Magna International Inc.

$ 65.35 0.71 %

Based in Aurora, Canada, and established in 1957, Magna International Inc. operates as a leading global partner to the automotive industry. The company specializes in the conceptualization, development, and production of an extensive range of components, integrated systems, and complete modules, serving original equipment manufacturers of passenger vehicles and light trucks across the globe. Its comprehensive activities are structured into four key business segments: The Body Exteriors & Structures division focuses on foundational vehicle architecture. This includes essential body and chassis elements, exterior trims, and roof systems, along with advanced battery enclosures. This segment also provides specialized engineering and testing capabilities, delivering products such as bumper fascia, integrated front-end modules, liftgate assemblies, active aerodynamic components, specialized automotive glass, running boards, truck bed access systems, and side door structures. The Power & Vision segment is dedicated to innovative propulsion and sensory technologies. It develops hybrid and electric drive systems, encompassing motors, inverters, and onboard charging units, alongside a variety of transmission types, including hybrid, dual-clutch, and manual options. This division further produces all-wheel-drive/four-wheel-drive systems, driveline components, and engine accessories. Additionally, it supplies sophisticated advanced driver assistance systems (ADAS), sensors, and electronic control units. Its broad product line also extends to interior and exterior mirrors, camera and driver monitoring systems, electronic actuators, door handles, overhead consoles, and comprehensive lighting solutions (forward, rear, auxiliary). Furthermore, it provides complex latching, door modules, power window and closure systems, hinges, wire forms, and various convertible roof solutions, including modular and textile folding tops. The Seating Systems division is responsible for crafting integrated seating solutions, encompassing robust seat structures, intricate mechanism and hardware solutions, and essential foam and trim materials. Lastly, the Complete Vehicles segment offers end-to-end vehicle engineering and full-scale manufacturing services. Beyond these primary segments, Magna International Inc. also possesses extensive capabilities in designing, engineering, and manufacturing specialized tooling products.

CEO: Seetarama Kotagiri - https://www.magna.com

Price objectif

$67.3 2.98 %

Recommandation

Buy

DCF

$ 17.08

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MGA vs S&P500

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Quick ratio

0.88

indicates that the company may have difficulty covering its short-term debts with its readily available assets.

P/E ratio

27.57

is considered reasonable, suggesting that the company has a valuation in line with its current profits.

EPS

2.37

is the net profit of a company divided by the number of outstanding shares, indicating the profit earned per share.

ROE

5.42 %

indicates low profitability, suggesting that the company is not using equity efficiently to generate profits.

ROIC

8.19 %

does not generate enough return to cover its financing costs, which indicates value destruction and may pose long-term profitability issues.

WACC

9.86

is a company's average cost of capital, weighted by the proportion of debt and equity in its financing. It represents the minimum return the company must generate to satisfy its investors.

Debt-to-Equity Ratio

0.56

indicates that the company uses more equity than debt, suggesting prudent management.

Free cash flow per share

10.04

is a measure of a company's financial flexibility that is determined by dividing free cash flow by the total number of shares outstanding.

Dividend payout ratio

80.94 %

indicates that the company is retaining a large portion of its profits to reinvest in growth

Earnings per share

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Financials

Piotroski score
6 indicates moderate financial health
Altman score
2.53 indicates an uncertain financial situation
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Cash / Debt

Cash Ratio
0.14 indicates liquidity risk, as the company may not have enough cash to meet its immediate obligations
Debt Ratio
0.21 indicates that the company uses little debt to finance its assets, suggesting good financial stability
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Free Cash Flow

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Earnings Per Share (annual)

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Sales

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