Magna International Inc. (MGA) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

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?

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 $18.0B 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 23.92. 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 $18.0B 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 23.92 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.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

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. 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 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.

Magna International Inc. Financial Trajectory

Magna International Inc. (MGA) reported $10.70B in revenue for Q2 FY2026, reflecting 4.5% growth compared to the prior quarter. The company recorded net income of $457.1M, with diluted EPS of $1.67. Quarter-over-quarter revenue has been mixed, typical for a large-cap company operating in Consumer Cyclical. Across the four most recent quarters, MGA averaged $0.68 in diluted EPS.

Company Profile

Magna International Inc. operates in the Auto - Parts industry within the Consumer Cyclical sector. It is headquartered in Aurora, CA. The company is led by CEO Seetarama Kotagiri. MGA has traded publicly since 1984.

How Magna International Inc. Is Valued

Magna International Inc. carries a market capitalization of $18.0B, placing it in the large-cap category. Analyst price targets span from $55.00 to $80.00, with a consensus of $69.00. At the current price of $65.92, that implies approximately 5% upside potential. Relative to its peer group, MGA's quantitative score of 79/100 is above the peer average of 58/100.

Return on equity for Magna International Inc. stands at 5.4%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.1%, showing how much profit it generates from its asset base. MGA trades at a trailing price-to-earnings ratio of 23.92, below the Consumer Cyclical sector average of ~32.70x. Its free cash flow yield is 15.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.22 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 3.7%, the inverse of the P/E and a quick read on earnings relative to price.

Magna International Inc.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 2.57 places it in the grey zone, a middle ground that warrants monitoring.

Magna International Inc. has beaten Wall Street's EPS estimate in 6 of its last 8 reported quarters — a consistent record of delivering on expectations. Reported results have landed about 12.5% above estimates on average.

MGA Financials

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MGA Analyst Consensus

MGA MoonshotScore

Latest Magna International Inc. Analysis

Magna International Inc. Consumer Cyclical Stock: Key Questions Answered

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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