MGA

Consumer Cyclical

Magna International Inc. · Auto - Parts · $18B

UQS Score — Balanced Preset
46.6
Below Average

Magna International Inc. scores 46.6/100 using the Balanced preset.

UQS vs Consumer Cyclical Sector
MGA
46.6
Sector avg
37.7
Quality
Weak
Moat
Weak
Growth
Weak
Risk
Neutral
Valuation
Attractive

What is Magna International Inc.?

Magna International is one of the world's largest automotive suppliers, delivering engineered components and complete vehicle assembly services to major automakers across North America, Europe, and Asia. Headquartered in Aurora, Canada, the company operates across four distinct business segments.

Magna generates revenue by designing, engineering, and manufacturing parts, systems, and modules sold directly to vehicle manufacturers. Its four segments — Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles — cover everything from structural body panels and lighting to electric drive systems and full vehicle assembly. This diversified model means Magna's fortunes are closely tied to global vehicle production volumes and the pace of electrification across the automotive industry.

Magna International was founded in 1984 and is headquartered in Aurora, Canada.

  • Body and chassis systems, exterior panels, and roof modules
  • Electric and hybrid drive systems, inverters, and e-clutch technology
  • Advanced driver assistance systems and camera-based sensors
  • Seating structures, mechanisms, and hardware solutions
  • Complete vehicle engineering and contract assembly services

Is MGA a Good Stock to Buy?

UQS Score rates MGA as Below Average overall, reflecting meaningful headwinds across several key quality dimensions.

The most constructive element of Magna's current profile is its Valuation pillar, which registers as Attractive — suggesting the market may already be pricing in a significant degree of operational difficulty. The Risk pillar lands at Neutral, indicating the company's balance sheet and financial structure are not adding acute near-term stress beyond what the business fundamentals already present.

Quality, Moat, and Growth all register as Weak, pointing to thin competitive differentiation, limited pricing power as a contract manufacturer, and a challenging near-term growth backdrop tied to softening vehicle production and the uneven transition to electric vehicles.

See the exact pillar breakdown and full financial metrics by signing up for a UQS Pro account. Sign up free →

Past performance does not guarantee future results. UQS Score is based on fundamental data and is not a buy/sell recommendation.

Does MGA pay dividends?

Yes — Magna International Inc. pays a dividend.

Magna pays a regular dividend, which may appeal to income-oriented investors looking for yield from the automotive supply sector. The dividend reflects the company's long history as a large-cap industrial manufacturer. However, given the Weak Quality and Growth pillar ratings, investors should weigh dividend sustainability carefully against the company's earnings trajectory and free cash flow generation.

When does MGA report earnings?

Magna International reports earnings on a quarterly cadence, consistent with standard practice for US- and Canadian-listed large-cap equities.

Magna's recent results have reflected the broader pressures facing automotive suppliers — including softer production schedules, elevated input costs, and mixed demand signals from both traditional and electric vehicle platforms. The Weak Growth pillar rating suggests these headwinds have weighed on top-line momentum.

For the most recent quarter's results and guidance, visit Magna International's investor relations page directly.

MGA Price History

-27.5% over 5Y

Monthly close, adjusted for stock splits and dividend reinvestment.

Return Calculator

What if I invested in Magna International Inc.?

$
Today it would be worth
$7,940
That's a -20.6% total return, or -4.5% annualized.

Based on Magna International Inc.'s historical closing prices, adjusted for stock splits and dividend reinvestment. Past performance does not guarantee future results. This is for informational purposes only and is not financial advice.

MGA Long-term Outlook

Magna's fundamental outlook is shaped by a Weak Growth pillar and a Neutral Risk profile. The near-term trajectory appears constrained by global vehicle production uncertainty, the ongoing shift toward electric vehicles — where Magna is investing but not yet generating outsized returns — and margin pressure typical of contract manufacturing. The Attractive Valuation pillar suggests the market has discounted much of this risk, but a re-rating would likely require tangible improvement in growth or profitability metrics.

Growth drivers

  • Expanding electric and hybrid drivetrain content per vehicle as EV adoption grows
  • Complete vehicle assembly capabilities positioning Magna for emerging OEM outsourcing trends
  • Geographic diversification across North America, Europe, and Asia reducing single-market exposure

Key risks

  • Sustained weakness in global light vehicle production volumes pressuring revenue
  • Thin margins inherent to contract manufacturing limiting quality improvement
  • Execution risk on EV-related capital investment amid uncertain demand timelines

MGA vs Peers

Magna competes in the global automotive components and systems space alongside a range of specialized and diversified suppliers.

