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Magal Security Systems

Nasdaq:MAGS
Snowflake Description

Flawless balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MAGS
Nasdaq
$122M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Magal Security Systems Ltd. develops, manufactures, markets, and sells perimeter intrusion detection sensors, physical barriers, video analytics and video management systems, and cyber security products and systems worldwide. The last earnings update was 8 days ago. More info.


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MAGS Share Price and Events
7 Day Returns
1.8%
NasdaqGM:MAGS
-0.7%
US Electronic
-0.1%
US Market
1 Year Returns
-4.7%
NasdaqGM:MAGS
11%
US Electronic
7.6%
US Market
MAGS Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Magal Security Systems (MAGS) 1.8% 3.7% 4.4% -4.7% 7.8% 44.1%
US Electronic -0.7% 7.5% 19.8% 11% 66.2% 68.6%
US Market -0.1% 3.7% 10.2% 7.6% 38.1% 46.4%
1 Year Return vs Industry and Market
  • MAGS underperformed the Electronic industry which returned 11% over the past year.
  • MAGS underperformed the Market in United States of America which returned 7.6% over the past year.
Price Volatility
MAGS
Industry
5yr Volatility vs Market

Value

 Is Magal Security Systems undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Magal Security Systems to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Magal Security Systems.

NasdaqGM:MAGS Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Extrapolated from most recent financials. See below
Discount Rate (Cost of Equity) See below 9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:MAGS
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Electronic Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.068 (1 + (1- 23%) (0%))
1.045
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.05
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.045 * 5.96%)
8.96%

Discounted Cash Flow Calculation for NasdaqGM:MAGS using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Magal Security Systems is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGM:MAGS DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.96%)
2019 4.90 Est @ -12.43% 4.50
2020 4.51 Est @ -7.88% 3.80
2021 4.30 Est @ -4.7% 3.33
2022 4.20 Est @ -2.47% 2.98
2023 4.16 Est @ -0.91% 2.71
2024 4.17 Est @ 0.18% 2.49
2025 4.20 Est @ 0.95% 2.31
2026 4.27 Est @ 1.48% 2.15
2027 4.35 Est @ 1.86% 2.01
2028 4.44 Est @ 2.12% 1.88
Present value of next 10 years cash flows $28.14
NasdaqGM:MAGS DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $4.44 × (1 + 2.73%) ÷ (8.96% – 2.73%)
$73.18
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $73.18 ÷ (1 + 8.96%)10
$31.03
NasdaqGM:MAGS Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $28.14 + $31.03
$59.17
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $59.17 / 23.14
$2.56
NasdaqGM:MAGS Discount to Share Price
Calculation Result
Value per share (USD) From above. $2.56
Current discount Discount to share price of $5.29
= -1 x ($5.29 - $2.56) / $2.56
-107%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Magal Security Systems is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Magal Security Systems's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Magal Security Systems's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:MAGS PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $0.12
NasdaqGM:MAGS Share Price ** NasdaqGM (2019-04-23) in USD $5.29
United States of America Electronic Industry PE Ratio Median Figure of 92 Publicly-Listed Electronic Companies 21.6x
United States of America Market PE Ratio Median Figure of 3,080 Publicly-Listed Companies 18.03x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Magal Security Systems.

NasdaqGM:MAGS PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:MAGS Share Price ÷ EPS (both in USD)

= 5.29 ÷ 0.12

45.62x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magal Security Systems is overvalued based on earnings compared to the US Electronic industry average.
  • Magal Security Systems is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Magal Security Systems's expected growth come at a high price?
Raw Data
NasdaqGM:MAGS PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 45.62x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts
31.5%per year
United States of America Electronic Industry PEG Ratio Median Figure of 58 Publicly-Listed Electronic Companies 1.66x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.55x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Magal Security Systems, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Magal Security Systems's assets?
Raw Data
NasdaqGM:MAGS PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $3.52
NasdaqGM:MAGS Share Price * NasdaqGM (2019-04-23) in USD $5.29
United States of America Electronic Industry PB Ratio Median Figure of 145 Publicly-Listed Electronic Companies 2.19x
United States of America Market PB Ratio Median Figure of 5,185 Publicly-Listed Companies 1.92x
NasdaqGM:MAGS PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:MAGS Share Price ÷ Book Value per Share (both in USD)

