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Magna International

DB:MGA
Snowflake Description

6 star dividend payer with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MGA
DB
CA$12B
Market Cap
  1. Home
  2. DE
  3. Automobiles
Company description

Magna International Inc. designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers (OEMs) of vehicles and light trucks worldwide. The last earnings update was 32 days ago. More info.


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  • Magna International has significant price volatility in the past 3 months.
MGA Share Price and Events
7 Day Returns
6.4%
DB:MGA
-3.6%
DE Auto Components
-0.6%
DE Market
1 Year Returns
-36.6%
DB:MGA
-52.5%
DE Auto Components
-20.9%
DE Market
MGA Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Magna International (MGA) 6.4% -25.4% -37.7% -36.6% -21.4% -43%
DE Auto Components -3.6% -26.6% -44.8% -52.5% -66.5% -71.2%
DE Market -0.6% -16.6% -26% -20.9% -25.8% -31.8%
1 Year Return vs Industry and Market
  • MGA outperformed the Auto Components industry which returned -52.5% over the past year.
  • MGA underperformed the Market in Germany which returned -20.9% over the past year.
Price Volatility
MGA
Industry
5yr Volatility vs Market

MGA Value

 Is Magna International undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Magna International to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Magna International.

DB:MGA Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 16 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year DE Government Bond Rate -0.4%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:MGA
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate -0.4%
Equity Risk Premium S&P Global 5.4%
Auto Components Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.077 (1 + (1- 26.5%) (56.85%))
1.353
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.35
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= -0.39% + (1.353 * 5.44%)
6.97%

Discounted Cash Flow Calculation for DB:MGA using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Magna International is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

DB:MGA DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.97%)
2020 1,249.74 Analyst x9 1,168.31
2021 1,583.53 Analyst x8 1,383.87
2022 1,590.50 Analyst x2 1,299.39
2023 1,472.53 Est @ -7.42% 1,124.63
2024 1,394.36 Est @ -5.31% 995.53
2025 1,340.91 Est @ -3.83% 894.98
2026 1,303.36 Est @ -2.8% 813.23
2027 1,276.28 Est @ -2.08% 744.45
2028 1,256.23 Est @ -1.57% 685.00
2029 1,240.95 Est @ -1.22% 632.57
Present value of next 10 years cash flows $9,741.00
DB:MGA DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,240.95 × (1 + -0.39%) ÷ (6.97% – -0.39%)
$16,793.72
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $16,793.72 ÷ (1 + 6.97%)10
$8,560.62
DB:MGA Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $9,741.00 + $8,560.62
$18,301.62
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $18,301.62 / 302.66
$60.47
DB:MGA Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:MG)
1.415
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $60.47 x 1.415
CA$85.54
Non-primary Listing Adjustment Factor 1 share in DB:MGA represents 0.65094x of TSX:MG
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.65094x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 85.54 x 0.65094
€55.68
Value per share (EUR) From above. €55.68
Current discount Discount to share price of €29.80
= -1 x (€29.80 - €55.68) / €55.68
46.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Magna International is available for.
Intrinsic value
46%
Share price is €29.8 vs Future cash flow value of €55.68
Current Discount Checks
For Magna International to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Magna International's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Magna International's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Magna International's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Magna International's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:MGA PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $5.61
TSX:MG Share Price ** TSX (2020-04-06) in CAD CA$45.78
TSX:MG Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.707 $32.36
Germany Auto Components Industry PE Ratio Median Figure of 9 Publicly-Listed Auto Components Companies 11.43x
Germany Market PE Ratio Median Figure of 401 Publicly-Listed Companies 16.45x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Magna International.

DB:MGA PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:MG Share Price ÷ EPS (both in USD)

= 32.36 ÷ 5.61

5.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magna International is good value based on earnings compared to the DE Auto Components industry average.
  • Magna International is good value based on earnings compared to the Germany market.
Price based on expected Growth
Does Magna International's expected growth come at a high price?
Raw Data
DB:MGA PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.77x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts
4.7%per year
Germany Auto Components Industry PEG Ratio Median Figure of 7 Publicly-Listed Auto Components Companies 0.49x
Germany Market PEG Ratio Median Figure of 256 Publicly-Listed Companies 1.16x

*Line of best fit is calculated by linear regression .

