(MGIC) Magic Software Enterprises - Ratings and Ratios
Integration, Application, Development, Platform, Mobility
MGIC EPS (Earnings per Share)
MGIC Revenue
Description: MGIC Magic Software Enterprises
Magic Software Enterprises Ltd (NASDAQ:MGIC) is an Israeli company operating in the Application Software sub-industry. The companys stock performance is characterized by a relatively stable trend, with short-term moving averages indicating a slight upward momentum. With a beta of 1.052, MGICs stock price tends to move in tandem with the overall market.
From a fundamental perspective, MGICs market capitalization stands at approximately $1.012 billion, with a price-to-earnings ratio of 25.32 and a forward P/E of 23.92. The companys return on equity (RoE) is 13.98%, indicating a relatively healthy profitability level. To further assess the companys performance, key drivers such as revenue growth, operating margins, and cash flow generation should be examined.
Some key performance indicators (KPIs) to monitor for MGIC include revenue growth rate, customer acquisition costs, and research and development (R&D) expenses as a percentage of revenue. The application software industry is highly competitive, and MGICs ability to innovate and expand its customer base will be crucial in driving future growth. Economic drivers such as global IT spending, cloud adoption rates, and the demand for digital transformation solutions will also impact MGICs performance.
In evaluating MGICs stock, its essential to consider the companys ability to generate cash flows, its competitive positioning, and the overall industry landscape. A thorough analysis of MGICs financial statements, management team, and industry trends will help investors make informed decisions. Key metrics to track include the companys debt-to-equity ratio, interest coverage ratio, and operating cash flow margin.
MGIC Stock Overview
| Market Cap in USD | 982m |
| Sub-Industry | Application Software |
| IPO / Inception | 1991-08-28 |
MGIC Stock Ratings
| Growth Rating | 48.8% |
| Fundamental | 72.7% |
| Dividend Rating | 63.6% |
| Return 12m vs S&P 500 | 67.4% |
| Analyst Rating | 3.50 of 5 |
MGIC Dividends
| Dividend Yield 12m | 5.18% |
| Yield on Cost 5y | 7.60% |
| Annual Growth 5y | 11.53% |
| Payout Consistency | 56.9% |
| Payout Ratio | 87.7% |
MGIC Growth Ratios
| Growth Correlation 3m | 15.2% |
| Growth Correlation 12m | 95.5% |
| Growth Correlation 5y | -31.1% |
| CAGR 5y | 11.72% |
| CAGR/Max DD 3y | 0.23 |
| CAGR/Mean DD 3y | 0.47 |
| Sharpe Ratio 12m | 1.73 |
| Alpha | 0.08 |
| Beta | 0.504 |
| Volatility | 36.53% |
| Current Volume | 30.2k |
| Average Volume 20d | 40.8k |
| Stop Loss | 19.7 (-3.6%) |
| Signal | -0.44 |
Piotroski VR‑10 (Strict, 0-10) 7.5
| Net Income (38.6m TTM) > 0 and > 6% of Revenue (6% = 35.1m TTM) |
| FCFTA 0.09 (>2.0%) and ΔFCFTA -7.15pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 17.19% (prev 19.69%; Δ -2.51pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.10 (>3.0%) and CFO 54.5m > Net Income 38.6m (YES >=105%, WARN >=100%) |
| Net Debt (8.01m) to EBITDA (84.9m) ratio: 0.09 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.61 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (49.1m) change vs 12m ago 0.0% (target <= -2.0% for YES) |
| Gross Margin 28.17% (prev 28.28%; Δ -0.11pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 109.4% (prev 100.0%; Δ 9.36pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 11.18 (EBITDA TTM 84.9m / Interest Expense TTM 5.65m) >= 6 (WARN >= 3) |
Altman Z'' 3.08
| (A) 0.19 = (Total Current Assets 265.8m - Total Current Liabilities 165.3m) / Total Assets 541.7m |
| (B) 0.20 = Retained Earnings (Balance) 107.8m / Total Assets 541.7m |
| (C) 0.12 = EBIT TTM 63.2m / Avg Total Assets 534.3m |
| (D) 0.40 = Book Value of Equity 96.9m / Total Liabilities 239.4m |
| Total Rating: 3.08 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 72.67
| 1. Piotroski 7.50pt = 2.50 |
| 2. FCF Yield 5.28% = 2.64 |
| 3. FCF Margin 8.73% = 2.18 |
| 4. Debt/Equity 0.27 = 2.46 |
| 5. Debt/Ebitda 0.88 = 1.93 |
| 6. ROIC - WACC 7.39% = 9.24 |
| 7. RoE 13.98% = 1.17 |
| 8. Rev. Trend 30.88% = 1.54 |
| 9. Rev. CAGR 1.91% = 0.24 |
| 10. EPS Trend -23.57% = -0.59 |
| 11. EPS CAGR -5.15% = -0.64 |
What is the price of MGIC shares?
