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Magnet Forensics Inc (MAGT.CA) Stock Fundamental Analysis

TSX:MAGT - Toronto Stock Exchange - CA55940P1018 - Common Stock - Currency: CAD

44.24  0 (0%)

Fundamental Rating

7

Overall MAGT gets a fundamental rating of 7 out of 10. We evaluated MAGT against 63 industry peers in the Software industry. Both the health and profitability get an excellent rating, making MAGT a very profitable company, without any liquidiy or solvency issues. MAGT is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make MAGT suitable for growth and quality investing!


Dividend Valuation Growth Profitability Health

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7

1. Profitability

1.1 Basic Checks

In the past year MAGT was profitable.
MAGT had a positive operating cash flow in the past year.
MAGT had positive earnings in 4 of the past 5 years.
MAGT had a positive operating cash flow in each of the past 5 years.
MAGT.CA Yearly Net Income VS EBIT VS OCF VS FCFMAGT.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2018 2019 2020 2021 2022 0 10M 20M 30M

1.2 Ratios

Looking at the Return On Assets, with a value of 1.91%, MAGT is in the better half of the industry, outperforming 79.27% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.61%, MAGT belongs to the top of the industry, outperforming 80.49% of the companies in the same industry.
MAGT has a better Return On Invested Capital (3.03%) than 79.27% of its industry peers.
Industry RankSector Rank
ROA 1.91%
ROE 3.61%
ROIC 3.03%
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
MAGT.CA Yearly ROA, ROE, ROICMAGT.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2018 2019 2020 2021 2022 0 100 -100 200

1.3 Margins

MAGT has a better Profit Margin (3.71%) than 82.93% of its industry peers.
In the last couple of years the Profit Margin of MAGT has grown nicely.
The Operating Margin of MAGT (5.60%) is better than 84.15% of its industry peers.
In the last couple of years the Operating Margin of MAGT has grown nicely.
The Gross Margin of MAGT (93.46%) is better than 93.90% of its industry peers.
In the last couple of years the Gross Margin of MAGT has remained more or less at the same level.
Industry RankSector Rank
OM 5.6%
PM (TTM) 3.71%
GM 93.46%
OM growth 3Y7.77%
OM growth 5YN/A
PM growth 3Y13.86%
PM growth 5YN/A
GM growth 3Y-0.36%
GM growth 5YN/A
MAGT.CA Yearly Profit, Operating, Gross MarginsMAGT.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2018 2019 2020 2021 2022 0 20 40 60 80

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8

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MAGT is destroying value.
Compared to 1 year ago, MAGT has more shares outstanding
MAGT has a better debt/assets ratio than last year.
MAGT.CA Yearly Shares OutstandingMAGT.CA Yearly Shares OutstandingYearly Shares Outstanding 2018 2019 2020 2021 2022 10M 20M 30M 40M
MAGT.CA Yearly Total Debt VS Total AssetsMAGT.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2018 2019 2020 2021 2022 50M 100M 150M

2.2 Solvency

An Altman-Z score of 10.12 indicates that MAGT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 10.12, MAGT belongs to the top of the industry, outperforming 89.02% of the companies in the same industry.
MAGT has a debt to FCF ratio of 0.21. This is a very positive value and a sign of high solvency as it would only need 0.21 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.21, MAGT belongs to the top of the industry, outperforming 95.12% of the companies in the same industry.
A Debt/Equity ratio of 0.05 indicates that MAGT is not too dependend on debt financing.
The Debt to Equity ratio of MAGT (0.05) is better than 62.20% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.21
Altman-Z 10.12
ROIC/WACC0.27
WACC11.06%
MAGT.CA Yearly LT Debt VS Equity VS FCFMAGT.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2018 2019 2020 2021 2022 0 20M 40M 60M 80M 100M

2.3 Liquidity

MAGT has a Current Ratio of 2.29. This indicates that MAGT is financially healthy and has no problem in meeting its short term obligations.
MAGT has a Current ratio of 2.29. This is in the better half of the industry: MAGT outperforms 65.85% of its industry peers.
A Quick Ratio of 2.29 indicates that MAGT has no problem at all paying its short term obligations.
MAGT has a Quick ratio of 2.29. This is in the better half of the industry: MAGT outperforms 67.07% of its industry peers.
Industry RankSector Rank
Current Ratio 2.29
Quick Ratio 2.29
MAGT.CA Yearly Current Assets VS Current LiabilitesMAGT.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2018 2019 2020 2021 2022 50M 100M 150M

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8

3. Growth

3.1 Past

The earnings per share for MAGT have decreased strongly by -60.57% in the last year.
Measured over the past years, MAGT shows a decrease in Earnings Per Share. The EPS has been decreasing by -8.16% on average per year.
Looking at the last year, MAGT shows a very strong growth in Revenue. The Revenue has grown by 40.78%.
Measured over the past years, MAGT shows a very strong growth in Revenue. The Revenue has been growing by 36.79% on average per year.
EPS 1Y (TTM)-60.57%
EPS 3Y-8.16%
EPS 5YN/A
EPS Q2Q%750%
Revenue 1Y (TTM)40.78%
Revenue growth 3Y36.79%
Revenue growth 5YN/A
Sales Q2Q%44.97%

