Magna InternationalMGA -0.62%77 Gross Margin % is 13.71% as of Mar. 2026, which is 2% below its 10-year median of 13.93. GuruFocus rates MGA with a GF Score™ of 77/100 and a GF Value™ of $48.84 (Significantly Overvalued). The stock has 9 warning signs investors should review. Among 1,313 Vehicles & Parts companies, Magna International ranks worse than 70.45% on this metric.
The historical rank and industry rank for Magna International's Gross Margin % or its related term are showing as below:
MGA'
s Gross Margin % Range Over the Past 10 Years
Min: 12.29 Med: 13.93 Max: 15.56
Current: 14.58
During the past 13 years, the highestGross Margin % of Magna International was 15.56%. The lowest was 12.29%. And the median was 13.93%.
MGA's Gross Margin % is ranked worse than 70.45% of 1313
companies
in the Vehicles & Parts industry
Industry Median: 19.84
vs MGA: 14.58
Magna International had a gross margin of 13.71% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Magna International was 0.50% per year.
Magna International (NYSE:MGA) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Magna International had a gross margin of 13.71% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Magna International Gross Margin % Related Terms
Magna International Gross Margin % Historical Data
* Premium members only.
The historical data trend for Magna International's Gross Margin % 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.
For the Auto Parts subindustry, Magna International's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Magna International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Magna International's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Magna International (MGA) has a Gross Margin % of 13.71% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Magna International and its competitors. This is near median its historical median of 13.93. Over the past decade, Magna International's Gross Margin % has ranged from 12.29 to 15.56. According to the industry distribution chart, Magna International ranks #925 out of 1313 companies in the Vehicles & Parts industry, placing it in the top 70.4%.
Is Magna International's Gross Margin % too high?
Magna International's current Gross Margin % of 13.71% is near median its 10-year median of 13.93. Over the past 10 years, this metric has ranged from a low of 12.29 to a high of 15.56. The Vehicles & Parts industry median Gross Margin % is 19.84. Magna International's value of 13.71% is 30.9% below this industry median. Based on the distribution chart, Magna International ranks #925 out of 1313 companies in the Vehicles & Parts industry, which is below the industry midpoint. Overall, Magna International has a GF Score™ of 77/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Magna International's Gross Margin % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Magna International ranks #925 out of 1313 companies for Gross Margin %. This places Magna International in the lower half of its industry. The industry median Gross Margin % is 19.84. Magna International's value of 13.71% is 30.9% below this benchmark. Historically, Magna International's own Gross Margin % has ranged from 12.29 to 15.56 over the past decade. While the company's 10-year median is 13.93 vs. the industry median of 19.84, Magna International has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Vehicles & Parts company?
The median Gross Margin % among Vehicles & Parts companies is 19.84, based on 1,313 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Magna International's current Gross Margin % of 13.71% is 30.9% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Magna International and its competitors. For the Vehicles & Parts industry, the median Gross Margin % is 19.84 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magna International's current Gross Margin % is 13.71%, which is near median its own 10-year median of 13.93. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magna International stock overvalued right now?
Based on GuruFocus' analysis, Magna International (MGA) is currently considered Significantly Overvalued. The stock's GF Value™ is $48.84, compared to a current price of $64.07 — trading 31.2% above its estimated fair value. The current Gross Margin % is 13.71%, which is near median its 10-year median of 13.93 and 30.9% below the Vehicles & Parts industry median of 19.84. Magna International's overall GF Score™ is 77/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Magna International (MGA), the current Gross Margin % is 13.71% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Magna International (MGA) Overvalued in 2026?
Based on GuruFocus' analysis, Magna International stock appears to be overvalued.
The current stock price of $64.07 is trading 31.2% above its estimated GF Value™ of $48.84.
GuruFocus considers Magna International to be Significantly Overvalued.
Key valuation signals for MGA:
Gross Margin %: 13.71% (near median its 10-year median of 13.93)
GF Value™: $48.84 vs. price of $64.07 (31.2% above fair value)
Industry Position: 30.9% below the Vehicles & Parts median (#925 of 1313)
No single metric tells the full story. See the MGA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magna International prides itself on an entrepreneurial culture and a corporate constitution that outlines the 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 2025, 48.6% of Magna's USD 42 billion of revenue came from North America, while Europe accounted for approximately 38% and Asia the remainder. The firm's top six customers constituted 75.9% of revenue, with the top three being GM, Mercedes, and Ford. GM was the largest contributor at 15.6%. Magna was founded in 1957, has about 144,000 employees, and is based in Aurora, Ontario.
77GF Score
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