Magna International Inc. research snapshot
MGA AI stock analysis as of the August 2, 2026 data cutoff reads Magna International as a broad global automotive supplier whose second-quarter 2026 report, released July 31, 2026, delivered sales growth above the market, record second-quarter adjusted EPS, a raised full-year outlook, and stronger free cash flow. The stock closed at $68.60 on July 31, 2026, and the market cap was re-verified at about $18.21 billion using 265.45 million shares, matching the reported $18.19 billion with a 0.11% deviation. Q2 2026 sales rose 3% to $11.0 billion against a 2% decline in global light vehicle production, adjusted EBIT margin expanded 70 basis points to 6.2%, adjusted EPS rose 29% to $1.86, and the company raised its 2026 outlook for adjusted EBIT margin to 6.3% to 6.6%, adjusted EPS to $6.70 to $7.30, and free cash flow to $1.75 billion to $1.85 billion. Offsetting this are a still-cyclical auto business, roughly $5.0 billion of net debt plus leases on the June 30, 2026 balance sheet, tariffs that are expected to be roughly neutral for 2026, lower China production assumptions, divestitures that shrink sales, and a stock that rose about 68% over the past 52 weeks. This MGA AI stock analysis is informational research, not investment advice.
Current price
$68.60
Market cap
$18.21 billion verified market cap
AI score
70 / 100
Rating
Improving margins and cash flow inside a cyclical auto market
Trend status
Uptrend above the 20-day, 50-day, 100-day, and 200-day moving averages, with the 52-week high near $70.36 overhead
Data cutoff (updated monthly)
August 4, 2026
Informational use only. This page is not investment advice.
| Dimension | Conclusion | Confidence |
|---|---|---|
| Business quality | Magna sells engineered body, power and vision, seating, and complete-vehicle systems and services to global automakers that need scaled, validated production capability. Q2 2026 sales grew 3% to $11.0 billion while global light vehicle production fell 2%. | Medium-high |
| Moat | Its advantages are global manufacturing scale, engineering depth, OEM program relationships, systems breadth, and complete-vehicle capability. Customer switching is meaningful during a vehicle program but weaker between programs, and competitive bidding still limits pricing power. | Medium |
| Management | CEO Swamy Kotagiri and CFO Philip Fracassa are executing an operational excellence agenda, returning $598 million to shareholders in Q2 2026, and raising full-year guidance. S&P reaffirmed Magna at A- with a stable outlook and Moody’s affirmed A3 stable. | Medium-high |
| Financial trend | Q2 2026 delivered 3% sales growth, adjusted EBIT up 16% to $677 million with a 6.2% margin, record second-quarter adjusted EPS of $1.86 up 29%, and free cash flow of $617 million. The company raised its 2026 outlook for margin, EPS, and free cash flow. | High |
| Valuation | At $68.60, verified input math shows about 23.9x trailing GAAP EPS, about 9.6x forward earnings, 1.50x book value, 5.62x trailing free cash flow, and a 2.89% dividend yield. Reported EPS is lower than adjusted EPS because of impairment and other non-operating charges. | Medium-high |
| Technical trend | Price closed above the 20-day average near $66.35, the 50-day near $65.73, the 100-day near $62.09, and the 200-day near $57.60 on July 31, 2026, with 14-day RSI near 58.01 and a 52-week high of $70.36 overhead. | Medium |
| Risk level | Risk is high because Magna is exposed to light vehicle production, OEM pricing, tariffs and possible USMCA content rules, China production, input and memory costs, launches, warranty expenses, FX, debt, divestitures, and customer concentration. | High |
| AI confidence | Reported figures have high data confidence because company filings, SEC EDGAR, and StockAnalysis agree closely. Return forecasts have medium confidence because operating leverage, FX, tariffs, and valuation multiples are cyclical. | High data confidence |
| Investment certainty | Investment certainty is medium. The valuation can look attractive if adjusted EPS and free cash flow persist, but the stock has already risen sharply and a durable margin recovery still needs confirmation across the production cycle. | Medium |
MGA AI stock forecast
The MGA AI stock forecast uses scenario math, not a promise that AI can predict a precise price. The three-year audited model starts with the raised 2026 adjusted EPS guidance midpoint of $7.00 and the $68.60 price reference from the July 31, 2026 close. It produced anchors near $52.70 in the bearish case, $81.00 in the base case, and $111.80 in the bullish case before dividends, using adjusted EPS growth of minus 2%, 5%, and 10% and exit multiples of 8x, 10x, and 12x.