DB:MGA PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.77x ÷ 4.7%

1.22x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magna International is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Magna International's assets?
Raw Data
DB:MGA PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $35.72
TSX:MG Share Price * TSX (2020-04-06) in CAD CA$45.78
TSX:MG Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.707 $32.36
Germany Auto Components Industry PB Ratio Median Figure of 13 Publicly-Listed Auto Components Companies 0.69x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.44x
DB:MGA PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:MG Share Price ÷ Book Value per Share (both in USD)

= 32.36 ÷ 35.72

0.91x

* Primary Listing of Magna International.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magna International is overvalued based on assets compared to the DE Auto Components industry average.
X
Value checks
We assess Magna International's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Auto Components industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Auto Components industry average (and greater than 0)? (1 check)
  5. Magna International has a total score of 4/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MGA Future Performance

 How is Magna International expected to perform in the next 1 to 3 years based on estimates from 16 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Magna International expected to grow at an attractive rate?
  • Magna International's earnings growth is expected to exceed the low risk savings rate of -0.4%.
Growth vs Market Checks
  • Magna International's earnings growth is positive but not above the Germany market average.
  • Magna International's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:MGA Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:MGA Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 16 Analysts 4.7%
DB:MGA Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 16 Analysts -0.5%
Germany Auto Components Industry Earnings Growth Rate Market Cap Weighted Average 48.7%
Germany Auto Components Industry Revenue Growth Rate Market Cap Weighted Average 2.4%
Germany Market Earnings Growth Rate Market Cap Weighted Average 14.1%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:MGA Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:MGA Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 39,241 3,406 5
2021-12-31 37,686 3,290 1,954 12
2020-12-31 34,374 2,921 1,695 16
2020-04-06
DB:MGA Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 39,431 3,960 1,765
2019-09-30 40,173 3,862 1,781
2019-06-30 40,472 4,188 2,568
2019-03-31 40,626 3,735 2,742
2018-12-31 40,827 3,718 2,296
2018-09-30 40,374 3,569 2,399
2018-06-30 39,620 3,375 2,357
2018-03-31 38,480 3,466 2,279
2017-12-31 36,588 3,346 2,196
2017-09-30 36,157 3,615 2,115
2017-06-30 36,142 3,390 2,106
2017-03-31 36,445 3,420 2,116

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Magna International's earnings are expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
  • Magna International's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:MGA Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below

All data from Magna International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:MGA Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31
2021-12-31 7.05 7.85 6.31 3.00
2020-12-31 5.80 6.60 4.61 4.00
2020-04-06
DB:MGA Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 5.61
2019-09-30 5.54
2019-06-30 7.81
2019-03-31 8.13
2018-12-31 6.65
2018-09-30 6.81
2018-06-30 6.56
2018-03-31 6.23
2017-12-31 5.91
2017-09-30 5.60
2017-06-30 5.51
2017-03-31 5.48

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Magna International is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Magna International's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Magna International has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MGA Past Performance

  How has Magna International performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Magna International's growth in the last year to its industry (Auto Components).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Magna International's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Magna International's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Magna International's 1-year earnings growth is negative, it can't be compared to the DE Auto Components industry average.
Earnings and Revenue History
Magna International's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Magna International Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:MGA Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 39,431.00 1,765.00 1,681.00
2019-09-30 40,173.00 1,781.00 1,705.00
2019-06-30 40,472.00 2,568.00 1,708.00
2019-03-31 40,626.00 2,742.00 1,689.00
2018-12-31 40,827.00 2,296.00 1,994.00
2018-09-30 40,374.00 2,399.00 1,670.00
2018-06-30 39,620.00 2,357.00 1,673.00
2018-03-31 38,480.00 2,279.00 1,648.00
2017-12-31 36,588.00 2,196.00 1,668.00
2017-09-30 36,157.00 2,115.00 1,655.00
2017-06-30 36,142.00 2,106.00 1,620.00
2017-03-31 36,445.00 2,116.00 1,625.00
2016-12-31 36,445.00 2,031.00 1,601.00
2016-09-30 35,760.00 2,036.00 1,589.00
2016-06-30 34,572.00 2,003.00 1,576.00
2016-03-31 33,262.00 1,983.00 1,510.00
2015-12-31 32,134.00 1,946.00 1,448.00
2015-09-30 32,356.00 1,979.00 1,456.00
2015-06-30 32,942.00 1,996.00 1,480.00
2015-03-31 33,720.00 1,977.00 1,539.00
2014-12-31 34,403.00 1,924.00 1,612.00
2014-09-30 34,787.00 1,866.00 1,620.00
2014-06-30 34,878.00 1,698.00 1,649.00
2014-03-31 34,929.00 1,594.00 1,652.00
2013-12-31 34,835.00 1,561.00 1,616.00
2013-09-30 33,694.00 1,454.00 1,588.00
2013-06-30 32,767.00 1,525.00 1,521.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Magna International has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Magna International used its assets more efficiently than the DE Auto Components industry average last year based on Return on Assets.
  • Magna International's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Magna International's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Auto Components industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Magna International has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MGA Health

 How is Magna International's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Magna International's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Magna International is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Magna International's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Magna International's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Magna International Company Filings, last reported 3 months ago.