3.2 Future

The Earnings Per Share is expected to grow by 139.00% on average over the next years. This is a very strong growth
Based on estimates for the next years, MAGT will show a very strong growth in Revenue. The Revenue will grow by 28.11% on average per year.
EPS Next Y287.6%
EPS Next 2Y139%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year30.23%
Revenue Next 2Y28.11%
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
MAGT.CA Yearly Revenue VS EstimatesMAGT.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
MAGT.CA Yearly EPS VS EstimatesMAGT.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2021 2022 2023 2024 0.1 0.2 0.3 0.4

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5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 442.40, MAGT can be considered very expensive at the moment.
MAGT's Price/Earnings ratio is a bit cheaper when compared to the industry. MAGT is cheaper than 76.83% of the companies in the same industry.
MAGT is valuated expensively when we compare the Price/Earnings ratio to 26.55, which is the current average of the S&P500 Index.
MAGT is valuated quite expensively with a Price/Forward Earnings ratio of 112.44.
MAGT's Price/Forward Earnings ratio is rather cheap when compared to the industry. MAGT is cheaper than 81.71% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.30. MAGT is valued rather expensively when compared to this.
Industry RankSector Rank
PE 442.4
Fwd PE 112.44
MAGT.CA Price Earnings VS Forward Price EarningsMAGT.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 100 200 300 400

4.2 Price Multiples

65.85% of the companies in the same industry are more expensive than MAGT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MAGT is valued a bit cheaper than 78.05% of the companies in the same industry.
Industry RankSector Rank
P/FCF 41.1
EV/EBITDA 133.49
MAGT.CA Per share dataMAGT.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3

4.3 Compensation for Growth

The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MAGT has a very decent profitability rating, which may justify a higher PE ratio.
MAGT's earnings are expected to grow with 139.00% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.54
PEG (5Y)N/A
EPS Next 2Y139%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

MAGT does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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Magnet Forensics Inc

TSX:MAGT (4/11/2023, 7:00:00 PM)

44.24

0 (0%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst Owners3.78%
Inst Owner ChangeN/A
Ins OwnersN/A
Ins Owner ChangeN/A
Market Cap1.81B
Analysts76.36
Price Target47.68 (7.78%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)30.09%
Min EPS beat(2)13.12%
Max EPS beat(2)47.05%
EPS beat(4)2
Avg EPS beat(4)-66.4%
Min EPS beat(4)-171.3%
Max EPS beat(4)47.05%
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.54%
Min Revenue beat(2)2.27%
Max Revenue beat(2)4.8%
Revenue beat(4)3
Avg Revenue beat(4)2.75%
Min Revenue beat(4)-1%
Max Revenue beat(4)4.9%
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0.77%
PT rev (3m)7.56%
EPS NQ rev (1m)233.33%
EPS NQ rev (3m)233.33%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)4.8%
Revenue NQ rev (3m)4.8%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
Industry RankSector Rank
PE 442.4
Fwd PE 112.44
P/S 13.5
P/FCF 41.1
P/OCF 39.34
P/B 13.13
P/tB 14.12
EV/EBITDA 133.49
EPS(TTM)0.1
EY0.23%
EPS(NY)0.39
Fwd EY0.89%
FCF(TTM)1.08
FCFY2.43%
OCF(TTM)1.12
OCFY2.54%
SpS3.28
BVpS3.37
TBVpS3.13
PEG (NY)1.54
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.91%
ROE 3.61%
ROCE N/A
ROIC 3.03%
ROICexc N/A
ROICexgc N/A
OM 5.6%
PM (TTM) 3.71%
GM 93.46%
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y7.77%
OM growth 5YN/A
PM growth 3Y13.86%
PM growth 5YN/A
GM growth 3Y-0.36%
GM growth 5YN/A
F-Score5
Asset Turnover0.52
Health
Industry RankSector Rank
Debt/Equity 0.05
Debt/FCF 0.21
Debt/EBITDA 0.76
Cap/Depr 42.39%
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality 886.21%
Current Ratio 2.29
Quick Ratio 2.29
Altman-Z 10.12
F-Score5
WACC11.06%
ROIC/WACC0.27
Cap/Depr(3y)61.4%
Cap/Depr(5y)74.48%
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)437.77%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-60.57%
EPS 3Y-8.16%
EPS 5YN/A
EPS Q2Q%750%
EPS Next Y287.6%
EPS Next 2Y139%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)40.78%
Revenue growth 3Y36.79%
Revenue growth 5YN/A
Sales Q2Q%44.97%
Revenue Next Year30.23%
Revenue Next 2Y28.11%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-52.09%
EBIT growth 3Y47.42%
EBIT growth 5YN/A
EBIT Next Year1176.88%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y95.7%
FCF growth 3Y53.94%
FCF growth 5YN/A
OCF growth 1Y92.06%
OCF growth 3Y49.32%
OCF growth 5YN/A