$Magna International (MGA.US)$It is a Canadian company liste...

The company's main business is various parts for cars, with a highly internationalized market. The top six markets - USA, Austria, Canada, Germany, Mexico, and China - collectively occupy 85% of the market.

The gross margin has been around 14% for the past 5 years, while the return on net assets has declined from 21% to 13%, making it not very attractive.

In the past 5 years, there has been a contraction in revenue fluctuations, with a more significant decline in operating profit and net income. However, 2021 saw a significant rebound, with an 11% increase in revenue, a 29% increase in operating profit, and a 130% increase in net income.

However, rapid increases usually do not last. In the first two quarters of 2022, revenue declined by 1.1%, operating profit by 33.7%, and net income by 80%.

The income statement shows that in 2021, interest expenses accounted for 4.1% of operating profit, which is not high.

In 2020, other expenses amounted to 0.4 billion, while in 2021, other income reached 0.11 billion. Mainly due to the 0.27 billion restructuring expenses in 2020 and the write-off of 350 million, it seems that there is quite a bit of profit growth in 2021.

The asset-liability ratio has increased from 53.8% to 58.4% over the past 5 years. Long-term borrowings amount to 3.408 billion, accounting for 30% of net assets of 11.344 billion. The leverage ratio is relatively healthy.

For the past 5 years, operating net cash flow has consistently exceeded investment net cash flow, resulting in considerable shareholder surplus.

Currently, the PE ratio is 10, and the trailing PE ratio is 22. If net income reaches the peak of 2.26 billion in 2017, the corresponding PE ratio would be 6.4. Currently, it does not seem attractive and may be worth long-term attention.