Magna International Inc. (MGA)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Magna International Inc. (MGA) trades at $66.42 with AI Score 48/100 (Grade C). Magna International Inc. Market cap: $18.08B, Sector: Consumer cyclical.
Last analyzed: May 10, 2026MGA stock analysis for 2026: Analysts have set a consensus price target of $64.46 for Magna International Inc., suggesting 3.0% downside from the current price of $66.42. The AI MoonshotScore is 48/100, indicating a neutral outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
MGA: the 1 perspectives are evenly split.
Magna International Inc. (MGA) Consumer Business Overview
Magna International Inc. is a leading global automotive supplier, providing a wide array of components and systems to original equipment manufacturers. With operations spanning body exteriors, power and vision, seating, and complete vehicle assembly, Magna distinguishes itself through its comprehensive service offerings and established relationships within the automotive industry.
What Is the Investment Thesis for MGA?
Magna International Inc. presents a compelling investment case based on its diversified product offerings and strategic positioning within the automotive supply chain. The company's focus on electric vehicle (EV) components and advanced driver-assistance systems (ADAS) aligns with key industry trends, offering significant growth potential. With a market capitalization of $15.82 billion and a dividend yield of 3.09%, Magna provides a blend of value and income. However, investors may want to evaluate the company's relatively low profit margin of 1.6% and high beta of 1.83, indicating higher volatility compared to the market. The company's P/E ratio stands at 26.15. Successful execution of its EV strategy and continued innovation in ADAS technologies are crucial for sustained growth.
Based on FMP financials and quantitative analysis
MGA Key Highlights
- Market Cap of $15.82B reflects Magna's significant presence in the automotive supply industry.
- Dividend Yield of 3.09% offers an attractive income stream for investors.
- Gross Margin of 12.6% indicates potential for improvement through operational efficiencies.
- Beta of 1.83 suggests higher volatility compared to the overall market.
- P/E Ratio of 26.15 reflects investor expectations for future earnings growth.
Who Are MGA's Competitors?
MGA is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| APTV Aptiv PLC | $68.37 | +0.60% | $14.47B | 47 |
| BWA BorgWarner Inc. | $74.46 | -0.52% | $15.27B | 46 |
| ALSN Allison Transmission Holdings, Inc. | $117.09 | +1.36% | $9.71B | 47 |
| ALV Autoliv, Inc. | $129.02 | -0.14% | $9.66B | 44 |
| LKQ LKQ Corporation | $26.16 | +0.71% | $6.67B | 46 |
| INVZ Innoviz Technologies Ltd. | $0.63 | -2.84% | $138.73M | 68 |
| HYLN Hyliion Holdings Corp. | $7.72 | +2.80% | $1.38B | 66 |
| SES SES AI Corporation | $1.09 | +1.87% | $397.22M | 62 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are MGA's Key Strengths?
- Diversified product portfolio across multiple automotive segments.
- Strong relationships with major automotive OEMs.
- Global manufacturing footprint with facilities in key automotive markets.
- Engineering expertise and innovation capabilities.
What Are MGA's Weaknesses?
- Relatively low profit margin compared to some competitors.
- High beta indicates higher volatility compared to the market.
- Dependence on the automotive industry, which is subject to cyclical fluctuations.
- Exposure to raw material price fluctuations.
What Could Drive MGA Stock Higher?
- Continued adoption of electric vehicles (EVs) driving demand for Magna's EV components.
- Increasing implementation of advanced driver-assistance systems (ADAS) boosting demand for Magna's ADAS solutions.
- Potential new contracts for complete vehicle assembly services.
- Expansion into new geographic markets, such as Asia and South America.
What Are the Key Risks for MGA?
- Economic downturns that reduce vehicle demand.
- Intense competition from other automotive suppliers.
- Technological disruptions in the automotive industry.
- Fluctuations in raw material prices.
- Geopolitical risks and trade tensions.
What Are the Growth Opportunities for MGA?
- Expansion in Electric Vehicle (EV) Components: Magna is well-positioned to capitalize on the growing demand for EV components, including battery enclosures, electric drive systems, and power electronics. The global EV market is projected to reach trillions of dollars by 2030, presenting a substantial growth opportunity for Magna. Investing in research and development to enhance its EV product offerings will be crucial for capturing market share.
- Advanced Driver-Assistance Systems (ADAS): The increasing adoption of ADAS technologies, such as autonomous emergency braking and lane-keeping assist, creates a significant growth avenue for Magna. The ADAS market is expected to grow substantially over the next decade. Magna's expertise in sensors, electronic control units, and camera systems positions it to benefit from this trend. Continued innovation and strategic partnerships will be essential for maintaining a competitive edge.
