# Magna International (MG.TO)

Canonical: https://gigainvestors.com/s/MG.TO

Analysis as of: 2026-10-16T07:34:54.371Z. Financial observations: FY1996–FY2025.

Listing currency: CAD. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: CAD 94.09 per share; close as of 2026-10-15.

Estimated value: low CAD 36.14 per share, central CAD 40.68 per share, high CAD 46.72 per share. Buy at or below the central value CAD 40.68 per share. Valuation as of 2026-10-16T07:34:54.371Z; scenarios are not confidence intervals.

Expected annual return: 5.8% at the stated quote. About 5.8% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; CA 10-year bond 3.8% + 4 points).

## Checklist

### understandable: pass

- 3 revenue declines in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 0

- Operating margin variation: 0.22×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.08×

- FY2017: 0.08×

- FY2018: 0.08×

- FY2019: 0.07×

- FY2020: 0.05×

- FY2021: 0.05×

- FY2022: 0.05×

- FY2023: 0.05×

- FY2024: 0.05×

- FY2025: 0.05×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 12.2%

- ROIC, second-lowest year: 9.5%

- Typical minus recent gross margin: 0.4 pp

- Typical gross margin (annual median): 13.9%

- Recent gross margin (lower of latest and 3-year median): 13.5%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.4%

- ROIC including acquisitions, ten-year median: 6.6%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 21.4%

- FY2017: 19.9%

- FY2018: 19.9%

- FY2019: 15.0%

- FY2020: 9.5%

- FY2021: 12.5%

- FY2022: 9.8%

- FY2023: 11.8%

- FY2024: 10.3%

- FY2025: 9.4%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.66×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $3.4B

- Net income, five-year total: $5.2B

- Return on incremental invested capital: -10.9%

- Working capital / revenue, annual change: 0.2 pp

- Working capital / revenue, change between three-year averages: 1.2 pp

- Working capital / revenue, final three-year average: 10.8%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.87×

- FY2022: 0.47×

- FY2023: 0.72×

- FY2024: 0.38×

- FY2025: 0.67×

### management: fail

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 19.9% vs 10.3%

- Per-share earnings: 5.28 to 3.53 (three-year endpoint medians)

- per-share value declined or ends nonpositive

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -3.6%

- Ordinary dilution, 5-year annual growth: -1.3%

- Market cap gain: -$1.3B

- Cumulative retained earnings: $2.4B

- Diluted shares, 10-year annual growth: -3.6%

- Diluted shares, 5-year annual growth: -1.3%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: -4.9%

- Per-share value change: -$1.75

- Per-share value, starting three-year median: $5.28

- Per-share value, ending three-year median: $3.53

- Buybacks concentrated in cheaper years (correlation): 0.66

- Average buyback yield: 4.5%

- Buyback history: 10 years

- Debt-funded buybacks: No

- Acquisition spending: $2.6B

- Cumulative net income, 10 years: $14B

- ROIC, first three-year median: 19.9%

- ROIC, last three-year median: 10.3%

Chart: Earnings per share; fiscal year observations.

- FY2016: $5.28

- FY2017: $6.09

- FY2018: $6.89

- FY2019: $5.76

- FY2020: $2.52

- FY2021: $5.02

- FY2022: $2.07

- FY2023: $4.23

- FY2024: $3.53

- FY2025: $3.00

### accounting: pass

- Sloan accruals: -9.0%

- Receivables to sales index (DSRI): 1.05×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 4.34×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.24×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -6.0%

- FY2017: -4.4%

- FY2018: -5.5%

- FY2019: -8.5%

- FY2020: -8.8%

- FY2021: -4.9%

- FY2022: -5.4%

- FY2023: -6.0%

- FY2024: -8.5%

- FY2025: -9.0%

## Holders

- [Sarah Ketterer](https://gigainvestors.com/CAU): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Richard Pzena](https://gigainvestors.com/PIM): tracked 13F investor; follow the investor page for holding quarter and amounts.

- [Francis Chou](https://gigainvestors.com/ca): tracked 13F investor; follow the investor page for holding quarter and amounts.

## Price story

Price needs cash profits to grow 12.1% a year for ten years · "Magna raises sales forecast, beats quarterly view on cost cuts" (finance.yahoo.com, Aug 2025) · sales -1.9%

Story as of 2026-10-16T10:00:02.983Z; price observation 2026-10-15.

