Upside case
Bull case
$171+172.4%
MGA would need investors to value it at roughly 25x earnings — about 16x more generous than today's 9x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 2026
Magna International Inc. (MGA) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
30
analysts
15 bullish · 1 bearish · 30 covering MGA
Strong Buy
0
Buy
15
Hold
14
Sell
1
Strong Sell
0
Consensus Target
$66
+4.6% vs today
Scenario Range
$49 – $171
Model bear to bull value window
Coverage
30
Published analyst ratings
Valuation Context
9.3x
Forward P/E · Market cap $17.5B
MGA price targets
Three scenarios for where MGA stock could go
Current
~$63
Confidence
53 / 100
Updated
May 1, 2026
Where we are now
Current · $63
Bear
$49
Base
$104
Bull
$171
Market caseClosest to today
Base case
$104+66.1%
At 15x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$49-21.9%
If investor confidence fades or macro conditions deteriorate, a 2x multiple contraction could push MGA down roughly 22% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Magna International Inc.
MGA · NYSEConsumer CyclicalAuto - PartsDecember year-end
Magna International is a global automotive supplier that designs, engineers, and manufactures vehicle components and systems for major automakers. It generates revenue primarily through four segments—Body Exteriors & Structures (~40% of sales), Power & Vision (~30%), Seating Systems (~15%), and Complete Vehicles (~15%)—selling everything from body panels to electric drive systems. Its competitive advantage lies in its full-service capabilities—from design to manufacturing—and its scale as one of the world's largest diversified auto parts suppliers with deep relationships across the industry.
Market Cap
$17.5B
Revenue TTM
$42.2B
Net Income TTM
$829M
Net Margin
2.0%
MGA Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
58%Exceptional
12 quarters tracked
Revenue Beat Rate
50%Exceptional
vs consensus estimates
Avg EPS Surprise
+6.6%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$1.44/$1.19
Revenue
$10.6B/$10.0B
Q4 2025
EPS
$1.33/$1.24
Revenue
$10.5B/$10.5B
Q1 2026
EPS
$2.18/$1.81
Revenue
$10.8B/$10.6B
Q2 2026
EPS
$1.38/$1.01
Revenue
$10.1B/$10.1B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $1.44/$1.19 | +21.0% | $10.6B/$10.0B | +6.5% |
| Q4 2025 | $1.33/$1.24 | +7.3% | $10.5B/$10.5B | -0.7% |
| Q1 2026 | $2.18/$1.81 | +20.4% | $10.8B/$10.6B | +1.3% |
| Q2 2026 | $1.38/$1.01 | +36.6% | $10.1B/$10.1B | -0.1% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$43.0B
+1.9% YoY
FY2
$43.9B
+2.2% YoY
EPS Outlook
FY1
$4.75
+61.1% YoY
FY2
$4.97
+4.6% YoY
Trailing FCF (TTM)$2.2B
FCF Margin: 5.1%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
MGA beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
MGA Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $710M
Product Mix
Latest annual revenue by segment or product family
Tooling And Engineering
100.0%
-35.5% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
North America
48.6%
-1.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Tooling And Engineering is the largest disclosed segment at 100.0% of FY 2025 revenue, down 35.5% YoY.
North America is the largest reported region at 48.6%, down 1.0% YoY.
MGA Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Slightly Undervalued
Fair value est. $66 — implies +8.6% from today's price.
