MGAMagna International demonstrates solid financial health and a positive outlook driven by automotive industry trends, though recent performance shows some caution. The company is a good candidate for investors seeking stability with moderate growth potential.
Magna International is well-positioned to benefit from the ongoing shift towards electric vehicles (EVs) and advanced driver-assistance systems (ADAS), but faces competition and evolving market demands.
Magna International exhibits strong revenue and consistent profitability, supported by a healthy balance sheet and substantial free cash flow. Its valuation metrics are generally attractive.
The stock is trading below key moving averages on shorter timeframes, indicating short-term weakness, but longer-term trends and some oscillators suggest potential for a rebound. Caution is advised for short-term trades.
| Factor | Score |
|---|---|
| Electric Vehicle (EV) Transition | 85 |
| Advanced Driver-Assistance Systems (ADAS) | 80 |
| Autonomous Driving Technology | 70 |
| Supply Chain Resilience | 65 |
| Automotive Industry Cycles | 75 |
| Factor | Score |
|---|---|
| Valuation | 85 |
| Profitability | 70 |
| Growth | 78 |
| Balance Sheet Health | 75 |
| Cash Flow | 88 |
| Dividend Yield | 90 |
| Factor | Score |
|---|---|
| Trend Analysis | 40 |
| Momentum | 70 |
| Volume Confirmation | 60 |
| Support & Resistance | 65 |
| Short-term Indicators | 60 |
Undervalued Based on PE Ratio
The trailing P/E ratio of 10.66 is below the industry average and suggests the stock may be undervalued relative to its earnings potential.
Attractive Dividend Yield
The current dividend yield of 4.40% offers a consistent income stream, and the company has a history of regular dividend payments.
Missed Earnings Estimates
The company missed the EPS estimate in Q2 2025 (-12.19% surprise) and Q4 2024 (-9.13% surprise), indicating potential operational challenges or forecasting inaccuracies.
High Price-to-Sales Ratio
The trailing P/S ratio of 0.4 might seem low, but the stock's recent quarterly P/S ratios (e.g., Q1 2025 at 1.0) are significantly higher, suggesting potential overvaluation for the current quarter's revenue.
May 2025
16
Ex-Dividend Date
May 2025
30
Next Dividend Date
August 2025
1
Next Earnings Date
H: $1.25
A: $1.15
L: $0.95
H: 10.89B
A: 10.38B
L: 10.02B
Magna International Inc. manufactures and supplies vehicle engineering, contract, and automotive space. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The company offers battery enclosures, battery trays, fully assembled body-in-white modules, and chassis systems, such as suspension links and arms, twist axle, carbon fiber subframe, and frame assemblies; cameras, thermal sensing, radar, interior sensing systems, domain controllers, and modules for chassis control, glow plug control, powertrain control, and mechatronic control. It also provides active aerodynamics; lighting, liftgate modules, front integration panels, roof systems and modules, exterior design, thin wall, welding technologies, front end carriers or grille opening reinforcement, door panels, and hoods; latching systems, power closures, door and mechatronic control modules, hinges and wireforming, and handles; interior and exterior mirrors, actuators, and overhead consoles; structural, foam and trim, sustainable, and electronics seating; and greenhouse technologies, trim and exterior ornamentation, and running boards. In addition, the company offers eDrive systems and eBeam; hybrid and ICE Powertrain; E-motor core stack, gears and shafts, planetary carriers and differentials, and inverter covers and oil pans; battery thermal and structural components, and clutch housings and modules; truck fuel tank systems, pipes and components, and energy storage systems. Magna International Inc. was founded in 1957 and is headquartered in Aurora, Canada.
44.24 USD
The 39 analysts offering 1 year price forecasts for MGA have a max estimate of 56.00 and a min estimate of 34.00.