Magna International Inc reports 7.0% Net Income growth and almost no change in EBITDA Margin of 10.1%
26.02.2016 • About Magna International Inc (
$MG) • By InTwits
Magna International Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Magna International Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 4.2%. At the same time it's in pair with industry average of 4.9%.
- CAPEX is quite volatile: 7,273 in 2015, 10,524 in 2014, 8,235 in 2013, 5,194 in 2012, 3,508 in 2011
- The company has highly profitable business model: ROIC is at 21.9%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Magna International Inc ($MG) key annual financial indicators
| mln. $ | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 28,748 | 30,837 | 34,835 | 34,403 | 32,134 | -6.6% |
| Gross Profit | 3,314 | 3,818 | 4,548 | 4,935 | 4,575 | -7.3% |
| SG&A | 1,382 | 1,510 | 1,616 | 1,612 | 1,448 | -10.2% |
| EBITDA | 2,012 | 2,421 | 3,070 | 3,455 | 3,237 | -6.3% |
| Net Income | 1,018 | 1,433 | 1,561 | 1,882 | 2,013 | 7.0% |
Balance Sheet
|
|---|
| Cash | 1,325 | 1,522 | 1,554 | 1,249 | 2,863 | 129.2% |
| Short Term Debt | 187 | 320 | 271 | 213 | 236 | 10.8% |
| Long Term Debt | 46 | 112 | 102 | 812 | 2,327 | 186.6% |
Cash flow
|
|---|
| Capex | 1,236 | 1,274 | 1,169 | 1,495 | 1,591 | 6.4% |
Ratios
|
|---|
| Revenue growth | 22.5% | 7.3% | 13.0% | -1.2% | -6.6% | |
| EBITDA growth | 11.7% | 20.3% | 26.8% | 12.5% | -6.3% | |
| Gross Margin | 11.5% | 12.4% | 13.1% | 14.3% | 14.2% | -0.1% |
| EBITDA Margin | 7.0% | 7.9% | 8.8% | 10.0% | 10.1% | 0.0% |
| Net Income Margin | 3.5% | 4.6% | 4.5% | 5.5% | 6.3% | 0.8% |
| SG&A, % of revenue | 4.8% | 4.9% | 4.6% | 4.7% | 4.5% | -0.2% |
| CAPEX, % of revenue | 4.3% | 4.1% | 3.4% | 4.3% | 5.0% | 0.6% |
| ROIC | 15.0% | 16.3% | 18.6% | 25.2% | 21.9% | -3.3% |
| ROE | 12.6% | 16.3% | 16.4% | 20.6% | 22.8% | 2.3% |
| Net Debt/EBITDA | -0.5x | -0.5x | -0.4x | -0.1x | -0.1x | -0.0x |
Revenue and profitability
Magna International Inc's Revenue decreased on 6.6% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.2 pp from 12.7% to 11.5% in 2015.
Gross Margin showed almost no change in 2015. SG&A as a % of Revenue showed almost no change in 2015.
Net Income marign increased slightly on 0.79 pp from 5.5% to 6.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Magna International Inc had CAPEX/Revenue of 5.0%. Magna International Inc's CAPEX/Revenue increased slightly on 0.82 pp from 4.1% in 2012 to 5.0% in 2015. Average CAPEX/Revenue for the last three years was 4.2%.
Return on investment
The company operates at high and attractive ROIC (21.90%) and ROE (22.84%). ROIC decreased on 3.3 pp from 25.2% to 21.9% in 2015. ROE increased on 2.3 pp from 20.6% to 22.8% in 2015.
Leverage (Debt)
Debt level is -0.1x Net Debt / EBITDA and 0.8x Debt / EBITDA. Net Debt / EBITDA decreased on 0.028x from -0.1x to -0.1x in 2015. Debt jumped on 150% in 2015 while cash surged on 129% in 2015.
Management team
The company's CEO Donald J Walker "Don" has spent 24 years at the company. Vincent J Galifi is a Magna International Inc's CFO. Vincent J Galifi has spent 20 years at the company.