MODSimilar UQS
Modine Manufacturing Company

Modine focuses on thermal management solutions, giving it a narrower but potentially higher-margin niche compared to Magna's broad contract manufacturing model.

APTVMGA scores higher
Aptiv PLC

Aptiv concentrates on vehicle electrical architecture and software-defined vehicle technology, positioning it further up the value chain than Magna's hardware-heavy portfolio.

MG.TOSimilar UQS
Magna International Inc. (TSX)

MG.TO is the Toronto Stock Exchange listing of the same company, offering Canadian investors direct exposure to Magna without currency conversion at the point of purchase.

Frequently Asked Questions

What does Magna International do?

Magna International designs, engineers, and manufactures automotive components and systems for vehicle manufacturers worldwide. Its product range spans body structures, seating, lighting, electric drive systems, and complete vehicle assembly — making it one of the most diversified automotive suppliers globally.

Does MGA pay dividends?

Yes, Magna International pays a regular dividend. The company has maintained a dividend program consistent with its profile as a large-cap industrial manufacturer. Investors focused on income should review the current yield and payout sustainability in light of Magna's Weak Quality and Growth pillar ratings.

When does MGA report earnings?

Magna reports earnings quarterly, in line with standard practice for large-cap North American equities. For specific release dates and the most recent results, check Magna International's official investor relations page rather than relying on third-party estimates.

Is MGA a good stock to buy?

UQS Score rates MGA as Below Average, driven by Weak readings across Quality, Moat, and Growth pillars. The Valuation pillar is Attractive, which may interest contrarian investors, but the overall profile suggests meaningful fundamental challenges remain. The complete pillar breakdown is available to UQS Pro members.

Is MGA overvalued?

Based on the UQS Valuation pillar, MGA currently registers as Attractive — meaning the stock appears to trade at a discount relative to its assessed fundamental value. This does not guarantee upside, particularly given the Weak Quality and Growth readings, but it does suggest the market has priced in considerable pessimism.

How does MGA compare to its competitors?

Magna is broader in scope than most peers, spanning body systems, electrification, vision technology, seating, and full vehicle assembly. Competitors like Aptiv focus more narrowly on high-value electrical architecture, while Modine specializes in thermal management. Magna's diversification is a scale advantage but can also dilute focus and margin potential.

What is MGA's market cap bracket?

Magna International is classified as a large-cap company. This places it among the more established and widely followed names in the automotive supplier universe, with the liquidity and analyst coverage that typically accompanies that size tier.

Who founded Magna International?

Magna International traces its origins to Frank Stronach, who built the company from a small tool-and-die shop into a global automotive supplier. The company's formal structure as Magna International has evolved significantly since its early decades, and founding context is widely documented in public sources.

Is MGA a long-term quality investment?

Viewed through a long-term quality lens, MGA's current UQS profile raises questions. Weak Moat and Quality pillar ratings suggest the business lacks the durable competitive advantages that tend to support compounding returns over time. The Attractive Valuation may offer a margin of safety, but sustained quality improvement would be needed to strengthen the long-term case.

What is the main competitive advantage of Magna International?

Magna's primary competitive advantage is its scale and breadth — few suppliers can offer automakers such a wide range of engineered systems under one roof, including complete vehicle assembly. However, the UQS Moat pillar rates this advantage as Weak, reflecting the commoditized nature of much contract manufacturing and limited pricing power.

What sector does MGA belong to?

Magna International is classified within the Consumer Cyclical sector, specifically the auto parts and equipment industry. This means its business performance is closely linked to consumer demand for vehicles and broader economic cycles that influence automaker production schedules.

Is MGA a growth stock or value stock?

Based on UQS pillar labels, MGA leans toward a value framing — the Valuation pillar is Attractive while the Growth pillar is Weak. This combination suggests the stock may appeal to value-oriented investors, though the absence of near-term growth catalysts tempers the traditional value investment thesis.

