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Magna International Inc MG

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Morningstar’s Analysis

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Economic Moat

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Capital Allocation

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Magna Begins 2021 With Strong First-Quarter Results, Tweaks Guidance Higher; Maintaining $78 FVE

Richard Hilgert Senior Equity Analyst

Analyst Note

| Richard Hilgert |

No-moat rated Magna International reported first-quarter revenue and earnings per share before special items (EPS) that beat FactSet consensus estimates. Revenue increased 18% year over year to $10.2 billion from $8.7 billion and exceeded the consensus by slightly more than $400 million. Excluding positive currency effect, organic revenue rose 9%. The increase represented 3 percentage points of outperformance compared with global light vehicle production weighted to Magna’s customer base. EPS of $1.86 trounced the $1.61 consensus by $0.25 and was up $1.00 from the $0.86 reported a year ago.

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Company Profile

Business Description

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 contracted vehicle assembly. Roughly half of Magna's revenue comes from North America while Europe accounts for approximately 44%.

Contact
337 Magna Drive
Aurora, ON, L4G 7K1, Canada
T +1 905 726-2462
Sector Consumer Cyclical
Industry Auto Parts
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type
Employees 158,000

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