NasdaqGM:MAGS

Stock Analysis Report

Magal Security Systems

Executive Summary

Magal Security Systems Ltd. develops, manufactures, markets, and sells perimeter intrusion detection sensors, physical barriers, video analytics and management systems, cyber security products and systems, and security video observation and surveillance systems.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Magal Security Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.8%

MAGS

4.0%

US Electronic

1.8%

US Market


1 Year Return

-25.8%

MAGS

13.3%

US Electronic

7.3%

US Market

Return vs Industry: MAGS underperformed the US Electronic industry which returned 13.3% over the past year.

Return vs Market: MAGS underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

MAGSIndustryMarket
7 Day-1.8%4.0%1.8%
30 Day-3.0%1.1%-0.7%
90 Day-19.5%4.2%0.06%
1 Year-25.8%-25.8%14.4%13.3%9.7%7.3%
3 Year-13.3%-13.3%54.7%50.4%46.3%36.9%
5 Year-5.3%-5.3%88.7%79.6%64.5%46.5%

Price Volatility Vs. Market

How volatile is Magal Security Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Magal Security Systems undervalued compared to its fair value and its price relative to the market?

0.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: MAGS ($3.98) is trading below our estimate of fair value ($3.99)

Significantly Undervalued: MAGS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: MAGS is poor value based on its PE Ratio (286.8x) compared to the Electronic industry average (19.2x).

PE vs Market: MAGS is poor value based on its PE Ratio (286.8x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MAGS is good value based on its PB Ratio (1.1x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

How is Magal Security Systems forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

40.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAGS's forecast earnings growth (40% per year) is above the savings rate (2.7%).

Earnings vs Market: MAGS's earnings (40% per year) are forecast to grow faster than the US market (14.6% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Insufficient data to determine if MAGS's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if MAGS's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if MAGS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Magal Security Systems performed over the past 5 years?

-9.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MAGS has become profitable over the past 5 years, growing earnings by -9.3% per year.

Accelerating Growth: MAGS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MAGS had negative earnings growth (-80.7%) over the past year, making it difficult to compare to the Electronic industry average (58.6%).


Return on Equity

High ROE: MAGS's Return on Equity (0.4%) is considered low.


Return on Assets

ROA vs Industry: MAGS's Return on Assets is below or equal to the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: MAGS's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Magal Security Systems's financial position?


Financial Position Analysis

Short Term Liabilities: MAGS's short term assets ($89.3M) exceeds its short term liabilities ($28.1M)

Long Term Liabilities: MAGS's short term assets (89.3M) exceeds its long term liabilities (7.1M)


Debt to Equity History and Analysis

Debt Level: MAGS is debt free.

Reducing Debt: MAGS has no debt compared to 5 years ago when its debt to equity ratio was 14.6%.

Debt Coverage: MAGS has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MAGS has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: MAGS has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if MAGS's debt is covered by short term assets.


Next Steps

Dividend

What is Magal Security Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.5%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if MAGS'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 MAGS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Magal Security Systems's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Dror Sharon (53yo)

1.3yrs

Tenure

US$607,900

Compensation

Mr. Dror Sharon serves as Chief Executive Officer at Magal Security Systems Ltd. Since June 24, 2018. He served as the Chief Executive Officer at CONTROP Precision Technologies Ltd until June 24, 2018. Mr. ...


CEO Compensation Analysis

Compensation vs. Market: Dror has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Dror's compensation with company performance.


Management Age and Tenure

3.3yrs

Average Tenure

47yo

Average Age

Experienced Management: MAGS's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

5.1yrs

Average Tenure

61yo

Average Age

Experienced Board: MAGS's board of directors are considered experienced (5.1 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Gillon Beck (57yo)

    Executive Chairman of the Board

    • Tenure: 5.1yrs
  • Kevin Bradley

    President of North America Sales

    • Tenure: 0yrs
  • Brian Rich (62yo)

    CTO & Business Development Manager

    • Tenure: 4.4yrs
    • Compensation: US$209.00k
  • Yaniv Shachar (45yo)

    Deputy CEO & GM of Magal Project Division

    • Tenure: 2.8yrs
    • Compensation: US$330.00k
  • Doron Kerbel (47yo)

    VP, General Counsel & Company Secretary

    • Tenure: 4.3yrs
    • Compensation: US$202.00k
  • Dror Sharon (53yo)

    Chief Executive Officer

    • Tenure: 1.3yrs
    • Compensation: US$607.90k
  • Kobi Vinokur (41yo)

    Chief Financial Officer

    • Tenure: 3.1yrs
    • Compensation: US$275.00k
  • Jeremy Weese (42yo)

    COO & Senior VP of Senstar Corporation

    • Tenure: 3.5yrs

Board Members

  • Avraham Bigger (73yo)

    Director

    • Tenure: 5.1yrs
  • Jake Berman (70yo)

    Director

    • Tenure: 5.9yrs
  • Gillon Beck (57yo)

    Executive Chairman of the Board

    • Tenure: 5.1yrs
  • Ron Ben-Haim (50yo)

    Director

    • Tenure: 5.1yrs
  • Liza Singer (49yo)

    External Director

    • Tenure: 9.3yrs
  • Moshe Tsabari (65yo)

    External Director

    • Tenure: 4.8yrs
  • Limor Steklov

    External Director

    • Tenure: 0.2yrs

Company Information

Magal Security Systems Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Magal Security Systems Ltd.
  • Ticker: MAGS
  • Exchange: NasdaqGM
  • Founded: 1965
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$92.090m
  • Shares outstanding: 23.15m
  • Website: https://magalsecurity.com

Number of Employees


Location

  • Magal Security Systems Ltd.
  • 17 Altalef Street
  • Industrial Zone
  • Yehud
  • 5621617
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MAGSNasdaqGM (Nasdaq Global Market)YesOrdinary SharesUSUSDMar 1993

Biography

Magal Security Systems Ltd. develops, manufactures, markets, and sells perimeter intrusion detection sensors, physical barriers, video analytics and management systems, cyber security products and systems, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 23:41
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.