Snowflake Score | |
---|---|
Valuation | 3/6 |
Future Growth | 4/6 |
Past Performance | 2/6 |
Financial Health | 5/6 |
Dividends | 4/6 |
MGIC Stock Overview
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.
Magic Software Enterprises Competitors
Price History & Performance
Historical stock prices | |
---|---|
Current Share Price | US$16.71 |
52 Week High | US$25.49 |
52 Week Low | US$14.87 |
Beta | 1.27 |
1 Month Change | -3.58% |
3 Month Change | -10.07% |
1 Year Change | 3.72% |
3 Year Change | 88.39% |
5 Year Change | 98.93% |
Change since IPO | 516.99% |
Recent News & Updates
Magic Software Continues To Create Revenue Platforms In Resilient Industries
Magic Software has about 80% of its revenue coming from long-term engagements with current clients. Growth is being driven by the signing of contracts with new clients primarily in healthcare and defense. These resilient industries are creating an attractive revenue platform for the company, and the cash generation drivers continue to fire. The company continues to be a nice mid-cap tech exposure, but it's beginning to trade too dearly for us high conviction investors to be interested.
Shareholder Returns
MGIC | US Software | US Market | |
---|---|---|---|
7D | 4.0% | -3.8% | -2.5% |
1Y | 3.7% | -10.3% | -10.4% |
Return vs Industry: MGIC exceeded the US Software industry which returned -10.3% over the past year.
Return vs Market: MGIC exceeded the US Market which returned -10.4% over the past year.
Price Volatility
MGIC volatility | |
---|---|
MGIC Average Weekly Movement | 5.2% |
Software Industry Average Movement | 11.4% |
Market Average Movement | 7.8% |
10% most volatile stocks in US Market | 16.7% |
10% least volatile stocks in US Market | 2.8% |
Stable Share Price: MGIC is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: MGIC's weekly volatility (5%) has been stable over the past year.
About the Company
Founded | Employees | CEO | Website |
---|---|---|---|
1983 | 3,039 | Guy Bernstein | https://www.magicsoftware.com |
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. The company’s Software Services segment develops, markets, sells, and supports 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, communications services and solutions, and supplemental outsourcing services.
Magic Software Enterprises Fundamentals Summary
MGIC fundamental statistics | |
---|---|
Market Cap | US$820.01m |
Earnings (TTM) | US$27.38m |
Revenue (TTM) | US$511.73m |
29.9x
P/E Ratio1.6x
P/S RatioIs MGIC overvalued?
See Fair Value and valuation analysisEarnings & Revenue
MGIC income statement (TTM) | |
---|---|
Revenue | US$511.73m |
Cost of Revenue | US$371.35m |
Gross Profit | US$140.38m |
Other Expenses | US$113.00m |
Earnings | US$27.38m |
Last Reported Earnings
Mar 31, 2022
Next Earnings Date
n/a
Earnings per share (EPS) | 0.56 |
Gross Margin | 27.43% |
Net Profit Margin | 5.35% |
Debt/Equity Ratio | 19.9% |
How did MGIC perform over the long term?
See historical performance and comparisonDividends
2.7%
Current Dividend Yield81%
Payout RatioValuation
Is Magic Software Enterprises undervalued compared to its fair value and its price relative to the market?
Valuation Score
3/6Valuation Score 3/6
Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry
29.95x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: MGIC ($16.71) is trading above our estimate of fair value ($8.7)
Significantly Below Fair Value: MGIC is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: MGIC is good value based on its PE Ratio (29.9x) compared to the US Software industry average (41.9x).
PE vs Market: MGIC is poor value based on its PE Ratio (29.9x) compared to the US market (15.5x).
Price to Earnings Growth Ratio
PEG Ratio: MGIC is good value based on its PEG Ratio (1x)
Price to Book Ratio
PB vs Industry: MGIC is good value based on its PB Ratio (3.1x) compared to the US Software industry average (3.6x).
Future Growth
How is Magic Software Enterprises forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?
Future Growth Score
4/6Future Growth Score 4/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
31.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: MGIC's forecast earnings growth (31.4% per year) is above the savings rate (1.9%).
Earnings vs Market: MGIC's earnings (31.4% per year) are forecast to grow faster than the US market (12.6% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: MGIC's revenue (9% per year) is forecast to grow faster than the US market (8% per year).
High Growth Revenue: MGIC's revenue (9% 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
Past Performance
How has Magic Software Enterprises performed over the past 5 years?
Past Performance Score
2/6Past Performance Score 2/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
14.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: MGIC has high quality earnings.
Growing Profit Margin: MGIC's current net profit margins (5.4%) are lower than last year (6.5%).
Past Earnings Growth Analysis
Earnings Trend: MGIC's earnings have grown by 14.9% per year over the past 5 years.
Accelerating Growth: MGIC's earnings growth over the past year (7.1%) is below its 5-year average (14.9% per year).
Earnings vs Industry: MGIC earnings growth over the past year (7.1%) underperformed the Software industry 29.6%.
Return on Equity
High ROE: MGIC's Return on Equity (12.3%) is considered low.
Financial Health
How is Magic Software Enterprises's financial position?
Financial Health Score
5/6Financial Health Score 5/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: MGIC's short term assets ($274.0M) exceed its short term liabilities ($139.0M).
Long Term Liabilities: MGIC's short term assets ($274.0M) exceed its long term liabilities ($100.3M).
Debt to Equity History and Analysis
Debt Level: MGIC has more cash than its total debt.
Reducing Debt: MGIC's debt to equity ratio has increased from 18.9% to 19.9% over the past 5 years.
Debt Coverage: MGIC's debt is well covered by operating cash flow (55.2%).
Interest Coverage: MGIC earns more interest than it pays, so coverage of interest payments is not a concern.
Balance Sheet
Dividend
What is Magic Software Enterprises's current dividend yield, its reliability and sustainability?
Dividend Score
3/6Dividend Score 3/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage
2.69%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: MGIC's dividend (2.69%) is higher than the bottom 25% of dividend payers in the US market (1.54%).
High Dividend: MGIC's dividend (2.69%) is low compared to the top 25% of dividend payers in the US market (4.05%).
Stability and Growth of Payments
Stable Dividend: MGIC's dividend payments have been volatile in the past 10 years.
Growing Dividend: MGIC's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: At its current payout ratio (80.6%), MGIC's payments are covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: At its current cash payout ratio (77.6%), MGIC's dividend payments are covered by cash flows.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
8.5yrs
Average management tenure
CEO
Guy Bernstein (53 yo)
12.08yrs
Tenure
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...
Leadership Team
Experienced Management: MGIC's management team is seasoned and experienced (8.5 years average tenure).
Board Members
Experienced Board: MGIC's board of directors are considered experienced (7.4 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.
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Magic Software Enterprises Ltd.'s employee growth, exchange listings and data sources
Key Information
- Name: Magic Software Enterprises Ltd.
- Ticker: MGIC
- Exchange: NasdaqGS
- Founded: 1983
- Industry: Application Software
- Sector: Software
- Implied Market Cap: US$820.011m
- Shares outstanding: 49.07m
- Website: https://www.magicsoftware.com
Number of Employees
Location
- Magic Software Enterprises Ltd.
- Terminal Center
- Yahadut Canada 1 Street
- Or Yehuda
- 6037501
- Israel
Listings
Company Analysis and Financial Data Status
Data | Last Updated (UTC time) |
---|---|
Company Analysis | 2022/05/15 00:00 |
End of Day Share Price | 2022/05/13 00:00 |
Earnings | 2022/03/31 |
Annual Earnings | 2021/12/31 |
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.