Price needs cash profits to grow 12.1% a year for ten years

- 2025-08-01: Magna raises sales forecast, beats quarterly view on cost cuts ([finance.yahoo.com](https://finance.yahoo.com/news/magna-raises-sales-forecast-beats-103243378.html))

- 2025-09-15: Magna Awarded Vehicle Assembly Business With Chinese OEM XPENG ([finance.yahoo.com](https://finance.yahoo.com/news/magna-awarded-vehicle-assembly-business-060000083.html))

- 2025-11-12: Upgraded Forecast and Buyback Program Could Be a Game Changer for Magna International (TSX:MG) ([finance.yahoo.com](https://finance.yahoo.com/news/upgraded-forecast-buyback-program-could-001532012.html))

- 2026-02-13: Magna International's 2026 Outlook Tops Estimates; Shares Soar ([finance.yahoo.com](https://finance.yahoo.com/news/magna-international-apos-2026-outlook-170404171.html))

- 2026-04-12: Magna Divests Lighting And Rooftop Units As Investors Weigh Margin Upside ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/magna-divests-lighting-rooftop-units-190657122.html))

- 2026-05-19: Magna Awarded Driver and Occupant Monitoring System Program With European OEM ([finance.yahoo.com](https://finance.yahoo.com/sectors/technology/articles/magna-awarded-driver-occupant-monitoring-120000833.html))

### Sales · FY2024–2025

sales -1.9%; source https://www.sec.gov/Archives/edgar/data/749098/000119312526128771/d20215d40f.htm; observed 2026-03-27.

- FY2016: $36B 

- FY2017: $39B 

- FY2018: $41B 

- FY2019: $39B 

- FY2020: $33B 

- FY2021: $36B 

- FY2022: $38B 

- FY2023: $43B 

- FY2024: $43B 

- FY2025: $42B 

### Gross margin · FY2025

gross margin 14.3%; source https://www.sec.gov/Archives/edgar/data/749098/000119312526128771/d20215d40f.htm; observed 2026-03-27.

- FY2016: 14.6% 

- FY2017: 14.6% 

- FY2018: 14.1% 

- FY2019: 13.7% 

- FY2020: 13.6% 

- FY2021: 14.2% 

- FY2022: 12.3% 

- FY2023: 13.1% 

- FY2024: 13.5% 

- FY2025: 14.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in auto parts; annual sales are USD 42 billion.

- Source: https://www.sec.gov/Archives/edgar/data/749098/000119312526128771/d20215d40f.htm (filed 2026-03-27); FY2025: revenue 42010000000; grossProfit 5989000000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MG.TO: Magna International Inc. operates as an automotive supplier in North America, Europe, the Asia Pacific, and internationally. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The company offers design and vehicle concepts, complete vehicle engineering and integration, human-machine interface, developing modules and systems, platform solutions, prototyping and low-volume manufacturing, vehicle safety testing, aerospace, and integrating functionality, features, and ADAS; and complete vehicle solutions, body-in-white, paint, and assembly complete vehicle manufacturing products. It also provides engineering services for commercial vehicles, such as propulsion engineering, software and simulation, testing services, and smart production; OPTiForm, a battery enclosure, steel battery enclosures, aluminum battery enclosures, and hybrid battery enclosures; battery enclosure production and engineering solutions; SmartAccess, a B-Pillarless power door system; and composite EV battery covers. In addition, it offers energy management solutions; hot stamping, high strength steels, aluminum castings, and high-pressure vacuum casting; suspension links and arms, twist axle, carbon fiber subframe, and frames; ADAS and Automated Driving, including Cameras, thermal sensing, interior sensing, complete radar portfolio, and compute units; and chassis control, glow plug control, powertrain control, and mechatronic control modules. Further, it provides exterior and interior products comprising assist steps, engineered glass, exterior solutions, greenhouse surrounds, lighting, mechatronics, mirrors, and seating; and powertrain products consisting BEV, Hybrid, and ICE powertrain, as well as modules and components, and energy storage systems. Magna International Inc. was founded in 1957 and is based in Aurora, Canada.

### Why customers stay

Margins ranged from 13.1% to 14.3% during 2023–25; it earns 12.2% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-27); FY2023: grossProfit / revenue = 13.1%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-27); FY2024: grossProfit / revenue = 13.5%.

- Source: https://www.sec.gov/Archives/edgar/data/749098/000119312526128771/d20215d40f.htm (filed 2026-03-27); FY2025: grossProfit / revenue = 14.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-27); 10-year return on capital observations [[2016,0.21428187060404533],[2017,0.1991513865779411],[2018,0.19868797499138113],[2019,0.14988826924177112],[2020,0.09500841030776858],[2021,0.12484926441032237],[2022,0.09779695923100037],[2023,0.11824532655822925],[2024,0.10252772838845323],[2025,0.09389292799674868]]; median 0.12154729548427581. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 12% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/749098/000119312526128771/d20215d40f.htm (filed 2026-03-27); Gross margin observations: [[2021,0.14196236410794105],[2022,0.12293868921775898],[2023,0.1311306867303783]]; range within 2 percentage points.

