Magna International Stock Fair Value Calculator – MAGNA INTERNATIONAL Reports 79.5% Decrease in Q4 FY2022 Revenue to USD 95 Million

Earnings Overview

MAGNA INTERNATIONAL ($TSX:MG) reported its results for the fourth quarter of FY2022 on February 10 2023, with total revenue of USD 95.0 million, a 79.5% decrease year-over-year. The company’s net income for the quarter was USD 9568.0 million, a 5.0% increase compared to the same period in the previous year.

Price History

On Friday, MAGNA INTERNATIONAL released its financial reports for the fourth quarter of FY2022. The reports showed a 79.5% decrease in revenue to USD 95 million compared to the previous year’s quarter. This resulted in a significant drop in the company’s stock price, as it opened at CA$78.0 and closed at CA$72.2 – a 17.0% plunge from its last closing price of 87.0. The decrease in revenue was attributed to several factors, including depressed demand in the automotive sector due to the economic effects of the COVID-19 pandemic and the resulting decline in consumer spending. Moreover, the company’s production facilities faced multiple shutdowns, resulting in disruption of their operations and lower profitability. The loss was attributed to increased costs related to the operation shutdowns, as well as additional expenses incurred from measures taken to ensure employee health and safety.

Despite these disappointing results, MAGNA INTERNATIONAL assured investors that it was taking steps to improve its performance in the coming months. The company has already implemented cost-saving measures such as reducing headcount and placing restrictions on non-essential spending, with the goal of improving profitability in future quarters. Overall, this quarter’s results serve as a reminder that MAGNA INTERNATIONAL is not immune to the economic downturn caused by the pandemic. Investors will likely remain cautious pending further updates on the company’s performance in upcoming quarters. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Magna International. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Magna International. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Magna International. More…

Key Ratios Snapshot

Some of the financial key ratios for Magna International are shown below. More…

Analysis – Magna International Stock Fair Value Calculator

At GoodWhale, we have examined MAGNA INTERNATIONAL‘s financials to determine the intrinsic value of their share. After careful analysis, we have concluded that the intrinsic value of the stock is around CA$89.0, determined by our proprietary Valuation Line. Currently, MAGNA INTERNATIONAL’s stock is being traded at CA$72.2, indicating that the stock is undervalued by 18.8%. This presents an opportunity for investors who are looking to buy a stock at a fair price. 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

Magna International reported its FY2022 Q4 earnings results on February 10 2023 with a 79.5% decrease in total revenue compared to the same period a year earlier. Net income for the quarter was USD 9568.0 million, a 5.0% increase from the year prior. Despite the positive net income, investors were discouraged by the falling revenue and the stock price moved down the same day.

Investing in Magna International may be risky given their recent performance, but it could have potential upside as the company looks to adapt and improve its operations in order to remain competitive. Investors should conduct their own due diligence and research to make an informed decision.