- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- MAGNA INTERNATIONAL INC has improved earnings per share by 30.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, MAGNA INTERNATIONAL INC increased its bottom line by earning $6.77 versus $6.09 in the prior year. This year, the market expects an improvement in earnings ($8.65 versus $6.77).
- The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Auto Components industry average. The net income increased by 22.9% when compared to the same quarter one year prior, going from $415.00 million to $510.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.0%. Since the same quarter one year prior, revenues slightly increased by 5.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MGA's debt-to-equity ratio is very low at 0.11 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.00, which illustrates the ability to avoid short-term cash problems.
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. The Services sector as a whole closed the day down 0.8% versus the S&P 500, which was down 0.3%. Laggards within the Services sector included Gray Television ( GTN.A), down 5.0%, Crystal Rock Holdings ( CRVP), down 6.8%, QKL Stores ( QKLS), down 3.8%, Armco Metals Holdings ( AMCO), down 6.1% and Books-A-Million ( BAMM), down 2.3%. TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today: Magna International ( MGA) is one of the companies that pushed the Services sector lower today. Magna International was down $3.95 (4.0%) to $94.91 on heavy volume. Throughout the day, 1,500,906 shares of Magna International exchanged hands as compared to its average daily volume of 457,600 shares. The stock ranged in price between $94.24-$98.25 after having opened the day at $98.25 as compared to the previous trading day's close of $98.86. Magna International Inc. develops, manufactures, engineers, supplies, and sells automotive products. It operates through North America, Europe, Asia, and Rest of World segments. Magna International has a market cap of $21.6 billion and is part of the wholesale industry. Shares are up 20.5% year-to-date as of the close of trading on Monday. Currently there are 7 analysts who rate Magna International a buy, no analysts rate it a sell, and 5 rate it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates Magna International as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Highlights from TheStreet Ratings analysis on MGA go as follows: