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 Analysis

Flawless balance sheet and fair value.


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

Stable Share Price: MAGS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-5.0%

MAGS

-4.1%

US Electronic

-2.6%

US Market


1 Year Return

-43.6%

MAGS

-25.6%

US Electronic

-13.3%

US Market

Return vs Industry: MAGS underperformed the US Electronic industry which returned -28% over the past year.

Return vs Market: MAGS underperformed the US Market which returned -15.9% over the past year.


Shareholder returns

MAGSIndustryMarket
7 Day-5.0%-4.1%-2.6%
30 Day-22.9%-19.2%-15.2%
90 Day-29.8%-31.2%-22.2%
1 Year-43.6%-43.6%-24.8%-25.6%-11.5%-13.3%
3 Year-57.6%-57.6%-1.2%-4.0%13.2%5.7%
5 Year-43.7%-43.7%19.9%14.0%31.8%17.2%

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?

26.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MAGS ($2.83) is trading below our estimate of fair value ($3.84)

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


Price To Earnings Ratio

PE vs Industry: MAGS is poor value based on its PE Ratio (28.5x) compared to the Electronic industry average (14.4x).

PE vs Market: MAGS is poor value based on its PE Ratio (28.5x) compared to the US market (12.2x).


Price to Earnings Growth Ratio

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 (0.7x) compared to the US Electronic industry average (1.5x).


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?

21.1%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Magal Security Systems has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

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

-25.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MAGS has high quality earnings.

Growing Profit Margin: MAGS's current net profit margins (2.6%) are lower than last year (2.9%).


Past Earnings Growth Analysis

Earnings Trend: MAGS's earnings have declined by -25.3% per year over the past 5 years.

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 (-14.2%) over the past year, making it difficult to compare to the Electronic industry average (0.03%).


Return on Equity

High ROE: MAGS's Return on Equity (3.1%) is considered low.


Next Steps

Financial Health

How is Magal Security Systems's financial position?


Financial Position Analysis

Short Term Liabilities: MAGS's short term assets ($96.3M) exceed its short term liabilities ($29.1M).

Long Term Liabilities: MAGS's short term assets ($96.3M) exceed 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 7.9%.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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.


Stability and Growth of Payments

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

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

3.6yrs

Average management tenure


CEO

Dror Sharon (53yo)

1.83s

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's total compensation ($USD607.90K) is about average for companies of similar size in the US market ($USD626.39K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Dror Sharon
Chief Executive Officer1.83yrsUS$607.90kno data
Yaacov Vinokur
Chief Financial Officer3.58yrsUS$275.00kno data
Fabien Haubert
Managing Director of Products Division0.25yrUS$303.00kno data
Gillon Beck
Executive Chairman of the Board5.58yrsno datano data
Brian Rich
CTO & Business Development Manager4.92yrsUS$209.00kno data
Doron Kerbel
VP, General Counsel & Company Secretary4.75yrsUS$202.00kno data
Kevin Bradley
President of North America Salesno datano datano data
Arnon Bram
General Manager of Magal Integrated Solutions0.17yrno datano data
Jeremy Weese
COO & Senior VP of Senstar Corporation4yrsno datano data

3.6yrs

Average Tenure

47yo

Average Age

Experienced Management: MAGS's management team is considered experienced (3.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Gillon Beck
Executive Chairman of the Board5.58yrsno datano data
Avraham Bigger
Independent Director5.58yrsno datano data
Jacob Berman
Independent Director6.42yrsno data0.059% $38.9k
Ron Ben-Haim
Director5.58yrsno datano data
Moshe Tsabari
External Director5.33yrsno datano data
Limor Steklov
External Director0.67yrno datano data

5.6yrs

Average Tenure

65yo

Average Age

Experienced Board: MAGS's board of directors are considered experienced (5.6 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

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$65.526m
  • 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, and security video observation and surveillance systems. It operates through three segments: Perimeter Products, Turnkey Projects, and Video and Cyber Security. The company offers perimeter security products that enable customers to monitor, limit, and control access by unauthorized personnel to specific regions or areas. Its perimeter security systems include fence mounted detection systems; detection grids, gates, and fences to protect water passages, VIP residences, and other outdoor applications; buried sensors; hybrid perimeter intrusion detection and intelligent lighting systems; electrical field disturbance sensors; and microwave sensors. The company also provides integrated intelligent video management solutions for security surveillance and business intelligence applications; and cyber-security products for monitoring, securing, and the active management of wired, wireless, and fiber optic communication networks, as well as turnkey solutions. In addition, it offers RoboGuard, a platform that runs on a rail along the perimeter of protected sites; and life safety/duress alarm to protect personnel in prisons. Further, the company provides closed circuit television and intelligent video analytics solutions; Fortis4G, a fourth generation command and control system; StarNet 2, a security management system; and Network Manager, a middleware package. Its products are used to protect borders, military bases, power plants, air and sea ports, postal facilities, prisons, banks, retail operations, hospitals, municipal security, sporting events, and industrial locations from terrorism, theft, and security threats. The company sells its products through system integrators and distribution channels. The company was founded in 1965 and is headquartered in Yehud, Israel. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/07 01:48
End of Day Share Price2020/04/06 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.