### Where the cash goes

Paid dividends in 10 of 10 years; bought back USD 144.5 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-27); FY2016: growth capex 742628299.8826376; upkeep 1064371700.1173624; owner earnings 2022628299.8826375. Growth capex / owner earnings = 0.36716004612697667.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-27); FY2017: growth capex 449857394.0342884; upkeep 1408142605.9657116; owner earnings 1970857394.0342884. Growth capex / owner earnings = 0.22825466489660282.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-27); FY2018: growth capex 354168679.6818559; upkeep 1295831320.318144; owner earnings 2278168679.681856. Growth capex / owner earnings = 0.1554620089550679.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-27); FY2019: growth capex 0; upkeep 1441000000; owner earnings 1299400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-27); FY2020: growth capex 0; upkeep 1145000000; owner earnings 598600000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-27); FY2021: growth capex 0; upkeep 1372000000; owner earnings 1318000000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-27); FY2022: growth capex 76011108; upkeep 1604988892; owner earnings 279200000. Growth capex / owner earnings = 0.2722460888252149.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-27); FY2023: growth capex 800000000; upkeep 1748000000; owner earnings 869400000. Growth capex / owner earnings = 0.9201748332183115.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-27); FY2024: growth capex 10813778.015621662; upkeep 2167186221.9843783; owner earnings 378813778.01562166. Growth capex / owner earnings = 0.028546422129280945.

- Source: https://www.sec.gov/Archives/edgar/data/749098/000119312526128771/d20215d40f.htm (filed 2026-03-27); FY2025: growth capex 0; upkeep 1843720026; owner earnings 563090213. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-27); Dividend observations: [[2016,385000000],[2017,400000000],[2018,448000000],[2019,449000000],[2020,467000000],[2021,514000000],[2022,514000000],[2023,522000000],[2024,539000000],[2025,553523009]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/749098/000119312526128771/d20215d40f.htm (filed 2026-03-27); FY2025: cash repurchases 144485785 USD.

### Are managers owners

Insiders own 5.5% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MG.TO SharesStats.PercentInsiders = 5.522 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 12.1% yearly over ten years; actual decline was 4%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-03-27); Ten-year compound average after fade. Initial solved rate 0.1609639279364946. Price 94.09; FX 1.4190435646374344; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share 3.0073710073710074 → FY2025 2.002454527027027. Closing-price date 2026-10-15.