= 5.29 ÷ 3.52

1.5x

* Primary Listing of Magal Security Systems.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magal Security Systems is good value based on assets compared to the US Electronic industry average.
X
Value checks
We assess Magal Security Systems's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check)
  5. Magal Security Systems has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

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

  • No analysts cover Magal Security Systems, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
31.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Magal Security Systems expected to grow at an attractive rate?
  • Magal Security Systems's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Magal Security Systems's earnings growth is expected to exceed the United States of America market average.
  • Unable to compare Magal Security Systems's revenue growth to the United States of America market average as no estimate data is available.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:MAGS Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:MAGS Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 0 Analysts 31.5%
United States of America Electronic Industry Earnings Growth Rate Market Cap Weighted Average 16.5%
United States of America Electronic Industry Revenue Growth Rate Market Cap Weighted Average 5.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.5%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:MAGS Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:MAGS Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 93 7 3
2018-09-30 90 3
2018-06-30 79 2
2018-03-31 67 -3
2017-12-31 64 -2 -7
2017-09-30 62 -4
2017-06-30 69 -3
2017-03-31 70 -2
2016-12-31 68 9 1
2016-09-30 67 1
2016-06-30 63 1
2016-03-31 65 3

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Magal Security Systems's earnings are expected to grow significantly at over 20% yearly.
  • Unable to determine if Magal Security Systems is high growth as no revenue estimate data is available.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:MAGS Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below

All data from Magal Security Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:MAGS Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 0.12
2018-09-30 0.14
2018-06-30 0.07
2018-03-31 -0.15
2017-12-31 -0.30
2017-09-30 -0.19
2017-06-30 -0.16
2017-03-31 -0.11
2016-12-31 0.06
2016-09-30 0.04
2016-06-30 0.06
2016-03-31 0.19

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Magal Security Systems will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Magal Security Systems's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Magal Security Systems has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Magal Security Systems's growth in the last year to its industry (Electronic).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Magal Security Systems's year on year earnings growth rate has been positive over the past 5 years.
  • Magal Security Systems has become profitable in the last year making the earnings growth rate difficult to compare to the 5-year average.
  • Magal Security Systems has become profitable in the last year making it difficult to compare the US Electronic industry average.
Earnings and Revenue History
Magal Security Systems's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Magal Security Systems Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:MAGS Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 92.60 2.67 28.65 6.85
2018-09-30 89.51 3.34 27.80 6.63
2018-06-30 79.31 1.66 25.80 6.70
2018-03-31 67.21 -3.38 25.27 6.56
2017-12-31 64.29 -6.91 26.01 6.56
2017-09-30 61.53 -4.34 25.21 6.67
2017-06-30 69.18 -3.50 27.35 6.81
2017-03-31 69.56 -2.19 27.02 7.11
2016-12-31 67.83 1.03 24.71 6.78
2016-09-30 66.84 0.70 24.40 6.79
2016-06-30 62.51 0.91 22.97 6.04
2016-03-31 64.58 3.12 21.44 5.17
2015-12-31 63.74 3.14 21.81 4.81
2015-09-30 71.78 3.48 23.21 4.15
2015-06-30 76.25 6.25 23.81 4.14
2015-03-31 76.79 4.94 25.46 4.27
2014-12-31 77.54 3.41 25.89 4.60
2014-09-30 63.22 -1.82 24.00 4.72
2014-06-30 54.59 -5.77 22.29 4.98
2014-03-31 50.57 -5.36 20.85 4.69
2013-12-31 51.52 -4.46 20.57 4.41
2013-09-30 60.75 -0.78 20.86 4.13
2013-06-30 71.40 1.32 22.78 3.90
2013-03-31 75.60 2.97 23.52 3.98
2012-12-31 77.70 4.09 23.94 4.04
2012-09-30 89.20 7.02 27.41 4.09
2012-06-30 93.37 12.31 29.20 4.05

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Magal Security Systems has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Magal Security Systems used its assets less efficiently than the US Electronic industry average last year based on Return on Assets.
  • Magal Security Systems's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Magal Security Systems's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Magal Security Systems has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Magal Security Systems's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Magal Security Systems's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Magal Security Systems is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Magal Security Systems's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Magal Security Systems's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Magal Security Systems has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Magal Security Systems Company Filings, last reported 3 months ago.

