Magnolia Oil & Gas Corporation

NYSE:MGY Stock Report

Market Cap: US$5.4b

Magnolia Oil & Gas Valuation

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

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

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

Below Fair Value: MGY ($28.23) is trading below our estimate of fair value ($49.46)

Significantly Below Fair Value: MGY is trading below fair value by more than 20%.


Key Valuation Metric

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

Key metric: As MGY is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MGY. This is calculated by dividing MGY's market cap by their current earnings.
What is MGY's PE Ratio?
PE Ratio14.4x
EarningsUS$374.20m
Market CapUS$5.45b

Price to Earnings Ratio vs Peers

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

The above table shows the PE ratio for MGY vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average7.6x
CRC California Resources
10.3x-13.4%US$5.3b
MUR Murphy Oil
10.2x12.9%US$4.8b
SM SM Energy
6.3x5.2%US$5.1b
APA APA
3.7x-9.1%US$8.2b
MGY Magnolia Oil & Gas
14.4x3.6%US$5.4b

Price-To-Earnings vs Peers: MGY is expensive based on its Price-To-Earnings Ratio (14.4x) compared to the peer average (7.6x).


Price to Earnings Ratio vs Industry

How does MGY's PE Ratio compare vs other companies in the US Oil and Gas Industry?

3 CompaniesPrice / EarningsEstimated GrowthMarket Cap
AXAS Abraxas Petroleum
0.09xn/aUS$10.27m
BYRO.F Byron Energy
0.03x-10.3%US$312.17k
USOP.Y U.S. Oil and Gas
n/an/aUS$6.00
No more companies available in this PE range
MGY 14.4xIndustry Avg. 11.7xNo. of Companies19PE0816243240+
3 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MGY is expensive based on its Price-To-Earnings Ratio (14.4x) compared to the US Oil and Gas industry average (11.7x).


Price to Earnings Ratio vs Fair Ratio

What is MGY'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.

MGY PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.4x
Fair PE Ratio10.7x

Price-To-Earnings vs Fair Ratio: MGY is expensive based on its Price-To-Earnings Ratio (14.4x) compared to the estimated Fair Price-To-Earnings Ratio (10.7x).


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MGY forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentUS$28.23
US$27.53
-2.5%
11.7%US$33.00US$22.00n/a15
Nov ’25US$25.00
US$27.33
+9.3%
11.5%US$33.00US$22.00n/a15
Oct ’25US$24.85
US$27.20
+9.5%
11.0%US$32.00US$22.00n/a15
Sep ’25US$25.61
US$28.80
+12.5%
12.3%US$35.00US$22.00n/a15
Aug ’25US$25.54
US$29.07
+13.8%
12.2%US$35.00US$22.00n/a15
Jul ’25US$25.46
US$28.26
+11.0%
12.5%US$35.00US$22.00n/a14
Jun ’25US$25.95
US$28.28
+9.0%
13.0%US$35.00US$22.00n/a13
May ’25US$24.59
US$27.92
+13.6%
12.5%US$35.00US$22.00n/a13
Apr ’25US$26.19
US$25.92
-1.0%
14.9%US$33.00US$18.00n/a13
Mar ’25US$23.00
US$24.65
+7.2%
14.8%US$33.00US$18.00n/a13
Feb ’25US$20.42
US$24.79
+21.4%
15.4%US$32.00US$18.00n/a12
Jan ’25US$21.29
US$25.54
+20.0%
14.1%US$31.00US$18.00n/a12
Dec ’24US$21.90
US$26.92
+22.9%
11.7%US$32.00US$22.00n/a13
Nov ’24US$22.29
US$26.75
+20.0%
9.0%US$30.00US$23.00US$25.0012
Oct ’24US$22.91
US$27.00
+17.9%
9.2%US$32.00US$24.00US$24.8512
Sep ’24US$23.33
US$26.00
+11.4%
8.7%US$30.00US$22.00US$25.6112
Aug ’24US$22.19
US$26.08
+17.5%
10.9%US$30.00US$21.00US$25.5413
Jul ’24US$20.90
US$27.23
+30.3%
10.4%US$33.00US$22.00US$25.4613
Jun ’24US$19.20
US$27.81
+44.8%
10.9%US$33.00US$22.00US$25.9513
May ’24US$20.97
US$28.61
+36.4%
10.7%US$36.00US$25.00US$24.5914
Apr ’24US$21.88
US$28.42
+29.9%
8.5%US$35.00US$25.00US$26.1913
Mar ’24US$22.36
US$29.08
+30.0%
10.0%US$37.00US$25.00US$23.0013
Feb ’24US$23.01
US$28.85
+25.4%
9.6%US$35.00US$25.00US$20.4213
Jan ’24US$23.45
US$29.50
+25.8%
9.1%US$36.00US$25.00US$21.2912
Dec ’23US$25.63
US$30.75
+20.0%
12.2%US$39.00US$25.00US$21.9012
Nov ’23US$25.56
US$29.67
+16.1%
10.8%US$37.00US$25.00US$22.2912

Analyst Forecast: Target price is lower than the current share price.


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