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MGA

NYSE
Weak · 36/100

Magna International Inc

Consumer Discretionary
Auto Components

$64.69

3.2%

Updated Today 12:11 PM ET

Report Card

MGA at a glance — five pillars scored 0–100 from real filed financials.

Value
0
Growth
0
Profitability
0
Health
0
Dividends
0

Overall: Weak · 36/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.

Price — Past Year

▲ Up 55.7% over the last 12 months

Price 50-day average 200-day averageDCF fair value ±15%Source: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$17.95B

P/E

25.78x

Forward P/E (est.)

36.83x

ROE

5.4%

Revenue Growth

0.9%

EPS Growth

-40.5%

Profit Margin

1.6%

FCF Yield

18.9%

Debt / Equity

0.38x

ROIC

Interest Coverage

Current Ratio

1.25x

Dividend Yield

3.0%

Implied Growth (rev. DCF)

-3.3%

Rating Score

36/100

Business Overview
Research

Magna International Inc (MGA) is a large-cap company in the Auto Components industry, part of the Consumer Discretionary sector of the S&P 500, with a market value around $17.95B.

In its latest reported year it generated about $42.01B in revenue and $829.00M in net profit.

Our model rates MGA Weak (36/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what MGA's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. MGA trades near $64.69, above its 50-day average ($63.93) and 200-day average ($55.72). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 43 it is in neutral territory — neither stretched nor washed out.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. MGA's is $1.91 (~3.0% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month MGA found buyers near $61.88 (support) and sellers near $68.37 (resistance); its 52-week range is $40.44–$69.94. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 0.4× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Revenue Growth
Research

4Y CAGR

3.8%

1/4 checks passedRevenue growingRevenue growth beats sector midpointEPS growingEPS growing faster than revenue

Revenue moved from $36.59B in 2017 to $42.01B in 2025, a 1.7% compound annual growth rate. The most recent year was roughly flat (0.9%) year over year. Slower, mature growth is common for established businesses.

Profitability
Research
1/3 checks passedProfitableNet margin above sector midpointROE above 12%

Gross Margin

14.6%

Operating Margin

2.8%

Net Margin

2.0%

ROE

5.4%

Magna International Inc keeps about 1.6% of each sales dollar as net profit, with a 14.6% gross margin and 2.8% operating margin. Return on equity is 5.4%. Thin margins leave less cushion if costs rise.

Debt Analysis
Research
3/3 checks passedDebt under 1× equityDebt under 2× equityShort-term bills covered

Total Debt

$4.71B

Net Debt

$3.10B

Net Debt / EBITDA

Debt / Equity

0.38x

Leverage: debt-to-equity is 0.4x, with a current ratio of 1.3x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $4.71B of total debt against $1.61B of cash.

Cash Flow Analysis
Research
3/3 checks passedPositive free cash flowFCF yield above 2%Market expects achievable growth (<8%)

Operating CF

$3.60B

Free Cash Flow

$2.29B

FCF Margin

5.4%

In the latest year Magna International Inc produced about $3.60B of operating cash flow and $2.29B of free cash flow after capital spending. That is a free-cash-flow yield of about 18.9% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.

Valuation Analysis
Research
3/4 checks passedPositive earnings (P/E meaningful)P/E below sector's upper bandForward P/E below trailing (earnings growing)Trading below DCF fair value

P/E

25.78x

P/S

0.41x

P/B

1.17x

EV / EBITDA

MGA trades at 25.8x trailing earnings (about 36.8x on estimated forward earnings), 0.4x sales, and 1.2x book value. Reverse-engineering today's price implies the market expects roughly -3.3% long-term free-cash-flow growth. That is a premium multiple that needs growth to justify it.

DCF Fair Value (Educational)

A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.

DCF fair value / share

$117.52

Current price

$64.69

+82% · Below fair-value estimate

Starting FCF (latest 10-K)

$2.29B

Growth, years 1–5

0.9%

Fade to terminal, years 6–10

2.5%

Discount rate

9.0%

PV of 10-yr free cash flow$15.46B
PV of terminal value$17.48B
Estimated equity value$32.93B
Shares outstanding280M

Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.

Metrics vs. Sector Range

Where MGA sits versus its Consumer Discretionary sector peers in the S&P 500.

TTM P/E
25.8xFair
Forward P/E
36.8xExpensive
P/S ratio
0.4xCheap
Revenue growth
0.9%Weak
EPS growth
-40.5%Weak
Gross margin
14.6%Weak
Net margin
1.6%Weak
ROE
5.4%Weak

Bands show the middle half (25th–75th percentile) of the 50 Consumer Discretionary companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.

Sector Peer Comparison

How MGA stacks up against its Consumer Discretionary peers — valuation, profitability, and growth versus the sector median.

In the Consumer Discretionary sector (92 S&P 500 companies), MGA ranks #40 of 92 by our overall rating. It trades at roughly in line versus the sector on earnings (25.8x P/E vs. 25.4x median) with a lower return on equity (5.4% vs. 24.8%) and slower revenue growth (0.9% vs. 6.2%).

P/E vs sector

25.8x

median 25.4x

ROE vs sector

5.4%

median 24.8%

Growth vs sector

0.9%

median 6.2%

Sector rank

#40

of 92 by rating

CompanyP/ERev Gr.Rating
MGAThis stock25.8x0.9%Weak· 36
BWA36x2.3%Neutral· 48
DORMNot rated
GNTXNot rated
GTNot rated
GTXNot rated
KDKNot rated
MBLYNot rated
Consumer Discretionary median25.4x6.2%22/100
Compare side by side

Peers are the closest Consumer Discretionary companies by sub-industry and size. Sector median is across all 92 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$0.00 $0.00

vs. $64.69 today · expected CAGR 5%16%

Metric20262027202820292030
Revenue$43.27B$44.57B$45.91B$47.28B$48.70B
Net income$1.30B$1.34B$1.38B$1.42B$1.46B
EPS$4.63$4.77$4.91$5.06$5.21
Share price (low)$74.11$76.34$78.63$80.99$83.42
Share price (high)$120.43$124.05$127.77$131.60$135.55
CAGR (low–high)15% / 86%9% / 38%7% / 25%6% / 19%5% / 16%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for MGA:

  • Healthy free-cash-flow yield (~18.9%) funds buybacks and dividends.
  • A conservative balance sheet (debt/equity 0.4x) lowers risk.
  • Pays a 3.0% dividend on top of any price gains.
Bear Case

The case against MGA:

  • Revenue growth is slow (0.9%), limiting the upside engine.
  • Thin net margins (1.6%) leave little room for error.
  • Our model's overall read is Weak (36/100).
Key Risks
Research

Growth risk — sluggish revenue (0.9%) leaves little margin for execution missteps.

Margin risk — thin profitability (1.6%) is vulnerable to cost or pricing pressure.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the fundamentals screen weakly: Magna International Inc is a large-cap consumer discretionary business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 25.8x earnings, which our model scores Weak (36/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

MGA — frequently asked questions

Is MGA a good stock to buy?

We don't give buy or sell advice. Our model rates Magna International Inc Weak (36/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.

What is MGA's rating on The Stocks School?

Magna International Inc currently scores 36/100 (Weak) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.

How our ratings work
Where does MGA's data come from?

Live price data plus real fundamentals and 5-year financials pulled directly from Magna International Inc's SEC filings — refreshed automatically, not hand-entered.

How is the 5-year projection for MGA calculated?

It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.

Is this MGA analysis financial advice?

No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell MGA. Always do your own research and consider a licensed professional.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.