Magna InternationalMGA -0.60%77 3-Year ROIIC % is 10.03 as of Dec. 2025, which is 38% above its 10-year median of 7.25. GuruFocus rates MGA with a GF Score™ of 77/100 and a GF Value™ of $47.71 (Modestly Overvalued). The stock has 9 warning signs investors should review. Among 1,256 Vehicles & Parts companies, Magna International ranks better than 60.99% on this metric.
3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Magna International's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was 10.03%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Magna International's 3-Year ROIIC % or its related term are showing as below:
MGA's 3-Year ROIIC % is ranked better than 60.99% of 1256
companies
in the Vehicles & Parts industry
Industry Median: 4.08
vs MGA: 10.03
Magna International (NYSE:MGA) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Magna International 3-Year ROIIC % Related Terms
Magna International 3-Year ROIIC % Historical Data
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The historical data trend for Magna International's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Vehicles & Parts Industry
For the Vehicles & Parts industry and Consumer Cyclical sector, Magna International's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Magna International's 3-Year ROIIC % falls into.
Magna International's 3-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
3-Year ROIIC %
=
3-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
3-Year Incremental Invested Capital**
=
( 1424.461 (Dec. 2025) - 1148.4473 (Dec. 2022) )
/
( 19171 (Dec. 2025) - 16495 (Dec. 2022) )
=
276.0137
/
2676
=
10.31%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Magna International (MGA) has a 3-Year ROIIC % of 10.03 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Magna International and its competitors. This is 38% above median its historical median of 7.25. According to the industry distribution chart, Magna International ranks #490 out of 1256 companies in the Vehicles & Parts industry, placing it in the top 39%.
Is Magna International's 3-Year ROIIC % too high?
Magna International's current 3-Year ROIIC % of 10.03 is 38% above median its 10-year median of 7.25. The Vehicles & Parts industry median 3-Year ROIIC % is 4.08. Magna International's value of 10.03 is 145.8% above this industry median. Based on the distribution chart, Magna International ranks #490 out of 1256 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 3-Year ROIIC % compare to ORLY and AZO?
According to the Vehicles & Parts industry distribution chart, Magna International ranks #490 out of 1256 companies for 3-Year ROIIC %. This puts Magna International in the upper half of its industry. The industry median 3-Year ROIIC % is 4.08. Magna International's value of 10.03 is 145.8% above this benchmark. While the company's 10-year median is 7.25 vs. the industry median of 4.08, 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 3-Year ROIIC % for a Vehicles & Parts company?
The median 3-Year ROIIC % among Vehicles & Parts companies is 4.08, based on 1,256 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Magna International's current 3-Year ROIIC % of 10.03 is 145.8% 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 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Magna International and its competitors. For the Vehicles & Parts industry, the median 3-Year ROIIC % is 4.08 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magna International's current 3-Year ROIIC % is 10.03, which is 38% above median its own 10-year median of 7.25. 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 $47.71, compared to a current price of $62.69 — trading 31.4% above its estimated fair value. The current 3-Year ROIIC % is 10.03, which is 38% above median its 10-year median of 7.25 and 145.8% above the Vehicles & Parts industry median of 4.08. 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 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Magna International (MGA), the current 3-Year ROIIC % is 10.03 as of Dec. 2025. 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 $62.69 is trading 31.4% above its estimated GF Value™ of $47.71.
GuruFocus considers Magna International to be Modestly Overvalued.
Key valuation signals for MGA:
3-Year ROIIC %: 10.03 (38% above median its 10-year median of 7.25)
GF Value™: $47.71 vs. price of $62.69 (31.4% above fair value)
Industry Position: 145.8% above the Vehicles & Parts median (#490 of 1256)
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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