Magyar Bancorp (NasdaqGM:MGYR) - Share price, News & Analysis

Q: What is the Fair Price of MGYR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

MGYR ($11.85) is trading above our estimate of [[fair value]] ($7.17)

MGYR fundamental analysis
Snowflake Score
Valuation	0/6
Future Growth	0/6
Past Performance	5/6
Financial Health	6/6
Dividends	1/6

MGYR Stock Overview

Rewards

Price-To-Earnings ratio (12.6x) is below the US market (14.7x)

Earnings grew by 59.3% over the past year

Risk Analysis

Does not have a meaningful market cap ($84M)

Magyar Bancorp Competitors

Madison County Financial

OTCPK:MCBK

US$84.5m

Lake Shore Bancorp

NasdaqGM:LSBK

US$78.4m

Westbury Bancorp

OTCPK:WBBW

US$77.1m

HMN Financial

NasdaqGM:HMNF

US$100.6m

Price History & Performance

Summary of all time highs, changes and price drops for Magyar Bancorp
Historical stock prices
Current Share Price	US$11.85
52 Week High	US$12.53
52 Week Low	US$10.15
Beta	0.23
1 Month Change	-0.88%
3 Month Change	-1.62%
1 Year Change	4.07%
3 Year Change	18.82%
5 Year Change	10.26%
Change since IPO	35.83%

Shareholder Returns

	MGYR	US Mortgage	US Market
7D	1.2%	-0.2%	-2.2%
1Y	4.1%	-34.1%	-21.2%

Return vs Industry: MGYR exceeded the US Mortgage industry which returned -34.1% over the past year.

Return vs Market: MGYR exceeded the US Market which returned -21.2% over the past year.

Price Volatility

Is MGYR's price volatile compared to industry and market?
MGYR volatility
MGYR Average Weekly Movement	1.8%
Mortgage Industry Average Movement	3.7%
Market Average Movement	8.1%
10% most volatile stocks in US Market	16.9%
10% least volatile stocks in US Market	3.3%

Stable Share Price: MGYR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: MGYR's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1922	98	John Fitzgerald	https://www.magbank.com

Magyar Bancorp, Inc. operates as the holding company for Magyar Bank that provides various consumer and commercial banking services to individuals, businesses, and nonprofit organizations in New Jersey, the United States. It accepts various deposit accounts, including demand, savings, NOW, money market, and retirement accounts, as well as certificates of deposit. The company also provides residential mortgage loans, multi-family and commercial real estate mortgage loans, home equity loans and lines of credit, commercial business loans, and construction loans, as well as small business administration loans.

Magyar Bancorp Fundamentals Summary

How do Magyar Bancorp's earnings and revenue compare to its market cap?
MGYR fundamental statistics
Market Cap	US$84.07m
Earnings (TTM)	US$6.65m
Revenue (TTM)	US$27.75m

12.6x

P/E Ratio

0.8x

P/B Ratio

Is MGYR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
MGYR income statement (TTM)
Revenue	US$27.75m
Cost of Revenue	US$0
Gross Profit	US$27.75m
Other Expenses	US$21.10m
Earnings	US$6.65m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.94
Gross Margin	100.00%
Net Profit Margin	23.96%
Debt/Equity Ratio	20.4%

How did MGYR perform over the long term?

See historical performance and comparison

Dividends

1.0%

Current Dividend Yield

3%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is MGYR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

0/6

Valuation Score 0/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MGYR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for MGYR. This is calculated by dividing MGYR's market cap by their current preferred multiple.
What is MGYR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$84.07m

MGYR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does MGYR's PE Ratio compare to its peers?

MGYR PE Ratio vs Peers

The above table shows the PE ratio for MGYR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	10.9x
MCBK Madison County Financial	11.4x	n/a	US$84.5m
LSBK Lake Shore Bancorp	14.1x	n/a	US$78.4m
WBBW Westbury Bancorp	9.4x	n/a	US$77.1m
HMNF HMN Financial	8.6x	n/a	US$100.6m
MGYR Magyar Bancorp	12.6x	n/a	US$84.1m

Forward PE

Price-To-Earnings vs Peers: MGYR is expensive based on its Price-To-Earnings Ratio (12.6x) compared to the peer average (10.9x).

