Latest Ratios: P/E Ratio 21.3x · EV/EBITDA 6.3x · ROE 6.8%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $17.3B | $15.1B | $12.0B | $16.9B | $16.4B | $24.5B | $21.3B | $17.3B | $15.8B | $21.2B | $17.1B |
| Enterprise Value | $24.1B | $21.8B | $17.8B | $23.0B | $20.2B | $27.2B | $24.0B | $21.0B | $19.5B | $24.0B | $19.3B |
| P/E Ratio → | 21.31 | 17.83 | 11.87 | 13.97 | 27.67 | 16.19 | 28.10 | 9.81 | 6.88 | 9.61 | 8.41 |
| P/S Ratio | 0.41 | 0.35 | 0.28 | 0.40 | 0.43 | 0.68 | 0.65 | 0.44 | 0.39 | 0.54 | 0.47 |
| P/B Ratio | 1.40 | 1.17 | 1.00 | 1.38 | 1.44 | 2.00 | 1.81 | 1.56 | 1.42 | 1.81 | 1.67 |
| P/FCF | 9.55 | 8.29 | 8.23 | 28.17 | 39.52 | 16.05 | 9.97 | 6.88 | 7.64 | 14.40 | 10.81 |
| P/OCF | 4.74 | 4.11 | 3.30 | 5.38 | 7.81 | 8.34 | 6.49 | 4.37 | 4.25 | 6.36 | 5.04 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 0.51 | 0.42 | 0.54 | 0.53 | 0.75 | 0.74 | 0.53 | 0.48 | 0.62 | 0.53 |
| EV / EBITDA | 6.28 | 5.68 | 4.40 | 6.06 | 6.75 | 7.87 | 10.12 | 5.67 | 4.33 | 5.31 | 4.75 |
| EV / EBIT | 11.21 | 14.10 | 9.62 | 12.42 | 20.12 | 13.16 | 21.60 | 9.04 | 7.38 | 7.82 | 6.69 |
| EV / FCF | — | 11.98 | 12.23 | 38.20 | 48.79 | 17.83 | 11.25 | 8.35 | 9.43 | 16.34 | 12.20 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 10.3% | 10.3% | 13.5% | 13.1% | 12.3% | 14.2% | 13.6% | 13.7% | 14.1% | 14.6% | 14.6% |
| Operating Margin | 5.0% | 5.0% | 4.9% | 4.8% | 4.2% | 5.4% | 3.1% | 6.0% | 7.7% | 8.1% | 7.9% |
| Net Profit Margin | 2.0% | 2.0% | 2.4% | 2.8% | 1.6% | 4.2% | 2.3% | 4.5% | 5.6% | 5.7% | 5.6% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 6.8% | 6.8% | 8.3% | 10.3% | 5.0% | 12.6% | 6.6% | 15.8% | 20.1% | 20.1% | 21.0% |
| ROA | 2.7% | 2.7% | 3.2% | 4.0% | 2.1% | 5.2% | 2.8% | 6.8% | 8.9% | 9.2% | 9.6% |
| ROIC | 8.6% | 8.6% | 8.8% | 9.1% | 7.8% | 9.9% | 5.1% | 11.9% | 15.9% | 17.6% | 20.3% |
| ROCE | 10.9% | 10.9% | 11.1% | 11.4% | 8.9% | 10.4% | 5.6% | 14.4% | 19.6% | 21.1% | 21.9% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.65 | 0.65 | 0.59 | 0.59 | 0.45 | 0.46 | 0.51 | 0.45 | 0.39 | 0.31 | 0.31 |
| Debt / EBITDA | 2.17 | 2.17 | 1.75 | 1.91 | 1.70 | 1.64 | 2.53 | 1.35 | 0.98 | 0.79 | 0.78 |
| Net Debt / Equity | — | 0.52 | 0.49 | 0.49 | 0.34 | 0.22 | 0.23 | 0.33 | 0.33 | 0.24 | 0.22 |
| Net Debt / EBITDA | 1.75 | 1.75 | 1.44 | 1.59 | 1.28 | 0.79 | 1.15 | 1.00 | 0.82 | 0.63 | 0.54 |
| Debt / FCF | — | 3.69 | 4.00 | 10.02 | 9.27 | 1.78 | 1.28 | 1.48 | 1.80 | 1.94 | 1.39 |
| Interest Coverage | 7.26 | 7.26 | 5.99 | 7.64 | 7.97 | 16.97 | 10.58 | 22.38 | 23.41 | 34.17 | 28.80 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.25 | 1.25 | 1.08 | 1.06 | 1.14 | 1.30 | 1.37 | 1.26 | 1.15 | 1.21 | 1.17 |
| Quick Ratio | 0.87 | 0.87 | 0.74 | 0.71 | 0.76 | 0.92 | 1.02 | 0.87 | 0.82 | 0.83 | 0.85 |
| Cash Ratio | 0.15 | 0.15 | 0.10 | 0.09 | 0.11 | 0.28 | 0.34 | 0.15 | 0.07 | 0.08 | 0.11 |
| Asset Turnover | — | 1.36 | 1.38 | 1.33 | 1.36 | 1.25 | 1.14 | 1.53 | 1.57 | 1.53 | 1.62 |
| Inventory Turnover | 9.31 | 9.31 | 8.92 | 8.07 | 7.94 | 7.83 | 8.19 | 10.30 | 10.30 | 9.39 | 11.10 |
| Days Sales Outstanding | — | 64.72 | 62.85 | 67.21 | 65.51 | 63.52 | 71.49 | 54.86 | 59.05 | 62.75 | 61.74 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 3.1% | 3.7% | 4.5% | 3.1% | 3.1% | 2.1% | 2.2% | 2.6% | 2.8% | 1.9% | 2.3% |
| Payout Ratio | 65.6% | 65.6% | 53.4% | 43.0% | 86.8% | 33.9% | 61.7% | 25.4% | 19.5% | 18.1% | 19.0% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.7% | 5.6% | 8.4% | 7.2% | 3.6% | 6.2% | 3.6% | 10.2% | 14.5% | 10.4% | 11.9% |
| FCF Yield | 10.5% | 12.1% | 12.1% | 3.5% | 2.5% | 6.2% | 10.0% | 14.5% | 13.1% | 6.9% | 9.3% |
| Buyback Yield | 0.8% | 1.0% | 1.7% | 0.1% | 4.8% | 2.1% | 1.0% | 7.4% | 11.7% | 6.1% | 5.4% |
| Total Shareholder Yield | 3.9% | 4.6% | 6.2% | 3.2% | 7.9% | 4.2% | 3.2% | 10.0% | 14.5% | 7.9% | 7.6% |
| Shares Outstanding | — | $283M | $287M | $287M | $291M | $303M | $300M | $316M | $348M | $374M | $393M |
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying MGA stock.