$100 to $118
More likely if adjusted EBIT margin holds toward the top of the raised 6.3% to 6.6% range, growth over market reaccelerates into 2027 on new programs with better economics, tariffs stay neutral, the Chery 800-volt eDrive and driver monitoring wins scale, adjacent non-automotive markets add revenue, and the market assigns a 12x earnings multiple.
$72 to $90
More likely if Magna delivers the $6.70 to $7.30 adjusted EPS outlook, global vehicle production stays near assumptions, FX and tariff recoveries remain broadly neutral, divestitures close on schedule, and the market values the company near a 10x earnings multiple.
$48 to $58
More likely if global light vehicle production weakens further, tariffs or USMCA content rules raise costs, Chinese OEM competition intensifies, China production falls more, divestitures shrink scale faster than planned, margins stall, or the market applies an 8x earnings multiple.
MGA AI technical analysis
MGA AI technical analysis uses public market data near the August 2, 2026 cutoff. StockAnalysis.com and Barchart both showed a $68.60 close on July 31, 2026, a 50-day moving average near $65.73, a 200-day moving average near $57.60, and 14-day RSI near 58.01. Barchart also showed a 20-day average near $66.35, a 100-day average near $62.09, 14-day ADX near 10.52, and 14-day historical volatility near 27.6%. Refresh the live chart before acting.
| Level | Value | Why it matters |
|---|---|---|
| Current price | $68.60 | Close on July 31, 2026, after the Q2 report. The after-hours quote was $69.36. |
| Immediate support | $66.35 | The 20-day moving average from Barchart on July 31, 2026, is the first trend reference to monitor. |
| Support cluster | $65.73 | The 50-day moving average was near $65.73 on both StockAnalysis.com and Barchart, a natural pullback zone. |
| Major support | $57.60 | The 200-day moving average is a deeper long-term trend reference from the July 31, 2026 technical snapshot. |
| Near resistance | $70.36 | The 52-week high, with the round $70 area as minor overhead. Not a guaranteed ceiling. |
| Moving averages | 20-day $66.35, 50-day $65.73, 100-day $62.09, 200-day $57.60 | Price above all four averages supports a constructive trend, but the gap to support is narrow after a sharp run. |
| Momentum | RSI 58.01, ADX 10.52 | RSI is neutral to firm, while ADX below 20 suggests the move is not yet a strong, established trend. |
| Volume | About 1.3 million 20-day average shares | A break above $70.36 has more weight if volume exceeds the recent average and auto-sector breadth improves. |
| Volatility | Beta 1.86, 14-day historical volatility near 27.6% | MGA has shown above-market sensitivity, so position sizing should account for earnings, policy, tariff, and production headlines. |
| Invalidation | Sustained close below $66.35 | A decisive close below the 20-day average, then below the 50-day near $65.73, would weaken the short-term trend; a break below the 200-day near $57.60 would call for a fresh fundamental review. |
MGA AI trading strategy
This MGA AI trading strategy is a rules-based research framework, not personalized financial advice. It combines price behavior with volume, adjusted margin, free cash flow, tariff recovery, production assumptions, and capital return data.
Watch for MGA to hold above the $66.35 20-day average and clear the $70.36 52-week high on volume above its recent average, then confirm that the raised 2026 adjusted margin and free cash flow guidance remains intact.
Reduce trend confidence after a failed breakout or a close back below the 20-day or 50-day average, especially if it follows weaker vehicle-production or margin guidance.
If MGA pulls back toward the $65.73 to $66.35 support cluster or the $57.60 long-term average, compare normalized adjusted EPS, free cash flow, net debt, tariffs, launches, and divestiture timing rather than buying only because the headline P/FCF looks low.
