MGNI

MagniteNasdaqGS:MGNI Stock Report

Market Cap

US$3.8b

7D

-2.3%

1Y

357.9%

Updated

20 Sep, 2021

Data

Company Financials +
MGNI fundamental analysis
Snowflake Score
Valuation0/6
Future Growth2/6
Past Performance2/6
Financial Health2/6
Dividends0/6

MGNI Overview

Magnite, Inc. operates an independent sell-side advertising platform in the United States and internationally.

Magnite Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Magnite
Historical stock prices
Current Share PriceUS$28.07
52 Week HighUS$5.88
52 Week LowUS$64.39
Beta2.31
1 Month Change13.19%
3 Month Change-10.95%
1 Year Change357.91%
3 Year Change656.60%
5 Year Change242.74%
Change since IPO39.72%

Recent News & Updates

Sep 15

Magnite Stock: Too Cheap To Ignore As Advertising Stocks Fall Out Of Favor

Magnite's share price has fallen more than 40% in the past six months on little to no justification. Magnite is on a path towards $450 million net revenues next year. The stock is now cheap at less than 9x net revenues for 2022.

Aug 20

Magnite: 6x Next Year's Sales, This Stock Is Now Too Cheap

All eyes are on CTV, and why this is an attractive space for ad tech companies. Ad tech companies are going through a difficult time in 2021. At less than 6x next year's sales, this stock is cheaply valued.

Aug 09

Magnite Stock: Q2 2021 Results, CTV Growing Fast, Strong Guidance

Magnite's guidance for 2022 points towards $450 million in net revenues (excluding TAC). Magnite's CTV business now accounts for more than a third of its total business. Magnite's stock is priced at just 10x sales, which is very cheap amongst digital advertising stocks.

Shareholder Returns

MGNIUS MediaUS Market
7D-2.3%-4.3%-2.5%
1Y357.9%30.9%33.0%

Return vs Industry: MGNI exceeded the US Media industry which returned 29.9% over the past year.

Return vs Market: MGNI exceeded the US Market which returned 33.8% over the past year.

Price Volatility

Is MGNI's price volatile compared to industry and market?
MGNI volatility
MGNI Beta2.31
Industry Beta1.15
Market Beta1

Stable Share Price: MGNI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: MGNI's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2007569Michael Barretthttps://www.magnite.com

Magnite, Inc. operates an independent sell-side advertising platform in the United States and internationally. The company’s advertising platform enables publishers to monetize various screens and formats, including CTV, desktop display, video, audio, and mobile, as well as allows agencies and brands to access brand-safe ad inventory and execute advertising transactions. It markets its technology solutions to buyers and sellers through a sales teams that operate from various locations.

Valuation

Is Magnite undervalued compared to its fair value and its price relative to the market?

190.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MGNI ($28.07) is trading above our estimate of fair value ($19.84)

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


Price To Earnings Ratio

PE vs Industry: MGNI is poor value based on its PE Ratio (190.9x) compared to the US Media industry average (12.3x).

PE vs Market: MGNI is poor value based on its PE Ratio (190.9x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: MGNI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MGNI is overvalued based on its PB Ratio (4.2x) compared to the US Media industry average (2.1x).


Future Growth

How is Magnite forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-173.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MGNI's earnings are forecast to decline over the next 3 years (-173.6% per year).

Earnings vs Market: MGNI's earnings are forecast to decline over the next 3 years (-173.6% per year).

High Growth Earnings: MGNI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MGNI's revenue (25.8% per year) is forecast to grow faster than the US market (9.8% per year).

High Growth Revenue: MGNI's revenue (25.8% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MGNI's Return on Equity is forecast to be low in 3 years time (16.7%).


Past Performance

How has Magnite performed over the past 5 years?

5.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MGNI has a large one-off loss of $38.5M impacting its June 30 2021 financial results.

Growing Profit Margin: MGNI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MGNI has become profitable over the past 5 years, growing earnings by 5.8% per year.

Accelerating Growth: MGNI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MGNI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Media industry (96.3%).


Return on Equity

High ROE: MGNI's Return on Equity (2.2%) is considered low.


Financial Health

How is Magnite's financial position?


Financial Position Analysis

Short Term Liabilities: MGNI's short term assets ($1.0B) exceed its short term liabilities ($873.7M).

Long Term Liabilities: MGNI's short term assets ($1.0B) exceed its long term liabilities ($779.9M).


Debt to Equity History and Analysis

Debt Level: MGNI's debt to equity ratio (81.4%) is considered high.

Reducing Debt: Insufficient data to determine if MGNI's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: MGNI's debt is not well covered by operating cash flow (5.1%).

Interest Coverage: Insufficient data to determine if MGNI's interest payments on its debt are well covered by EBIT.


Balance Sheet


Dividend

What is Magnite current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MGNI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MGNI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MGNI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MGNI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MGNI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

1.4yrs

Average management tenure


CEO

Michael Barrett (59 yo)

4.5yrs

Tenure

US$3,512,905

Compensation

Mr. Michael G. Barrett serves as Chief Executive Officer of Telaria Inc. He has been Chief Executive Officer of Magnite, Inc. (formerly known as The Rubicon Project, Inc.). since March 2017 and serves as i...


CEO Compensation Analysis

Compensation vs Market: Michael's total compensation ($USD3.51M) is below average for companies of similar size in the US market ($USD5.27M).

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


Leadership Team

Experienced Management: MGNI's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: MGNI's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: MGNI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19%.


Top Shareholders

Company Information

Magnite, Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Magnite, Inc.
  • Ticker: MGNI
  • Exchange: NasdaqGS
  • Founded: 2007
  • Industry: Advertising
  • Sector: Media
  • Market Cap: US$3.830b
  • Shares outstanding: 131.25m
  • Website: https://www.magnite.com

Number of Employees


Location

  • Magnite, Inc.
  • 12181 Bluff Creek Drive
  • 4th Floor
  • Los Angeles
  • California
  • 90094
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/20 22:36
End of Day Share Price2021/09/20 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.