Magna International Inc. (MGA) AI Stock Analysis

Magna International Inc. is a global leader in designing, engineering, and manufacturing components, assemblies, systems, subsystems, and modules for vehicles and light trucks. The company serves automotive original equipment manufacturers through four key operating segments. Body Exteriors & Structures provides body and chassis systems, exterior components, roof systems, and battery enclosures. Power & Vision focuses on hybrid and electric drive systems, transmissions, AWD/4WD products, ADAS, sensors, lighting, and electronic control units. Seating Systems delivers seat structures, mechanism solutions, foam products, and trim solutions. The Complete Vehicles segment provides comprehensive engineering and vehicle manufacturing services alongside production tooling.

Magna expanded revenue from $36.24B in FY2021 to $42.75B in FY2025, reflecting a 5-year revenue CAGR of 5.5%. However, annual sales growth stalled recently, moving 0.1% in FY2024 and declining 0.2% in FY2025. Net income dropped from $1.51B in FY2021 to $843.5M in FY2025 as gross margin fell to 10.3%. In the trailing twelve months ended June 30, 2026, revenue stood at $42.67B, operating margin was 5.6%, and EPS was $2.72. The latest quarter showed improving momentum, with quarterly revenue rising 3.3% year-over-year and quarterly earnings expanding 27.8%.

As of June 30, 2026, Magna held $1.43B in cash and short-term investments against total debt of $6.47B, resulting in net debt of $5.04B. Debt-to-equity stands at 0.55 and the current ratio is 1.22 on total assets of $31.29B. In FY2025, operating cash flow reached $3.60B. Magna allocated cash toward $1.31B in capital expenditures, $544.0M in dividends paid, and $137.0M in share buybacks. The company reduced its share count by 9.4% over five years.

MGA trades at a trailing P/E of 24.3x, compared to 18.0x for the median of its US-listed Consumer Cyclical peers. However, its forward P/E is 8.1x against the peer median of 14.1x, and its EV-to-EBITDA is 6.4x versus the peer median of 11.1x. The stock has a price-to-sales ratio of 0.4x and a PEG of 0.36. Over the past year, MGA gained 52.3%, outperforming the S&P 500's 16.8% return, though its 5-year return of -8.4% trails the benchmark's 83.0% gain.

Magna offers a forward dividend yield of 3.00% based on an annual dividend of $1.98. The company has paid consecutive dividends for 35 years and maintains a 5-year annualized dividend growth rate of 3.9%. Its payout ratio is 29.2%, and payments are distributed quarterly, with the last ex-dividend date on August 14, 2026.

Wall Street coverage includes 5 Strong Buys, 3 Buys, 11 Holds, and 1 Strong Sell. The mean price target of $72.94 implies 10.5% upside from the last close of $65.99. For the current fiscal year ending December 31, 2026, analysts estimate EPS of $7.02 on revenue of $41.98B. Magna beat EPS estimates in each of the last 4 quarters, and the next earnings date is October 30, 2026.

This page is an AI-written research summary of Magna International Inc. (MGA). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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