Is Magna International Stock a Good Investment?
Magna International Investment Advice | MGA |
- Examine Magna International's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Magna International's leadership team and their track record. Good management can help Magna International navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Automotive Parts & Equipment space and any emerging trends that could impact Magna International's business and its evolving consumer preferences.
- Compare Magna International's performance and market position to its competitors. Analyze how Magna International is positioned in terms of product offerings, innovation, and market share.
- Check if Magna International pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Magna International's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Magna International stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Magna International is a good investment.
Sell | Buy |
Cautious Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
Examine Magna International Stock
Researching Magna International's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 78.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 0.96. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Magna International has Price/Earnings To Growth (PEG) ratio of 0.42. The entity last dividend was issued on the 15th of November 2024. The firm had 2:1 split on the 26th of March 2015.
To determine if Magna International is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Magna International's research are outlined below:
| Magna International generated a negative expected return over the last 90 days | |
| Magna International is unlikely to experience financial distress in the next 2 years | |
| Over 78.0% of the company shares are owned by institutional investors | |
| On 29th of November 2024 Magna International paid $ 0.475 per share dividend to its current shareholders | |
| Latest headline from gurufocus.com: Magna International Inc. Announces Date for Q4 Year End 2024 Results and 2025 Outlook Webcast |
Magna International Quarterly Cost Of Revenue |
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Magna International uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Magna International. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Magna International's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 9th of February 2024 Upcoming Quarterly Report | View | |
| 3rd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 9th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Magna International's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Magna International's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2007-11-06 | 2007-09-30 | 0.34 | 0.38 | 0.04 | 11 | ||
2007-02-27 | 2006-12-31 | 0.29 | 0.25 | -0.04 | 13 | ||
1998-12-10 | 1998-09-30 | 0.4 | 0.44 | 0.04 | 10 | ||
2008-08-06 | 2008-06-30 | 0.46 | 0.51 | 0.05 | 10 | ||
2003-05-08 | 2003-03-31 | 0.36 | 0.41 | 0.05 | 13 | ||
2009-05-06 | 2009-03-31 | -0.39 | -0.45 | -0.06 | 15 | ||
2006-05-02 | 2006-03-31 | 0.44 | 0.5 | 0.06 | 13 | ||
2001-08-08 | 2001-06-30 | 0.35 | 0.41 | 0.06 | 17 |
Magna International Target Price Consensus
Magna target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Magna International's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 21 | Buy |
Most Magna analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Magna stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Magna International, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationMagna International Target Price Projection
Magna International's current and average target prices are 40.35 and 50.03, respectively. The current price of Magna International is the price at which Magna International is currently trading. On the other hand, Magna International's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Magna International Market Quote on 17th of January 2025
Target Price
Analyst Consensus On Magna International Target Price
Magna International Analyst Ratings
Magna International's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Magna International stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Magna International's financials, market performance, and future outlook by experienced professionals. Magna International's historical ratings below, therefore, can serve as a valuable tool for investors.Know Magna International's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Magna International is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Magna International backward and forwards among themselves. Magna International's institutional investor refers to the entity that pools money to purchase Magna International's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Bank Of Montreal | 2024-09-30 | 4.7 M | Bmo Capital Markets Corp. | 2024-09-30 | 4.7 M | Letko, Brosseau & Associates Inc. | 2024-09-30 | 3.8 M | Cibc World Markets Inc. | 2024-09-30 | 3.5 M | Norges Bank | 2024-06-30 | 3.4 M | Dimensional Fund Advisors, Inc. | 2024-09-30 | 3.3 M | Cibc Global Asset Management Inc | 2024-09-30 | 3 M | Mackenzie Investments | 2024-09-30 | 3 M | Federation Des Caisses Desjardins Du Quebec | 2024-09-30 | 2.9 M | Pzena Investment Management, Llc | 2024-09-30 | 26.3 M | Royal Bank Of Canada | 2024-09-30 | 11.8 M |
Magna International's market capitalization trends
The company currently falls under 'Large-Cap' category with a total capitalization of 11.66 B.Market Cap |
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Magna International's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.04 | 0.05 | |
| Return On Capital Employed | 0.16 | 0.17 | |
| Return On Assets | 0.03 | 0.04 | |
| Return On Equity | 0.09 | 0.07 |
Determining Magna International's profitability involves analyzing its financial statements and using various financial metrics to determine if Magna International is a good buy. For example, gross profit margin measures Magna International's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Magna International's profitability and make more informed investment decisions.
Please note, the presentation of Magna International's financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Magna International's management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Magna International's management manipulating its earnings.
Evaluate Magna International's management efficiency
Magna International has Return on Asset of 0.0393 % which means that on every $100 spent on assets, it made $0.0393 of profit. This is way below average. In the same way, it shows a return on shareholders' equity (ROE) of 0.0949 %, implying that it generated $0.0949 on every 100 dollars invested. Magna International's management efficiency ratios could be used to measure how well Magna International manages its routine affairs as well as how well it operates its assets and liabilities. At present, Magna International's Return On Tangible Assets are projected to slightly decrease based on the last few years of reporting. The current year's Return On Capital Employed is expected to grow to 0.17, whereas Return On Equity is forecasted to decline to 0.07. At present, Magna International's Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 22 B, whereas Other Assets are projected to grow to (78.5 M).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 38.61 | 40.54 | |
| Tangible Book Value Per Share | 27.15 | 28.51 | |
| Enterprise Value Over EBITDA | 5.64 | 4.56 | |
| Price Book Value Ratio | 1.29 | 1.13 | |
| Enterprise Value Multiple | 5.64 | 4.56 | |
| Price Fair Value | 1.29 | 1.13 | |
| Enterprise Value | 6.1 B | 6.4 B |
At Magna International, effective management practices are pivotal to sustaining long-term profitability. We delve into financial metrics and market conditions to provide a comprehensive analysis of the stock's prospects.