Over the past week, the price has changed by +4.39%, over one month by +4.66%, over three months by +27.13% and over the past year by +101.05%.
Is Magic Software Enterprises a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of MGIC is around 20.61 USD . This means that MGIC is currently overvalued and has a potential downside of 0.88%.
Is MGIC a buy, sell or hold?
- Strong Buy: 0
- Buy: 1
- Hold: 1
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the MGIC price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 18 | -11.9% |
| Analysts Target Price | 18 | -11.9% |
| ValueRay Target Price | 22.8 | 11.4% |
Last update: 2025-09-11 04:44
MGIC Fundamental Data Overview
CCE Cash And Equivalents = 90.0m USD (Cash And Short Term Investments, last quarter)
P/E Trailing = 25.3165
P/E Forward = 23.9234
P/S = 1.68
P/B = 3.5217
P/EG = 1.08
Beta = 0.967
Revenue TTM = 584.5m USD
EBIT TTM = 63.2m USD
EBITDA TTM = 84.9m USD
Long Term Debt = 41.6m USD (from longTermDebt, last quarter)
Short Term Debt = 33.1m USD (from shortTermDebt, last quarter)
Debt = 74.6m USD (Calculated: Short Term 33.1m + Long Term 41.6m)
Net Debt = 8.01m USD (from netDebt column, last quarter)
Enterprise Value = 966.7m USD (982.0m + Debt 74.6m - CCE 90.0m)
Interest Coverage Ratio = 11.18 (Ebit TTM 63.2m / Interest Expense TTM 5.65m)
FCF Yield = 5.28% (FCF TTM 51.0m / Enterprise Value 966.7m)
FCF Margin = 8.73% (FCF TTM 51.0m / Revenue TTM 584.5m)
Net Margin = 6.61% (Net Income TTM 38.6m / Revenue TTM 584.5m)
Gross Margin = 28.17% ((Revenue TTM 584.5m - Cost of Revenue TTM 419.9m) / Revenue TTM)
Tobins Q-Ratio = 9.98 (Enterprise Value 966.7m / Book Value Of Equity 96.9m)
Interest Expense / Debt = 0.97% (Interest Expense 725.0k / Debt 74.6m)
Taxrate = 20.74% (11.3m / 54.6m)
NOPAT = 50.1m (EBIT 63.2m * (1 - 20.74%))
Current Ratio = 1.61 (Total Current Assets 265.8m / Total Current Liabilities 165.3m)
Debt / Equity = 0.27 (Debt 74.6m / last Quarter total Stockholder Equity 278.8m)
Debt / EBITDA = 0.88 (Net Debt 8.01m / EBITDA 84.9m)
Debt / FCF = 1.46 (Debt 74.6m / FCF TTM 51.0m)
Total Stockholder Equity = 276.2m (last 4 quarters mean)
RoA = 7.13% (Net Income 38.6m, Total Assets 541.7m )
RoE = 13.98% (Net Income TTM 38.6m / Total Stockholder Equity 276.2m)
RoCE = 19.87% (Ebit 63.2m / (Equity 276.2m + L.T.Debt 41.6m))
RoIC = 14.76% (NOPAT 50.1m / Invested Capital 339.1m)
WACC = 7.37% (E(982.0m)/V(1.06b) * Re(7.87%)) + (D(74.6m)/V(1.06b) * Rd(0.97%) * (1-Tc(0.21)))
Shares Correlation 3-Years: -70.52 | Cagr: -0.01%
Discount Rate = 7.87% (= CAPM, Blume Beta Adj.) -> floored to rf + ERP 8.05%
[DCF Debug] Terminal Value 81.38% ; FCFE base≈65.6m ; Y1≈80.6m ; Y5≈136.4m
Fair Price DCF = 47.29 (DCF Value 2.32b / Shares Outstanding 49.1m; 5y FCF grow 24.54% → 3.0% )
Revenue Correlation: 30.88 | Revenue CAGR: 1.91%
Rev Growth-of-Growth: 14.97
EPS Correlation: -23.57 | EPS CAGR: -5.15%
EPS Growth-of-Growth: 30.89
Additional Sources for MGIC Stock
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