# Magna International, Inc. (MG.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Consumer Cyclical / Auto Components. Price C$95.35, market value C$25.5 billion.

## Valuation
- **P/E (trailing): 25.3×** (5-yr avg 21.4×, 3-yr avg 18.9×). Magna International, Inc. trades at 25.3× trailing earnings, close to its own five-year average of 21.4×. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 8.9×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.4×**. Each dollar of revenue is priced at 0.4×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 1.6×**. The shares trade at 1.6× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 5.7×**. Enterprise value is 5.7× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 16.6%** (5-yr avg 5.8%). Free cash flow equals 16.6% of the market value, above its five-year average of 5.8%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.0%**. The inverse of the P/E: 4.0% of the price is earned each year.

## Profitability
- **Gross margin: 12.7%**. Magna International, Inc. keeps 12.7% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 6.5%**. 6.5% of revenue is left after running the business.
- **Net margin: 2.0%**. 2.0% of each dollar of sales reaches the bottom line.
- **Return on equity: 6.8%**. 6.8% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 10.1%**. Return on all capital, debt included, is 10.1%.
- **Return on assets: 2.4%**. Each dollar of assets produces 2.4% of profit.

## Growth
- **Revenue growth (1 yr): -1.9%** (3-yr 3.5%/yr, 5-yr 5.2%/yr). Revenue fell 1.9% over the last year, against 5.2% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -15.1%** (3-yr 13.8%/yr, 5-yr 3.5%/yr). Earnings per share fell 15.1%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 63.7%/yr**. Free cash flow has compounded at 63.7% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.54**. Debt is 0.54 times equity, moderate leverage.
- **Net debt / EBITDA: 1.2×**. It would take 1.2 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 15.2×**. Operating profit covers interest 15.2× over, a safe margin.
- **Current ratio: 1.25** (quick 0.87). Current assets cover the next year's liabilities 1.25 times.
- **Altman Z-score: 3.05**. A Z-score of 3.05 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 6/9**. 6 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 2.88%** (C$2.74 per share, trailing). Magna International, Inc. yields 2.88%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 66%** (18% of free cash flow). 66% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 6**. 6 straight years of increases.
- **Dividend growth (5 yr): 4.9%/yr** (1-yr 4.6%). The dividend has grown 4.9% a year over five years.
- **Shareholder yield: 8.2%**. Dividends plus net buybacks return 8.2% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (6 analysts). 6 analysts cover Magna International, Inc.; the consensus is buy, with an average price target of C$93.88 (-2% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 55.9%** (YTD 32.4%, 3-mo 3.5%). The shares are up 55.9% over twelve months including dividends.
- **From 52-week high: -5.7%** (57.2% above the low). Trading 6% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 53**. An RSI of 53 is neutral.
- **Beta (1 yr): 1.26** (volatility 37%). Beta of 1.26 against the S&P/TSX Composite: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MG.TO · Page: https://foliofundamentals.com/stocks/mg.to

Not investment advice.