Should Magna International Inc (TSE:MG) Be Your Next Stock Pick?

Building up an investment case requires looking at a stock holistically. Today I’ve chosen to put the spotlight on Magna International Inc (TSX:MG) due to its excellent fundamentals in more than one area. MG is a well-regarded dividend payer that has been able to sustain great financial health over the past. Below is a brief commentary on these key aspects. For those interested in understanding where the figures come from and want to see the analysis, take a look at the report on Magna International here.

Excellent balance sheet average dividend payer

MG is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This implies that MG manages its cash and cost levels well, which is a key determinant of the company’s health. MG appears to have made good use of debt, producing operating cash levels of 0.96x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.

TSX:MG Historical Debt Jun 20th 18

Income investors would also be happy to know that MG is a great dividend company, with a current yield standing at 2.00%. MG has also been regularly increasing its dividend payments to shareholders over the past decade.

TSX:MG Historical Dividend Yield Jun 20th 18

Next Steps:

For Magna International, I’ve put together three relevant aspects you should further research:

1. Future Outlook: What are well-informed industry analysts predicting for MG’s future growth? Take a look at our free research report of analyst consensus for MG’s outlook.

2. Historical Performance: What has MG’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MG? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.