| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 87 | 24.3x | 17.8x | Top tier | |
Growth | 17 | 1.9% | 7.1% | Bottom tier | |
Quality | 54 | 9.3% | 4.5% | Around median | |
Safety | 67 | 1.9x | 2.6x | Top tier | |
Capital Return | 83 | 2.94% | 2.12% | Top tier | |
Momentum | 79 | 51.7% | 2.9% | Top tier | |
Sentiment | 76 | 12 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Magna International Inc. operates as a global automotive supplier through four main segments: Body Exteriors & Structures, Power & Vision, Seating, and Complete Vehicles. It generates revenue by supplying body structures, systems, seating, and power and vision technologies, as well as assembling vehicles and providing engineering services; in Complete Vehicles, sales recognition differs between programs recorded on a full-cost basis and new programs with Chinese companies in Graz recorded on a value-added basis.
In Q2 FY2026, sales increased 3% to $11.0 billion, while organic growth excluding currency effects was approximately 2%, compared with a 2% decline in global light vehicle production. Adjusted EBIT rose 16% to $677 million, and its margin expanded by 70 basis points to 6.2%, while adjusted earnings per share increased 29% to a record level for this quarter of $1.86. The company generated $954 million in operating cash flow and $617 million in free cash flow, more than double its level in the comparable period.
Sales increased in three of the four segments in Q2 FY2026, led by Power & Vision with 6% growth and margin improvement, while Vision, Seating, and Complete Vehicles recorded notable improvements in adjusted EBIT and their margins. In contrast, Complete Vehicles sales declined 5% despite higher units, due to lower sales from programs recorded on a full-cost basis and lower engineering revenue, while the Body Exteriors & Structures margin was approximately 8.1%, down 10 basis points due to a less favorable sales mix. On an annual basis, FY2025 showed revenue of $42.0 billion, gross profit of $6.0 billion, net income of $829 million, and earnings per share of $2.93.
The analyst consensus is "Buy," with an average price target of $69 and a wide range between $55 and $80, reflecting meaningful differences in assessments of the earnings trajectory and operating risks. The average target is below the 52-week range high of $73.22, while the highest target exceeds that high and the lowest target is close to the lower portion of the $43.11–$73.22 range; therefore, the valuation combines the impact of raised FY2026 guidance with the risks of slowing organic growth, business divestitures, and volatility in automotive production, tariffs, and input costs.
Figures in the text are as of 2026-08-29; the live price is shown at the top of the page.
Magna's sales increased 3% to $11.0 billion and rose organically by approximately 2% excluding currency effects, despite a 2% decline in global light vehicle production. Adjusted EBIT increased 16% to $677 million, and its margin expanded by 70 basis points to 6.2%. Adjusted earnings per share also rose 29% to $1.86, a record for the second quarter, and operational excellence initiatives were the largest factor within an approximately 75-basis-point benefit from operating performance, volume, and other factors.
The company raised its FY2026 adjusted EBIT margin range to between 6.3% and 6.6%, an increase of 15 basis points at the midpoint from its previous forecast. It also raised its adjusted earnings per share range to $6.70–$7.30, with the midpoint representing growth of 22% from the prior year. The midpoint of the free cash flow outlook increased to $1.8 billion, up $100 million from the May 2026 forecast, with cash conversion of approximately 95% of adjusted net income.
Launches, volumes, and mix added $273 million to Q2 FY2026 sales, supported by Jeep Cherokee Recon, Zeekr 9X, and RAM 1500. Magna also secured a driver and occupant monitoring program with a European vehicle manufacturer based on hardware and software integrated into the mirror. In power systems, it won an 800V 2-speed eDrive program with Chery Automotive, after its dedicated hybrid system entered series production for the Jetour G700.
Automated analysis for informational purposes only — not investment advice.
Power & Vision grew 6% year over year in Q2 FY2026, delivering weighted growth above the market of approximately 5% and a margin of approximately 6%. The segment benefited from incremental margins on higher sales, operational excellence initiatives, higher equity income, and accelerated tariff recoveries. In contrast, the divestitures of the lighting and roof systems businesses will remove more than $400 million from its revenue in the second half of FY2026, making margin improvement more important than reported revenue growth.
Magna expects organic growth to decline by slightly more than 1% at the midpoint of guidance, with most of the decline concentrated in Q3 FY2026 due to model changeovers, seasonality, and the end of production for Ford Escape, Toyota Supra, and BMW Z4. The outlook also includes modest unrecovered pressure from DRAM and higher costs for some commodities and inputs. In addition, the company expects second-half earnings per share to be distributed approximately 40% in Q3 and 60% in Q4, increasing the importance of executing launches and operational improvements at the end of the year.
Magna ended Q2 FY2026 with total liquidity of approximately $5 billion, including $1.4 billion in cash, and a debt-to-EBITDA ratio of 1.4 times. During the quarter, it generated $954 million in operating cash flow and $617 million in free cash flow. It also returned $598 million to shareholders, including $465 million to repurchase 7.4 million shares and $133 million in dividends, and slightly more than 9 million shares remained under the repurchase authorization as of June 30, 2026.
