Magic Software Enterprises Ltd. provides proprietary application development, business process integration, vertical software solutions, and information technologies (IT) outsourcing software services in Israel and internationally. More Details
Solid track record with excellent balance sheet.
Share Price & News
How has Magic Software Enterprises's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: MGIC is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: MGIC's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: MGIC exceeded the US Software industry which returned 56% over the past year.
Return vs Market: MGIC exceeded the US Market which returned 53.8% over the past year.
Long-Term Price Volatility Vs. Market
How volatile is Magic Software Enterprises's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StAt US$16.05, Is It Time To Put Magic Software Enterprises Ltd. (NASDAQ:MGIC) On Your Watch List?
2 weeks ago | Simply Wall StMagic Software Enterprises (NASDAQ:MGIC) Has More To Do To Multiply In Value Going Forward
1 month ago | Simply Wall StFour Days Left To Buy Magic Software Enterprises Ltd. (NASDAQ:MGIC) Before The Ex-Dividend Date
Is Magic Software Enterprises undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: MGIC ($16.01) is trading below our estimate of fair value ($19.32)
Significantly Below Fair Value: MGIC is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: MGIC is good value based on its PE Ratio (32.9x) compared to the US Software industry average (54.5x).
PE vs Market: MGIC is poor value based on its PE Ratio (32.9x) compared to the US market (22.4x).
Price to Earnings Growth Ratio
PEG Ratio: MGIC is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: MGIC is good value based on its PB Ratio (3x) compared to the US Software industry average (8.7x).
How is Magic Software Enterprises forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MGIC's forecast earnings growth (22.5% per year) is above the savings rate (2%).
Earnings vs Market: MGIC's earnings (22.5% per year) are forecast to grow faster than the US market (17.9% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MGIC's revenue (11.8% per year) is forecast to grow faster than the US market (9.3% per year).
High Growth Revenue: MGIC's revenue (11.8% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if MGIC's Return on Equity is forecast to be high in 3 years time
How has Magic Software Enterprises performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MGIC has high quality earnings.
Growing Profit Margin: MGIC's current net profit margins (6.4%) are higher than last year (3.9%).
Past Earnings Growth Analysis
Earnings Trend: MGIC's earnings have grown by 4.7% per year over the past 5 years.
Accelerating Growth: MGIC's earnings growth over the past year (86.5%) exceeds its 5-year average (4.7% per year).
Earnings vs Industry: MGIC earnings growth over the past year (86.5%) exceeded the Software industry 16.3%.
Return on Equity
High ROE: MGIC's Return on Equity (10.2%) is considered low.
How is Magic Software Enterprises's financial position?
Financial Position Analysis
Short Term Liabilities: MGIC's short term assets ($211.2M) exceed its short term liabilities ($84.8M).
Long Term Liabilities: MGIC's short term assets ($211.2M) exceed its long term liabilities ($64.5M).
Debt to Equity History and Analysis
Debt Level: MGIC's debt to equity ratio (8.5%) is considered satisfactory.
Reducing Debt: MGIC's debt to equity ratio has increased from 1.6% to 8.5% over the past 5 years.
Debt Coverage: MGIC's debt is well covered by operating cash flow (210.2%).
Interest Coverage: MGIC's interest payments on its debt are well covered by EBIT (45.4x coverage).
What is Magic Software Enterprises's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MGIC's dividend (2.4%) is higher than the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: MGIC's dividend (2.4%) is low compared to the top 25% of dividend payers in the US market (3.46%).
Stability and Growth of Payments
Stable Dividend: MGIC has been paying a dividend for less than 10 years and during this time payments have been volatile.
Growing Dividend: MGIC's dividend payments have increased, but the company has only paid a dividend for 9 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (79.1%), MGIC's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Guy Bernstein (52 yo)
Mr. Guy Bernstein is the Chief Executive Officer of Magic Software Enterprises Ltd. since April 2010 and has been its Director since January 01, 2007. Mr. Bernstein served as a member of our board of direc...
Experienced Management: MGIC's management team is seasoned and experienced (8.6 years average tenure).
Experienced Board: MGIC's board of directors are considered experienced (6.3 years average tenure).
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.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Magic Software Enterprises Ltd.'s company bio, employee growth, exchange listings and data sources
- Name: Magic Software Enterprises Ltd.
- Ticker: MGIC
- Exchange: NasdaqGS
- Founded: 1983
- Industry: Application Software
- Sector: Software
- Market Cap: US$828.266m
- Shares outstanding: 49.04m
- Website: https://www.magicsoftware.com
Number of Employees
- Magic Software Enterprises Ltd.
- 5 Haplada Street
- PO Box 5011
- Or Yehuda
- 60218 05
Magic Software Enterprises Ltd. provides proprietary application development, business process integration, vertical software solutions, and information technologies (IT) outsourcing software services in I...
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/04/18 23:04|
|End of Day Share Price||2021/04/16 00:00|
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.