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Magna International Inc. (NYSE: MGA) – Is this large market cap stock undervalued?

Magna International Inc. (NYSE: MGA), is firmly in the large market cap category with market cap of 15455.64. To be considered a large market cap stock companies have to be valued at more than $10 billion. The current price for Magna International Inc. is 40.12 (with a change from open of 0.31%), this in conjunction with a target price of 89.27. Volume today has so far reached 436964, with an average volume of about 1546.26. The GAP for this stock, is 0.91%.

The P/E ratio is 8, bringing the forward P/E to a value of 6.74. The current EPS for Magna International Inc., is 4.95, with a EPS growth for this year coming to a value of 6.20%. Performance has been interesting with performance year to date coming to -0.42%.

Looking further into the growth statistics for Magna International Inc., EPS is looking like it will grow 12.69% in the next year. Looking even further it is projected to be 11.07%. Quarter over quarter is 8.90% for EPS growth and for sales growth quarter over quarter it is 16.10%. Looking at past EPS growth statistics we see that for the past five years it has been 1.80%. Sales growth for the past five years has in fact been 6.50%.

Looking at the ownership, we see that the insider ownership is at 1.60% and institutional ownership is 72.20%. Shares outstanding is 389.9, while shares float is at a value of 363.31. Float short for Magna International Inc. is 0.73% and the short ratio is 1.71.

In terms of debt, long term debt/equity is 0.26, while the total debt/equity comes to 0.35. The ability to meet these debts, means that the current ratio is 1.2, and the quick ratio is 0.9. The most recent gross margin is 14.40% and their operating margin is 7.90%. The profit margin is 6.10%.

Magna International Inc. has seen returns on assets of 10.20%, and on investment, 16.80%. Return on equity is 23.00%. Price/Earnings to growth ratio is 0.72. Price/Sales ratio is at a value of 0.45, with Price/book ratio coming to 1.64 and Price/cash is 25.89, and finally Price/Free cash Flow is 28.84.

The simple moving averages are 2.26% and 3.51% for 20 day and 200 day simple moving average respectively. For the 52 week high and low the 52 week high is -23.76% and the 52 week low is 34.44%.

Magna International Inc. has a dividend yield of 2.52%, with a current price of 40.12. The ability to pay this means the payout ratio is 17.80%. This is in an industry, Auto Parts Wholesale, with equally high dividends from other companies in this sector, which it is Services. Magna International Inc. is based in Canada.

Performance in the Auto Parts Wholesale industry means that Magna International Inc. has seen performance for the past week of -0.55%, with performance for the month coming to -1.95%. Looking at the data for the quarter it is at a value of 1.41%, and for the half year the performance is -20.03%. Volatility for this week is 2.22% and for the month this is 1.68%.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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