Magna International Inc.'s current P/E ratio is 21.3x. The historical average is 14.5x. This places it at the 86th percentile of its historical range.
Magna International Inc.'s current EV/EBITDA is 6.3x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 5.4x.
Magna International Inc.'s return on equity (ROE) is 6.8%. The historical average is 11.7%.
Based on historical data, Magna International Inc. is trading at a P/E of 21.3x. This is at the 86th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Magna International Inc.'s current dividend yield is 3.07% with a payout ratio of 65.6%.
Magna International Inc. has 10.3% gross margin and 5.0% operating margin.
Magna International Inc.'s Debt/EBITDA ratio is 2.2x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Customer concentration and pricing pressure
Margin Compression Amidst Pricing Pressure
Gross margin fell from 14.6% in Q4 2024 to 10.9% in Q2 2026, a 370 bps decline, according to recent financial statements, indicating input cost inflation and OEM price reductions are outpacing efficiency gains.
The operating margin of 5.6% in Q2 2026 remains below the 9.2% peak in Q3 2025, reflecting high fixed costs and limited pricing power. Net margin of 4.3% exceeded operating margin, suggesting non-operating gains, which warrants scrutiny for sustainability. The trend suggests that Magna's earning power is being squeezed by structural factors, and investors should monitor whether the Power & Vision segment can offset these pressures.
Subdued Returns on Invested Capital
ROIC has hovered between 1.3% and 3.7% over the past ten quarters, with Q2 2026 at 3.0%, as reported in financial statements, indicating that capital deployment is generating returns below the cost of capital.
ROE of 3.7% in Q2 2026 is well below the peer average, and the trend shows no clear improvement despite the company's pivot to EV and ADAS components. The low returns appear driven by thin margins rather than asset inefficiency, as asset turnover has remained stable around 0.33x. This suggests that Magna is not compounding returns on its invested capital, and the recent acquisition of Veoneer Active Safety has yet to demonstrate value creation.
Working Capital Cycle Lengthens Slightly
Cash conversion cycle extended to 40 days in Q2 2026 from 36 days in Q1 2024, per recent filings, driven by a rise in DSO to 71 days, indicating slower customer collections.
DSO increased from 67 days in Q4 2025 to 71 days in Q2 2026, while DPO remained relatively stable around 69 days, suggesting that Magna is financing its customers for longer periods. DIO has also ticked up to 38 days, reflecting higher inventory levels, which may indicate demand softness or supply chain disruptions. The modest lengthening of the CCC implies a slight drag on cash flow, but the company's ability to maintain DPO near 70 days shows some supplier leverage.
Leverage Spike Raises Refinancing Risk
Debt-to-equity jumped from 0.15 in Q2 2026 to 0.55 in Q1 2026, with total debt reaching $6.7B, according to financial statements, signaling a significant increase in leverage that warrants close monitoring.
Interest coverage improved to 16.62x in Q2 2026 from 3.35x in Q1 2026, but this is partly due to a spike in operating income and may not be sustainable. The D/EBITDA ratio of 3.10 in Q2 2026 is lower than the 7.37 in Q1 2026, but the volatility suggests that debt levels are fluctuating with working capital needs. The reported D/E of 0.15 in Q2 2026 appears exceptionally low for the industry, and off-balance-sheet leases and joint ventures could understate true leverage, as noted in prior analysis.
Liquidity Buffer Stable but Thin
Current ratio improved to 1.22 in Q2 2026 from 1.09 in Q1 2024, with cash at $1.5B, according to recent filings, providing a modest cushion against operational shocks.
The quick ratio of 0.88 in Q2 2026 indicates that inventory is a significant component of current assets, which could be a risk if demand weakens. The liquidity position appears adequate for normal operations, but under a severe downturn, the thin buffer may be insufficient given the high fixed-cost structure. Investors should monitor whether the company can maintain this liquidity while funding its EV transition and shareholder returns.
Misapplied P/E Distorts Value
The trailing P/E of 22.70 is misleading given the cyclicality and non-recurring items; forward P/E of 10.05 better reflects normalized earnings, as per reported figures, but EV/EBITDA of 6.57 is more appropriate for capital-intensive auto suppliers.
The P/E ratio is commonly misapplied to Magna because its earnings are highly volatile and often include one-time gains or losses, as seen in Q2 2026 where net margin exceeded operating margin. A more reliable metric is EV/EBITDA, which adjusts for debt and non-cash charges, and at 6.57 it is in line with peers like Lear (5.78) and BorgWarner (7.30). Investors should also consider the impact of equity-accounted earnings and tooling revenue, which can distort both P/E and EV/EBITDA, and instead focus on cash flow multiples like P/FCF of 10.17.