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Is this Large Market Cap Stock target price reasonable for Magna International Inc. (NYSE:MGA)?

The company in question is, Magna International Inc. (NYSE:MGA) currently with a stock price of 38.7 (-0.28% today). The market cap for Magna International Inc. is 15401.36, and is in the sector Services, and Auto Parts Wholesale industry. The target price for Magna International Inc. is 52.3. Currently Magna International Inc. is trading with a P/E of 8.02, and a forward P/E of 6.69. Average volume for Magna International Inc. is 1638.62 and so far today it is 440685.

Performance in the last year for Magna International Inc. has been -26.31%. For EPS growth, Magna International Inc. has seen a growth of 6.20%, and is looking to grow in the next year to 13.53%. More long term stats show that EPS growth has been 1.80% over the last five years and could be 9.60% for the next five years. Magna International Inc. has seen sales growth quarter over quarter at 14.50%, with EPS growth quarter over quarter at 11.40%. The 20-day simple moving average is 0.73%, with the 200-day simple moving average coming to -4.60%.

Since the IPO date for Magna International Inc. on the 3/26/1990, Magna International Inc. has seen performance year to date to be -3.10%. With Magna International Inc. trading at 38.7, the dividend yield is 2.58%, and the EPS is 4.84.

So could Magna International Inc., be undervalued? Well as said before P/E is 8.02. The PEG is 0.84, P/S is 0.46 and the P/B is at 1.64. The P/cash is 24.64, with P/free cash flow at 48.28.

Magna International Inc. ability to deal with debt shows that the current ratio is 1.2, and the quick ratio is 0.9. This is with long term debt/equity at 0.26, and total debt/equity at 0.33.

In terms of margins, Magna International Inc. has a gross margin of 14.30%, an operating margin of 8.10% and a profit margin of 6.10%.Payout ratio for Magna International Inc. is 18.10%. Return on assets come to 10.30% with return on investment coming to 16.80%.

Insider ownership for Magna International Inc., is at 1.60% and institutional ownership comes to 72.20%. Outstanding shares are at 396.84. While shares float is 371.1. The float short is currently 0.90%, and short ratio is 2.05.

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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