Price to Earnings Ratio vs Industry

How does MGYR's PE Ratio compare vs other companies in the US Mortgage Industry?

Price-To-Earnings vs Industry: MGYR is expensive based on its Price-To-Earnings Ratio (12.6x) compared to the US Mortgage industry average (11.4x)

Price to Earnings Ratio vs Fair Ratio

What is MGYR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MGYR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	12.6x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate MGYR's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of MGYR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MGYR ($11.85) is trading above our estimate of fair value ($7.17)

Significantly Below Fair Value: MGYR is trading above our estimate of fair value.

Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MGYR's PEG Ratio to determine if it is good value.

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Future Growth

How is Magyar Bancorp forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

8.8%

Forecasted Banks industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Magyar Bancorp has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

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Check out Magyar Bancorp's track record over time to understand how much the company has returned to shareholders and its earnings growth rate in the past.

Past Performance

How has Magyar Bancorp performed over the past 5 years?

Past Performance Score

5/6

Past Performance Score 5/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

32.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MGYR has high quality earnings.

Growing Profit Margin: MGYR's current net profit margins (24%) are higher than last year (16.9%).

Past Earnings Growth Analysis

Earnings Trend: MGYR's earnings have grown significantly by 32.3% per year over the past 5 years.

Accelerating Growth: MGYR's earnings growth over the past year (59.3%) exceeds its 5-year average (32.3% per year).

Earnings vs Industry: MGYR earnings growth over the past year (59.3%) exceeded the Mortgage industry 5.8%.

Return on Equity

High ROE: MGYR's Return on Equity (6.7%) is considered low.

Discover strong past performing companies

Financial Health

How is Magyar Bancorp's financial position? (This company is analysed differently as a bank or financial institution)

Financial Health Score

6/6

Financial Health Score 6/6

Asset Level
Allowance for Bad Loans
Low Risk Liabilities
Loan Level
Low Risk Deposits
Level of Bad Loans

Financial Position Analysis

Debt to Equity History and Analysis

Balance Sheet

Financial Institutions Analysis

Asset Level: MGYR's Assets to Equity ratio (8.1x) is low.

Allowance for Bad Loans: MGYR has a sufficient allowance for bad loans (140%).

Low Risk Liabilities: 95% of MGYR's liabilities are made up of primarily low risk sources of funding.

Loan Level: MGYR has an appropriate level of Loans to Assets ratio (76%).

Low Risk Deposits: MGYR's Loans to Deposits ratio (90%) is appropriate.

Level of Bad Loans: MGYR has an appropriate level of bad loans (1%).

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Dividend

What is Magyar Bancorp current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.01%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MGYR's dividend (1.01%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.6%).

High Dividend: MGYR's dividend (1.01%) is low compared to the top 25% of dividend payers in the US market (4.25%).

Stability and Growth of Payments

Stable Dividend: Too early to tell whether MGYR's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if MGYR's dividend payments are increasing as they only just started paying a dividend.

Current Payout to Shareholders

Earnings Coverage: With its low payout ratio (2.7%), MGYR's dividend payments are thoroughly covered by earnings.

Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years or that it will be covered by earnings.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

17.5yrs

Average board tenure

CEO

John Fitzgerald (58 yo)

12.17yrs

Tenure

US$913,963

Compensation

Mr. John S. Fitzgerald has been the Chief Executive Officer and President of Magyar Bancorp, Inc. since May 27, 2010. Mr. Fitzgerald has been the Chief Executive Officer and President of Magyar Bank since...

CEO Compensation Analysis

Compensation vs Market: John's total compensation ($USD913.96K) is about average for companies of similar size in the US market ($USD799.15K).

Compensation vs Earnings: John's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: MGYR's board of directors are seasoned and experienced ( 17.5 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/07/03 00:00
End of Day Share Price	2022/07/01 00:00
Earnings	2022/03/31
Annual Earnings	2021/09/30