Magna International, Inc. MGA

Competitive advantage analysis · consumer-cyclical

Corporate Default
Overall moat score
68/100
Moderate

About Magna International, Inc.

Magna International Inc. operates as an automotive supplier in North America, Europe, the Asia Pacific, and internationally. It operates through four segments: Body Exteriors & Structures, Power & Vision, Seating Systems, and Complete Vehicles. The company offers design and vehicle concepts, complete vehicle engineering and integration, human-machine interface, developing modules and systems, platform solutions, prototyping and low-volume manufacturing, vehicle safety … Full MGA analysis →

Competitive advantage assessment

Key strengths

  • Margins Stable Across Cycles Operating margin volatility is low (stability score 0.96), demonstrating pricing resilience across cycles.
  • ROIC Sustainably Above Peers ROIC at 76.4th percentile exceeds peers and WACC, demonstrating superior capital allocation.

Key risks

  • Liquidity Concerns Liquidity is concerning (score 0.26), raising questions about short-term obligations.

The dashed ring is the peer median. Defense scores are percentile ranks against peers, so 50 is roughly the typical company in this group.

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Pricing Power

Moderate
69

Where MGA ranks in Auto Parts

Magna International, Inc. ranks #12 of 60 scored companies in Auto Parts by moat score — the top 20%. The widest moat in the group is Allison Transmission Holdings, (ALSN) at 83/100.

Moat scores for companies ranked near MGA in Auto Parts
# Company Moat score Rating
8 Modine Manufacturing Company MOD 71/100 Moderate
9 China Automotive Systems, Inc. CAAS 71/100 Moderate
10 Visteon Corporation VC 69/100 Moderate
11 STRATTEC SECURITY CORPORATION STRT 68/100 Moderate
12 Magna International, Inc. MGA 68/100 Moderate
13 Greenland Technologies Holding GTEC 66/100 Moderate
14 LKQ Corporation LKQ 65/100 Moderate
15 Motorcar Parts of America, Inc. MPAA 62/100 Moderate
16 Lear Corporation LEA 62/100 Moderate

See every General Corporate company ranked by moat score →

How MGA scores on the Corporate Default defenses

Pricing Power

Score 69 · 20% of the moat score

Pricing power is the ability to raise prices without losing volume.

Cost Advantage

Score 80 · 15% of the moat score

A cost advantage means delivering the same product for structurally less — better purchasing, denser distribution, a more automated process.

Customer Stickiness

Score 76 · 15% of the moat score

Stickiness is what makes revenue repeat without being re-won every year.

Capital Efficiency

Score 74 · 18% of the moat score

Capital efficiency asks what the company earns on the money tied up in the business.

Resilience

Score 56 · 17% of the moat score

Resilience is the capacity to get through a bad year on its own terms — enough liquidity, enough interest cover, and enough cash generation to avoid a rescue financing or a forced sale.

Scale & Market Position

Score 52 · 15% of the moat score

Scale matters only when it converts into economics.

How each Corporate Default defense is measured, in full →

Understanding MGA's moat

What is Magna International, Inc.'s moat score?

Magna International, Inc. (MGA) scores 68 out of 100 on the StatsAlpha Moat Map, which rates its competitive advantage as moderate. It ranks #12 of 60 scored companies in Auto Parts, the top 20%. The score is a weighted composite of 6 competitive defenses, each measured against industry peers of 59 companies in Auto Parts. Its strongest defense is Cost Advantage (80/100) and its weakest is Scale & Market Position (52/100).

How does Magna International, Inc. compare with other Auto Parts companies?

Magna International, Inc. ranks #12 of 60 scored companies in Auto Parts by moat score. The widest moat in Auto Parts is Allison Transmission Holdings, (ALSN) at 83/100. The companies ranked closest are STRATTEC SECURITY CORPORATION (STRT) at 68 just above it and Greenland Technologies Holding (GTEC) at 66 just below it.

How is the moat score calculated?

Each company is scored with an industry-specific template — Corporate Default in this case, chosen because the defenses that matter to a bank are not the ones that matter to a software company. Every defense combines several financial signals, and each signal is measured as a percentile against a peer group of 59 companies in Auto Parts. The defenses are then weighted to produce the overall score out of 100.

Why is Magna International, Inc. scored with the Corporate Default template?

Most public companies sell a product or a service at a margin, so the moat question is whether that margin survives contact with competitors. The Corporate template scores the six defenses that show up in a general operating company's financial signature: whether it can hold price, produce more cheaply than rivals, keep its customers, earn a return above its cost of capital, withstand a downturn, and turn size into economics.

Which competitive defenses are measured for Magna International, Inc.?

The Corporate Default template measures 6 defenses, and MGA scores: Pricing Power (69), Cost Advantage (80), Customer Stickiness (76), Capital Efficiency (74), Resilience (56), Scale & Market Position (52). Each is scored independently as a percentile against peers, so a company can be strong on one and weak on another — the overall score reflects how those defenses are weighted for this industry.

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