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Relative to Consumer Discretionary Sector Median (N=442)
Metric
MGA
Benchmark
P/E Ratio
16.4x
-33%
EV/EBITDA
1.7x
-66%
Price / Book
1.3x
Implied Value Audit
UNDERVALUED
Implied Fair Value (vs Sector)
+145.9%
$142.20Spot: $57.82
Spot
Implied
-50% Delta+50% Delta
Relative valuation derived from Consumer Discretionary sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 39.7GRADE D
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
38.0%
Sector: 6.2%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, MAGNA INTERNATIONAL INC (MGA) receives a "Hold" rating with a composite score of 57.2/100, ranked #639 out of 4446 stocks. Key factor scores: Quality 40/100, Value 86/100, Momentum 68/100. This is quantitative analysis only — not investment advice.
MAGNA INTERNATIONAL INC (MGA) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does MAGNA INTERNATIONAL INC Do?
Magna International Inc. designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The Body Exteriors & Structures segment provides body and chassis, exterior, and roof systems, as well as battery enclosures and engineering and testing services, including fascia and trims, front end modules, front integration panels, liftgate modules, active aerodynamics, engineered glass, running boards, truck bed access products, and side doors. The Power & Vision segment offers hybrid and electric drive systems, motors, inverters, onboard chargers, and e-clutch; dedicated hybrid, dual and hybrid dual, and manual transmissions; AWD/4WD products and rear drive modules; transmission, engine, driveline components, engine drive plates, and accessories; engineering services; advanced driver assistance systems and sensors, and electronic control units; interior and exterior mirrors, camera and driver monitoring systems and electronics, actuators, door handles, and overhead consoles; forward, rear, and auxiliary lighting products; latching, door modules, window, power closure, and hinges and wire forming systems; and modular and textile folding roofs, and hard and soft tops. The Seating Systems segment provides seat structures, mechanism and hardware solutions, and foam and trim products. The Complete Vehicles segment offers vehicle engineering and manufacturing services. The company also designs, engineers, and manufactures tooling products. Magna International Inc. was founded in 1957 and is headquartered in Aurora, Canada. MAGNA INTERNATIONAL INC (MGA) is classified as a large-cap stock in the Consumer Discretionary sector, specifically within the Automobiles And Trucks industry. The company is led by CEO Seetarama Kotagiri and employs approximately 168,000 people, headquartered in Aurora, Ontario. With a market capitalization of $15.6B, MGA is one of the prominent companies in the Consumer Discretionary sector.
MAGNA INTERNATIONAL INC (MGA) Stock Rating — Hold (April 2026)
As of April 2026, MAGNA INTERNATIONAL INC receives a Hold rating with a composite score of 57.2/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.MGA ranks #639 out of 4,446 stocks in our coverage universe. Within the Consumer Discretionary sector, MAGNA INTERNATIONAL INC ranks #43 of 442 stocks, placing it in the top 10% of its Consumer Discretionary peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
MGA Stock Price and 52-Week Range
MAGNA INTERNATIONAL INC (MGA) currently trades at $57.82. The stock gained $0.05 (0.1%) in the most recent trading session. The 52-week high for MGA is $69.94, which means the stock is currently trading -17.3% from its annual peak. The 52-week low is $30.39, putting the stock 90.3% above its annual trough. Recent trading volume was 213K shares, suggesting relatively thin trading activity.
Is MGA Overvalued or Undervalued? — Valuation Analysis
MAGNA INTERNATIONAL INC (MGA) carries a value factor score of 86/100 in the Blank Capital model, suggesting the stock trades at a meaningful discount to its fundamental earning power. The trailing price-to-earnings ratio is 16.41x, compared to the Consumer Discretionary sector average of 24.47x — a discount of 33%. The price-to-book ratio stands at 1.30x, versus the sector average of 1.99x. The price-to-sales ratio is 0.09x, compared to 0.27x for the average Consumer Discretionary stock. On an enterprise value basis, MGA trades at 1.67x EV/EBITDA, versus 4.91x for the sector. The EV/EBIT multiple is 15.90x.
Based on these multiples, MAGNA INTERNATIONAL INC appears attractively valued relative to both its sector peers and the broader market. Value-oriented investors may find the current entry point compelling, particularly if the company's fundamental quality metrics also score well.
MAGNA INTERNATIONAL INC Profitability — ROE, Margins, and Quality Score
MAGNA INTERNATIONAL INC (MGA) earns a quality factor score of 40/100, signaling below-average profitability metrics relative to the broader market. The return on equity (ROE) is 38.0%, compared to the Consumer Discretionary sector average of 6.2%, which demonstrates strong shareholder value creation. Return on assets (ROA) comes in at 14.1% versus the sector average of 2.5%.
On a margin basis, MAGNA INTERNATIONAL INC reports gross margins of 13.5%, compared to 36.9% for the sector. The operating margin is 4.5% (sector: 3.8%). Net profit margin stands at 2.6%, versus 2.1% for the average Consumer Discretionary stock. Revenue growth is running at 0.1% on a trailing basis, compared to 3.3% for the sector. Profitability is below benchmark levels, which may reflect industry headwinds, elevated reinvestment, or structural challenges.
