| MG Stock | | | CAD 63.05 1.41 2.29% |
Taking into consideration Magna International's profitability measurements, Magna International's profitability may be sliding down. It has an above-average risk of reporting lower numbers next quarter. Profitability indicators assess Magna International's ability to earn profits and add value for shareholders. At this time, Magna International's
EV To Sales is very stable compared to the past year. As of the 22nd of November 2024,
Sales General And Administrative To Revenue is likely to grow to 0.06, while
Price To Sales Ratio is likely to drop 0.38. At this time, Magna International's
Interest Income is very stable compared to the past year. As of the 22nd of November 2024,
Change To Netincome is likely to grow to about 286.2
M, though
Accumulated Other Comprehensive Income is likely to grow to (853.1
M).
For Magna International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Magna International to generate income relative to revenue, assets, operating costs, and current equity. These
fundamental indicators attest to how well Magna International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Magna International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Magna International over time as well as its relative position and ranking within its peers.
Check out
Correlation Analysis.
To learn how to invest in Magna Stock, please use our
How to Invest in Magna International guide.
Please note, there is a significant difference between Magna International's value and its price as these two are different measures arrived at by different 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.
Magna International Gross Profit vs. Shares Owned By Institutions Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Magna International's current stock value. Our valuation model uses many indicators to compare Magna International value to that of its competitors to determine the firm's financial worth.
Magna International is considered to be number one stock in shares owned by institutions category among its peers. It also is considered to be number one stock in gross profit category among its peers fabricating about
60,746,931 of Gross Profit per Shares Owned By Institutions. At this time, Magna International's Gross Profit is very stable compared to the past year. Comparative valuation analysis is a catch-all model that can be used if you cannot value Magna International by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Magna International's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.
Magna Gross Profit vs. Shares Owned By Institutions
Shares Owned by Institutions show the percentage of the outstanding shares of stock issued by a company that is currently owned by other institutions such as asset management firms, hedge funds, or investment banks. Many investors like investing in companies with a large percentage of the firm owned by institutions because they believe that larger firms such as banks, pension funds, and mutual funds, will invest when they think that good things are going to happen.
Magna International | Shares Held by Institutions | = | Funds and Banks | + | Firms |
| = | 76.58 % |
Since Institution investors conduct a lot of independent research they tend to be more involved and usually more knowledgeable about entities they invest as compared to amateur investors.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Magna International | Gross Profit | = | Revenue | - | Cost of Revenue |
| = | 4.65 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Magna Gross Profit Comparison
Magna International is currently under evaluation in gross profit category among its peers.
Magna International Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Magna International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Magna International will eventually generate negative long term returns. The profitability progress is the general direction of Magna International's change in net profit over the period of time. It can combine
multiple indicators of Magna International, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Magna Profitability Driver Comparison
Profitability drivers are factors that can directly affect your
investment outlook on Magna International. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Magna International position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Magna International's important profitability drivers and their relationship over time.
Use Magna International in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Magna International position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Magna International will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Magna International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Magna International when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Magna International - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Magna International to buy it.
The correlation of Magna International is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Magna International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Magna International moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Magna International can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Use Investing Themes to Complement your Magna International position
In addition to having Magna International in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.
Rubber and Plastic Products
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Rubber and Plastic Products theme has 27 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can
partner with us for reliable portfolio optimization as you plan to utilize
Rubber and Plastic Products Theme or any other
thematic opportunities.
When determining whether Magna International offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Magna International's
financial statements, including income statements, balance sheets, and cash flow statements, to assess its
financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Magna International Stock.
Outlined below are crucial reports that will aid in making a well-informed decision on Magna International Stock: To fully project Magna International's
future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the
financial position of Magna International at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Magna International's income statement, its balance sheet, and the statement of cash flows.
Potential Magna International investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Magna International investors may work on each financial statement separately, they are all related. The changes in Magna International's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Magna International's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
