Is MGA a good stock to buy? We came across a bullish thesis on Magna International Inc. on r/ValueInvesting by cameronreilly. In this article, we will summarize the bulls’ thesis on MGA. Magna International Inc.’s share was trading at $66.12 as of May 28th. 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) is presented as a high-quality global automotive supplier undergoing a cyclical and structural reset that has created a mispricing opportunity despite its scale, diversification, and entrenched industry position. The company operates as a “mobility technology” supplier with exposure across nearly every major vehicle system, effectively meaning it contributes components to a large share of vehicles on global roads.
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Its business is organized into four segments: body exteriors and structures, power and vision, seating systems, and complete vehicle manufacturing, giving it end-to-end exposure to both traditional and next-generation automotive platforms. The body systems division generates roughly $16–17 billion annually, while power and vision, increasingly tied to EV and autonomous content such as cameras, e-drives, and driver assistance systems, is showing improving margins, rising from 3.4% to 6.5%, signaling early operational recovery.
Seating has returned to profitability after prior losses, and the complete vehicle segment provides niche OEM outsourcing exposure for low-volume models. Despite this breadth, the stock has been heavily de-rated due to a multi-year reset in EV expectations, large write-downs exceeding $1 billion tied to EV investments and lighting assets, and tariff-related uncertainty impacting North American production chains. These pressures pushed the stock from nearly $100 in 2021 to lows near $33 in April 2025, reflecting peak pessimism.
However, recent developments including asset divestitures, margin repair, and improving segment performance suggest a turning inflection under CEO Swami Kotagiri’s restructuring efforts. At the same time, Magna’s valuation appears compressed, with a price-to-operating cash flow multiple of just 4.22 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 tariff overhangs, and operational simplification could drive meaningful rerating. If execution continues and sentiment stabilizes, Magna offers significant upside potential as a re-rated industrial platform embedded deeply in global automotive supply chains, with recovery in margins and cash flows likely to drive multiple expansion from deeply depressed levels.
