Magna InternationalMGA -0.60%77 Interest Coverage is 12.00 as of Mar. 2026, which is 20% below its 10-year median of 14.93. GuruFocus rates MGA with a GF Score™ of 77/100 and a GF Value™ of $48.84 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 1,066 Vehicles & Parts companies, Magna International ranks better than 51.03% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Magna International's
Operating Income
for the
three
months ended in Mar. 2026 was $444 Mil. Magna International's Interest Expense for the
three
months ended in Mar. 2026 was $-37 Mil.
Magna International's interest coverage for the quarter that ended in Mar. 2026 was 12.00.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Magna International's Interest Coverage or its related term are showing as below:
MGA'
s Interest Coverage Range Over the Past 10 Years
Min: 6.85 Med: 14.93 Max: 31.57
Current: 8.57
MGA's Interest Coverage is ranked better than 51.03% of 1066
companies
in the Vehicles & Parts industry
Industry Median: 8.295
vs MGA: 8.57
Magna International (NYSE:MGA) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Magna International Interest Coverage Related Terms
Magna International Interest Coverage Historical Data
* Premium members only.
The historical data trend for Magna International's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
MGA vs ORLY, AZO, BWA: Interest Coverage Comparison
For the Auto Parts subindustry, Magna International's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Magna International's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Magna International's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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.
Magna International (MGA) has a Interest Coverage of 12.00 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Magna International and its competitors. This is 20% below median its historical median of 14.93. Over the past decade, Magna International's Interest Coverage has ranged from 6.85 to 31.57. According to the industry distribution chart, Magna International ranks #522 out of 1066 companies in the Vehicles & Parts industry, placing it in the top 49%.
Is Magna International's Interest Coverage too high?
Magna International's current Interest Coverage of 12.00 is 20% below median its 10-year median of 14.93. Over the past 10 years, this metric has ranged from a low of 6.85 to a high of 31.57. The Vehicles & Parts industry median Interest Coverage is 8.30. Magna International's value of 12.00 is 44.7% above this industry median. Based on the distribution chart, Magna International ranks #522 out of 1066 companies in the Vehicles & Parts industry, which is above the industry midpoint. Overall, Magna International has a GF Score™ of 77/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Magna International's Interest Coverage compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Magna International ranks #522 out of 1066 companies for Interest Coverage. This puts Magna International in the upper half of its industry. The industry median Interest Coverage is 8.30. Magna International's value of 12.00 is 44.7% above this benchmark. Historically, Magna International's own Interest Coverage has ranged from 6.85 to 31.57 over the past decade. While the company's 10-year median is 14.93 vs. the industry median of 8.30, Magna International has consistently been above 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 Interest Coverage for a Vehicles & Parts company?
The median Interest Coverage among Vehicles & Parts companies is 8.30, based on 1,066 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Magna International's current Interest Coverage of 12.00 is 44.7% above 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Magna International and its competitors. For the Vehicles & Parts industry, the median Interest Coverage is 8.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magna International's current Interest Coverage is 12.00, which is 20% below median its own 10-year median of 14.93. 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 Modestly Overvalued. The stock's GF Value™ is $48.84, compared to a current price of $64.09 — trading 31.2% above its estimated fair value. The current Interest Coverage is 12.00, which is 20% below median its 10-year median of 14.93 and 44.7% above the Vehicles & Parts industry median of 8.30. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Magna International (MGA), the current Interest Coverage is 12.00 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 $64.09 is trading 31.2% above its estimated GF Value™ of $48.84.
GuruFocus considers Magna International to be Modestly Overvalued.
Key valuation signals for MGA:
Interest Coverage: 12.00 (20% below median its 10-year median of 14.93)
GF Value™: $48.84 vs. price of $64.09 (31.2% above fair value)
Industry Position: 44.7% above the Vehicles & Parts median (#522 of 1066)
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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