MGA Debt, Balance Sheet, and Financial Health
MAGNA INTERNATIONAL INC has a debt-to-equity ratio of 59.0%, compared to the Consumer Discretionary sector average of 89.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. Total debt on the balance sheet is $6.78B. Cash and equivalents stand at $1.25B.
MGA has a beta of 1.01, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for MAGNA INTERNATIONAL INC is 68/100, reflecting average volatility within the normal range for its sector.
MAGNA INTERNATIONAL INC Revenue and Earnings History — Quarterly Trend
In TTM 2026, MAGNA INTERNATIONAL INC reported revenue of $42.84B and earnings per share (EPS) of $3.52. Net income for the quarter was $1.10B. Gross margin was 13.5%. Operating income came in at $1.91B.
In FY 2024, MAGNA INTERNATIONAL INC reported revenue of $42.84B and earnings per share (EPS) of $3.52. Net income for the quarter was $1.10B. Gross margin was 13.5%. Revenue grew 0.1% year-over-year compared to FY 2023. Operating income came in at $1.91B.
In FY 2023, MAGNA INTERNATIONAL INC reported revenue of $42.80B and earnings per share (EPS) of $4.24. Net income for the quarter was $1.29B. Gross margin was 13.1%. Revenue grew 13.1% year-over-year compared to FY 2022. Operating income came in at $2.04B.
In FY 2022, MAGNA INTERNATIONAL INC reported revenue of $37.84B and earnings per share (EPS) of $2.04. Net income for the quarter was $641M. Gross margin was 12.3%. Revenue grew 4.4% year-over-year compared to FY 2021. Operating income came in at $1.49B.
Over the past 8 quarters, MAGNA INTERNATIONAL INC has demonstrated a growth trajectory, with revenue expanding from $40.83B to $42.84B. Investors analyzing MGA stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
MGA Dividend Yield and Income Analysis
MAGNA INTERNATIONAL INC (MGA) does not currently pay a dividend. This is common among growth-oriented companies in the Automobiles And Trucks industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Consumer Discretionary dividend stocks may want to explore other Consumer Discretionary stocks or use the stock screener to filter by dividend yield.
MGA Momentum and Technical Analysis Profile
MAGNA INTERNATIONAL INC (MGA) has a momentum factor score of 68/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 70/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 16/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
MGA vs Competitors — Consumer Discretionary Sector Ranking and Peer Comparison
Comparing MGA against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full MGA vs S&P 500 (SPY) comparison to assess how MAGNA INTERNATIONAL INC stacks up against the broader market across all factor dimensions.
MGA Next Earnings Date
No upcoming earnings date has been announced for MAGNA INTERNATIONAL INC (MGA) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy MGA? — Investment Thesis Summary
MAGNA INTERNATIONAL INC presents a balanced picture with arguments on both sides. The value score of 86/100 suggests attractive pricing relative to fundamentals. Price momentum is positive at 68/100, suggesting the trend favors buyers. Low volatility (stability score 68/100) reduces downside risk.
In summary, MAGNA INTERNATIONAL INC (MGA) earns a Hold rating with a composite score of 57.2/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on MGA stock.
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Institutional Research Dossier
MAGNA INTERNATIONAL INC (MGA) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
Magna International Inc. (MGA) is currently rated a 'Hold' by our proprietary BCR model, with a composite score of 58.1/100 and a rank of 670 out of 4,446 companies. The core reason for the 'Hold' rating is the company's relatively weak profitability and returns metrics, which offset its attractive valuation and momentum. The most critical takeaway is that while Magna appears undervalued, its lack of pricing power and narrow profit margins in the highly competitive automotive parts industry raise concerns about the sustainability of its financial performance.
Business Strategy & Overview
Magna International is a leading global automotive supplier, designing, engineering, and manufacturing components, assemblies, systems, and complete vehicles for original equipment manufacturers (OEMs) worldwide. The company operates through four main segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. Its diverse product portfolio includes body and chassis systems, exterior and interior components, drivetrain and powertrain solutions, as well as advanced driver assistance systems and electronics.
Magna's strategic positioning is focused on leveraging its extensive engineering capabilities, global manufacturing footprint, and relationships with major automakers to provide comprehensive solutions that address the industry's evolving needs. The company has been actively investing in research and development to stay ahead of industry trends, such as the shift towards electrification, autonomous driving, and connected vehicles.
The automotive parts industry is highly competitive, with Magna facing rivalry from other large global suppliers like Denso, Bosch, and ZF Friedrichshafen, as well as emerging players in specialized technologies. To maintain its market share, Magna must continue to innovate, optimize its cost structure, and secure long-term contracts with OEMs, who have significant bargaining power.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
0.1%
Sector: 3.3%
-97% VS SCTR
Economic Moat Analysis
Magna International's economic moat can be considered Narrow. The company's key competitive advantages stem from its extensive engineering and manufacturing capabilities, as well as its longstanding relationships with major OEMs. Magna's ability to provide comprehensive, integrated solutions across the automotive value chain allows it to be a valuable partner to its customers, creating some switching costs and a degree of customer captivity.
