One-glance verdict
Undervalued
$100.32 our estimate vs market $64.13
Wall Street consensus: $72.24 (-28.0% lower than our fair-value estimate)
36% below our estimate, below the bear case
Fundamentals snapshot
Magna International Inc.
MGA · NYQ · Consumer Cyclical · Auto Parts
Current price
$64.13
52-week range
$44.64 - $73.22
Market cap
$17.16B
Balance sheet
Watch
7.67x Adequate
Net debt $5.04B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Returns 6.5% on equity, ahead of 33% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Net debt grew 32.2% over 3 years.
- Risk Stock trades 31.5% above its 5-year average P/E.
What this company does
Magna International Inc.
Magna International makes car parts for automakers, and its money comes mainly from selling these components and also from building entire cars for others. This matters because it shows how central Magna is to the car industry, supplying everything from car bodies and seats to advanced technology like sensors for self-driving cars.
How the company got here
Magna International started in 1957 as a small tool and die shop in Canada. Over the decades, it grew by acquiring other companies and expanding its capabilities in automotive manufacturing. A key turning point was its strategic decision to become a full-service supplier, capable of handling everything from individual parts to entire vehicle assembly. This allowed Magna to partner with major car manufacturers on a much larger scale, solidifying its position as a global automotive powerhouse.
What it actually does
Magna is a major supplier to car companies, making a wide variety of parts and even assembling entire vehicles. Think of all the components that go into a car: the body panels, the seats, the electronic systems, and even the structure that holds it all together. Magna designs, engineers, and manufactures many of these pieces, working behind the scenes to help bring vehicles from the drawing board to the dealership. They also offer services like vehicle design and testing, acting as a crucial partner for automakers.
Body Exteriors & Structures
This segment is responsible for the visible outer shell of a vehicle and its underlying framework. It includes making things like car doors, body panels, roof systems, and the structural components that form the car's chassis. These parts are essential for both the car's appearance and its safety. This is a significant part of Magna's business, as it involves large, fundamental pieces of the vehicle that automakers rely on.
Power & Vision
This division focuses on the systems that help a vehicle move and 'see' its surroundings. It encompasses components related to the powertrain (how the car generates power, including for electric vehicles), as well as advanced driver-assistance systems (ADAS) like cameras, sensors, and the computing units that process this information. These technologies are increasingly important as cars become more sophisticated and automated.
Seating Systems
As the name suggests, this segment designs and manufactures the seats for vehicles. This isn't just about comfort; it involves complex engineering for safety features like airbags integrated into seats, heating and cooling elements, and power adjustments. Magna provides these seating solutions to various automakers, contributing to the overall interior experience of a car.
Complete Vehicles
This is one of Magna's most unique offerings, where they act as a contract manufacturer for entire vehicles. Instead of just supplying parts, Magna can take a car manufacturer's design and build the complete car from start to finish, including assembly, painting, and final integration. This segment allows automakers to outsource production, especially for niche models or when they need extra manufacturing capacity.
What management is betting on now
Magna's management is heavily focused on adapting to the shift towards electric and autonomous vehicles. They are investing in new technologies for battery enclosures, advanced driver-assistance systems, and electric powertrains to meet the evolving needs of automakers. The company is also emphasizing its ability to provide complete vehicle solutions, positioning itself as a key partner for car companies navigating the complex transition in the automotive industry. This strategic focus aims to ensure Magna remains a vital supplier in the future of mobility.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$1.46B
FY2025 Q4
$2.29B
Revenue
$42.01B
Net income
$829.00M
Diluted EPS
2.93
Operating cash flow
$3.60B
Free cash flow
$2.29B
Fetching…
Sources
Revenue
$42.84B
Net income
$1.01B
Diluted EPS
3.52
Operating cash flow
$3.63B
Free cash flow
$1.46B
Fetching…
Sources
Is it cheap or expensive?
Fair value $100.32 vs current price $64.13
Wall Street consensus is the average analyst price target: $72.24 (-28.0% lower than our fair-value estimate).
Our most-likely fair value is $100.32 a share — about 56.4% above today's price of $64.13, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $5.0B. Interest coverage 7.7x.
Net debt
$5.04B
Interest coverage
7.67x
Magna International Inc.'s profit covers its interest bill about 7.7 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
MGA
BASELINE
Magna International Inc.
Total debt $6.47B Interest coverage 7.67x This is the baseline the peer rows are being compared against.
Total debt $6.82B Interest coverage 7.43x -3% vs MGA Has roughly the same debt cushion as MGA.
Total debt $4.06B Interest coverage 13.36x +74% vs MGA Carries about 1.7x more debt cushion than MGA.
Total debt $5.68B Interest coverage 5.59x -27% vs MGA Carries about 1.4x less debt cushion than MGA.
Total debt $2.09B Interest coverage 10.58x +38% vs MGA Carries about 1.4x more debt cushion than MGA.
Total debt $3.52B Interest coverage 7.71x +1% vs MGA Has roughly the same debt cushion as MGA.
What you should know
The case for and against MGA
3 Rewards
2 Risks
Rewards
-
Returns 6.5% on equity, ahead of 33% of its peers.
-
Free cash flow was positive in 10/10 years.
-
Trades at 23.6x P/E vs peer median 27.9x (15.4% cheaper).
Risks
-
Net debt grew 32.2% over 3 years.
-
Stock trades 31.5% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
23.58x
Forward P/E
8.26x
P/B
1.46x
P/S
0.40x
EV/EBITDA
5.20x
PEG ratio
0.36x
Profitability
How much profit each dollar creates
Gross margin
14.7%
Operating margin
5.6%
Net margin
1.8%
ROE
6.5%
ROA
4.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.53x
Current ratio
1.22x
Quick ratio
0.82x
Total debt
$6.47B
Total cash
$1.43B
Growth
How the business has been compounding
Revenue TTM
$165.48B
Revenue 5Y CAGR
3.8%
EPS TTM
2.72
EPS 5Y CAGR
13.0%
Cash flow
How much cash the business throws off
Operating CF TTM
$12.48B
Free CF TTM
$2.29B
FCF margin
1.4%
Dividend
Shareholder payout
Yield
3.1%
Payout ratio
72.1%
Last ex-div date
2026-08-14