DB:MGA Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 11,131.00 3,168.00 1,276.00
2019-09-30 10,873.00 3,561.00 769.00
2019-06-30 11,952.00 3,382.00 563.00
2019-03-31 11,947.00 3,519.00 925.00
2018-12-31 11,159.00 4,383.00 684.00
2018-09-30 11,505.00 4,634.00 884.00
2018-06-30 11,648.00 4,358.00 626.00
2018-03-31 12,293.00 3,596.00 769.00
2017-12-31 11,712.00 3,562.00 726.00
2017-09-30 11,480.00 3,734.00 783.00
2017-06-30 11,230.00 3,433.00 666.00
2017-03-31 10,809.00 3,034.00 831.00
2016-12-31 10,219.00 3,156.00 974.00
2016-09-30 10,272.00 3,282.00 364.00
2016-06-30 10,000.00 3,318.00 597.00
2016-03-31 9,924.00 3,161.00 625.00
2015-12-31 9,117.00 2,563.00 2,863.00
2015-09-30 8,863.00 1,631.00 2,015.00
2015-06-30 9,060.00 1,040.00 1,163.00
2015-03-31 8,573.00 1,042.00 1,133.00
2014-12-31 8,673.00 1,025.00 1,249.00
2014-09-30 9,045.00 1,075.00 1,435.00
2014-06-30 9,641.00 1,098.00 1,756.00
2014-03-31 9,606.00 339.00 1,439.00
2013-12-31 9,639.00 373.00 1,554.00
2013-09-30 9,592.00 341.00 1,064.00
2013-06-30 9,458.00 364.00 1,279.00
  • Magna International's level of debt (28.5%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (11.8% vs 28.5% today).
  • Debt is well covered by operating cash flow (125%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 29.1x coverage).
X
Financial health checks
We assess Magna International's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Magna International has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MGA Dividends

 What is Magna International's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.94%
Current annual income from Magna International dividends. Estimated to be 5.34% next year.
If you bought €2,000 of Magna International shares you are expected to receive €99 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Magna International's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.69%).
  • Magna International's dividend is above the markets top 25% of dividend payers in Germany (4.85%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:MGA Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 16 Analyst Estimates (S&P Global) See Below
Germany Auto Components Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 6.1%
Germany Market Average Dividend Yield Market Cap Weighted Average of 315 Stocks 3.9%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.7%
Germany Top 25% Dividend Yield 75th Percentile 4.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:MGA Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31 2.35 1.00
2023-12-31 2.14 1.00
2022-12-31 1.87 4.00
2021-12-31 1.70 9.00
2020-12-31 1.60 10.00
2020-04-06
DB:MGA Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2020-02-21 1.600 4.511
2019-11-08 1.460 2.713
2019-08-08 1.460 2.820
2019-05-09 1.460 3.111
2019-02-22 1.460 2.808
2018-11-08 1.320 2.692
2018-08-08 1.320 2.546
2018-05-10 1.320 2.131
2018-02-22 1.320 2.315
2017-11-09 1.100 1.966
2017-08-11 1.100 2.142
2017-05-11 1.100 2.384
2017-02-24 1.100 2.612
2016-11-03 1.000 2.325
2016-08-05 1.000 2.445
2016-05-05 1.000 2.594
2016-02-26 1.000 2.415
2015-11-05 0.880 2.283
2015-08-07 0.880 1.760
2015-05-07 0.880 1.562
2015-02-25 0.880 1.657
2014-11-05 0.760 1.473
2014-08-08 0.760 1.481
2014-05-08 0.760 1.429
2014-03-03 0.760 1.566
2013-11-06 0.640 1.533
2013-08-09 0.640 1.552
2013-05-10 0.640 1.819
2013-03-08 0.640 2.201
2013-03-07 0.640 2.295
2013-03-01 0.640 2.318
2012-11-08 0.550 2.214
2012-08-09 0.550 2.466
2012-05-10 0.550 2.741
2012-02-23 0.550 2.380
2011-11-03 0.500 2.704
2011-08-05 0.500 2.764
2011-05-04 0.500 2.030
2011-02-23 0.500 2.035
2010-11-04 0.360 1.346
2010-08-09 0.300 1.462
2010-05-06 0.180 1.032
2010-03-31 0.000 0.000
2010-03-11 0.000 0.000
2010-02-25 0.000 0.000
2009-11-06 0.000 0.000
2009-11-05 0.000 0.000
2009-08-07 0.000 0.000
2009-05-06 0.000 0.000