Basic technical analysis of Magna Stock
As of the 17th of January 2025, Magna International secures the Mean Deviation of 1.35, downside deviation of 1.99, and Risk Adjusted Performance of 0.0075. In connection with fundamental indicators, the technical analysis model lets you check existing technical drivers of Magna International, as well as the relationship between them.Magna International's Outstanding Corporate Bonds
Magna International issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Magna International uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Magna bonds can be classified according to their maturity, which is the date when Magna International has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
Understand Magna International's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Magna International's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.0075 | |||
| Market Risk Adjusted Performance | (0.01) | |||
| Mean Deviation | 1.35 | |||
| Semi Deviation | 1.93 | |||
| Downside Deviation | 1.99 | |||
| Coefficient Of Variation | 45664.86 | |||
| Standard Deviation | 1.93 | |||
| Variance | 3.72 | |||
| Information Ratio | (0) | |||
| Jensen Alpha | (0) | |||
| Total Risk Alpha | 0.0023 | |||
| Sortino Ratio | (0) | |||
| Treynor Ratio | (0.02) | |||
| Maximum Drawdown | 11.56 | |||
| Value At Risk | (3.65) | |||
| Potential Upside | 2.87 | |||
| Downside Variance | 3.96 | |||
| Semi Variance | 3.72 | |||
| Expected Short fall | (1.40) | |||
| Skewness | (0.01) | |||
| Kurtosis | 1.69 |
| Risk Adjusted Performance | 0.0075 | |||
| Market Risk Adjusted Performance | (0.01) | |||
| Mean Deviation | 1.35 | |||
| Semi Deviation | 1.93 | |||
| Downside Deviation | 1.99 | |||
| Coefficient Of Variation | 45664.86 | |||
| Standard Deviation | 1.93 | |||
| Variance | 3.72 | |||
| Information Ratio | (0) | |||
| Jensen Alpha | (0) | |||
| Total Risk Alpha | 0.0023 | |||
| Sortino Ratio | (0) | |||
| Treynor Ratio | (0.02) | |||
| Maximum Drawdown | 11.56 | |||
| Value At Risk | (3.65) | |||
| Potential Upside | 2.87 | |||
| Downside Variance | 3.96 | |||
| Semi Variance | 3.72 | |||
| Expected Short fall | (1.40) | |||
| Skewness | (0.01) | |||
| Kurtosis | 1.69 |
Consider Magna International's intraday indicators
Magna International intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Magna International stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 22751.99 | |||
| Daily Balance Of Power | (0.26) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 40.75 | |||
| Day Typical Price | 40.62 | |||
| Price Action Indicator | (0.51) | |||
| Period Momentum Indicator | (0.22) |
Magna International Corporate Filings
6K | 5th of November 2024 A report filed by foreign private issuers with SEC. A foreign private issuer is a non-U.S. company with securities traded on U.S. exchanges. | ViewVerify |
| 15th of October 2024 Other Reports | ViewVerify | |
| 27th of June 2024 Other Reports | ViewVerify | |
| 5th of June 2024 Other Reports | ViewVerify |
Magna Stock media impact
Far too much social signal, news, headlines, and media speculation about Magna International that are available to investors today. That information is available publicly through Magna media outlets and privately through word of mouth or via Magna internal channels. However, regardless of the origin, that massive amount of Magna data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Magna International news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Magna International relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Magna International's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Magna International alpha.
Magna International Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Magna International can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Magna International Historical Investor Sentiment
Investor biases related to Magna International's public news can be used to forecast risks associated with an investment in Magna. The trend in average sentiment can be used to explain how an investor holding Magna can time the market purely based on public headlines and social activities around Magna International. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Magna International's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Magna International and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Magna International news discussions. The higher the estimate score, the more favorable the investor's outlook on Magna International.
Magna International Maximum Pain Price Across March 21st 2025 Option Contracts
Magna International's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Magna International close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Magna International's options.
Magna International Corporate Directors
| Peter Bowie | Independent Director | Profile | |
| William Ruh | Independent Director | Profile | |
| V Harder | Independent Director | Profile | |
| Indira Samarasekera | Independent Director | Profile |
Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Magna International. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in price. For information on how to trade Magna Stock refer to our How to Trade Magna Stock guide.You can also try the Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
Is Automotive Parts & Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Magna International. If investors know Magna will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Magna International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.226 | Dividend Share 1.9 | Earnings Share 3.75 | Revenue Per Share | Quarterly Revenue Growth (0.04) |
The market value of Magna International is measured differently than its book value, which is the value of Magna that is recorded on the company's balance sheet. Investors also form their own opinion of Magna International's value that differs from its market value or its book value, called intrinsic value, which is Magna International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Magna International's market value can be influenced by many factors that don't directly affect Magna International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Magna International's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Magna International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Magna International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.