Magna International Inc.
- Open
- 66.04
- Day high
- 66.44
- Day low
- 65.22
- Prev close
- 65.86
- Volume
- 631K
- Mkt cap
- $17.5B
- P/E (TTM)
- 24.1
- EPS (TTM)
- $2.72
- P/B
- 1.5
- P/S
- 0.4
- Yield
- 3.00%
- Per share
- $1.97
Magna International Inc. (MGA) is a Consumer Cyclical company listed on NYSE. The stock is up 44% over the past year. Drillr has 2 published research articles covering MGA.
Magna International Inc. (MGA) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 9 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
MGA earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 31, 2026 | $1.53 | $1.86 | +21.2% | $10.8B | +2.0% |
| May 1, 2026 | $1.01 | $1.38 | +37.2% | $10.1B | -0.0% |
| Feb 13, 2026 | $1.81 | $2.18 | +20.5% | $11.0B | +7.7% |
| Oct 31, 2025 | $1.24 | $1.33 | +7.2% | $10.5B | -0.4% |
| Aug 1, 2025 | $1.19 | $1.44 | +20.8% | $10.6B | +6.2% |
| May 2, 2025 | $0.90 | $0.78 | -13.7% | $10.1B | +0.5% |
| Feb 14, 2025 | $1.46 | $1.69 | +15.9% | $10.6B | -2.0% |
| Nov 1, 2024 | $1.42 | $1.28 | -9.5% | $10.4B | -0.7% |
| Aug 2, 2024 | $1.45 | $1.35 | -7.0% | $11.0B | -1.1% |
| May 3, 2024 | $1.28 | $1.08 | -15.9% | $10.9B | -1.3% |
| Feb 9, 2024 | $1.45 | $1.33 | -8.3% | $10.7B | +2.8% |
| Nov 3, 2023 | $1.33 | $1.46 | +9.9% | $10.7B | +3.5% |
MGA research & analysis
Canada 50% Auto Tariff: What It Means for Toyota, Honda and Century Aluminum
Trump's 50% tariff on Canadian vehicles, parts and steel from January 2027 killed the metals deal, leaving Toyota, Honda and Century Aluminum on the chain.
7203.T7267.TAATrump Sets 50% Canada Auto Tariff, Ending the Metals Tariff Cut
Trump's 24 August pledge puts a 50% US tariff on Canadian cars, trucks, parts and steel from 1 January 2027, and kills the deal that would have halved the metals rate.
7203.T7267.TAA
Magna International Inc. company profile
Overview
Magna International Inc. (TSX:MG) is a Canadian automotive parts manufacturer founded in 1957 and headquartered in Aurora, Ontario. The company has grown from a small tool and die shop into one of the world's largest automotive suppliers, serving original equipment manufacturers (OEMs) globally. Magna operates through four main business segments and provides a comprehensive range of automotive components, systems, and complete vehicle manufacturing services to major automakers worldwide.
Business
Magna International operates in the automotive parts manufacturing industry, which serves as a critical link between raw materials suppliers and vehicle manufacturers. The company designs, engineers, and manufactures components that go into cars and light trucks sold by major automakers like Ford, General Motors, BMW, Mercedes-Benz, and others. The automotive parts industry is highly complex, involving thousands of components that must meet strict safety, quality, and performance standards. Suppliers like Magna work closely with automakers during the vehicle development process, often investing years in engineering and tooling before production begins. This industry is characterized by long-term contracts, high capital requirements, and the need for continuous innovation to keep pace with evolving vehicle technologies. Magna operates through four distinct business segments: 1. Body Exteriors & Structures (approximately 40-45% of revenue): This segment produces the outer body panels, structural components, and chassis systems that form the foundation of vehicles. Products include door panels, hoods, fenders, roof systems, and battery enclosures for electric vehicles. These components are critical for vehicle safety, aerodynamics, and aesthetic appeal. 2. Power & Vision (approximately 35-40% of revenue): This segment focuses on powertrain components and advanced driver assistance systems (ADAS). It includes transmission systems, electric drive components for hybrid and electric vehicles, mirrors, cameras, sensors, and lighting systems. This segment is particularly important as the industry transitions toward electrification and autonomous driving technologies. 3. Seating Systems (approximately 10-15% of revenue): This segment manufactures seat structures, mechanisms, foam, and trim components. While seemingly straightforward, modern automotive seating involves complex engineering for comfort, safety, and integration with vehicle electronics. 4. Complete Vehicles (approximately 5-10% of revenue): This unique segment provides full vehicle manufacturing services, essentially operating as a contract manufacturer for automakers. Magna engineers and assembles entire vehicles for brands like BMW and Jaguar Land Rover, handling everything from design to final assembly.
