BULLISH SIGNALS

Undervaluation [compared with sector average]:
Earnings Yield
+    Earnings yield of 2.2% is 3.0 times the 10-year bond yield of 0.73%.
Price to Book
+    Price to Book of 3.1 [3.6]. We estimate Magna International stock is trading at a current year Price to Book of 3.3 and a forward year Price to Book of 2.8.
Price to EBITDA
+    Price to EBITDA of 6.1 [6.7].
MCap/Total Assets
+    Tobin's Q Ratio, defined as MCap divided by Total Assets, is 0.8. Compared with the rest of the market the stock is undervalued.

Uptrend:
+    Rising open interest with rising price
+    Open Interest Trend
Same day trend: The price jumped 8.5% from CAD85.67 to CAD92.96; Open interest has climbed 4.4% from 7,569 to 7,904. A price rise combined with an increase in open interest suggests there is new money coming into the market from existing or new buyers. This is a bullish signal.

DurationOpen Interest change %Price change %Interpretation
1-day4.48.5Strong Market

+    Top three traded call options [1 contract is 100 shares]

Exercise PriceExercise DateOption PriceChange %Contracts Traded
CAD90.0January 15, 2021CAD5.45361.9164
CAD82.0January 15, 2021CAD12.90158.05
CAD84.50January 08, 2021CAD8.50261.73

Price/Moving Average Price and MACD:
+    The Price/MAP of 1.48 for MG is higher than the Price/MAP for the S&P/TSX 60 Index of 1.14.
+    The Moving Average Convergence Divergence (MACD) indicator of 12-day Exponential Moving Average (EMA) of 83.44 minus the 26-day EMA of 80.92 is positive suggesting a bullish signal. Both the 12-day EMA as well as the 26-day EMA are rising, another bullish signal.
+    The price to 50-day EMAP ratio is 1.2, a bullish indicator. The 50-day EMAP has increased to CAD77.49. An increase is another bullish indicator.
+    The price to 200-day MAP ratio is 1.48, a bullish indicator. The stock is trading above both its MAPs and the 50-day MAP of CAD77.06 is higher than the 200-day MAP of CAD62.62, a bullish indicator. The 200-day MAP has increased to CAD62.62. An increase is another bullish indicator.
Past Week:
+    Magna International Inc. is placed 224/1951 in BuySellSignals' ranking of Canadian performers in the past week, a percentile ranking of 88.
+    In the past week, volume was 1.2 times average and the shares were up 13.1%. Wednesday's close price is at a 7.4% premium to its 5-day Volume Weighted Average Price (VWAP) of CAD86.56.
Past Month:
+    The price soared 16.2% in the past month. Volume traded for the month was about average.
+    Compared with the S&P/TSX 60 Index which rose 3.0% for the month, this represented a relative price increase for Magna International's stock of 13.2% for the month.
+    Rises to Falls: in the past month the number of rises outnumbered falls 15:8 or 1.9:1.
+    The present value of $1,000 (PV1000) invested one month ago in Magna International is CAD1,162, for a capital gain of CAD162.

PV$10001-week1-month1-year
MG.TSX1,1311,1621,339
S&P/TSX 60 Index1,0011,0121,026
Relative Strength (6 months):
+    In the Canadian market of 1,668 stocks and 62 units traded today, the stock has a 6-month relative strength of 74 indicating it has outperformed 74% of the market.

High Price Performance Indicators and rank of Magna International in the Canadian market:

DescriptionMG ValueRank In Market
Today's Trading TurnoverCAD219.4 million ($170.1 million)In Top 2%
MCapCAD27.8 billionIn Top 2%
Price/MAP2001.48In Top 10%
Price/MAP501.21In Top 13%
% Prem to Vol Wtd Price13.5In Top 24%


BEARISH SIGNALS

Overvaluation [compared with sector average]:
Dividend Yield
+    To quote Benjamin Graham: "A dividend yield of at least two-thirds the triple-A bond yield"; the stock's dividend yield is 2.4 times the triple-A bond yield of 0.7%.
+    The relative yield of MG, defined by its yield of 1.7%, divided by average yield of dividend yielding stocks in the S&P/TSX 60 Index of 3.7% is 46.5%. This suggests Magna International stock is overvalued in dividend yield terms.

Overvaluation Indicators and rank of Magna International in the Canadian market:

DescriptionValueRank In Market
Price/Earnings45.3In Bottom 9%
P/E * P/NTA142.82In Bottom 13%
Dividend Yield %1.7In Bottom 17%

Downtrend:
+    Increasing Put Call Ratio
+    Put Call Contracts
The Put/Call ratio has jumped from 0.596 to 0.597 suggesting a downtrend.

 Put ContractsCall ContractsPut/Call ratio
Today2,9544,9500.597
Previous day2,8274,7420.596

Overbought/Bearish/Resistance Signals:
+    At CAD92.96 the price has risen above the upper Bollinger band resistance of CAD87.80, indicating a downside risk for it to fall back within the band.
+    The Relative Strength Index (RSI) of 77.5 has penetrated the overbought line of 70, suggesting the price gain of 77.5% in the last 14 days is unusually high.
+    The stock is overbought according to the Williams % R indicator of -17.7, suggesting the price is close to its 14-day high of CAD96.11.