However, the automotive parts industry is highly competitive, with limited pricing power and relatively low barriers to entry for new players, particularly in less technologically advanced components. Magna's products also face the risk of commoditization, as OEMs increasingly seek to standardize and modularize parts to reduce costs.
The company's intangible assets, such as its brand recognition and engineering expertise, provide some differentiation, but these advantages can be replicated by competitors over time. Magna's efficient scale in its manufacturing operations is also a source of cost advantage, but this can be eroded by the cyclical nature of the industry and fluctuations in production volumes.
Overall, Magna's moat is Narrow, as its competitive advantages are not as durable or sustainable as those of companies with Wide moats. The company must continuously innovate, optimize its cost structure, and strengthen its customer relationships to maintain its market position.
Financial Health & Profitability
Magna International's financial health is mixed, with strengths and weaknesses compared to its sector peers. The company's profitability metrics, such as gross margin (13.5%) and operating margin (4.5%), are significantly lower than the consumer discretionary sector averages of 36.9% and 3.8%, respectively. This reflects the intense competition and pricing pressure in the automotive parts industry.
However, Magna's return on equity (ROE) of 38.1% is much higher than the sector average of 5.8%, indicating relatively efficient capital allocation and deployment. The company's balance sheet is also reasonably healthy, with a debt-to-equity ratio of 59%, lower than the sector average of 91%.
In terms of cash flow generation, Magna has historically been able to produce strong free cash flow, with a TTM figure of $1.56 billion. This has allowed the company to maintain financial flexibility and make strategic investments. However, the company's free cash flow has been volatile, declining from $2.50 billion in 2018 to just $762.40 million in 2022, reflecting the cyclical nature of the automotive industry.
Overall, Magna's financial health is characterized by below-average profitability, but with relatively efficient capital allocation and a manageable debt load. The company's ability to consistently generate robust free cash flow will be crucial in navigating industry challenges and funding future growth initiatives.
Valuation Assessment
Magna International's valuation appears attractive compared to its sector peers. The company's P/E ratio of 14.8x is significantly lower than the consumer discretionary sector average of 28.0x, and its EV/EBITDA multiple of 1.6x is also substantially below the sector's 5.3x. These valuation metrics suggest that the stock is trading at a discount relative to the broader industry.
Magna's free cash flow yield of 10.7% (based on the TTM FCF of $1.56 billion) is also quite high, indicating that the company is generating significant cash flow in relation to its market capitalization. This suggests that the stock may be undervalued, especially considering Magna's strong market position and growth prospects in the evolving automotive industry.
However, it's important to note that Magna's profitability and growth rates have been relatively weak compared to the sector, which may partially justify the discounted valuation. Additionally, the cyclical nature of the automotive industry and the potential for continued margin pressure could limit the upside potential of the stock.
Overall, Magna's valuation appears attractive, but investors should closely monitor the company's ability to maintain its competitive position and improve its profitability in the face of industry challenges.
Risk & Uncertainty
The primary risks and uncertainties facing Magna International are related to the highly competitive and cyclical nature of the automotive industry. The company operates in a market with low barriers to entry and significant pricing pressure, which can erode its profit margins and make it difficult to maintain its market share.
Regulatory changes, such as stricter emissions standards or trade policies, could also disrupt Magna's supply chain and impact its manufacturing operations. The company's extensive global footprint exposes it to geopolitical risks, currency fluctuations, and potential disruptions in various regional markets.
Furthermore, Magna's heavy reliance on the financial health and production volumes of its OEM customers introduces a significant degree of concentration risk. A prolonged downturn in the automotive industry or the loss of a major customer could have a material adverse effect on Magna's financial performance.
Bulls Say / Bears Say
The Bull Case
BULL VIEWMagna's strong engineering capabilities, global manufacturing footprint, and long-standing relationships with major OEMs provide a solid foundation for the company to capitalize on the industry's shift towards electrification, autonomous driving, and other technological advancements.
BULL VIEWThe company's attractive valuation, with a P/E ratio well below the sector average, suggests that the market has not fully recognized Magna's potential for improved profitability and growth as the automotive industry evolves.
The Bear Case
BEAR VIEWMagna's narrow profit margins and limited pricing power in the highly competitive automotive parts industry make it challenging for the company to consistently generate robust returns, even in favorable market conditions.
BEAR VIEWThe cyclical nature of the automotive industry and the potential for further disruptions, such as supply chain issues or regulatory changes, could lead to prolonged periods of financial underperformance for Magna, negatively impacting its valuation.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score MGA and 4,400+ other equities.
MAGNA INTERNATIONAL INC exhibits a 50% valuation discount relative to institutional benchmarks. This represents a constructive entry window based on current multiples.
Return on Assets
Efficiency of asset utilization
14.1%
Sector: 2.5%
Gross Margin
Pricing power and cost efficiency
13.5%
Sector: 36.9%
Operating Margin
Core business profitability
4.5%
Sector: 3.8%
Net Margin
Bottom-line profitability
2.6%
Sector: 2.1%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
