25.23 USD
+0.65 (+2.64%)
25.23 USD
0 (0%)
Taking everything into account, MGIC scores 5 out of 10 in our fundamental rating. MGIC was compared to 281 industry peers in the Software industry. While MGIC belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. MGIC has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year MGIC was profitable.
MGIC had a positive operating cash flow in the past year.
Each year in the past 5 years MGIC has been profitable.
In the past 5 years MGIC always reported a positive cash flow from operatings.
1.2 Ratios
MGIC has a better Return On Assets (7.16%) than 77.58% of its industry peers.
The Return On Equity of MGIC (13.92%) is better than 80.43% of its industry peers.
The Return On Invested Capital of MGIC (13.66%) is better than 90.75% of its industry peers.
MGIC had an Average Return On Invested Capital over the past 3 years of 13.11%. This is in line with the industry average of 12.03%.
The 3 year average ROIC (13.11%) for MGIC is below the current ROIC(13.66%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.16% | ||
| ROE | 13.92% | ||
| ROIC | 13.66% |
ROA(3y)7.32%
ROA(5y)6.74%
ROE(3y)14.22%
ROE(5y)12.72%
ROIC(3y)13.11%
ROIC(5y)11.98%
1.3 Margins
MGIC has a better Profit Margin (6.64%) than 67.62% of its industry peers.
In the last couple of years the Profit Margin of MGIC has remained more or less at the same level.
With a decent Operating Margin value of 10.94%, MGIC is doing good in the industry, outperforming 75.44% of the companies in the same industry.
In the last couple of years the Operating Margin of MGIC has remained more or less at the same level.
MGIC has a worse Gross Margin (28.38%) than 79.00% of its industry peers.
In the last couple of years the Gross Margin of MGIC has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.94% | ||
| PM (TTM) | 6.64% | ||
| GM | 28.38% |
OM growth 3Y0.56%
OM growth 5Y1.28%
PM growth 3Y2.55%
PM growth 5Y1.42%
GM growth 3Y1.05%
GM growth 5Y-1.84%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MGIC is still creating some value.
MGIC has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, MGIC has more shares outstanding
MGIC has a better debt/assets ratio than last year.
2.2 Solvency
MGIC has a debt to FCF ratio of 1.92. This is a very positive value and a sign of high solvency as it would only need 1.92 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.92, MGIC is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
A Debt/Equity ratio of 0.23 indicates that MGIC is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.23, MGIC is in line with its industry, outperforming 44.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | N/A |
ROIC/WACC1.51
WACC9.02%
2.3 Liquidity
A Current Ratio of 1.61 indicates that MGIC should not have too much problems paying its short term obligations.
MGIC has a Current ratio (1.61) which is comparable to the rest of the industry.
A Quick Ratio of 1.61 indicates that MGIC should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.61, MGIC perfoms like the industry average, outperforming 51.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
MGIC shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.38%.
MGIC shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.14% yearly.
The Revenue has been growing slightly by 3.35% in the past year.
MGIC shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.18% yearly.
EPS 1Y (TTM)6.38%
EPS 3Y0%
EPS 5Y10.14%
EPS Q2Q%8.7%
Revenue 1Y (TTM)3.35%
Revenue growth 3Y4.81%
Revenue growth 5Y11.18%
Sales Q2Q%13.07%
3.2 Future
The Earnings Per Share is expected to grow by 10.10% on average over the next years. This is quite good.
MGIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.56% yearly.
EPS Next Y13.94%
EPS Next 2Y11.61%
EPS Next 3Y10.1%
EPS Next 5YN/A
Revenue Next Year10.63%
Revenue Next 2Y8.41%
Revenue Next 3Y7.56%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.23, which means the current valuation is very expensive for MGIC.
Based on the Price/Earnings ratio, MGIC is valued a bit cheaper than 67.97% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.41, MGIC is valued at the same level.
The Price/Forward Earnings ratio is 21.55, which indicates a rather expensive current valuation of MGIC.
Based on the Price/Forward Earnings ratio, MGIC is valued a bit cheaper than the industry average as 70.82% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of MGIC to the average of the S&P500 Index (35.40), we can say MGIC is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.23 | ||
| Fwd PE | 21.55 |
4.2 Price Multiples
MGIC's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. MGIC is cheaper than 83.27% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MGIC is valued a bit cheaper than the industry average as 75.44% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.24 | ||
| EV/EBITDA | 15.54 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MGIC does not grow enough to justify the current Price/Earnings ratio.
The decent profitability rating of MGIC may justify a higher PE ratio.
PEG (NY)1.81
PEG (5Y)2.49
EPS Next 2Y11.61%
EPS Next 3Y10.1%
5. Dividend
5.1 Amount
MGIC has a Yearly Dividend Yield of 1.33%.
