Cheap on fundamentals and generating exceptional free cash flow, but business quality sits below the minimum acceptable threshold and options market positioning reflects meaningful near-term uncertainty — the setup is not compelling for new capital.
Thesis pillars
- Attractive Valuation Multiples→Stable
- Strong Free Cash Conversion↓Deteriorating
- Quality Below Minimum Threshold↑Improving
- +1 more pillar — see the Why tab for full reasoning
Pillars as of Jul 3, 2026· older than 90 days
Magna International, Inc. (MGA) Stock Analysis
Consumer Cyclical · Auto Parts
Sell if holding. Engine safety override at $62.97: Quality below floor (2.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: Below-average business quality.
Magna International Inc. operates as an automotive supplier in North America, Europe, the Asia Pacific, and internationally. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The company offers design and... Read more
Sell if holding. Engine safety override at $62.97: Quality below floor (2.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Score 5.3/10, moderate confidence.
Passes 6/8 gates (clean insider activity, no SEC red flags, news events none recent, earnings proximity 100d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and favorable risk/reward ratio. Suitability: aggressive.
Recent developments
updated Nov 2, 2026Recent Developments — Magna International, Inc.
Latest news
- NEWS RBC Capital Maintains Sector Perform on Magna International, Lowers Price Target to $66 — benzinga Nov 2, 2026 negative
- NEWS Magna Unveils Massive Stock Buyback Covering 10% of Public Float — benzinga Oct 30, 2026 positive
- NEWS Magna Q3 Seating Sales $1.25B, Down 18% Y/Y; Adj EBIT Margin 2.2% vs 4.1% — benzinga Oct 30, 2026 negative
- NEWS Magna Q3 Includes $76M Restructuring Charge For European Plant Closures, Rightsizing In Power & Vision Unit — benzinga Oct 30, 2026 negative
- NEWS Magna International Q3 Adj. EPS $1.83 Beats $1.59 Estimate, Sales $10.059B Beat $10.014B Estimate — benzinga Oct 30, 2026 positive
Latest item Nov 2, 2026 · Generated 2026-11-04T11:59:36Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
1 floor-breaker
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $62.97: Quality below floor (2.3 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.3/10. Specifically: Below-average business quality. Chart setup: No clear chart pattern; technical signals are mixed. Prior stop was $60.02. Score 5.3/10, moderate confidence.
Analyst target: $64.80 (+2.9% upside). Prior stop was $60.02. Stop-loss: $60.02.
Target reached (2.9% upside); Quality below floor (2.3 < 4.0); Value-trap signals (2/5): Margin compression (op margin 4.2%), High leverage (D/E 3.5).
Magna International, Inc. trades at a P/E of 20.5 (forward 8.0). TrendMatrix value score: 8.2/10. Verdict: Sell.
20 analysts rate MGA, with a consensus score of 3.6/5. 17 analysts publish price targets averaging $72.
What does Magna International, Inc. do?Magna International Inc. operates as an automotive supplier in North America, Europe, the Asia Pacific, and...
Magna International Inc. operates as an automotive supplier in North America, Europe, the Asia Pacific, and internationally. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The company offers design and vehicle concepts, complete vehicle engineering and integration, human-machine interface, developing modules and systems, platform solutions, prototyping and low-volume manufacturing, vehicle safety testing, aerospace, and integrating functionality, features, and ADAS; and complete vehicle solutions, body-in-white, paint, and assembly complete vehicle manufacturing products. It also provides engineering services for commercial vehicles, such as propulsion engineering, software and simulation, testing services, and smart production; OPTiForm, a battery enclosure, steel battery enclosures, aluminum battery enclosures, and hybrid battery enclosures; battery enclosure production and engineering solutions; SmartAccess, a B-Pillarless power door system; and composite EV battery covers. In addition, it offers energy management solutions; hot stamping, high strength steels, aluminum castings, and high-pressure vacuum casting; suspension links and arms, twist axle, carbon fiber subframe, and frames; ADAS and Automated Driving, including Cameras, thermal sensing, interior sensing, complete radar portfolio, and compute units; and chassis control, glow plug control, powertrain control, and mechatronic control modules. Further, it provides exterior and interior products comprising assist steps, engineered glass, exterior solutions, greenhouse surrounds, lighting, mechatronics, mirrors, and seating; and powertrain products consisting BEV, Hybrid, and ICE powertrain, as well as modules and components, and energy storage systems. Magna International Inc. was founded in 1957 and is based in Aurora, Canada.