Upside to Fair Value
8.6%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
MGA
21.0x
vs
S&P 500
25.2x
17% discount
vs Consumer Cyclical Trailing P/E
MGA
21.0x
vs
Consumer Cyclical
19.6x
+7% premium
vs MGA 5Y Avg P/E
Today
21.0x
vs
5Y Average
17.5x
+20% premium
Forward PE
9.3x
S&P 500
19.1x
-51%
Consumer Cyclical
15.2x
-39%
5Y Avg
—
—
Trailing PE
21.0x
S&P 500
25.2x
-17%
Consumer Cyclical
19.6x
+7%
5Y Avg
17.5x
+20%
PEG Ratio
6.03x
S&P 500
1.75x
+245%
Consumer Cyclical
0.95x
+533%
5Y Avg
—
—
EV/EBITDA
6.3x
S&P 500
15.3x
-59%
Consumer Cyclical
11.4x
-44%
5Y Avg
6.2x
+3%
Price/FCF
9.6x
S&P 500
21.3x
-55%
Consumer Cyclical
15.0x
-36%
5Y Avg
20.1x
-52%
Price/Sales
0.4x
S&P 500
3.1x
-87%
Consumer Cyclical
0.7x
-43%
5Y Avg
0.4x
-4%
Dividend Yield
3.13%
S&P 500
1.88%
+66%
Consumer Cyclical
2.15%
+46%
5Y Avg
3.30%
-5%
| Metric | MGA | S&P 500 | Consumer Cyclical | 5Y Avg MGA |
|---|---|---|---|---|
| Forward PE | 9.3x | 19.1x-51% | 15.2x-39% | — |
| Trailing PE | 21.0x | 25.2x-17% | 19.6x | 17.5x+20% |
| PEG Ratio | 6.03x | 1.75x+245% | 0.95x+533% | — |
| EV/EBITDA | 6.3x | 15.3x-59% | 11.4x-44% | 6.2x |
| Price/FCF | 9.6x | 21.3x-55% | 15.0x-36% | 20.1x-52% |
| Price/Sales | 0.4x | 3.1x-87% | 0.7x-43% | 0.4x |
| Dividend Yield | 3.13% | 1.88% | 2.15% | 3.30% |
MGA trades above S&P 500 benchmarks on 1 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolMGA Financial Health
Verdict
Strong
MGA returns 4.0% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$42.2B
Revenue Growth
TTM vs prior year
-1.5%
Gross Margin
Gross profit as a share of revenue
13.2%
Operating Margin
Operating income divided by revenue
6.0%
Net Margin
Net income divided by revenue
2.0%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$2.95
Free Cash Flow (TTM)
Cash generation after capex
$2.2B
FCF Margin
FCF as share of revenue — the primary cash quality signal
5.1%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
8.6%
ROA
Return on assets, trailing twelve months
2.6%
Cash & Equivalents
Liquid assets on the balance sheet
$1.6B
Net Debt
Total debt minus cash
$6.7B
Debt Serviceability
Net debt as a multiple of annual free cash flow
3.1× FCF
~3.1 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
6.5%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
4.0%
Dividend
3.1%
Buyback
0.8%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$144M
Dividend / Share
Annualized trailing dividend per share
$1.96
Payout Ratio
Share of earnings distributed as dividends
65.6%
Shares Outstanding
Declining as buybacks retire shares
279M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageMGA Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated April 29, 2026
High Risk
Customer Dependence
A significant portion of Magna's revenue is derived from a small number of top customers, which exposes the company to risks associated with changes in demand or pricing from these key clients. This concentration can lead to substantial revenue volatility if any major customer reduces orders or shifts to competitors.
High Risk
Industry Cyclicality
The automotive industry is inherently cyclical, meaning Magna's financial performance is closely tied to broader economic conditions and consumer spending patterns. Economic downturns can lead to decreased vehicle sales, directly impacting Magna's revenue and profitability.
Medium
Competition
The automotive supplier market is highly competitive, which can exert pressure on pricing and profit margins. Increased competition from both established players and new entrants may lead to reduced market share and profitability for Magna.
Medium
Liquidity and Profitability
Despite showing improving EBIT margins, Magna faces pressure on liquidity and gross margins that are currently in the lower half of the industry. This could affect the company's ability to invest in growth opportunities and maintain financial stability.
Lower
Market Sentiment
Investor sentiment can shift rapidly, particularly within the cyclical Consumer Discretionary sector, impacting stock performance. Negative news or economic indicators may lead to increased volatility in Magna's stock price.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why MGA Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated April 29, 2026
Strong Financial Performance
Magna International exceeded earnings expectations in Q4 2025, reporting an EPS of $2.18, surpassing estimates of $1.80. The company also achieved a 2.1% year-over-year revenue growth, reaching $10.74 billion, and generated $1.9 billion in free cash flow for the full year.
Powertrain Agnostic Portfolio
Over 80% of Magna's business is classified as 'powertrain agnostic,' meaning their products are essential regardless of vehicle power source. This diversification provides stability amid the ongoing shifts in electric vehicle strategies.
Sustainable Shareholder Returns
Magna has increased its dividend for 16 consecutive years, currently yielding 3.3%, with only 30% of free cash flow consumed by payouts. The company also plans to repurchase approximately 22 million shares in 2026.
Strong Balance Sheet and Liquidity
As of December 2025, Magna holds $1.6 billion in cash and aims to reduce leverage below 1.5 times in 2026. This strong financial position allows for flexibility in investments and shareholder returns.