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of Magna International's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (3.8x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (3.8x coverage).
X
Income/ dividend checks
We assess Magna International's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Magna International afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Magna International has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MGA Management

 What is the CEO of Magna International's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Don Walker
COMPENSATION $18,206,000
AGE 62
TENURE AS CEO 9.4 years
CEO Bio

Mr. Donald James Walker, also known as Don, PEng, has been the Chief Executive Officer of Magna International Inc. since November 15, 2010. Mr. Walker served as Co-Chief Executive Officer of Magna International Inc from April 4, 2005 to December 2010 and previously served as its Chief Executive Officer and President from November 1994 to February 2001. He joined Magna International Inc. in 1987. He served as Chairman of Intier Automotive Inc. since February 23, 2004 until 2005 and also served as its Chief Executive Officer and President from February 21, 2001 to 2005. He served as a Co-Chief Executive Officer of Magna Car Top Systems GmbH from April 4, 2005 to 2010. He spent seven years at General Motors in various engineering and manufacturing positions. He worked at Intuit Financial Services. He has been Director of Alignvest Acquisition II Corporation since May 1, 2017. He has been a Director at Magna International Inc. since November 7, 2005. He served as a Director of Decoma International Inc. since December 3, 1997. Mr. Walker served as a Director of Intier Automotive Inc. from May 31, 2001 to 2005. He served as Director of Alignvest Acquisition Corporation since May 21, 2015. He served as a Director of Tesma International Inc and Digital Insight Corporation. He served as Director of AQX. He served as a Director of Magna International Inc., from 1994 to 2002. Mr. Walker has been the Chair of the Canadian Automotive Partnership Council (CAPC) with the Canadian federal and provincial governments since October 2011 and previously its Co-Chair since 2002. He served as Chairman of the Automotive Parts Manufacturers Association (APMA). He is a Member of the Ontario Jobs and Investment Board. He is a Founding Member of the Yves Landry Foundation. He serves on several boards including the Automotive Parts Manufacturers Association and the Humber College Foundation. Mr. Walker was the recipient of the 2014 Canada's Outstanding CEO of the Year award. Mr. Walker graduated from the University of Waterloo with a BA Sc. Mechanical Engineering degree.

CEO Compensation
  • Don's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Don's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure of the Magna International management team in years:

10.9
Average Tenure
  • The average tenure for the Magna International management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Don Walker

TITLE
CEO & Director
COMPENSATION
$18M
AGE
62
TENURE
9.4 yrs

Swamy Kotagiri

TITLE
President and President of Magna Power & Vision
COMPENSATION
$4M
TENURE
0.3 yrs

Vincent Galifi

TITLE
Executive VP & CFO
COMPENSATION
$7M
AGE
59
TENURE
22.3 yrs

Tom Skudutis

TITLE
Executive VP
COMPENSATION
$7M
TENURE
12.9 yrs

Jim Tobin

TITLE
Executive VP & President of Magna Asia
COMPENSATION
$3M
TENURE
12.3 yrs

Louis Tonelli

TITLE
Vice President of Investor Relations
TENURE
16.4 yrs

Riccardo Trecroce

TITLE
Executive VP & Chief Legal Officer
TENURE
1.9 yrs

Joanne Horibe

TITLE
Chief Compliance Officer & VP of Ethics

Tracy Fuerst

TITLE
Vice President of Corporate Communications & PR

Eric Jon Wilds

TITLE
Executive VP and Chief Sales & Marketing Officer
TENURE
0.3 yrs
Board of Directors Tenure

Average tenure and age of the Magna International board of directors in years:

6.9
Average Tenure
64
Average Age
  • The tenure for the Magna International board of directors is about average.
Board of Directors

Bill Young

TITLE
Independent Chairman of the Board
COMPENSATION
$500K
AGE
64
TENURE
7.9 yrs

Don Walker

TITLE
CEO & Director
COMPENSATION
$18M
AGE
62
TENURE
14.4 yrs

Rob MacLellan

TITLE
Independent Director
COMPENSATION
$230K
AGE
64
TENURE
1.9 yrs

Kurt Lauk

TITLE
Independent Director
COMPENSATION
$323K
AGE
72
TENURE
8.9 yrs

Scott Bonham

TITLE
Non-Independent & Non-Executive Director
COMPENSATION
$822K
AGE
57
TENURE
7.9 yrs