## Monthly share-price history (CAD per share)

- 2016-10: CAD 55.07 per share

- 2016-11: CAD 54.28 per share

- 2016-12: CAD 58.30 per share

- 2017-01: CAD 56.29 per share

- 2017-02: CAD 56.79 per share

- 2017-03: CAD 57.39 per share

- 2017-04: CAD 57.02 per share

- 2017-05: CAD 60.47 per share

- 2017-06: CAD 60.07 per share

- 2017-07: CAD 59.46 per share

- 2017-08: CAD 60.09 per share

- 2017-09: CAD 66.59 per share

- 2017-10: CAD 70.38 per share

- 2017-11: CAD 72.37 per share

- 2017-12: CAD 71.24 per share

- 2018-01: CAD 70.26 per share

- 2018-02: CAD 70.60 per share

- 2018-03: CAD 72.57 per share

- 2018-04: CAD 75.83 per share

- 2018-05: CAD 83.14 per share

- 2018-06: CAD 76.46 per share

- 2018-07: CAD 79.24 per share

- 2018-08: CAD 70.66 per share

- 2018-09: CAD 67.85 per share

- 2018-10: CAD 64.81 per share

- 2018-11: CAD 66.31 per share

- 2018-12: CAD 61.97 per share

- 2019-01: CAD 69.54 per share

- 2019-02: CAD 69.44 per share

- 2019-03: CAD 65.07 per share

- 2019-04: CAD 74.57 per share

- 2019-05: CAD 57.89 per share

- 2019-06: CAD 65.16 per share

- 2019-07: CAD 66.56 per share

- 2019-08: CAD 66.66 per share

- 2019-09: CAD 70.62 per share

- 2019-10: CAD 70.82 per share

- 2019-11: CAD 73.18 per share

- 2019-12: CAD 71.20 per share

- 2020-01: CAD 67.09 per share

- 2020-02: CAD 61.09 per share

- 2020-03: CAD 44.91 per share

- 2020-04: CAD 54.24 per share

- 2020-05: CAD 58.06 per share

- 2020-06: CAD 60.46 per share

- 2020-07: CAD 61.91 per share

- 2020-08: CAD 63.52 per share

- 2020-09: CAD 60.93 per share

- 2020-10: CAD 68.03 per share

- 2020-11: CAD 79.64 per share

- 2020-12: CAD 90.11 per share

- 2021-01: CAD 90.06 per share

- 2021-02: CAD 107.19 per share

- 2021-03: CAD 110.68 per share

- 2021-04: CAD 116.08 per share

- 2021-05: CAD 119.14 per share

- 2021-06: CAD 114.77 per share

- 2021-07: CAD 104.60 per share

- 2021-08: CAD 99.63 per share

- 2021-09: CAD 95.32 per share

- 2021-10: CAD 100.67 per share

- 2021-11: CAD 95.75 per share

- 2021-12: CAD 102.35 per share

- 2022-01: CAD 102.41 per share

- 2022-02: CAD 94.17 per share

- 2022-03: CAD 80.26 per share

- 2022-04: CAD 77.42 per share

- 2022-05: CAD 82.08 per share

- 2022-06: CAD 70.68 per share

- 2022-07: CAD 81.77 per share

- 2022-08: CAD 75.87 per share

- 2022-09: CAD 65.53 per share

- 2022-10: CAD 75.92 per share

- 2022-11: CAD 82.83 per share

- 2022-12: CAD 76.06 per share

- 2023-01: CAD 86.38 per share

- 2023-02: CAD 76.05 per share

- 2023-03: CAD 72.39 per share

- 2023-04: CAD 70.64 per share

- 2023-05: CAD 65.68 per share

- 2023-06: CAD 74.79 per share

- 2023-07: CAD 84.81 per share

- 2023-08: CAD 79.48 per share

- 2023-09: CAD 72.79 per share

- 2023-10: CAD 66.64 per share

- 2023-11: CAD 73.16 per share

- 2023-12: CAD 78.29 per share

- 2024-01: CAD 76.41 per share

- 2024-02: CAD 74.78 per share

- 2024-03: CAD 73.79 per share

- 2024-04: CAD 65.80 per share

- 2024-05: CAD 61.66 per share

- 2024-06: CAD 57.34 per share

- 2024-07: CAD 61.27 per share

- 2024-08: CAD 56.64 per share

- 2024-09: CAD 55.48 per share

- 2024-10: CAD 54.97 per share

- 2024-11: CAD 63.63 per share

- 2024-12: CAD 60.08 per share

- 2025-01: CAD 57.62 per share

- 2025-02: CAD 52.69 per share

- 2025-03: CAD 48.91 per share

- 2025-04: CAD 47.90 per share

- 2025-05: CAD 49.82 per share

- 2025-06: CAD 52.64 per share

- 2025-07: CAD 56.82 per share

- 2025-08: CAD 63.04 per share

- 2025-09: CAD 65.94 per share

- 2025-10: CAD 66.26 per share

- 2025-11: CAD 68.39 per share

- 2025-12: CAD 73.17 per share

- 2026-01: CAD 69.61 per share

- 2026-02: CAD 86.01 per share

- 2026-03: CAD 77.69 per share

- 2026-04: CAD 86.45 per share

- 2026-05: CAD 89.35 per share

- 2026-06: CAD 93.26 per share

- 2026-07: CAD 96.14 per share

- 2026-08: CAD 91.00 per share

- 2026-09: CAD 90.66 per share

- 2026-10: CAD 92.81 per share

## Annual estimated value (CAD per share)

- FY2016: low CAD 72.49 per share, central CAD 94.47 per share, high CAD 110.35 per share

- FY2017: low CAD 87.84 per share, central CAD 118.41 per share, high CAD 138.71 per share

- FY2018: low CAD 118.44 per share, central CAD 167.43 per share, high CAD 196.58 per share

- FY2019: low CAD 127.94 per share, central CAD 181.79 per share, high CAD 213.15 per share

- FY2020: low CAD 97.49 per share, central CAD 109.24 per share, high CAD 124.87 per share

- FY2021: low CAD 78.24 per share, central CAD 87.59 per share, high CAD 100.03 per share

- FY2022: low CAD 69.92 per share, central CAD 79.24 per share, high CAD 91.63 per share

- FY2023: low CAD 48.74 per share, central CAD 55.23 per share, high CAD 63.87 per share

- FY2024: low CAD 44.55 per share, central CAD 50.42 per share, high CAD 58.24 per share

- FY2025: low CAD 34.94 per share, central CAD 39.22 per share, high CAD 44.92 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:40:41.634Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 40-F filing](https://www.sec.gov/Archives/edgar/data/749098/000119312526128771/d20215d40f.htm); period 2025-12-31, filed 2026-03-27.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.