Don’t Rush to Buy Magna International Stock Just Because It’s Going Ex-Dividend Soon
May 16, 2023
Trending News 🌥️
It can be tempting to buy a stock when it’s going ex-dividend soon, but don’t be so hasty when it comes to Magna International ($TSX:MG) Inc. Stock. With a long history in the industry, Magna International designs, develops, and manufactures automotive components, systems, and modules for automakers. Before considering investing in Magna International Inc. stock, it is important to understand the company’s current financials. While its third quarter earnings release showed a slight improvement in its bottom line, the company is still struggling with declining sales and rising costs.
Furthermore, its debt load is still high and the company is facing pressure from rising steel costs. In summary, it is important to approach any potential stock purchase with caution. Although Magna International is a well-established company with a long history in the automotive industry, investors should do their research and evaluate the company’s current financials before investing in its stock.
Dividends
In the last three years, the company has issued an annual dividend per share of 1.81 USD, 1.8 USD, and 1.72 USD. If you are interested in dividend stocks, then you may want to add Magna International to your list of consideration. However, it is important to do your own research and analysis to determine whether it is the best choice for your portfolio. It is also important to compare Magna’s dividends with those of its competitors as well as other dividend stocks in the market.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Magna International. More…
| Total Revenues | Net Income | Net Margin |
| 38.87k | 437 | 2.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Magna International. More…
| Operations | Investing | Financing |
| 2.14k | -2.29k | 606 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Magna International. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 30.65k | 19.16k | 38.75 |
Key Ratios Snapshot
Some of the financial key ratios for Magna International are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 1.2% | -10.2% | 2.2% |
| FCF Margin | ROE | ROA |
| 0.6% | 4.8% | 1.7% |
Stock Price
On Monday, MAGNA INTERNATIONAL stock opened at CA$71.4 and closed at CA$72.0, up by 1.1% from the previous closing price of 71.2. It’s important for investors to look beyond the ex-dividend date and evaluate the company’s financial performance in order to make an informed decision about whether or not to purchase the stock. Investors should also be aware of any external factors which could affect the stock price. For example, the company’s ongoing dispute with the Canadian government could potentially result in increased costs or reduced demand for its products and services.
Additionally, global political and economic events could have an impact on the company’s profits and share price. They should take the time to evaluate the company’s financial performance, potential future risks, and any external factors which may affect the stock price before making an investment decision. Live Quote…
Analysis
As GoodWhale, we conducted an analysis of MAGNA INTERNATIONAL, one of the world’s leading automotive suppliers. According to our Star Chart, MAGNA INTERNATIONAL is strong in dividend, medium in asset, profitability and weak in growth. Based on the company’s characteristics we categorized it as ‘cow’, a type of company that has the track record of paying out consistent and sustainable dividends. This makes MAGNA INTERNATIONAL a great option for investors who are looking for passive income but are also willing to take a long-term approach and tolerate slower growth. The financial health of MAGNA INTERNATIONAL has also been evaluated to be very robust, with a very high score of 9/10 when it comes to cash flows and debt. This indicates that MAGNA INTERNATIONAL is capable to safely ride out any crisis without the risk of bankruptcy, making it an attractive choice for investors who are looking for stability in their investments. More…
Peers
Magna International Inc is one of the world’s leading suppliers of automotive systems and components. The company has operations in more than 30 countries and employs over 150,000 people. Magna’s products include body, chassis, exterior, seating, powertrain, electronic, vision, and closure systems. The company has a diversified customer base that includes all major automakers. Magna’s main competitors are Knorr-Bremse AG, TI Fluid Systems PLC, and Denso Corp. These companies are also leading suppliers of automotive systems and components. Knorr-Bremse is a German company with over 100 years of experience in the industry. TI Fluid Systems is a UK-based company with a strong presence in Europe and Asia. Denso is a Japanese company that is a leading supplier of automotive components.
– Knorr-Bremse AG ($OTCPK:KNBHF)
Knorr-Bremse AG is a leading manufacturer of braking systems for rail and commercial vehicles. The company has a market cap of 7.3B as of 2022 and a return on equity of 20.39%. Knorr-Bremse AG’s products are used all over the world and the company has a strong presence in Europe, North America, and Asia.
– TI Fluid Systems PLC ($LSE:TIFS)
JTI Fluid Systems PLC is a provider of automotive fluid systems and components. The company has a market cap of 650.34M as of 2022 and a return on equity of 6.17%. JTI Fluid Systems PLC designs, manufactures, and supplies automotive fluid systems and components for original equipment manufacturers and the aftermarket. The company’s products include fuel tanks, fuel pumps, and fuel system components; oil pans and related products; and cooling system products, such as radiators, fan assemblies, and cooling system components. JTI Fluid Systems PLC also offers engineering and technical services. The company was founded in 2004 and is headquartered in Coventry, United Kingdom.
– Denso Corp ($TSE:6902)
Denso Corporation is a Japanese multinational automotive components manufacturer headquartered in Kariya, Aichi Prefecture, Japan. The company produces electrical and electronic products for the automotive industry, and employs approximately 60,000 people in 35 countries.
Denso’s market capitalization is 5.37T as of 2022. The company has a Return on Equity of 5.0%. Denso Corporation is a leading manufacturer of automotive components, producing electrical and electronic products for the automotive industry. The company has a strong presence in 35 countries and employs approximately 60,000 people.
Summary
Investing in Magna International Inc. may not be the best move for investors. Even though the stock is about to trade ex-dividend, it may not pay off due to the current market conditions. Investors should undertake extensive research of the company, its current financial health, and its future prospects in order to make an informed investment decision. This includes looking into the company’s balance sheet, income statement, cash flow, and any other relevant information.
Additionally, investors should consider whether the dividend yield is high enough to justify the risks of investing in Magna International Inc., and if it is not, they should look elsewhere for better investments. Finally, investors should monitor the stock closely and weigh the potential reward versus the risk of investing in the stock before making a final decision.
Related Posts
Recent Posts
Investing Everyone Can Do.
Investing shouldn’t be exclusive to a select few. We believe everyone should have the opportunity to grow their wealth. That’s why our app is designed to be accessible and user-friendly, even for beginners.
