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Magic Software Enterprises

DB:MGK
Snowflake Description

Solid track record with excellent balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MGK
DB
$413M
Market Cap
  1. Home
  2. DE
  3. Software
Company description

Magic Software Enterprises Ltd. provides proprietary application development, business process integration, vertical software solutions, and IT outsourcing software services in Israel and internationally. The last earnings update was 20 days ago. More info.


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MGK Share Price and Events
7 Day Returns
0.1%
DB:MGK
-0.8%
DE Software
-1.8%
DE Market
1 Year Returns
14.7%
DB:MGK
16.4%
DE Software
-7.3%
DE Market
MGK Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Magic Software Enterprises (MGK) 0.1% 1.3% 15.4% 14.7% 20.6% 25.8%
DE Software -0.8% 3.9% 15% 16.4% 41.5% 73.9%
DE Market -1.8% -0.2% 6.8% -7.3% 7.5% 6.9%
1 Year Return vs Industry and Market
  • MGK underperformed the Software industry which returned 16.4% over the past year.
  • MGK outperformed the Market in Germany which returned -7.3% over the past year.
Price Volatility
MGK
Industry
5yr Volatility vs Market
Related Companies

MGK Value

 Is Magic Software Enterprises undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Magic Software Enterprises to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Magic Software Enterprises.

DB:MGK Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:MGK
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.135 (1 + (1- 23%) (6.79%))
1.13
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.13 * 5.96%)
6.96%

Discounted Cash Flow Calculation for DB:MGK using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Magic Software Enterprises is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:MGK DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.96%)
2019 17.12 Est @ -7.06% 16.01
2020 16.29 Est @ -4.88% 14.24
2021 15.74 Est @ -3.35% 12.86
2022 15.39 Est @ -2.27% 11.75
2023 15.15 Est @ -1.52% 10.82
2024 15.00 Est @ -1% 10.02
2025 14.91 Est @ -0.63% 9.31
2026 14.85 Est @ -0.37% 8.67
2027 14.82 Est @ -0.19% 8.09
2028 14.81 Est @ -0.07% 7.56
Present value of next 10 years cash flows $109.32
DB:MGK DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $14.81 × (1 + 0.23%) ÷ (6.96% – 0.23%)
$220.45
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $220.45 ÷ (1 + 6.96%)10
$112.46
DB:MGK Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $109.32 + $112.46
$221.78
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $221.78 / 48.86
$4.54
DB:MGK Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:MGK represents 0.85207x of NasdaqGS:MGIC
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.85207x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 4.54 x 0.85207
€3.87
Value per share (EUR) From above. €3.87
Current discount Discount to share price of €7.20
= -1 x (€7.20 - €3.87) / €3.87
-86.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Magic Software Enterprises is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Magic Software Enterprises's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Magic Software Enterprises's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:MGK PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.43
NasdaqGS:MGIC Share Price ** NasdaqGS (2019-03-22) in USD $8.45
Germany Software Industry PE Ratio Median Figure of 22 Publicly-Listed Software Companies 35.3x
Germany Market PE Ratio Median Figure of 423 Publicly-Listed Companies 18.27x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Magic Software Enterprises.

DB:MGK PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:MGIC Share Price ÷ EPS (both in USD)

= 8.45 ÷ 0.43

19.83x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magic Software Enterprises is good value based on earnings compared to the DE Software industry average.
  • Magic Software Enterprises is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Magic Software Enterprises's expected growth come at a high price?
Raw Data
DB:MGK PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 19.83x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
9.7%per year
Germany Software Industry PEG Ratio Median Figure of 15 Publicly-Listed Software Companies 1.45x
Germany Market PEG Ratio Median Figure of 275 Publicly-Listed Companies 1.39x

*Line of best fit is calculated by linear regression .

DB:MGK PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 19.83x ÷ 9.7%

2.05x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magic Software Enterprises is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Magic Software Enterprises's assets?
Raw Data
DB:MGK PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $4.99
NasdaqGS:MGIC Share Price * NasdaqGS (2019-03-22) in USD $8.45
Germany Software Industry PB Ratio Median Figure of 33 Publicly-Listed Software Companies 2.73x
Germany Market PB Ratio Median Figure of 572 Publicly-Listed Companies 1.78x
DB:MGK PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:MGIC Share Price ÷ Book Value per Share (both in USD)

= 8.45 ÷ 4.99

1.69x

* Primary Listing of Magic Software Enterprises.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magic Software Enterprises is good value based on assets compared to the DE Software industry average.
X
Value checks
We assess Magic Software Enterprises's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Magic Software Enterprises has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

