Magna International Profitability Analysis

MGA Stock  USD 54.48  0.06  0.11%   
Taking into consideration Magna International's profitability measurements, Magna International may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in April. Profitability indicators assess Magna International's ability to earn profits and add value for shareholders.
For Magna International profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Magna International to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Magna International utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Magna International's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Magna International over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
For information on how to trade Magna Stock refer to our How to Trade Magna Stock guide.
Is Magna International's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Magna International. If investors know Magna will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Magna International listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Magna International is measured differently than its book value, which is the value of Magna that is recorded on the company's balance sheet. Investors also form their own opinion of Magna International's value that differs from its market value or its book value, called intrinsic value, which is Magna International's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Magna International's market value can be influenced by many factors that don't directly affect Magna International's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Magna International's value and its price as these two are different measures arrived at by different means. Investors typically determine if Magna International is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Magna International's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Magna International Z Score vs. Number Of Employees Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Magna International's current stock value. Our valuation model uses many indicators to compare Magna International value to that of its competitors to determine the firm's financial worth.
Magna International is considered to be number one stock in number of employees category among related companies. It is considered to be number one stock in z score category among related companies . The ratio of Number Of Employees to Z Score for Magna International is about  50,997 . Comparative valuation analysis is a catch-all model that can be used if you cannot value Magna International by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Magna International's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Magna International's earnings, one of the primary drivers of an investment's value.

Magna Number Of Employees vs. Competition

Magna International is considered to be number one stock in number of employees category among related companies. The total workforce of Consumer Discretionary industry is now estimated at about 200,527. Magna International totals roughly 179,000 in number of employees claiming about 89% of stocks in Consumer Discretionary industry.

Magna Z Score vs. Number Of Employees

Number of Employees shows the total number of permanent full time and part time employees working for a given company and processed through its payroll.

Magna International

Number of Employees

 = 

Full Time

+

Part Time

 = 
179 K
Employee typically refers to an individual working under a contract of employment, whether oral or written, express or implied, and has recognized his or her rights and duties. Most officers of corporations are included as employees and contractors are generally excluded.
Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..

Magna International

Z Score

 = 

Sum Of

5 Factors

 = 
3.51
To calculate a Z-Score, one would need to know a company's current working capital, its total assets and liabilities, and the amount of its latest earnings as well as earnings before interest and tax. Z-Scores can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area,' with scores of less than 1 indicating the highest probability of distress. Z Score is a used widely measure by financial auditors, accountants, money managers, loan processors, wealth advisers, and day traders. In the last 25 years, many financial models that utilize z-scores proved it to be successful as a predictor of corporate bankruptcy.

Magna Z Score Comparison

Magna International is currently under evaluation in z score category among related companies.

Magna International Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Magna International, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Magna International will eventually generate negative long term returns. The profitability progress is the general direction of Magna International's change in net profit over the period of time. It can combine multiple indicators of Magna International, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Magna International Inc. designs, engineers, and manufactures components, assemblies, systems, subsystems, and modules for original equipment manufacturers of vehicles and light trucks worldwide. Magna International Inc. was founded in 1957 and is headquartered in Aurora, Canada. Magna International operates under Auto Parts classification in the United States and is traded on New York Stock Exchange. It employs 161000 people.

Magna Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Magna International. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Magna International position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Magna International's important profitability drivers and their relationship over time.

Magna International Profitability Trends

Magna International profitability trend refers to the progression of profit or loss within a business. An upward trend means that Magna International's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Magna International's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Use Magna International in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Magna International position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Magna International will appreciate offsetting losses from the drop in the long position's value.

Magna International Pair Trading

Magna International Pair Trading Analysis

The ability to find closely correlated positions to Magna International could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Magna International when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Magna International - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Magna International to buy it.
The correlation of Magna International is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Magna International moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Magna International moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Magna International can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Magna International position

In addition to having Magna International in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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ETF themes focus on helping investors to gain exposure to a broad range of assets, diversify, and lower overall costs. The Long/short ETFs theme has 21 constituents at this time.
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When determining whether Magna International offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Magna International's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Magna International Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Magna International Stock:
Check out Correlation Analysis.
For information on how to trade Magna Stock refer to our How to Trade Magna Stock guide.
Note that the Magna International information on this page should be used as a complementary analysis to other Magna International's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .

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When running Magna International's price analysis, check to measure Magna International's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Magna International is operating at the current time. Most of Magna International's value examination focuses on studying past and present price action to predict the probability of Magna International's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Magna International's price. Additionally, you may evaluate how the addition of Magna International to your portfolios can decrease your overall portfolio volatility.
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To fully project Magna International's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Magna International at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Magna International's income statement, its balance sheet, and the statement of cash flows.
Potential Magna International investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Magna International investors may work on each financial statement separately, they are all related. The changes in Magna International's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Magna International's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.