Positive Future Outlook
Magna's 2026 guidance includes expectations for continued margin expansion and strong free cash flow. The company has secured about 90% of its 2028 business targets, enhancing its growth prospects.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
MGA Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$62.70
52W Range Position
81%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$32.55
+92.6% from the low
52-Week High
$69.94
-10.4% from the high
1 Month
+14.69%
3 Month
+16.07%
YTD
+14.7%
1 Year
+88.8%
3Y CAGR
+4.7%
5Y CAGR
-8.2%
10Y CAGR
+4.3%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
MGA vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
9.3x
vs 11.5x median
-20% below peer median
Revenue Growth
+1.9%
vs +1.8% median
+5% above peer median
Net Margin
2.0%
vs 2.5% median
-22% below peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
MGA MGA Magna International Inc. | $17.5B | 9.3x | +1.9% | 2.0% | Buy | +4.6% |
BWA BWA BorgWarner Inc. | $12.3B | 11.5x | +2.6% | 2.5% | Buy | +15.8% |
LEA LEA Lear Corporation | $7.0B | 9.5x | +1.8% | 2.2% | Hold | -8.0% |
ALV ALV Autoliv, Inc. | $9.1B | 11.6x | +4.6% | 6.8% | Hold | +11.0% |
APT APTV Aptiv PLC | $12.1B | 8.7x | -3.3% | 1.8% | Buy | +66.8% |
VC VC Visteon Corporation | $3.0B | 13.3x | +0.2% | 5.3% | Buy | +6.4% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
MGA Dividend and Capital Return
MGA returns 4.0% total yield, led by a 3.13% dividend, raised 16 consecutive years. Buybacks add another 0.8%.
Dividend WatchFCF Well Covered
Total Shareholder Yield
4.0%
Dividend + buyback return per year
Buyback Yield
0.8%
Dividend Yield
3.13%
Payout Ratio
65.6%
How MGA Splits Its Return
Div 3.13%
Buyback 0.8%
Dividend 3.13%Buybacks 0.8%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$1.96
Growth Streak
Consecutive years of dividend increases
16Y
3Y Div CAGR
2.5%
5Y Div CAGR
3.9%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$144M
Estimated Shares Retired
2M
Approx. Share Reduction
0.8%
Shares Outstanding
Current diluted share count from the screening snapshot
279M
At 0.8%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.49 | — | — | — |
| 2025 | $1.94 | +2.1% | 1.0% | 4.6% |
| 2024 | $1.90 | +3.3% | 1.7% | 6.2% |
| 2023 | $1.84 | +2.2% | 0.1% | 3.2% |
| 2022 | $1.80 | +4.7% | 4.8% | 7.9% |
FAQ
7 questionsMGA Investor Questions
Common questions answered from live analyst data and company financials.
01Is Magna International Inc. (MGA) stock a buy or sell in 2026?
Magna International Inc. (MGA) is rated Buy by Wall Street analysts as of 2026. Of 30 analysts covering the stock, 15 rate it Buy or Strong Buy, 14 rate it Hold, and 1 rate it Sell or Strong Sell. The consensus 12-month price target is $66, implying +4.6% from the current price of $63. The bear case scenario is $49 and the bull case is $171.
02What is the MGA stock price target for 2026?
The Wall Street consensus price target for MGA is $66 based on 30 analyst estimates. The high-end target is $76 (+21.2% from today), and the low-end target is $52 (-17.1%). The base case model target is $104.
03Is Magna International Inc. (MGA) stock overvalued in 2026?
MGA trades at 9.3x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals slightly undervalued. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Magna International Inc. (MGA) stock in 2026?
The primary risks for MGA in 2026 are: (1) Customer Dependence — A significant portion of Magna's revenue is derived from a small number of top customers, which exposes the company to risks associated with changes in demand or pricing from these key clients. (2) Industry Cyclicality — The automotive industry is inherently cyclical, meaning Magna's financial performance is closely tied to broader economic conditions and consumer spending patterns. (3) Competition — The automotive supplier market is highly competitive, which can exert pressure on pricing and profit margins. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Magna International Inc.'s revenue and earnings forecast?
Analyst consensus estimates MGA will report consensus revenue of $43.0B (+1.9% year-over-year) and EPS of $4.75 (+61.1% year-over-year) for the upcoming fiscal year. The following year, analysts project $43.9B in revenue.
06When does Magna International Inc. (MGA) report its next earnings?
A confirmed upcoming earnings date for MGA is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
07How much free cash flow does Magna International Inc. generate?
Magna International Inc. (MGA) generated $2.2B in free cash flow over the trailing twelve months — a free cash flow margin of 5.1%. MGA returns capital to shareholders through dividends (3.1% yield) and share repurchases ($144M TTM).