Quality Investor

Magna International Inc.

Rank #368Hypergrowth

MGA · NYSE · Consumer Cyclical

Magna International Inc. (MGA) — Rank #368 by gross profitability (GP/assets 0.19) · ROE 6.6% · Piotroski F-Score 5 / 9.

As-of 2026-09-15 · CIK 0000749098 · all metrics point-in-time as of the filing date.

About

Magna International Inc. operates as an automotive supplier in North America, Europe, the Asia Pacific, and internationally.

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It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The company offers design and vehicle concepts, complete vehicle engineering and integration, human-machine interface, developing modules and systems, platform solutions, prototyping and low-volume manufacturing, vehicle safety testing, aerospace, and integrating functionality, features, and ADAS; and complete vehicle solutions, body-in-white, paint, and assembly complete vehicle manufacturing products. It also provides engineering services for commercial vehicles, such as propulsion engineering, software and simulation, testing services, and smart production; OPTiForm, a battery enclosure, steel battery enclosures, aluminum battery enclosures, and hybrid battery enclosures; battery enclosure production and engineering solutions; SmartAccess, a B-Pillarless power door system; and composite EV battery covers. In addition, it offers energy management solutions; hot stamping, high strength steels, aluminum castings, and high-pressure vacuum casting; suspension links and arms, twist axle, carbon fiber subframe, and frames; ADAS and Automated Driving, including Cameras, thermal sensing, interior sensing, complete radar portfolio, and compute units; and chassis control, glow plug control, powertrain control, and mechatronic control modules. Further, it provides exterior and interior products comprising assist steps, engineered glass, exterior solutions, greenhouse surrounds, lighting, mechatronics, mirrors, and seating; and powertrain products consisting BEV, Hybrid, and ICE powertrain, as well as modules and components, and energy storage systems. Magna International Inc.

was founded in 1957 and is based in Aurora, Canada.

Industry
Auto Parts
Sector
Consumer Cyclical
Fiscal Year End
December 31
Website
magna.com

Price History

MGA-2.7% · -0.5% CAGRSPY+80.5% · +12.5% CAGR

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

$16.89B

P/E (annual)

21.5

P/S (annual)

0.4

P/B

1.4

P/OCF (annual)

4.7

Shareholder Yield

34.8%

Employees

156,000

Industry

Auto Parts

Exchange

NYSE

Signal Flags

1 green1 red
Revenue growth acceleratingGrowth rate increasing year over year
Balance sheet deterioratingNet cash collapsed with receivables or inventory outpacing revenue

Quality Profile

Profitability

1/1 pass
GP / assets
0.19
Return on equity
6.6%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
1.45
Current ratio
1.25×
Net cash
-$2.00B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue

Growth

2/2 pass
Revenue growth
30.7%
Piotroski F-Score
5 / 9
Share dilution
-31.5%

Terry Smith quality gate

Passes 1/5 Terry Smith thresholds

3 of 5 thresholds not computable from filed data.

What Growth Is Priced In

Implied revenue growth (10Y)

-5.4%

incredible deal

The annual FCF growth rate today's price requires over a 10-year horizon (discount rate 10%, terminal growth 2.5%).

Buyback tailwind: -31.5% — per-share value needs a total required return of -37.0% once share-count change is priced in.

vs. own 6-year median revenue growth: 13.0%

within its own history

Cost-of-equity sensitivity (implied growth at different discount rates)

r = 8%

-8.9%

r = 10% (base)

-5.4%

r = 12%

-2.4%

Net debt / market cap: 11.2%

Note: current FCF margin is 1.8σ above its historical mean — implied growth may understate valuation risk if the margin reverts.

Base FCF: $2.3B3Y mean FCF: $1.2B

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

5.7xCheap
5.7xmed 7.8x11.4x

P / S

Price / revenue per share

0.3xCheap
0.3xmed 0.4x0.5x

P / B

Price / book value per share

0.9xCheap
0.9xmed 1.4x2.0x

P / GP

Price / gross profit per share

1.9xCheap
1.9xmed 2.9x3.8x

P / FCF

Price / free cash flow per share

4.0xCheap
4.0xmed 10.1x23.7x

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Gross profitability (GP / assets)

0.19

Primary signal (Novy-Marx).

9th of 12 SIC 3714 peers

Return on equity

6.6%

Gross margin

14.3%

10th of 12 SIC 3714 peers

Revenue growth (YoY)

30.7%

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2013201420152016
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

Revenue CAGR (5Y)

Earnings CAGR (3Y)

11.9%

FCF CAGR (3Y)

Anti-fragile safety

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

1.45

8th of 11 SIC 3714 peers (best = lowest)

Current ratio

1.25×

12th of 12 SIC 3714 peers

Quick ratio

0.84×

Net cash

-$2.00B

Cash & equivalents minus total debt.

Cash-flow health

Free cash flow

$2.29B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF / net income

1.76

Cash-backing of earnings.

FCF/NI divergence

Unfavorable divergence (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

Stock-based comp intensity.

Dividend safety

Composite score

2.5 / 5

Fair
Payout ratio
65.6%2/5 Fair
FCF coverage
4.20×5/5 Strong
Dividend growth streak
3 yr2/5 Fair
Balance-sheet health
D/E 1.45 · IC N/A1/5 Weak

Piotroski F-Score

F-Score

5 / 9

Fundamental-strength score (0-9).

Lifecycle Phase History

20112016
Capital Return
Value