- Complete Vehicle Assembly Services: Magna's complete vehicle assembly services offer a unique value proposition to OEMs seeking to outsource vehicle production. As OEMs increasingly focus on core competencies, the demand for contract manufacturing is expected to rise. Magna can leverage its engineering expertise and manufacturing capabilities to secure additional vehicle assembly contracts, driving revenue growth.
- Geographic Expansion in Emerging Markets: Expanding its presence in emerging markets, such as Asia and South America, represents a significant growth opportunity for Magna. These markets are experiencing rapid growth in vehicle production and demand. Establishing manufacturing facilities and forging partnerships with local OEMs will be crucial for penetrating these markets and capturing market share.
- Strategic Acquisitions and Partnerships: Pursuing strategic acquisitions and partnerships can accelerate Magna's growth and expand its product portfolio. Acquiring companies with complementary technologies or market access can enhance Magna's competitive position. Forming partnerships with technology companies and OEMs can foster innovation and drive the development of new automotive solutions.
What Opportunities Does MGA Have?
- Growing demand for electric vehicle (EV) components.
- Increasing adoption of advanced driver-assistance systems (ADAS).
- Expansion in emerging markets with growing vehicle production.
- Strategic acquisitions and partnerships to expand product portfolio.
What Threats Does MGA Face?
- Intense competition from other automotive suppliers.
- Technological disruptions in the automotive industry.
- Economic downturns that reduce vehicle demand.
- Geopolitical risks and trade tensions.
What Are MGA's Competitive Advantages?
- Strong relationships with major automotive OEMs.
- Diversified product portfolio across multiple automotive segments.
- Global manufacturing footprint with facilities in key automotive markets.
- Engineering expertise and innovation capabilities.
- Economies of scale in manufacturing and sourcing.
What Does MGA Do?
Founded in 1957 and headquartered in Aurora, Canada, Magna International Inc. has evolved into a premier global automotive supplier. The company designs, engineers, and manufactures a vast range of components, assemblies, systems, subsystems, and modules for original equipment manufacturers (OEMs) of vehicles and light trucks worldwide. Magna operates through four key segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The Body Exteriors & Structures segment provides critical components such as body and chassis systems, exterior systems, roof systems, and battery enclosures. The Power & Vision segment focuses on hybrid and electric drive systems, transmissions, advanced driver assistance systems (ADAS), and electronic control units. The Seating Systems segment delivers seat structures, mechanisms, hardware solutions, and trim products. The Complete Vehicles segment offers comprehensive vehicle engineering and manufacturing services. Magna's extensive product portfolio and global footprint position it as a key partner for automotive manufacturers navigating the evolving landscape of the automotive industry.
What Products and Services Does MGA Offer?
- Designs and engineers automotive components, assemblies, systems, subsystems, and modules.
- Manufactures body and chassis systems, including exterior and roof systems.
- Develops and produces hybrid and electric drive systems, including motors, inverters, and onboard chargers.
- Provides seating systems, including seat structures, mechanisms, and hardware solutions.
- Offers complete vehicle engineering and manufacturing services.
- Creates advanced driver assistance systems (ADAS) and related sensors and electronics.
- Produces tooling products for automotive manufacturing.
How Does MGA Make Money?
- Magna generates revenue by selling automotive components and systems to original equipment manufacturers (OEMs).
- The company also earns revenue from providing vehicle engineering and manufacturing services.
- Magna's business model is based on long-term contracts with OEMs, providing a stable revenue stream.
- The company invests in research and development to innovate and develop new products and technologies.
What Industry Does MGA Operate In?
Magna International Inc. operates in the dynamic automotive parts industry, which is undergoing significant transformation driven by the shift towards electric vehicles and advanced driver-assistance systems. The industry is characterized by intense competition and evolving technological landscapes. Magna competes with companies like Aptiv PLC (APTV) and BorgWarner Inc. (BWA), each vying for market share in key automotive segments. The global automotive parts market is projected to experience steady growth, fueled by increasing vehicle production and demand for advanced automotive technologies.
Who Are MGA's Key Customers?
- Original Equipment Manufacturers (OEMs) of vehicles and light trucks.
- Automotive companies seeking engineering and manufacturing services.
- Companies requiring tooling products for automotive manufacturing.
MGA Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
MGA Latest News
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Magna International Inc (MGA) Stock Down 4.6% but Still Overvalued -- GF Score: 78/100
gurufocus.com · May 15, 2026
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TD Securities Maintains Buy Rating on Magna International (MGA)
Yahoo! Finance: MGA News · May 14, 2026
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STRT Q3 Earnings Miss Estimates on Lower Volume and Forex Drag
Yahoo! Finance: MGA News · May 12, 2026
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Assessing Magna International (TSX:MG) Valuation After Board Changes Earnings Update And Capital Return Moves
Yahoo! Finance: MGA News · May 9, 2026
MGA Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for MGA.
