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Research Report

It's all systems go at auto parts giant Magna Add to ...

Validea’s pick of the week provides a detailed report on a company that scores well in the stock-screening service’s model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor has a distribution agreement with Validea.ca. Try it.

Global automotive supplier Magna International has 314 manufacturing operations and 89 product development, engineering, and sales centers in 29 countries.  It has taken in $33-billion in sales over past 12 months, and has market cap of $19.8-billion.

Magna has a 62.6-per-cent long-term EPS growth rate (using average of 4- and 5-year EPS growth rates)

Despite stellar growth, Magna still trades at a 12.6 P/E , making for a 0.2 P/E-to-Growth ratio, part of why the Peter Lynch-based model has some interest.

Magna also has a debt/equity ratio of just 4 per cent, which the Lynch model likes.

Magna has great momentum, with a 97 one-year relative strength.  

It has a 0.61 price/sales ratio, which earns it some interest from the Kenneth Fisher-based model.

Return on capital is 21.2 per cent, which scores high on the Joel Greenblatt-based model

Magna has retained $9.85 in EPS over past decade, during which time EPS have risen by $3.57. That makes for a stellar 36.2-per-cent return on retained earnings, which the Warren Buffett-based model loves.

Click here for a complete breakdown of Validea’s investing guru report.

Read other research reports here.

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