MGK Future Performance

 How is Magic Software Enterprises expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Magic Software Enterprises expected to grow at an attractive rate?
  • Magic Software Enterprises's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Magic Software Enterprises's earnings growth is positive but not above the Germany market average.
  • Magic Software Enterprises's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:MGK Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:MGK Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts 9.7%
DB:MGK Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 9.7%
Germany Software Industry Earnings Growth Rate Market Cap Weighted Average 12.2%
Germany Software Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.2%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:MGK Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:MGK Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 346 24 1
2019-12-31 314 21 2
DB:MGK Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 284 24 20
2018-09-30 278 29 19
2018-06-30 272 27 18
2018-03-31 267 22 16
2017-12-31 258 26 15
2017-09-30 247 24 12
2017-06-30 236 12
2017-03-31 218 26 12
2016-12-31 202 28 12
2016-09-30 194 15
2016-06-30 185 16
2016-03-31 180 16

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Magic Software Enterprises's earnings are expected to grow by 9.7% yearly, however this is not considered high growth (20% yearly).
  • Magic Software Enterprises's revenue is expected to grow by 9.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:MGK Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from Magic Software Enterprises Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:MGK Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 0.49 0.49 0.49 1.00
2019-12-31 0.44 0.44 0.44 1.00
DB:MGK Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.43
2018-09-30 0.42
2018-06-30 0.40
2018-03-31 0.35
2017-12-31 0.35
2017-09-30 0.27
2017-06-30 0.27
2017-03-31 0.28
2016-12-31 0.27
2016-09-30 0.35
2016-06-30 0.35
2016-03-31 0.35

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Magic Software Enterprises will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Magic Software Enterprises's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Magic Software Enterprises has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MGK Past Performance

  How has Magic Software Enterprises performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Magic Software Enterprises's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Magic Software Enterprises's year on year earnings growth rate has been positive over the past 5 years.
  • Magic Software Enterprises's 1-year earnings growth exceeds its 5-year average (28.8% vs 0.2%)
  • Magic Software Enterprises's earnings growth has exceeded the DE Software industry average in the past year (28.8% vs 6.5%).
Earnings and Revenue History
Magic Software Enterprises's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Magic Software Enterprises Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:MGK Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 284.38 19.88 51.42 5.70
2018-09-30 278.32 19.14 52.32 6.15
2018-06-30 271.85 17.66 52.37 6.54
2018-03-31 267.11 15.76 52.36 6.85
2017-12-31 258.14 15.44 50.08 6.94
2017-09-30 247.04 11.77 47.86 6.99
2017-06-30 235.86 11.98 46.50 6.89
2017-03-31 217.74 12.48 43.67 6.19
2016-12-31 201.65 11.91 40.84 5.84
2016-09-30 194.36 15.46 40.27 5.21
2016-06-30 185.22 15.61 37.80 5.09
2016-03-31 180.36 15.62 36.69 4.95
2015-12-31 176.03 16.20 36.49 4.89
2015-09-30 170.69 15.34 37.47 4.95
2015-06-30 165.56 15.43 37.25 4.63
2015-03-31 163.69 15.18 36.40 4.77
2014-12-31 164.30 15.52 37.50 4.75
2014-09-30 162.98 17.27 37.66 4.45
2014-06-30 158.37 17.23 38.06 4.30
2014-03-31 152.49 16.86 37.54 4.00
2013-12-31 144.96 15.88 36.23 3.71
2013-09-30 139.50 15.44 35.59 3.59
2013-06-30 136.48 15.37 34.65 3.51
2013-03-31 129.75 15.49 33.64 2.92
2012-12-31 126.38 16.18 33.63 2.95
2012-09-30 121.13 16.30 31.64 2.60
2012-06-30 118.53 16.20 31.05 2.47
2012-03-31 117.88 16.14 30.47 2.59

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Magic Software Enterprises has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Magic Software Enterprises used its assets more efficiently than the DE Software industry average last year based on Return on Assets.
  • Magic Software Enterprises has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Magic Software Enterprises's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Magic Software Enterprises has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MGK Health

 How is Magic Software Enterprises's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Magic Software Enterprises's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Magic Software Enterprises is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Magic Software Enterprises's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Magic Software Enterprises's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 7.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Magic Software Enterprises Company Filings, last reported 2 months ago.