Do not average down without evidence that OEM volume, commercial recoveries, warranty costs, and cash conversion remain consistent with the investment case.
Track Q3 and Q4 2026 results, segment sales, adjusted EBIT margin, adjusted EPS, free cash flow, buyback pace under the remaining NCIB authorization, tariff recovery, China production, new program launches such as the Chery 800-volt eDrive and driver monitoring award, divestiture closings, commodity and memory costs, and the November Investor Day.
Lower confidence if GAAP results keep absorbing impairment charges, guidance is cut, working capital reverses, or tariff or input costs outrun recoveries.
Investment research summary
Customers pay Magna for engineered vehicle systems, manufacturing scale, launch execution, and supply reliability. The company spans body, power and vision, seating, and complete-vehicle work, with about 65% of its China revenue now coming from Chinese automakers.
Magna has global plant and engineering scale, OEM validation history, technical integration across systems, and long program cycles. Those strengths matter most after a platform win, while competitive bidding still limits pricing power on the next program.
The thesis fails if vehicle production weakens further, tariffs or USMCA content rules raise costs, OEMs demand concessions, China production falls more, launches underperform, warranty costs rise, commodity or memory costs outrun recoveries, or divestitures shrink the portfolio faster than planned.
Management is executing operational excellence, buying back shares, raising guidance, and running a disciplined capital allocation framework. The capital-allocation question is whether buybacks and divestitures improve per-share value while the balance sheet stays flexible.
Vehicle content, advanced driver-assistance systems, electrification variants, and Chinese OEM expansion into Europe can add opportunity, and more than 90% of 2028 business is already booked. The industry remains cyclical, with technology adoption and production volumes set by OEM decisions rather than Magna alone.
The $68.60 reference price is well below the bullish scenario but no longer a distressed entry after a roughly 68% 52-week rally. Margin of safety depends on whether adjusted EPS near the raised 2026 outlook midpoint and free cash flow can persist through a weaker production environment.
Source-backed data
Every metric below includes a source and last verification date.
| Metric | Value | Source | Last verified |
|---|---|---|---|
| MGA price used in model | $68.60 at the July 31, 2026 close, after-hours $69.36 | StockAnalysis.com real-time quote | August 2, 2026 |
| Market capitalization | $18.21 billion, computed as $68.60 x 265.45 million shares, matching the reported $18.19 billion with 0.11% deviation | Pineify financial_rigor.py using StockAnalysis.com price and share count | August 2, 2026 |
| Q2 2026 sales | $10,980 million, up 3% year over year, cross-checked with 0.00% deviation across the Magna Q2 2026 press release and StockAnalysis.com | Magna Q2 2026 press release and StockAnalysis.com | July 31, 2026 |
| Q2 2026 adjusted results | Adjusted EBIT of $677 million up 16% with a 6.2% margin up 70 basis points, adjusted EPS of $1.86 up 29%, a record for the second quarter, and adjusted ROIC of 12.5% | Magna Q2 2026 press release and earnings call | July 31, 2026 |
| Q2 2026 GAAP results | Income from operations before income taxes of $599 million up 21%, net income attributable to Magna of $469 million, and diluted EPS of $1.72 | Magna Q2 2026 press release and SEC 6-K financial review | July 31, 2026 |
| Q2 2026 cash flow and returns | Cash from operations of $954 million up 52%, free cash flow of $617 million, $269 million of capital spending, and $598 million returned to shareholders through $465 million of buybacks and $133 million of dividends | Magna Q2 2026 press release, financial review, and earnings call | July 31, 2026 |
| First-half 2026 results | Sales of $21,361 million, adjusted EBIT of $1,235 million up 32%, adjusted EPS of $3.24 up 46%, free cash flow of $989 million, and 15.0 million shares repurchased for $905 million | Magna Q2 2026 press release and SEC 6-K financial review | July 31, 2026 |
