Magna International (TSX:MG)(NYSE:MGA) is an Aurora-based company that designs, engineers, and manufactures components,
assemblies, systems, subsystems, and modules for original equipment manufactures of vehicles and light trucks around the world. Shares of this top auto parts manufacturer have declined 21% year-over-year as of close on February 21. The stock has slipped 4.5%.
This company unveiled its fourth quarter and full year fiscal 2022 earnings on February 10, 2023. It posted sales growth of 5% to $9.6 billion in the fourth quarter. Meanwhile, adjusted diluted earnings per share fell to $0.91 compared to $1.30 in the prior year. For the full year, Magna reported total sales of $37.8 billion compared to $36.2 billion for the full year in fiscal 2021.
There were some encouraging signs in the fourth quarter that bode well for Magna’s business going forward. For example, it posted sales growth of 13% excluding foreign currency translation and light vehicle production climbed 5%. Light vehicle production is expected to steadily increase in North America, Europe, and China as consumers become more environmentally conscious and vehicle manufacturers aim to meet lofty green goals. Indeed, Magna has also dipped its toes into the exciting electric vehicle market (EV).
Shares of this auto stock are trading in favourable value territory compared to its industry peers. Meanwhile, it offers a quarterly dividend of $0.46 per share. That represents a 3.2% yield