Revenue model
Magna generates revenue primarily through product sales to automotive OEMs under long-term supply contracts. The company's business model is built on several key revenue streams. The largest portion comes from manufacturing and selling automotive components and systems to automakers, with contracts typically spanning the life cycle of specific vehicle programs (usually 5-7 years). These contracts often include both the initial tooling and engineering costs as well as ongoing per-unit production payments. The company also earns revenue from engineering services, where it provides design and development expertise to automakers developing new vehicles. Additionally, Magna generates income from its Complete Vehicles segment by providing full manufacturing services, essentially acting as a contract manufacturer for entire vehicle lines. Magna's customers are primarily large automotive OEMs, including Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and other major automakers. The company's revenue is closely tied to vehicle production volumes, making it sensitive to automotive industry cycles and consumer demand for new vehicles. Several factors significantly impact Magna's profitability margins. Commodity price fluctuations for steel, aluminum, and other raw materials directly affect costs, though the company often has contractual mechanisms to pass these through to customers with some lag. Labor costs and availability represent another major factor, particularly in tight labor markets or regions with strong unions. Foreign exchange rates substantially impact margins since Magna operates globally but reports in US dollars, with the company noting potential $1.5 billion revenue impacts from currency translation. Vehicle production volumes and mix critically affect profitability, as higher volumes spread fixed costs across more units while premium vehicle programs typically offer better margins. The ongoing transition to electric vehicles presents both opportunities and challenges, requiring significant upfront engineering investments while potentially offering higher content per vehicle. Geopolitical factors, including trade policies and tariffs, can substantially impact costs, with management estimating $250 million in annual tariff exposure under certain trade scenarios.
Competitive moat
Magna's competitive moat is moderate but faces increasing pressures from industry transformation. The company's primary moat stems from its scale and diversification across multiple automotive segments, which provides stability and cross-selling opportunities that smaller suppliers cannot match. Its engineering capabilities and long-term customer relationships create switching costs for automakers, who invest significant time and resources in supplier qualification and integration processes. The company's global manufacturing footprint provides geographic diversification and the ability to follow customers to new markets, while its Complete Vehicles capability is relatively unique among major suppliers, offering a differentiated service that few competitors can replicate at scale. However, Magna's moat faces several challenges. The automotive supplier industry is highly competitive with relatively low barriers to entry for many component categories. Chinese suppliers are increasingly globalizing and competing on cost, potentially eroding pricing power. The transition to electric vehicles is disrupting traditional supplier relationships, as automakers increasingly bring critical EV technologies in-house or partner with technology companies rather than traditional suppliers. Automaker consolidation and vertical integration trends pose additional threats, as customers become larger and more powerful while potentially reducing their supplier base. The company's dependence on cyclical automotive production volumes also limits its ability to maintain consistent profitability during industry downturns. Overall, while Magna has competitive advantages, its moat is not particularly wide or durable given industry dynamics and technological disruption.
Risks & safety
Magna presents a moderate margin of safety with manageable financial risks but faces industry-specific challenges. • Liquidity and Solvency: Strong balance sheet with $1.25 billion in cash and short-term investments, current ratio of 1.08, and manageable debt-to-equity ratio of 0.61. Operating cash flow of $3.6 billion in 2024 demonstrates solid cash generation capability. • Valuation Metrics: Trading at reasonable multiples with P/E ratio of 12.5x, EV/EBITDA of 4.7x, and price-to-book of 1.04x. These metrics suggest the stock is not overvalued relative to earnings and assets. • Cash Flow Concerns: Free cash flow volatility is notable, ranging from negative $191 million in Q1 2025 to positive $1.2 billion in Q4 2024, reflecting the cyclical nature of automotive capital expenditures and working capital swings. • Industry Cyclicality: Revenue closely tied to automotive production volumes, which are subject to economic cycles, consumer demand shifts, and supply chain disruptions. • Capital Intensity: Significant ongoing capital expenditure requirements for tooling and equipment, though management has demonstrated ability to adjust spending based on market conditions.
Recent development
Over the past few years, Magna has undergone significant strategic repositioning in response to automotive industry transformation. The company has been aggressively investing in electrification technologies, particularly battery enclosure systems, with management noting that most of their major EV-related capital investments are now complete. They've developed comprehensive electric drive systems, including motors, inverters, and onboard chargers, positioning themselves for the industry's electric transition. Advanced driver assistance systems (ADAS) expansion has been another key focus, with the company collaborating with NVIDIA on autonomous driving systems and winning new ADAS contracts with North American OEMs. The acquisition of Veoneer's Active Safety business strengthened their position in this growing market segment. The company has implemented extensive operational excellence initiatives aimed at margin expansion, targeting 75 basis points of improvement through cost reduction and efficiency programs. They've also been rightsizing their operations, including restructuring their Complete Vehicles segment as programs like BMW and Jaguar Land Rover wind down, while actively seeking new opportunities including potential partnerships with Chinese OEMs. Capital discipline has become a central theme, with management reducing capital expenditures by $100 million in 2024 and cutting engineering spend by up to $200 million to adjust for slower EV adoption rates. They've also restarted share buyback programs and increased dividends for 15 consecutive years, demonstrating commitment to returning capital to shareholders while maintaining investment flexibility. Recent quarters have seen the company actively managing trade and tariff challenges, working to increase USMCA-compliant parts from 75-80% currently and collaborating with customers on potential reshoring opportunities to mitigate trade policy impacts.
MGA company profile · for informational purposes only — not investment advice.
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