NasdaqGM:MAGS Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 82.97 0.00 51.82
2018-09-30 85.67 0.00 47.09
2018-06-30 83.25 0.00 41.42
2018-03-31 82.33 0.00 43.24
2017-12-31 82.95 0.00 49.49
2017-09-30 81.89 0.00 47.81
2017-06-30 81.59 0.00 47.68
2017-03-31 81.87 0.00 48.92
2016-12-31 81.92 0.00 50.73
2016-09-30 55.69 0.00 17.22
2016-06-30 55.01 0.00 18.74
2016-03-31 57.67 0.00 37.22
2015-12-31 55.70 0.00 30.37
2015-09-30 53.74 0.03 27.69
2015-06-30 55.37 1.65 31.97
2015-03-31 52.93 1.78 31.42
2014-12-31 55.96 4.45 29.60
2014-09-30 55.72 7.45 26.99
2014-06-30 54.76 7.99 29.20
2014-03-31 54.86 8.02 35.84
2013-12-31 57.54 8.15 38.38
2013-09-30 59.60 8.17 43.80
2013-06-30 58.60 5.55 39.40
2013-03-31 59.42 5.52 41.26
2012-12-31 58.33 5.40 38.57
2012-09-30 55.16 5.19 41.93
2012-06-30 52.25 5.18 40.43
  • Magal Security Systems has no debt.
  • Magal Security Systems has no debt compared to 5 years ago when it was 14.2%.
  • Magal Security Systems has no debt, it does not need to be covered by operating cash flow.
  • Magal Security Systems has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Magal Security Systems's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Magal Security Systems has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Magal Security Systems dividends.
If you bought $2,000 of Magal Security Systems shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Magal Security Systems's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Magal Security Systems's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:MAGS Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 0 Analyst Estimates (S&P Global) See Below
United States of America Electronic Industry Average Dividend Yield Market Cap Weighted Average of 38 Stocks 1.5%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2008 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Magal Security Systems has not reported any payouts.
  • Unable to verify if Magal Security Systems's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Magal Security Systems's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Magal Security Systems has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Magal Security Systems's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Magal Security Systems afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Magal Security Systems has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Dror Sharon
TENURE AS CEO 0.8 years
CEO Bio

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. Sharon served President of CONTROP Precision Technologies Ltd until June 24, 2018. He was Chief Executive Officer and President at OPGAL Optronics Industries Ltd until August 2012. Mr. Sharon holds an MBA degree from Derby University, United Kingdom and a B.Sc. degree in Mechanical Engineering (Dean's award of excellence) from the Technion -Israel Institute of Technology, Haifa, Israel.

CEO Compensation
  • Insufficient data for Dror to compare compensation growth.
  • Insufficient data for Dror to establish whether their remuneration is reasonable compared to companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Magal Security Systems management team in years:

2.8
Average Tenure
45
Average Age
  • The tenure for the Magal Security Systems management team is about average.
Management Team

Yaacov Vinokur

TITLE
Chief Financial Officer
COMPENSATION
$186K
AGE
40
TENURE
2.6 yrs

Doron Kerbel

TITLE
VP, General Counsel & Company Secretary
COMPENSATION
$202K
AGE
46
TENURE
3.8 yrs

Yaniv Shachar

TITLE
Senior VP & GM of Magal Israel
COMPENSATION
$245K
AGE
44
TENURE
2.3 yrs

Gillon Beck

TITLE
Executive Chairman of the Board
AGE
56

Dror Sharon

TITLE
Chief Executive Officer
TENURE
0.8 yrs

Brian Rich

TITLE
Deputy CEO
COMPENSATION
$209K
AGE
61
TENURE
3.9 yrs

Kevin Bradley

TITLE
President of North America Sales

Jeremy Weese

TITLE
COO & Senior VP of Senstar Corporation
AGE
41
TENURE
3 yrs

Diane Hill

TITLE
Assistant to Chief Executive Officer
Board of Directors Tenure

Average tenure and age of the Magal Security Systems board of directors in years:

4.6
Average Tenure
60
Average Age
  • The tenure for the Magal Security Systems board of directors is about average.
Board of Directors

Gillon Beck

TITLE
Executive Chairman of the Board
AGE
56
TENURE
4.6 yrs

Liza Singer

TITLE
External Director
AGE
48
TENURE
8.8 yrs

Moshe Tsabari

TITLE
External Director
AGE
64
TENURE
4.3 yrs

Jake Berman

TITLE
Director
AGE
69
TENURE
5.4 yrs

Ron Ben-Haim

TITLE
Director
AGE
49
TENURE
4.6 yrs

Avraham Bigger

TITLE
External Director
AGE
72
TENURE
4.6 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Magal Security Systems's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Magal Security Systems has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Should Magal Security Systems (NASDAQ:MAGS) Be Disappointed With Their 44% Profit?