Appendix 1: Peers in Consumer, Cyclical
Below we provide Magna International Inc benchmarking against other companies in Consumer, Cyclical industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Amaya Inc ($AYA) | 216.4% | 311.5% | 85.2% | 254.0% | |
| Partner Jet Corp ($PJT) | -19.9% | -15.2% | 1.2% | 119.7% | |
| Kelso Technologies Inc ($KLS) | 80.5% | 577.5% | 487.8% | 81.4% | |
| XPEL Technologies Corp ($DAP.U) | 46.3% | 76.6% | 67.7% | 65.5% | |
| Holloway Lodging Corp ($HLC) | 5.4% | -24.6% | 2.7% | 62.7% | |
| |
|---|
| Median (67 companies) | 9.3% | 5.3% | 4.9% | 7.7% | 3.3% |
|---|
| Magna International Inc ($MG) | | 7.3% | 13.0% | -1.2% | -6.6% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Restaurant Brands International Inc ($QSR) | | | 69.7% | 87.0% | 42.9% |
| Imvescor Restaurant Group Inc ($IRG) | 96.2% | 94.2% | 89.7% | 84.9% | 84.3% |
| DEQ Systems Corp ($DEQ) | 74.3% | 77.5% | 78.4% | 84.7% | |
| Second Cup Ltd/The ($SCU) | 91.1% | 86.6% | 85.1% | 72.7% | 81.1% |
| New Look Vision Group Inc ($BCI) | 72.3% | 71.8% | 72.6% | 72.6% | |
| |
|---|
| Median (59 companies) | 37.9% | 36.5% | 32.1% | 34.6% | 36.8% |
|---|
| Magna International Inc ($MG) | 11.5% | 12.4% | 13.1% | 14.3% | 14.2% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Westshore Terminals Investment Corp ($WTE) | | 49.7% | 65.9% | 60.9% | 59.6% |
| Gamehost Inc ($GH) | 44.2% | 46.1% | 45.7% | 45.9% | |
| Great Canadian Gaming Corp ($GC) | 34.1% | 16.8% | 41.1% | 40.1% | |
| Amaya Inc ($AYA) | -5.7% | 7.2% | 38.2% | 39.3% | |
| MTY Food Group Inc ($MTY) | 32.2% | 36.3% | 38.7% | 37.0% | 34.9% |
| |
|---|
| Median (65 companies) | 8.7% | 8.1% | 9.8% | 9.6% | 10.0% |
|---|
| Magna International Inc ($MG) | 7.0% | 7.9% | 8.8% | 10.0% | 10.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Poydras Gaming Finance Corp ($PYD) | | | | 32.5% | |
| WestJet Airlines Ltd ($WJA) | 3.9% | 7.9% | 19.5% | 18.6% | 22.5% |
| Exchange Income Corp ($EIF) | 8.2% | 7.9% | 15.8% | 15.5% | 15.4% |
| Holloway Lodging Corp ($HLC) | 3.4% | 8.2% | 6.7% | 14.8% | |
| Kelso Technologies Inc ($KLS) | 79.2% | 0.4% | 0.7% | 13.5% | |
| |
|---|
| Median (68 companies) | 2.6% | 2.7% | 2.7% | 2.2% | 2.9% |
|---|
| Magna International Inc ($MG) | 4.3% | 4.1% | 3.4% | 4.3% | 5.0% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Partner Jet Corp ($PJT) | -30.7% | -51.6% | -50.8% | 85.1% | |
| Kelso Technologies Inc ($KLS) | -121.3% | | | 48.8% | |
| XPEL Technologies Corp ($DAP.U) | 52.9% | 54.7% | 57.5% | 43.2% | |
| Westshore Terminals Investment Corp ($WTE) | | 24.0% | 37.8% | 35.0% | 38.3% |
| Iplayco Corp Ltd ($IPC) | -35.4% | 23.0% | 58.5% | 33.6% | 10.9% |
| |
|---|
| Median (68 companies) | 10.4% | 9.7% | 10.1% | 9.7% | 11.0% |
|---|
| Magna International Inc ($MG) | 15.0% | 16.3% | 18.6% | 25.2% | 21.9% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Mountain China Resorts Holding Ltd ($MCG) | | | | 317.1x | |
| Restaurant Brands International Inc ($QSR) | | | 3.8x | 33.6x | 5.8x |
| Allied Hotel Properties Inc ($AHP) | | | | 21.3x | |
| Hudson's Bay Co ($HBC) | 8.7x | 3.8x | 3.6x | 19.1x | 3.6x |
| Amaya Inc ($AYA) | | 17.9x | 1.8x | 13.5x | |
| |
|---|
| Median (57 companies) | 1.3x | 1.4x | 1.8x | 2.0x | 1.6x |
|---|
| Magna International Inc ($MG) | -0.5x | -0.5x | -0.4x | -0.1x | -0.1x |