Price Targets
Consensus target: $64.46
MGA MoonshotScore
What does this score mean?
The MoonshotScore rates MGA's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Magna International Inc (MGA) Stock Down 4.6% but Still Overvalued -- GF Score: 78/100
TD Securities Maintains Buy Rating on Magna International (MGA)
STRT Q3 Earnings Miss Estimates on Lower Volume and Forex Drag
Assessing Magna International (TSX:MG) Valuation After Board Changes Earnings Update And Capital Return Moves
Latest Magna International Inc. Analysis
Leadership: Seetarama Kotagiri
CEO
Seetarama Kotagiri serves as the CEO of Magna International Inc. He has extensive experience in the automotive industry, having held various leadership positions within Magna. His background includes a strong focus on engineering and operations. Kotagiri's career at Magna has spanned several decades, during which he has played a key role in driving the company's growth and innovation initiatives. He is known for his strategic vision and commitment to technological advancement.
Track Record: Under Seetarama Kotagiri's leadership, Magna International Inc. has continued to expand its presence in the electric vehicle (EV) market and advanced driver-assistance systems (ADAS) sector. He has overseen key acquisitions and partnerships that have strengthened Magna's competitive position. Kotagiri has also focused on improving operational efficiency and driving innovation across the company's various business segments.
Magna International Inc. Consumer Cyclical Stock: Key Questions Answered
What does Magna International Inc. do?
Magna International Inc. is a global automotive supplier that designs, engineers, and manufactures a wide range of components, assemblies, systems, subsystems, and modules for original equipment manufacturers (OEMs) of vehicles and light trucks. The company operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. Magna's products and services include body and chassis systems, exterior systems, roof systems, battery enclosures, hybrid and electric drive systems, transmissions, advanced driver assistance systems (ADAS), seating systems, and complete vehicle assembly services. Magna's comprehensive offerings and global presence make it a key partner for automotive manufacturers worldwide.
What do analysts say about MGA stock?
Analyst consensus on Magna International Inc. (MGA) is mixed, with varying price targets reflecting different perspectives on the company's growth prospects and risk factors. Key valuation metrics, such as the P/E ratio of 26.15, are considered in relation to the company's earnings growth potential and industry peers. Growth considerations include Magna's ability to capitalize on the increasing demand for electric vehicle (EV) components and advanced driver-assistance systems (ADAS). Investors should conduct their own due diligence and consider their individual investment objectives before making any investment decisions.
What are the main risks for MGA?
Magna International Inc. faces several key risks, including economic downturns that could reduce vehicle demand, intense competition from other automotive suppliers, technological disruptions in the automotive industry, fluctuations in raw material prices, and geopolitical risks and trade tensions. The company's dependence on the automotive industry makes it vulnerable to cyclical fluctuations in vehicle production and sales. Technological disruptions, such as the shift towards electric vehicles and autonomous driving, could require significant investments in research and development to remain competitive. Fluctuations in raw material prices, such as steel and aluminum, could impact Magna's profitability. Geopolitical risks and trade tensions could disrupt supply chains and impact the company's global operations.
How does Magna International Inc. manage supply chain and input cost risks?
Magna International Inc. mitigates supply chain and input cost risks through diversification of its supplier base, strategic sourcing agreements, and hedging strategies. The company works closely with its suppliers to ensure a reliable supply of raw materials and components. Magna also invests in technology and process improvements to reduce material consumption and improve efficiency. Furthermore, the company utilizes contractual mechanisms to pass through some raw material cost increases to its customers. These strategies help Magna manage supply chain disruptions and mitigate the impact of rising input costs on its profitability.
What are Magna International Inc.'s strongest brands and market positions?
Magna International Inc. does not have consumer-facing brands in the traditional sense. Its strength lies in its reputation as a reliable and innovative supplier to major automotive OEMs. Magna holds strong market positions in several key automotive segments, including body exteriors and structures, power and vision systems, seating systems, and complete vehicle assembly. The company's long-standing relationships with OEMs and its engineering expertise contribute to its competitive advantage. Magna's market share varies across different product segments and geographic regions, but it is generally recognized as a leading player in the global automotive supply industry.
What are the key factors to evaluate for MGA?
Magna International Inc. (MGA) holds an AI score of 48/100 (low). P/E: 25.0x vs the S&P 500's ~20-25x. Analysts target $64.46 (-3%). Not financial advice.
How frequently does MGA data refresh on this page?
MGA prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven MGA's recent stock price performance?
Magna International Inc. (MGA) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Diversified product portfolio across multiple automotive segments. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- The information provided is based on publicly available sources and is intended for informational purposes only.
- Investment decisions should be based on individual research and consultation with a qualified financial advisor.