Magna International Inc. (MGA) Stock: A Value Analysis

The price-to-earnings ratio for Magna International Inc. (NYSE: MGA) is 12.46x, which is above its average ratio. Moreover, the 36-month beta value for MGA is 1.68. Analysts have varying opinions on the stock, with 9 analysts rating it as a “buy,” 2 as “overweight,” 6 as “hold,” and 2 as “sell.”

The public float for MGA is 268.52M and currently, short sellers hold a 3.18% of that float. On April 03, 2024, MGA’s average trading volume was 1.29M shares.

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MGA) stock’s latest price update

Magna International Inc. (NYSE: MGA) has seen a decline in its stock price by -1.14 in relation to its previous close of 53.33. However, the company has experienced a -1.61% decline in its stock price over the last five trading sessions. InvestorPlace reported 2024-03-28 that As Biden winds down his first term, he and his administration are introducing a slew of new electric vehicle (EV) policies to make the market more accessible and, possibly, reinvigorate slumping sales as car buyers increasingly cycle back toward conventional car offerings. Last year, EV sales dropped more than 70% as consumers considered their high pricing, relatively limited range and fairly slow charging times compared to the environmental impact and “cool” factor of driving something like a Cybertruck.

MGA’s Market Performance

MGA’s stock has fallen by -1.61% in the past week, with a monthly drop of -2.46% and a quarterly drop of -10.77%. The volatility ratio for the week is 1.75% while the volatility levels for the last 30 days are 1.94% for Magna International Inc. The simple moving average for the last 20 days is -2.20% for MGA stock, with a simple moving average of -5.43% for the last 200 days.

Analysts’ Opinion of MGA

Many brokerage firms have already submitted their reports for MGA stocks, with Goldman repeating the rating for MGA by listing it as a “Neutral.” The predicted price for MGA in the upcoming period, according to Goldman is $58 based on the research report published on January 03, 2024 of the current year 2024.

UBS, on the other hand, stated in their research note that they expect to see MGA reach a price target of $63. The rating they have provided for MGA stocks is “Neutral” according to the report published on September 13th, 2023.

Scotiabank gave a rating of “Sector Perform” to MGA, setting the target price at $61 in the report published on August 24th of the previous year.

MGA Trading at -4.02% from the 50-Day Moving Average

After a stumble in the market that brought MGA to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -19.23% of loss for the given period.

Volatility was left at 1.94%, however, over the last 30 days, the volatility rate increased by 1.75%, as shares sank -2.71% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -3.37% lower at present.

During the last 5 trading sessions, MGA fell by -1.61%, which changed the moving average for the period of 200-days by -6.23% in comparison to the 20-day moving average, which settled at $53.83. In addition, Magna International Inc. saw -10.77% in overturn over a single year, with a tendency to cut further losses.

Stock Fundamentals for MGA

Current profitability levels for the company are sitting at:

  • 0.05 for the present operating margin
  • 0.12 for the gross margin

The net margin for Magna International Inc. stands at 0.03. The total capital return value is set at 0.11. Equity return is now at value 10.63, with 4.04 for asset returns.

Based on Magna International Inc. (MGA), the company’s capital structure generated 0.33 points at debt to capital in total, while cash flow to debt ratio is standing at 0.54. The debt to equity ratio resting at 0.5. The interest coverage ratio of the stock is 13.48.

Currently, EBITDA for the company is 4.0 billion with net debt to EBITDA at 1.64. When we switch over and look at the enterprise to sales, we see a ratio of 0.49. The receivables turnover for the company is 5.5for trailing twelve months and the total asset turnover is 1.34. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.06.

Conclusion

To wrap up, the performance of Magna International Inc. (MGA) has been bad in recent times. The stock has received a bullish of “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.

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