(MGIC) Magic Software Enterprises - Ratings and Ratios

Exchange: NASDAQ • Country: Israel • Currency: USD • Type: Common Stock • ISIN: IL0010823123

Application Platforms, Vertical Software, Integration Tools, IT Services

Stock: Application Software
Age 34.4y

MCap 1,324m
Avg Vol 19.8K (533K USD)

Beta 0.723
Volatility 38.15%

EPS (Earnings per Share)

EPS CAGR: -48.26%
EPS Trend: -55.3%

Last SUE: -4.00
Qual. Beats: 0

Revenue

Rev. CAGR: 5.34%
Rev. Trend: 53.1%

Last SUE: 1.43
Qual. Beats: 1

Dividends

Dividend Yield	4.45%
Yield on Cost 5y	5.77%
Yield CAGR 5y	14.91%
Payout Consistency	57.7%
Payout Ratio	81.5%

Risk via 5d forecast
Volatility	38.2%
Value at Risk 5%th	56.6%
Relative Tail Risk	-9.84%

Reward TTM
Sharpe Ratio	2.23
Alpha	106.93
CAGR/Max DD	0.48

Character TTM
Hurst Exponent	0.444
Beta	0.723
Beta Downside	0.449

Drawdowns 3y
Max DD	50.32%
Mean DD	22.46%
Median DD	24.86%

Description: MGIC Magic Software Enterprises January 21, 2026

Magic Software Enterprises Ltd. (NASDAQ:MGIC) delivers proprietary application development tools, vertical software solutions, and IT outsourcing services worldwide through two operating segments: Software Services, which sells platforms such as Magic xpa, AppBuilder, and Magic xpi, and IT Professional Services, which provides infrastructure design, application development, and managed-services consulting. Its portfolio also includes industry-specific SaaS products like Clicks (healthcare EMR) and Hermes Cargo (air-cargo handling).

In FY 2023 the company reported revenue of approximately $140 million, a 12% year-over-year increase driven largely by higher adoption of its low-code platforms amid a global low-code market that is projected to grow at a 23% CAGR through 2028. Operating margin expanded to 9% as recurring SaaS contracts boosted gross margins, while the broader IT services sector benefits from sustained corporate IT-spending growth of roughly 5% annually in the United States and Europe.

For a deeper quantitative assessment, you may find the ValueRay platform’s detailed valuation models useful.

Piotroski VR‑10 (Strict, 0-10) 8.0

Net Income: 40.0m TTM > 0 and > 6% of Revenue
FCF/TA: 0.11 > 0.02 and ΔFCF/TA -2.71 > 1.0
NWC/Revenue: 15.32% < 20% (prev 20.87%; Δ -5.55% < -1%)
CFO/TA 0.12 > 3% & CFO 66.2m > Net Income 40.0m
Net Debt (-7.42m) to EBITDA (86.6m): -0.09 < 3
Current Ratio: 1.48 > 1.5 & < 3
Outstanding Shares: last quarter (49.1m) vs 12m ago 0.0% < -2%
Gross Margin: 28.04% > 18% (prev 0.28%; Δ 2776 % > 0.5%)
Asset Turnover: 111.1% > 50% (prev 102.7%; Δ 8.35% > 0%)
Interest Coverage Ratio: 10.90 > 6 (EBITDA TTM 86.6m / Interest Expense TTM 5.98m)

Altman Z'' 3.64

A: 0.17 (Total Current Assets 285.2m - Total Current Liabilities 192.8m) / Total Assets 559.8m
B: 0.19 (Retained Earnings 107.8m / Total Assets 559.8m)
C: 0.12 (EBIT TTM 65.2m / Avg Total Assets 543.0m)
D: 1.07 (Book Value of Equity 276.0m / Total Liabilities 259.0m)
Altman-Z'' Score: 3.64 = AA

Beneish M -2.89

DSRI: 1.14 (Receivables 181.9m/143.1m, Revenue 603.2m/540.7m)
GMI: 1.00 (GM 28.04% / 28.10%)
AQI: 0.98 (AQ_t 0.43 / AQ_t-1 0.44)
SGI: 1.12 (Revenue 603.2m / 540.7m)
TATA: -0.05 (NI 40.0m - CFO 66.2m) / TA 559.8m)
Beneish M-Score: -2.89 (Cap -4..+1) = A

ValueRay F-Score (Strict, 0-100) 74.00

1. Piotroski: 8.0pt
2. FCF Yield: 4.89%
3. FCF Margin: 10.67%
4. Debt/Equity: 0.35
5. Debt/Ebitda: -0.09
6. ROIC - WACC: 6.81%
7. RoE: 14.54%
8. Revenue Trend: 53.07%
9. EPS Trend: -55.27%

What is the price of MGIC shares?