Better yet, you'd like to see the share price move up more than the market average. … (NASDAQ:MAGS) share price is up 44% in the last five years, that's less than the market return. … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.

Simply Wall St -

What Kind Of Shareholder Appears On The Magal Security Systems Ltd.'s (NASDAQ:MAGS) Shareholder Register?

Every investor in Magal Security Systems Ltd. … Magal Security Systems is not a large company by global standards. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Why Magal Security Systems Ltd.’s (NASDAQ:MAGS) Return On Capital Employed Looks Uninspiring

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

Should Magal Security Systems Ltd. (NASDAQ:MAGS) Focus On Improving This Fundamental Metric?

Our data shows Magal Security Systems has a return on equity of 4.2% for the last year. … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.042 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

What Kind Of Shareholders Own Magal Security Systems Ltd (NASDAQ:MAGS)?

If you want to know who really controls Magal Security Systems Ltd (NASDAQ:MAGS), then you'll have to look at the makeup of its share registry. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Magal Security Systems is not a large company by global standards.

Simply Wall St -

What You Must Know About Magal Security Systems Ltd's (NASDAQ:MAGS) Beta Value

If you're interested in Magal Security Systems Ltd (NASDAQ:MAGS), then you might want to consider its beta (a measure of share price volatility) in order to understand how the stock could impact your portfolio. … Beta can be a useful tool to understand how much a stock is influenced by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market.

Simply Wall St -

Understanding Your Return On Investment In Magal Security Systems Ltd (NASDAQ:MAGS)

and want a simplistic look at the return on Magal Security Systems Ltd (NASDAQ:MAGS) stock. … Thus, to understand how your money can grow by investing in Magal Security Systems, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE) … Magal Security Systems's Return On Capital Employed

Simply Wall St -

Why Magal Security Systems Ltd's (NASDAQ:MAGS) Investor Composition Impacts Your Returns

In this analysis, my focus will be on developing a perspective on Magal Security Systems Ltd’s (NASDAQ:MAGS) latest ownership structure, a less discussed, but important factor. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders. … View our latest analysis for Magal Security Systems

Simply Wall St -

Does Magal Security Systems Ltd's (NASDAQ:MAGS) Past Performance Indicate A Weaker Future?

After looking at Magal Security Systems Ltd's (NASDAQ:MAGS) latest earnings announcement (31 March 2018), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … I also compare against an industry benchmark to check whether Magal Security Systems's performance has been impacted by industry movements. … Check out our latest analysis for Magal Security Systems?

Simply Wall St -

Does Magal Security Systems Ltd (NASDAQ:MAGS) Go Up With The Market?

A popular measure of market risk for a stock is its beta, and the market as a whole represents a beta value of one. … MAGS’s beta indicates it is a stock that investors may find valuable if they want to reduce the overall market risk exposure of their stock portfolio. … MAGS, with its market capitalisation of US$121.38M, is a small-cap stock, which generally have higher beta than similar companies of larger size.

Simply Wall St -

Company Info

Description

Magal Security Systems Ltd. develops, manufactures, markets, and sells perimeter intrusion detection sensors, physical barriers, video analytics and video management systems, and cyber security products and systems worldwide. 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 products to protect personnel in prisons. Further, the company provides MTC-1500I, a dual technology outdoor surveillance system; 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 national borders, military bases, power plants, airports, sea ports, postal facilities, prisons, banks, retail operations, hospitals, municipal security, sporting events, and industrial locations from terrorism, theft, and other security threats. The company sells its products through system integrators and distribution channels. Magal Security Systems Ltd. was founded in 1965 and is headquartered in Yehud, Israel.

Details
Name: Magal Security Systems Ltd.
MAGS
Exchange: NasdaqGM
Founded: 1965
$122,454,824
23,143,985
Website: http://magalsecurity.com
Address: Magal Security Systems Ltd.
17 Altalef Street,
Industrial Zone,
Yehud,
5621617,
Israel
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM MAGS Ordinary Shares Nasdaq Global Market US USD 26. Mar 1993
Number of employees
Current staff
Staff numbers
411
Magal Security Systems employees.
Industry
Electronic Equipment and Instruments
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 23:48
End of day share price update: 2019/04/23 00:00
Last earnings filing: 2019/04/15
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.