Peter Bowie

TITLE
Independent Director
COMPENSATION
$221K
AGE
72
TENURE
7.9 yrs

Vernon Harder

TITLE
Independent Director
COMPENSATION
$87K
AGE
67
TENURE
0.3 yrs

Indira Samarasekera

TITLE
Independent Director
COMPENSATION
$253K
AGE
66
TENURE
5.9 yrs

Cindy Niekamp

TITLE
Independent Director
COMPENSATION
$225K
AGE
59
TENURE
5.9 yrs

Bill Ruh

TITLE
Independent Director
COMPENSATION
$265K
AGE
57
TENURE
2.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Magna International individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
26. Mar 20 Buy Aaron McCarthy Individual 23. Mar 20 23. Mar 20 1,260 €22.58 €28,450
02. Jan 20 Sell Donald Walker Individual 23. Dec 19 23. Dec 19 -14,300 €50.52 €-722,390
21. Dec 19 Sell Donald Walker Individual 20. Dec 19 20. Dec 19 -14,800 €50.68 €-750,121
21. Dec 19 Sell Vincent Galifi Individual 20. Dec 19 20. Dec 19 -22,900 €50.92 €-1,166,036
20. Dec 19 Sell James Tobin Individual 19. Dec 19 19. Dec 19 -12,621 €50.29 €-634,668
15. Nov 19 Sell Donald Walker Individual 14. Nov 19 14. Nov 19 -50,000 €50.39 €-2,519,511
11. Sep 19 Sell Vincent Galifi Individual 10. Sep 19 10. Sep 19 -58,000 €48.38 €-2,805,960
09. Sep 19 Sell Donald Walker Individual 28. Aug 19 09. Sep 19 -100,000 €47.42 €-4,558,355
25. Jun 19 Sell James Tobin Individual 24. Jun 19 24. Jun 19 -9,000 €42.91 €-386,214
X
Management checks
We assess Magna International's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Magna International has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MGA News

Simply Wall St News

MGA Company Info

Description

Magna International Inc. designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers (OEMs) of vehicles and light trucks worldwide. The company operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The Body Exteriors & Structures segment provides body systems, chassis systems, and ?engineering and testing; exterior systems, including ?fascia and trims, ?front end modules, liftgate and door modules, ?active aerodynamics, ?lightweight composites, sealing systems, ?engineered glass, and running board and roof racks; and roof systems, such as sliding folding and modular roofs, and retractable hard tops and soft tops. The Power & Vision segment offers dedicated hybrid, dual clutch, hybrid dual clutch, and manual transmissions; ?driveline systems; metal-forming solutions; engineering services; driver assistance systems; front, rear, and surround camera systems, as well as ultrasonic sensors, ICON RADAR, and LiDAR; electronic controllers; interior and exterior mirrors, actuators, door handles, and overhead consoles; latching systems, ?door modules, ?window systems, ?power closure systems, ?hinges and wire forming rods, and ?handle assemblies; and head, ?tail, and ?fog lamps, and ?other lighting products. The Seating Systems segment provides seat structures, mechanism and hardware solutions, and foam and trim products. The Complete Vehicles segment offers vehicle manufacturing and engineering services. The company serves OEMs and automobile manufacturers. Magna International Inc. was founded in 1957 and is headquartered in Aurora, Canada.

Details
Name: Magna International Inc.
MGA
Exchange: DB
Founded: 1957
CA$8,123,174,983
302,662,127
Website: http://www.magna.com
Address: Magna International Inc.
337 Magna Drive,
Aurora,
Ontario, L4G 7K1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX MG Common Shares The Toronto Stock Exchange CA CAD 08. Feb 1977
NYSE MGA Common Shares New York Stock Exchange US USD 08. Feb 1977
DB MGA Common Shares Deutsche Boerse AG DE EUR 08. Feb 1977
SWX MG Common Shares SIX Swiss Exchange CH CHF 08. Feb 1977
BMV MGA N Common Shares Bolsa Mexicana de Valores MX MXN 08. Feb 1977
Number of employees
Current staff
Staff numbers
165,000
Magna International employees.
Industry
Auto Parts and Equipment
Automobiles
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/06 21:56
End of day share price update: 2020/04/06 00:00
Last estimates confirmation: 2020/04/02
Last earnings filing: 2020/03/05
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.