Magna International, Inc. (MG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Linamar Corp.

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Magna International, Inc.

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TUGA Innovations, Inc.

ABC Technologies Holdings, Inc.

Why is Magna International, Inc. ?

Poor long term growth as Net Sales has grown by an annual rate of 5.49% and Operating profit at 5.86% over the last 5 years

With ROE of 5.96%, it has a very expensive valuation with a 1.53 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 64.90%, its profits have fallen by -45.9%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Auto Components & Equipments)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Magna International, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Magna International, Inc.

67.53%

2.03

36.34%

S&P/TSX 60

28.13%

2.33

12.07%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.49%

EBIT Growth (5y)

5.86%

EBIT to Interest (avg)

14.50

Debt to EBITDA (avg)

1.00

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

2.38

Tax Ratio

37.71%

Dividend Payout Ratio

66.50%

Pledged Shares

Institutional Holding

72.50%

ROCE (avg)

12.26%

ROE (avg)

11.93%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.53

EV to EBIT

9.75

EV to EBITDA

5.34

EV to Capital Employed

1.41

EV to Sales

0.52

PEG Ratio

Dividend Yield

ROCE (Latest)

14.45%

ROE (Latest)

5.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

13What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 6,282.83 MM

INVENTORY TURNOVER RATIO(HY)

Highest at 9.21 times

INTEREST COVERAGE RATIO(Q)

Highest at 2,948.65

RAW MATERIAL COST(Y)

Fallen by -7.7% (YoY

NET SALES(Q)

Highest at CAD 15,200.54 MM

NET PROFIT(Q)

Highest at CAD 678.06 MM

EPS(Q)

Highest at CAD 2.38

-6What is not working for the Company

NET PROFIT(9M)

At CAD 684.28 MM has Grown at -46.36%

ROCE(HY)

Lowest at 6.24%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.09 times

Here's what is working for Magna International, Inc.

Operating Cash Flow

Highest at CAD 6,282.83 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Interest Coverage Ratio

Highest at 2,948.65

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Profit

At CAD 678.06 MM has Grown at 169.2%

over average net sales of the previous four periods of CAD 251.88 MM

MOJO Watch

Near term Net Profit trend is very positive

Net Profit (CAD MM)

Inventory Turnover Ratio

Highest at 9.21 times and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Net Sales

Highest at CAD 15,200.54 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (CAD MM)

Net Profit

Highest at CAD 678.06 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (CAD MM)

EPS

Highest at CAD 2.38

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (CAD)

Raw Material Cost

Fallen by -7.7% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Magna International, Inc.

Debtors Turnover Ratio

Lowest at 5.09 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio