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

The company's main business is all parts of cars, and the market is very international. The top six markets of America, Austria, Canada, Germany, Mexico, and China occupy a total of 8.5 percent of the market.

Over the past 5 years, gross margin has basically been around 14%, and the return on net assets has declined from 21% to 13%, which is not very attractive.

Revenue has shrunk amid fluctuations in revenue over the past 5 years, and the decline in operating profit and net profit was even worse. In 2021, there was a big rebound. Revenue increased 11%, operating profit increased 29%, and net profit increased 130%.

However, the sharp rise usually did not continue. In the first two quarters of 2022, revenue fell 1.1%, operating profit fell 33.7%, and net profit fell 80%.

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

Other expenses reached 400 million in 2020, and other revenue reached 110 million in 2021. Mainly, there were 270 million restructuring expenses and 350 million dollars in write-off in 2020. Seen from this perspective, the profit growth rate in 2021 was quite a bit.

The balance ratio has increased from 53.8% to 58.4% over the past 5 years, with long-term loans of 3.408 billion yuan, accounting for 30% of net assets of 11.344 billion yuan. The leverage ratio is relatively healthy.

Over the past 5 years, net operating volume has continued to exceed net investment, and shareholders' surpluses are high.

Currently, the price-earnings ratio is 10 and the price-earnings ratio is TTM 22. If net profit reaches a high of 2.26 billion yuan in 2017, it corresponds to a price-earnings ratio of 6.4. Currently, it is not attractive, so you can keep an eye on it for a long time.