DB:MGK Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 275.60 28.05 113.92
2018-09-30 273.32 34.08 118.68
2018-06-30 239.85 34.81 91.24
2018-03-31 238.88 37.10 87.63
2017-12-31 239.40 37.59 90.95
2017-09-30 234.35 42.43 88.97
2017-06-30 236.27 46.03 100.08
2017-03-31 228.70 43.24 99.78
2016-12-31 222.64 35.40 87.82
2016-09-30 223.64 4.11 60.85
2016-06-30 204.75 4.25 81.53
2016-03-31 200.55 3.29 80.85
2015-12-31 198.85 3.27 76.68
2015-09-30 194.85 6.03 80.85
2015-06-30 194.61 3.88 84.18
2015-03-31 187.90 3.31 88.48
2014-12-31 190.65 3.34 84.43
2014-09-30 189.86 2.68 84.92
2014-06-30 191.21 3.00 92.78
2014-03-31 186.70 3.09 87.86
2013-12-31 131.85 3.33 35.99
2013-09-30 125.25 0.00 39.16
2013-06-30 122.50 0.00 39.34
2013-03-31 118.71 0.00 37.62
2012-12-31 120.28 0.02 38.63
2012-09-30 116.63 0.03 38.52
2012-06-30 113.51 0.03 43.68
2012-03-31 110.24 0.01 40.48
  • Magic Software Enterprises's level of debt (10.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (2.5% vs 10.2% today).
  • Debt is well covered by operating cash flow (85.7%, greater than 20% of total debt).
  • Magic Software Enterprises earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Magic Software Enterprises's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Magic Software Enterprises has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MGK Dividends

 What is Magic Software Enterprises's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.61%
Current annual income from Magic Software Enterprises dividends.
If you bought €2,000 of Magic Software Enterprises shares you are expected to receive €72 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Magic Software Enterprises's pays a higher dividend yield than the bottom 25% of dividend payers in Germany (1.52%).
  • Magic Software Enterprises's dividend is below the markets top 25% of dividend payers in Germany (3.89%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:MGK Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Germany Software Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 1.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 328 Stocks 3.2%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.5%
Germany Top 25% Dividend Yield 75th Percentile 3.9%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:MGK Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-12-31
2019-12-31
DB:MGK Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-03-04 0.305 3.570
2018-11-13 0.310 3.821
2018-09-21 0.310 3.638
2018-08-08 0.310 3.476
2018-02-28 0.260 3.124
2017-08-14 0.220 2.581
2017-02-22 0.170 2.145
2016-08-15 0.175 2.421
2016-02-22 0.185 2.695
2015-08-12 0.215 3.816
2015-02-05 0.176 2.689
2014-08-12 0.215 3.227
2014-02-18 0.210 2.668
2013-08-12 0.210 3.053
2013-02-14 0.240 4.465
2012-11-07 0.200 4.380
2012-09-10 0.200 4.394
2012-02-14 0.000 0.000
2011-11-02 0.000 0.000
2011-08-03 0.000 0.000
2011-04-28 0.000 0.000
2011-03-18 0.000 0.000
2009-12-29 0.500 17.769

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magic Software Enterprises has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Magic Software Enterprises has only been paying a dividend for 9 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Magic Software Enterprises's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.4x coverage).
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Magic Software Enterprises's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Magic Software Enterprises afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Magic Software Enterprises has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MGK Management

 What is the CEO of Magic Software Enterprises's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Guy Bernstein
AGE 50
TENURE AS CEO 8.9 years
CEO Bio

Mr. Guy Bernstein is the Chief Executive Officer of Magic Software Enterprises Ltd. since April 2010 and has been its Director since January 2007. Mr. Bernstein served as Chairman of the Board at Magic Software Enterprises Ltd., from April 2008 to April 2010. He serves as a Director of Sapiens International Corporation N.V. since January 1, 2007 and was appointed Chairman of the Board of Directors in November 12, 2009. Mr. Bernstein has served as the Chief Executive Officer of Formula Systems (1985) Ltd. since January 2008. From December 2006 to November 2010, Mr. Bernstein served as a Director and the Chief Executive Officer of Emblaze Ltd. From April 2004 to December 2006, Mr. Bernstein served as the Chief Financial Officer of Emblaze. He also served as a Director of Emblaze from April 2004 until November 2010. Prior to joining Emblaze, Mr. Bernstein served as Chief Financial and Operations Officer of Magic Software, a position he held since 1999. Mr. Bernstein joined Magic Software from Kost Forer Gabbay & Kasierer, a member of EY Global, where he acted as Senior Manager from 1994 to 1997. Mr. Bernstein also serves as Chief Executive Officer of Magic Software and Chairman of the Board of Matrix IT Ltd. Mr. Bernstein is a Certified Licensed Public Accountant and holds a B.A. in Accounting and Economics from Tel Aviv University.

