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Magna International (FRA:MGA) Piotroski F-Score : 5 (As of Dec. 15, 2024)


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What is Magna International Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Magna International has an F-score of 5 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Magna International's Piotroski F-Score or its related term are showing as below:

FRA:MGA' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 8
Current: 5

During the past 13 years, the highest Piotroski F-Score of Magna International was 8. The lowest was 4. And the median was 6.


Magna International Piotroski F-Score Historical Data

The historical data trend for Magna International's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Magna International Piotroski F-Score Chart

Magna International Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 5.00 6.00 6.00 6.00

Magna International Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 6.00 6.00 5.00 5.00

Competitive Comparison of Magna International's Piotroski F-Score

For the Auto Parts subindustry, Magna International's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Magna International's Piotroski F-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Magna International's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Magna International's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep24) TTM:Last Year (Sep23) TTM:
Net Income was 248.507 + 8.28 + 290.777 + 436.084 = €984 Mil.
Cash Flow from Operations was 1447.026 + 240.12 + 683.744 + 655.027 = €3,026 Mil.
Revenue was 9586.318 + 10092.4 + 10179.982 + 9262.28 = €39,121 Mil.
Gross Profit was 1369.081 + 1221.76 + 1360.056 + 1308.252 = €5,259 Mil.
Average Total Assets from the begining of this year (Sep23)
to the end of this year (Sep24) was
(29679.475 + 29577.835 + 30063.76 + 29714.994 + 29543.79) / 5 = €29715.9708 Mil.
Total Assets at the begining of this year (Sep23) was €29,679 Mil.
Long-Term Debt & Capital Lease Obligation was €5,743 Mil.
Total Current Assets was €12,914 Mil.
Total Current Liabilities was €11,353 Mil.
Net Income was 89.68 + 195.206 + 312.897 + 369.178 = €967 Mil.

Revenue was 9032.192 + 9968.582 + 10136.386 + 10014.656 = €39,152 Mil.
Gross Profit was 1099.76 + 1174.038 + 1327.274 + 1334.288 = €4,935 Mil.
Average Total Assets from the begining of last year (Sep22)
to the end of last year (Sep23) was
(26933.67 + 26232.816 + 28630.836 + 29386.474 + 29679.475) / 5 = €28172.6542 Mil.
Total Assets at the begining of last year (Sep22) was €26,934 Mil.
Long-Term Debt & Capital Lease Obligation was €5,082 Mil.
Total Current Assets was €13,715 Mil.
Total Current Liabilities was €12,336 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Magna International's current Net Income (TTM) was 984. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Magna International's current Cash Flow from Operations (TTM) was 3,026. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep23)
=983.648/29679.475
=0.03314237

ROA (Last Year)=Net Income/Total Assets (Sep22)
=966.961/26933.67
=0.03590157

Magna International's return on assets of this year was 0.03314237. Magna International's return on assets of last year was 0.03590157. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Magna International's current Net Income (TTM) was 984. Magna International's current Cash Flow from Operations (TTM) was 3,026. ==> 3,026 > 984 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep23 to Sep24
=5742.974/29715.9708
=0.1932622

Gearing (Last Year: Sep23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep22 to Sep23
=5082.288/28172.6542
=0.18039791

Magna International's gearing of this year was 0.1932622. Magna International's gearing of last year was 0.18039791. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep24)=Total Current Assets/Total Current Liabilities
=12914.033/11352.6
=1.13753968

Current Ratio (Last Year: Sep23)=Total Current Assets/Total Current Liabilities
=13714.869/12335.605
=1.11181162

Magna International's current ratio of this year was 1.13753968. Magna International's current ratio of last year was 1.11181162. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Magna International's number of shares in issue this year was 287.3. Magna International's number of shares in issue last year was 286.8. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=5259.149/39120.98
=0.13443296

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=4935.36/39151.816
=0.12605699

Magna International's gross margin of this year was 0.13443296. Magna International's gross margin of last year was 0.12605699. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep23)
=39120.98/29679.475
=1.31811563

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep22)
=39151.816/26933.67
=1.45363836

Magna International's asset turnover of this year was 1.31811563. Magna International's asset turnover of last year was 1.45363836. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+1+0+1+0
=5

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Magna International has an F-score of 5 indicating the company's financial situation is typical for a stable company.

Magna International  (FRA:MGA) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Magna International Piotroski F-Score Related Terms

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Magna International Business Description

Traded in Other Exchanges
Address
337 Magna Drive, Aurora, ON, CAN, L4G 7K1
Magna International prides itself on a highly entrepreneurial culture and a corporate constitution that outlines distribution of profits to various stakeholders. This automotive supplier's product groups include exteriors, interiors, seating, roof systems, body and chassis, powertrain, vision and electronic systems, closure systems, electric vehicle systems, tooling and engineering, and contract vehicle assembly. In 2023, 48% of Magna's $42.8 billion of revenue came from North America while Europe accounted for approximately 38% and Asia the remainder. The firm's top six customers constituted 76% of revenue with the top three being GM, Mercedes, and BMW. GM was the largest contributor at 14%. The company was founded in 1957, has over 179,000 employees, and is based in Aurora, Ontario.