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

Negative results in Mar 26

ROCE(HY) Lowest at 5.53%
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
DEBTORS TURNOVER RATIO(HY) Lowest at 5.03 times

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 79.29%, 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.

79.29%

1.91

35.63%

S&P/TSX 60

29.6%

2.31

12.81%

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)

16.05

Debt to EBITDA (avg)

0.88

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

2.38

Tax Ratio

29.49%

Dividend Payout Ratio

66.50%

Pledged Shares

Institutional Holding

72.50%

ROCE (avg)

12.34%

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

9.74

EV to EBITDA

5.33

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

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

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

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 5,845.61 MM

RAW MATERIAL COST(Y)

Fallen by -16.6% (YoY

DEBT-EQUITY RATIO (HY)

Lowest at 42.58 %

INVENTORY TURNOVER RATIO(HY)

Highest at 9.05 times

-22What is not working for the Company

ROCE(HY)

Lowest at 5.53%

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 5.03 times

NET SALES(Q)

Lowest at CAD 14,239.7 MM

PRE-TAX PROFIT(Q)

Lowest at CAD 23.32 MM

NET PROFIT(Q)

Lowest at CAD -15.36 MM

EPS(Q)

Lowest at CAD -0.06

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

Operating Cash Flow

Highest at CAD 5,845.61 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)

Debt-Equity Ratio

Lowest at 42.58 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Inventory Turnover Ratio

Highest at 9.05 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its inventory faster

Inventory Turnover Ratio

Raw Material Cost

Fallen by -16.6% (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

Depreciation

Highest at CAD 659.79 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

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

Pre-Tax Profit

At CAD 23.32 MM has Fallen at -96.72%

over average net sales of the previous four periods of CAD 711.87 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (CAD MM)

Net Profit

At CAD -15.36 MM has Fallen at -104.78%

over average net sales of the previous four periods of CAD 321.01 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (CAD MM)

Net Sales

Lowest at CAD 14,239.7 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (CAD MM)

Pre-Tax Profit

Lowest at CAD 23.32 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD -15.36 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD -0.06

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Debtors Turnover Ratio

Lowest at 5.03 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)