As of January 28, 2026, the stock is trading at USD 26.95 with a total of 10,265 shares traded.
Over the past week, the price has changed by +4.01%, over one month by +1.62%, over three months by +29.80% and over the past year by +126.50%.

Is MGIC a buy, sell or hold?

Magic Software Enterprises has received a consensus analysts rating of 3.50. Therefor, it is recommend to hold MGIC.

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	-33.2%
Analysts Target Price	18	-33.2%
ValueRay Target Price	29.8	10.6%

MGIC Fundamental Data Overview January 25, 2026

P/E Trailing = 32.8902
P/E Forward = 23.9234
P/S = 2.1952
P/B = 4.7972
P/EG = 1.08
Revenue TTM = 603.2m USD
EBIT TTM = 65.2m USD
EBITDA TTM = 86.6m USD
Long Term Debt = 34.3m USD (from longTermDebt, last quarter)
Short Term Debt = 39.1m USD (from shortTermDebt, last quarter)
Debt = 95.9m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -7.42m USD (from netDebt column, last quarter)
Enterprise Value = 1.32b USD (1.32b + Debt 95.9m - CCE 103.3m)
Interest Coverage Ratio = 10.90 (Ebit TTM 65.2m / Interest Expense TTM 5.98m)
EV/FCF = 20.46x (Enterprise Value 1.32b / FCF TTM 64.3m)
FCF Yield = 4.89% (FCF TTM 64.3m / Enterprise Value 1.32b)
FCF Margin = 10.67% (FCF TTM 64.3m / Revenue TTM 603.2m)
Net Margin = 6.64% (Net Income TTM 40.0m / Revenue TTM 603.2m)
Gross Margin = 28.04% ((Revenue TTM 603.2m - Cost of Revenue TTM 434.0m) / Revenue TTM)
Gross Margin QoQ = 27.35% (prev 27.94%)
Tobins Q-Ratio = 2.35 (Enterprise Value 1.32b / Total Assets 559.8m)
Interest Expense / Debt = 1.77% (Interest Expense 1.70m / Debt 95.9m)
Taxrate = 22.47% (3.46m / 15.4m)
NOPAT = 50.6m (EBIT 65.2m * (1 - 22.47%))
Current Ratio = 1.48 (Total Current Assets 285.2m / Total Current Liabilities 192.8m)
Debt / Equity = 0.35 (Debt 95.9m / totalStockholderEquity, last quarter 276.0m)
Debt / EBITDA = -0.09 (Net Debt -7.42m / EBITDA 86.6m)
Debt / FCF = -0.12 (Net Debt -7.42m / FCF TTM 64.3m)
Total Stockholder Equity = 275.4m (last 4 quarters mean from totalStockholderEquity)
RoA = 7.37% (Net Income 40.0m / Total Assets 559.8m)
RoE = 14.54% (Net Income TTM 40.0m / Total Stockholder Equity 275.4m)
RoCE = 21.05% (EBIT 65.2m / Capital Employed (Equity 275.4m + L.T.Debt 34.3m))
RoIC = 14.91% (NOPAT 50.6m / Invested Capital 339.1m)
WACC = 8.09% (E(1.32b)/V(1.42b) * Re(8.58%) + D(95.9m)/V(1.42b) * Rd(1.77%) * (1-Tc(0.22)))
Discount Rate = 8.58% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 0.0 | Cagr: 0.0%
[DCF Debug] Terminal Value 80.78% ; FCFF base≈68.5m ; Y1≈83.4m ; Y5≈137.9m
Fair Price DCF = 46.84 (EV 2.29b - Net Debt -7.42m = Equity 2.30b / Shares 49.1m; r=8.09% [WACC]; 5y FCF grow 23.28% → 2.90% )
EPS Correlation: -55.27 | EPS CAGR: -48.26% | SUE: -4.0 | # QB: 0
Revenue Correlation: 53.07 | Revenue CAGR: 5.34% | SUE: 1.43 | # QB: 1
EPS next Quarter (2026-03-31): EPS=0.27 | Chg30d=-0.005 | Revisions Net=-1 | Analysts=2
EPS next Year (2026-12-31): EPS=1.13 | Chg30d=-0.020 | Revisions Net=-1 | Growth EPS=+9.5% | Growth Revenue=+6.5%

Additional Sources for MGIC Stock

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