Magna International Inc
TSX:MG
Intrinsic Value
The intrinsic value of one
MG
stock under the Base Case scenario is
88.36
CAD.
Compared to the current market price of 71.77 CAD,
Magna International Inc
is
Undervalued by 19%.
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Fundamental Analysis
Magna’s expansion efforts into electric vehicle components may strain its profitability if volumes fail to ramp up as quickly as planned or if automakers exert pricing pressure, leading to lower margins on new contracts.
The company’s broad geographic footprint increases exposure to regional economic fluctuations and potential trade barriers, which could disrupt manufacturing operations or raise costs in key markets such as Europe and North America.
Persistent cost inflation in raw materials and labor could exacerbate margin compression, particularly if Magna struggles to pass along these increases to OEM customers who are focused on cost containment.
Magna’s sizeable scale and longstanding relationships with major global automakers give it a competitive edge in securing high-volume supply contracts and supporting steady revenue growth.
The company’s strategic focus on e-mobility, including partnerships for electric powertrains and battery enclosures, positions Magna to capture incremental content per vehicle as the industry pivots to electrification.
Magna’s prowess in advanced driver-assistance systems and complete vehicle engineering solutions can drive higher-margin business lines, differentiating it from smaller, less integrated Tier 1 suppliers.
Revenue & Expenses Breakdown
Magna International Inc
Earnings Waterfall
Magna International Inc
Wall St
Price Targets
MG Price Targets Summary
Magna International Inc
According to Wall Street analysts, the average 1-year price target for
MG
is 57.41 CAD
with a low forecast of 48.48 CAD and a high forecast of 67.2 CAD.
The intrinsic value of one
MG
stock under the Base Case scenario is
88.36
CAD.
Compared to the current market price of 71.77 CAD,
Magna International Inc
is
Undervalued by 19%.