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Pro Analysis

MGA — Score History

3540455055Apr 2Apr 12Apr 22May 2May 12May 22May 24v5
Score changes· 14 most recent
DateUQSQualityMoatGrowthRiskValueChange
May 22, 202646.636.431.029.859.199.6+1.8
May 7, 202644.837.531.026.151.298.70.0
May 5, 202644.837.531.026.151.298.6-0.1
May 4, 202644.937.531.026.451.298.6-0.1
May 2, 202645.037.531.027.251.298.60.0
May 1, 202645.037.531.026.951.298.6+0.1
Apr 26, 202644.937.531.026.751.298.6-0.1
Apr 25, 202645.037.531.026.751.298.80.0
Apr 22, 202645.037.531.026.951.298.8+0.2
Apr 18, 202644.837.531.026.151.298.8-0.2

MGA — Pillar Breakdown

Quality

36.4/100 (25%)

Magna International Inc. has average quality metrics, with room for improvement in margins or capital efficiency.

Capital Efficiency (ROIC)Weak

How effectively capital is deployed to generate returns.

Return on EquityWeak

Profitability relative to shareholders' equity.

Operating ProfitabilityWeak

Ability to convert revenue into operating profit.

Net ProfitabilityWeak

Bottom-line profit as a share of revenue.

Gross Profit / AssetsWeak

Asset productivity — how much gross profit each dollar of assets generates.

Cash GenerationStrong

Free cash flow relative to market value.

Growth

29.8/100 (20%)

Magna International Inc. faces growth headwinds with declining or stagnant revenue trends.

Recent Revenue TrendWeak

Revenue trajectory over the last twelve months.

3Y Revenue CAGRWeak

Compound annual revenue growth rate over 3 years.

EPS GrowthWeak

Year-over-year earnings per share growth.

Forward Revenue OutlookWeak

Analyst consensus for future revenue growth.

Forward EPS GrowthStrong

Analyst consensus for future earnings growth.

Risk

59.1/100 (15%)

Magna International Inc. maintains a reasonable risk profile with manageable debt levels.

Financial LeverageModerate

Debt levels relative to earnings capacity.

Debt/EquityStrong

Total debt relative to shareholder equity.

Current RatioWeak

Short-term liquidity — ability to pay near-term obligations.

Interest CoverageStrong

Earnings capacity relative to interest payments.

Valuation

99.7/100 (15%)

Magna International Inc. appears attractively valued relative to its earnings, cash flows, and sector peers.

Earnings YieldStrong

Inverse of forward P/E — higher yield means cheaper stock.

Price to Free Cash FlowStrong

How many years of FCF the market cap represents.

PEG RatioStrong

P/E relative to earnings growth — lower is more attractive.

EV/EBITDA vs SectorStrong

Enterprise value multiple relative to sector median.

Moat

31/100 (25%)

Magna International Inc. operates in a highly competitive environment with limited sustainable advantages. The Moat pillar evaluates competitive advantages across five dimensions: Switching Costs, Network Effects, Cost Advantage, Intangible Assets, and Scale & Ecosystem. Sign in to customize moat ratings for MGA.

Score Composition

Quality
36.4×25%9.1
Growth
29.8×20%6.0
Risk
59.1×15%8.9
Valuation
99.7×15%15.0
Moat
31.0×25%7.8
Total
46.6Below Average

Financial Data

More Stock Analysis

How is the MGA UQS Score Calculated?

The UQS (Unified Quality Score) for Magna International Inc. is calculated using a proprietary 6-pillar framework with 29 financial metrics. Each pillar evaluates a different dimension on a 0–100 scale, then combines into a single weighted score. Scoring thresholds are calibrated per sector. Momentum is an optional Pro toggle — without it, you get the 5-pillar / 25-metric core shown below.

Quality (25%) measures profitability and capital efficiency — ROIC, ROE, margins, GP/Assets, and FCF Yield.

Moat (25%) assesses Magna International Inc.'s competitive advantages across switching costs, network effects, cost advantages, intangible assets, and ecosystem scale.

Growth (20%) tracks revenue trajectory and earnings momentum, combining historical results with analyst forward estimates.

Risk (15%) is inversely scored — lower leverage and strong balance sheet health result in higher scores.

Valuation (15%) measures whether Magna International Inc. is fairly priced using earnings yield, price-to-FCF, PEG ratio, and EV/EBITDA relative to sector peers.

Six investor-inspired presets are available, each with different pillar weights: Balanced, Buffett, Munger, Lynch, Cathie Wood, and Graham. The public score shown here uses the Balanced preset. Learn more in our FAQ.