Magna International Inc. (MG.TO) stock analysis

In our weekly check, Magna International Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 5.

About Magna International Inc.

Magna International Inc. is a Consumer Cyclical company (Auto - Parts) based in Canada, listed on TSX as MG.TO.

What our checks show for MG.TO

Red flags

• The net margin fell by 2.4 points over 5 years, to 1.8%: the company keeps less of each sale as profit.
• The gross margin fell by 2.4 points, to 11.8%: costs are rising faster than prices.
• The net margin is only 1.8%: little room if costs rise.
• The stock has fallen as much as 74% from a peak. Would you have held through that?
• Beta 1.81: the stock usually moves more than the market, both up and down.

Warning signs

• Analysts expect only about 0.2% a year of growth in revenue.
• Revenue grew only 3.9% a year over the last 3 years.
• The price swings a lot: 35.7% annual volatility. Expect large ups and downs.
• Recovering from its deepest fall took about 1.7 years.

Strengths

• Operating profit covers interest 15.2 times over.
• Operating cash flow is 6.04x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 57.5% a year over the next years.
• Analysts expect the net margin to improve by 3.5 points from today's 1.8%.
• A large company: market value $17.1 billion.
• Pay in shares is only 0% of free cash flow.

Next earnings report: 2026-10-30

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GPC · BWA · APTV · ALSN · ALV · LEA

Questions

What grade does Magna International Inc. (MG.TO) have?

In our weekly check, Magna International Inc. is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 16 pass, warnings: 4, red flags: 5. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of MG.TO stock?

This week's biggest flags for Magna International Inc.: Margins falling, Gross margin falling, Thin margins. In total 9 of 25 checks show a warning or a red flag.

What does Magna International Inc. do?

Magna International Inc. is a Consumer Cyclical company (Auto - Parts) based in Canada, listed on TSX as MG.TO.

When does Magna International Inc. report earnings next?

The next earnings report is expected on 2026-10-30. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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