| Updated 2026 outlook | Sales of $41.3 billion to $42.5 billion, adjusted EBIT margin of 6.3% to 6.6%, adjusted EPS of $6.70 to $7.30, and free cash flow of $1.75 billion to $1.85 billion, raised from the prior margin, EPS, and cash flow ranges | Magna Q2 2026 press release | July 31, 2026 |
| FY2025 results | Sales of $42,010 million, net income attributable to Magna of $829 million, diluted EPS of $2.93, and adjusted EPS of $5.73, cross-checked with 0.00% deviation against StockAnalysis.com | Magna 2025 annual report on Form 40-F, cross-checked with StockAnalysis.com | August 2, 2026 |
| Balance sheet as of June 30, 2026 | Cash and cash equivalents of $1,430 million, long-term debt of $4,608 million, total debt plus leases of $6,469 million, net debt plus leases of $5,039 million, total assets of $31,292 million, and shareholders’ equity of $12,108 million | Magna Q2 2026 financial review and StockAnalysis.com balance sheet | August 2, 2026 |
| Credit and leverage | Adjusted debt to adjusted EBITDA of 1.42x at June 30, 2026, total liquidity near $5 billion, S&P A- with a stable outlook, and Moody’s A3 with a stable outlook | Magna Q2 2026 earnings call | July 31, 2026 |
| Tariff and IEEPA context | Magna paid just over $100 million of IEEPA tariffs in 2025 and recovered about half in Q2 2026, passing most back to customers; the net 2026 tariff impact is expected to be roughly neutral versus 2025 | Magna Q2 2026 earnings call | July 31, 2026 |
| Technical indicators | 20-day average $66.35, 50-day average $65.73, 100-day average $62.09, 200-day average $57.60, RSI 58.01, ADX 10.52, and 14-day historical volatility near 27.6% | Barchart and StockAnalysis.com technical snapshots | August 2, 2026 |
| Valuation ratios | 23.91x trailing GAAP EPS, 9.56x forward PE, 0.43x sales, 1.50x book value, 5.62x free cash flow, EV/EBITDA of 5.49x, and a 2.89% dividend yield | StockAnalysis.com statistics, verified with Pineify financial_rigor.py | August 2, 2026 |
| Analyst consensus | Buy with an average price target of $71.28 across 20 analysts, median $72, low $55, and high $80 | StockAnalysis.com forecast based on S&P Global and TipRanks | August 2, 2026 |
| Recent analyst target updates | Goldman Sachs Sell $52 to $55, Scotiabank Buy $72 to $74, RBC Capital Hold $57 to $66, J.P. Morgan Buy $70, UBS Neutral $62 to $64, and Citi Neutral $58 to $75 | StockAnalysis.com forecast and news feed | August 2, 2026 |
| 2026 financial forecast | Consensus revenue of about $42.37 billion for 2026 and adjusted EPS estimates that moved up after the guidance raise, with 2026 revenue growth forecast near 1% and three-year EPS growth forecast near 12% | StockAnalysis.com forecast financial forecast | August 2, 2026 |
| Dividend | Quarterly dividend of $0.495 per share declared for Q2 2026, payable August 28, 2026, equal to about $1.98 per share annually after 16 years of growth | Magna Q2 2026 press release and StockAnalysis.com | July 31, 2026 |
| Program awards and backlog | An 800-volt two-speed eDrive program with Chery, a driver and occupant monitoring program with a European OEM, five General Motors Supplier of the Year awards, and more than 90% of 2028 business already booked | Magna Q2 2026 earnings call and press release | July 31, 2026 |
| Divestitures | The European Lighting sale closed on June 29, 2026, with Rooftop Systems and Lighting Rest of World divestitures expected to close sooner than planned, removing roughly $400 million of Power & Vision revenue in the second half of 2026 | Magna Q2 2026 press release, MD&A, and earnings call | July 31, 2026 |
This MGA AI stock analysis page is an informational research tool only. It is not investment advice, a recommendation, or a promise of future returns. Forecast scenarios use public data available as of the August 2, 2026 cutoff and can be wrong if Magna fundamentals, vehicle production, tariffs, prices, interest rates, FX, or investor sentiment change.
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