CEO Compensation
  • Insufficient data for Guy to compare compensation growth.
  • Insufficient data for Guy to establish whether their remuneration is reasonable compared to companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Magic Software Enterprises management team in years:

7.8
Average Tenure
49
Average Age
  • The average tenure for the Magic Software Enterprises management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Arie Kilman

TITLE
Chairman of Software Solutions Division
COMPENSATION
$752K
AGE
65
TENURE
2.2 yrs

Arik Faingold

TITLE
President of Integration Solutions Division
COMPENSATION
$471K
AGE
41
TENURE
6.7 yrs

Yakov Tsaroya

TITLE
Chief Executive Officer of Coretech Consulting Services and Fusion Solutions
COMPENSATION
$801K
AGE
48
TENURE
13.2 yrs

Udi Ertel

TITLE
President of Software Solutions Division
COMPENSATION
$519K
AGE
59
TENURE
6.2 yrs

Hanan Shahaf

TITLE
Chief Executive Officer of Roshtov Software Industries Ltd
COMPENSATION
$303K
AGE
66
TENURE
2.7 yrs

Guy Bernstein

TITLE
CEO & Director
AGE
50
TENURE
8.9 yrs

Asaf Berenstin

TITLE
Chief Financial Officer
AGE
40
TENURE
8.9 yrs

Silver Etzioni

TITLE
Vice President of Operations

Yuval Lavi

TITLE
Vice President of Technology & Innovation

Amit Birk

TITLE
VP of Mergers & Acquisitions
COMPENSATION
$260K
AGE
47
TENURE
19.8 yrs
Board of Directors Tenure

Average tenure and age of the Magic Software Enterprises board of directors in years:

4.3
Average Tenure
50
Average Age
  • The tenure for the Magic Software Enterprises board of directors is about average.
Board of Directors

Guy Bernstein

TITLE
CEO & Director
AGE
50
TENURE
12.2 yrs

Naamit Salomon

TITLE
Director
AGE
54
TENURE
16 yrs

Ron Ettlinger

TITLE
External Director
AGE
51
TENURE
4.3 yrs

Sagi Schliesser

TITLE
External Director
AGE
46
TENURE
3.3 yrs

Avi Zakay

TITLE
Director
AGE
38
TENURE
1.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Magic Software Enterprises's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Magic Software Enterprises has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MGK News

Simply Wall St News

MGK Company Info

Description

Magic Software Enterprises Ltd. provides proprietary application development, business process integration, vertical software solutions, and IT outsourcing software services in Israel and internationally. The company’s Software Services segment develops, markets, sells, and supports a proprietary and none proprietary application platform, software applications, and business and process integration solutions and related services. Its IT Professional Services segment offers IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, and communications services and solutions, as well as supplemental outsourcing services. The company offers Magic xpa, a proprietary application platform for developing and deploying business applications; AppBuilder, a proprietary application platform for building, deploying, and maintaining high-end and mainframe-grade business applications; Magic xpi integration platform, a graphical wizard-based code-free solution; and Magic xpc, a hybrid integration platform as a service. It also provides vertical software solutions comprising Clicks, a software solution for healthcare providers; Leap, a software solution for business support systems; Hermes Solution, a packaged software solution for managing air cargo ground handling; HR Pulse, a customized single-tenant software as a service tool; and MBS Solution, a proprietary system for managing TV broadcast channels. In addition, the company provides software maintenance, support, training, and consulting services. It serves oil and gas, telecommunications, financial, healthcare, and industrial sectors, as well as public institutions and international agencies. The company was formerly known as Mashov Software Export (1983) Ltd. and changed its name to Magic Software Enterprises Ltd. in 1991. Magic Software Enterprises Ltd. was founded in 1983 and is headquartered in Or Yehuda, Israel.

Details
Name: Magic Software Enterprises Ltd.
MGK
Exchange: DB
Founded: 1983
$365,560,208
48,861,038
Website: http://www.magicsoftware.com
Address: Magic Software Enterprises Ltd.
5 Haplada Street,
PO Box 5011,
Or Yehuda,
6021805,
Israel
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS MGIC Ordinary Shares Nasdaq Global Select US USD 28. Aug 1991
DB MGK Ordinary Shares Deutsche Boerse AG DE EUR 28. Aug 1991
TASE MGIC Ordinary Shares The Tel-Aviv Stock Exchange IL ILS 28. Aug 1991
Number of employees
Current staff
Staff numbers
2,000
Magic Software Enterprises employees.
Industry
Application Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/24 21:28
End of day share price update: 2019/03/22 00:00
Last estimates confirmation: 2019/03/05
Last earnings filing: 2019/03/04
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.