MGA

Magna International is a global tier-one auto-parts supplier whose scale shows in $42.0B of FY2025 revenue — but the trajectory is soft. Revenue slipped 1.9% and net income fell 17.8% to $829M ($2.93 diluted EPS, down 16.8%), continuing a multi-year erosion from the $1.51B earned in FY2021 despite revenue growing from $36.2B over that span. The result is a thin 2.0% net margin and a sub-par 6.6% ROE — characteristic of a capital-intensive, low-margin supplier squeezed between OEM pricing pressure and the cost of retooling for electrification.

The balance sheet and cash generation are the offsets. Operating cash flow held essentially flat at $3.60B even as earnings fell, capex was cut sharply by 39.7% to $1.31B (lifting free cash flow), and cash rose 29.3% to $1.61B. Leverage is moderate: $4.68B long-term debt against $12.5B equity (liabilities/equity 1.49x), and the company returned $544M in dividends plus $137M of buybacks. At $65.35 the stock trades at just 22.3x depressed trailing EPS and 0.4x sales, with the dividend yielding roughly 4.6% on the $544M payout against the ~280M share base.