Is MGA a good stock to buy? We encountered a bullish thesis on Magna International Inc. on r/ValueInvesting by cameronreilly. In this article, we will summarize the bulls thesis on MGA. Share of Magna International Inc. it was $66.12 as of May 28thth. MGA’s trailing and forward P/E were 28.00 and 9.75 respectively according to Yahoo Finance.
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Magna International (NYSE:MGA) was introduced as a high-quality global automotive supplier undergoing a cyclical and structural reset that created an opportunity for underpricing despite its scale, diversity, and industry focus. The company operates as a “mobility technology” provider with exposure to almost all major automotive systems, which means it supplies a large portion of the vehicles on the world’s roads.
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Its business is organized into four divisions: exterior and body structure, power and vision, seating systems, and overall vehicle manufacturing, giving it ultimate exposure to both the traditional and next-generation vehicle arenas. The division of body systems generates about 16-17 billion dollars a year, while power and vision, which are mainly related to EV and autonomous content such as cameras, e-drives, and driver assistance systems, show an improvement in margins, rising from 3.4% to 6.5%, indicating an early recovery.
Seats returned to profit after earlier losses, and the full-car segment provides OEM exposure for niche low-volume models. Despite this range, the stock has been significantly reduced due to the multi-year EV reset, large write-downs exceeding $1 billion tied to EV investments and lighting equipment, and tax-related uncertainty affecting North American production chains. These pressures have caused the stock to go from around $100 in 2021 to around $33 in April 2025, indicating a lot of pessimism.
However, recent developments including divestiture, margin improvement, and segment performance improvement suggest a turnaround under CEO Swami Kotagiri’s restructuring efforts. At the same time, Magna’s valuation appears depressed, with price-to-performance at 4.22 times despite $40 billion+ in annual revenue, long-term OEM relationships, and global manufacturing integration.
This creates a bullish setup where normalization of EV investments, resolution of tax evasion, and simplification of operations can create meaningful multiples. If execution continues and sentiment stabilizes, Magna offers significant upside potential as a rebalanced industrial platform deeply embedded in the global automotive supply chain, with a recovery in margins and cash flow that could drive multiple expansions from deeply depressed levels.
