.46, beating the $1.33 FactSet consensus by $0.13 and up $0.36 from the $1.10 result reported last year. Higher customer volumes on less supply chain disruption and better throughput were partially offset by customers’ UAW strike, increased engineering spending, and inflationary cost pressures. Revenue jumped 15% to $10.7 billion, up from $9.3 billion in the prior year on customer volume, new business backlog, the Veoneer acquisition, and customer cost recoveries. The top line beat consensus by 3%. Organic revenue increased 10%, 2 percentage points better than an 8% increase in global production weighted to Magna's customer base.

Price vs Fair Value

MGA is trading at a 24% discount.
Price
$54.75
Fair Value
$64.00
Uncertainty
High
1-Star Price
$829.50
5-Star Price
$17.20
Economic Moat
Why
Capital Allocation
Xdsmsmsn

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.

Is it the right time to buy, sell, or hold?
Start a free trial of Morningstar Investor to unlock exclusive ratings and continuous analyst coverage to help you decide if MGA is a good fit for your portfolio.

News

Trading Information

Previous Close Price
$55.00
Day Range
$54.4055.05
52-Week Range
$46.7167.96
Bid/Ask
$53.25 / $58.00
Market Cap
$15.68 Bil
Volume/Avg
791,447 / 1.1 Mil

Key Statistics

Price/Earnings (Normalized)
10.99
Price/Sales
0.37
Dividend Yield
3.36%
Dividend Yield (Forward)
3.36%
Total Yield
3.46%

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
Mid Core
Total Number of Employees
168,000

Competitors

Valuation

Metric
MGA
BWA
APTV
Price/Earnings (Normalized)
10.997.0617.10
Price/Book Value
1.381.352.12
Price/Sales
0.370.521.15
Price/Cash Flow
5.634.8810.92
Price/Earnings
MGA
BWA
APTV

Financial Strength

Metric
MGA
BWA
APTV
Quick Ratio
0.721.211.22
Current Ratio
1.111.651.81
Interest Coverage
9.4734.885.59
Quick Ratio
MGA
BWA
APTV

Profitability

Metric
MGA
BWA
APTV
Return on Assets (Normalized)
4.89%8.06%6.13%
Return on Equity (Normalized)
13.15%18.92%14.59%
Return on Invested Capital (Normalized)
8.71%11.52%9.09%
Return on Assets
MGA
BWA
APTV

Auto Parts Industry Comparables

Ticker
Name
Morningstar Rating for Stocks
Economic Moat
Market Cap
DNZOF
Denso CorpXpfnmkz$45.6 Bil
APTV
Aptiv PLCLckrqw$22.9 Bil
LKQ
LKQ CorpFgnmdz$12.1 Bil
ALV
Autoliv IncMqgsjpx$8.5 Bil
LEA
Lear CorpVxpyf$7.9 Bil
BWA
BorgWarner IncSgjyvfc$7.8 Bil
GNTX
Gentex CorpPrbcfsy$7.2 Bil
ALSN
Allison Transmission Holdings IncXqnwzd$4.9 Bil
ADNT
Adient PLCKgyprcp$3.1 Bil