Magna International Inc. Common Stock (MGA)

FairStock Score: 49/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a value investor, I look first at the business and the price. Magna is a large auto supplier with 156,000 employees and four segments spanning body exteriors, power and vision, seating, and complete vehicles. It has scale and deep OEM relationships, but auto parts supply is a tough, cyclical, capital-intensive business. The latest filed quarter, fiscal Q2 2026, showed revenue of $11.0B and net income of $469.0M, a 4.27% net margin. That is thin. FairStock's figures show a P/E of 24.01 and P/B of 1.48 at the 2026-10-13 close of $65.31; ROE is 6.51% and ROCE 4.54%. Those returns are not what I'd call a wide-moat compounder. The balance sheet has D/E of 0.53, and the Altman Z-Score of 1.46 is in a zone that warrants caution. The Piotroski F-Score of 8/9 is a positive sign of accounting and operating improvement. Free cash flow is the brightest spot: $3.2B trailing twelve months, an 18.8% FCF yield on a $17.1B market cap. But the Graham Number is $51.88, so at $65.31 the margin of safety is negative 25.89% — I'm paying above a conservative asset-and-earnings estimate. Growth is mixed: the supplied data show only modest top-line progress and a sharp drop in profit, though the period label is not provided. I'd want evidence that margins and returns can normalize before calling the price attractive. The cash generation provides support, but the auto cycle and thin margins keep me cautious.

In plain English: Magna makes parts and systems for cars and trucks, from body structures to seating and complete vehicle assembly. The business produces a lot of cash, but recent profit has been weak and the returns on the money invested are modest. At the 2026-10-13 close of $65.31, the price looks somewhat full compared with its earnings and accounting value, though cash generation is a real positive.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer