MGA:NYSEMagna International, Inc. Analysis
Data as of 2026-06-18 - not real-time
$65.99
Latest Price
7/10Risk
Risk Level: Medium
Executive Summary
Magna International trades at $65.99, comfortably above its 20‑day SMA of 65.92 and 50‑day SMA of 62.84, but below the 200‑day SMA of 54.79, indicating a short‑term bullish bias within a longer‑term uptrend. The stock sits near the midpoint of its technical corridor, with a support level at 60.10 and resistance at 69.19, while the RSI of 54.3 suggests neutral momentum. However, the MACD histogram is negative (-0.28), flagging bearish momentum, and volume is on a decreasing trend, adding caution. Volatility is elevated at 34% over the past 30 days and beta exceeds 1.2, implying higher market sensitivity; the Fear & Greed Index at 90.6 (Extreme Greed) reflects strong market enthusiasm that may be overstretched. Fundamentally, the price is well below the DCF‑derived fair value of $96.74, offering an upside of roughly 5.4%. Forward earnings are compelling with a forward PE of 8.68 versus a trailing PE of 27.84, and the company generates robust operating cash flow and free cash flow despite modest profit margins.
The business shows steady revenue growth of 3.1% and a solid balance sheet with a debt‑to‑equity of 54.6% and ample cash reserves. No dividend is paid, so income‑focused investors will look to capital appreciation. Recent material news includes a bullish thesis circulating on Reddit, the upcoming Q1 2026 results webcast, and a smooth annual meeting confirming governance stability. These factors, combined with Magna’s strategic positioning in EV‑related components and global footprint, support a positive outlook, especially for medium‑ to long‑term investors.
The business shows steady revenue growth of 3.1% and a solid balance sheet with a debt‑to‑equity of 54.6% and ample cash reserves. No dividend is paid, so income‑focused investors will look to capital appreciation. Recent material news includes a bullish thesis circulating on Reddit, the upcoming Q1 2026 results webcast, and a smooth annual meeting confirming governance stability. These factors, combined with Magna’s strategic positioning in EV‑related components and global footprint, support a positive outlook, especially for medium‑ to long‑term investors.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Bearish MACD histogram indicating short‑term momentum weakness
- Decreasing volume trend reducing immediate price support
- Price positioned near mid‑range between support and resistance
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Undervaluation relative to DCF fair value and attractive forward PE
- Exposure to growing EV and ADAS markets across multiple regions
- Strong operating and free cash flow despite modest margins
Long Term
> 3 yearsPositive
Model confidence: 9/10
Key Factors
- Strategic global supplier role with diversified product portfolio
- Continued secular demand for automotive parts and electrification
- Solid balance sheet and capacity to invest in next‑generation technologies
Key Metrics & Analysis
Financial Health
Revenue Growth3.10%
Profit Margin1.58%
P/E Ratio27.8
ROE5.97%
ROA4.41%
Debt/Equity54.60
P/B Ratio1.5
Op. Cash Flow$4.2B
Free Cash Flow$2.1B
Technical Analysis
TrendBullish
RSI54.3
Support$60.10
Resistance$69.19
MA 20$65.92
MA 50$62.84
MA 200$54.79
MACDBearish
VolumeDecreasing
Fear & Greed Index90.64
Valuation
Fair Value$96.74
Target Price$69.56
Upside/Downside5.41%
GradeUndervalued
TypeBlend
Risk Assessment
Beta1.20
Volatility34.07%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.