MGIC's Dividend Yield is rather good when compared to the industry average which is at 59.20. MGIC pays more dividend than 92.53% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.32, MGIC's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
5.2 History
The dividend of MGIC decreases each year by -7.77%.
MGIC has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-7.77%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
MGIC pays out 97.86% of its income as dividend. This is not a sustainable payout ratio.
DP97.86%
EPS Next 2Y11.61%
EPS Next 3Y10.1%
25.23
+0.65 (+2.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners20.34%
Inst Owner Change-1%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap1.24B
Revenue(TTM)553.00M
Net Income(TTM)38.83M
Analysts80
Price Target18.36 (-27.23%)
Short Float %0.74%
Short Ratio5.99
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.33% |
Yearly Dividend0.2
Dividend Growth(5Y)-7.77%
DP97.86%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-1.32%
Min EPS beat(2)-5%
Max EPS beat(2)2.37%
EPS beat(4)1
Avg EPS beat(4)-3.64%
Min EPS beat(4)-8.15%
Max EPS beat(4)2.37%
EPS beat(8)3
Avg EPS beat(8)-0.61%
EPS beat(12)6
Avg EPS beat(12)0.86%
EPS beat(16)9
Avg EPS beat(16)0.96%
Revenue beat(2)2
Avg Revenue beat(2)1.07%
Min Revenue beat(2)0.24%
Max Revenue beat(2)1.9%
Revenue beat(4)4
Avg Revenue beat(4)1.46%
Min Revenue beat(4)0.24%
Max Revenue beat(4)1.96%
Revenue beat(8)7
Avg Revenue beat(8)0.59%
Revenue beat(12)9
Avg Revenue beat(12)0.34%
Revenue beat(16)13
Avg Revenue beat(16)1.44%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.72%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.55%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.23 | ||
| Fwd PE | 21.55 | ||
| P/S | 2.12 | ||
| P/FCF | 24.24 | ||
| P/OCF | 22.52 | ||
| P/B | 4.44 | ||
| P/tB | 23.37 | ||
| EV/EBITDA | 15.54 |
EPS(TTM)1
EY3.96%
EPS(NY)1.17
Fwd EY4.64%
FCF(TTM)1.04
FCFY4.12%
OCF(TTM)1.12
OCFY4.44%
SpS11.91
BVpS5.68
TBVpS1.08
PEG (NY)1.81
PEG (5Y)2.49
Graham Number11.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.16% | ||
| ROE | 13.92% | ||
| ROCE | 16.98% | ||
| ROIC | 13.66% | ||
| ROICexc | 13.66% | ||
| ROICexgc | 34.1% | ||
| OM | 10.94% | ||
| PM (TTM) | 6.64% | ||
| GM | 28.38% | ||
| FCFM | 8.74% |
ROA(3y)7.32%
ROA(5y)6.74%
ROE(3y)14.22%
ROE(5y)12.72%
ROIC(3y)13.11%
ROIC(5y)11.98%
ROICexc(3y)16.21%
ROICexc(5y)15.22%
ROICexgc(3y)67.44%
ROICexgc(5y)59.59%
ROCE(3y)16.4%
ROCE(5y)15.06%
ROICexgc growth 3Y-19.18%
ROICexgc growth 5Y-1.06%
ROICexc growth 3Y-5.55%
ROICexc growth 5Y3.96%
OM growth 3Y0.56%
OM growth 5Y1.28%
PM growth 3Y2.55%
PM growth 5Y1.42%
GM growth 3Y1.05%
GM growth 5Y-1.84%
F-Score5
Asset Turnover1.08
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.92 | ||
| Debt/EBITDA | 0.76 | ||
| Cap/Depr | 17.73% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 63.95% | ||
| Profit Quality | 131.6% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | N/A |
F-Score5
WACC9.02%
ROIC/WACC1.51
Cap/Depr(3y)27.17%
Cap/Depr(5y)29.68%
Cap/Sales(3y)1%
Cap/Sales(5y)1.12%
Profit Quality(3y)161.93%
Profit Quality(5y)160.05%
High Growth Momentum
Growth
EPS 1Y (TTM)6.38%
EPS 3Y0%
EPS 5Y10.14%
EPS Q2Q%8.7%
EPS Next Y13.94%
EPS Next 2Y11.61%
EPS Next 3Y10.1%
EPS Next 5YN/A
Revenue 1Y (TTM)3.35%
Revenue growth 3Y4.81%
Revenue growth 5Y11.18%
Sales Q2Q%13.07%
Revenue Next Year10.63%
Revenue Next 2Y8.41%
Revenue Next 3Y7.56%
Revenue Next 5YN/A
EBIT growth 1Y15.77%
EBIT growth 3Y5.4%
EBIT growth 5Y12.6%
EBIT Next Year12.62%
EBIT Next 3Y9.21%
EBIT Next 5YN/A
FCF growth 1Y-32.06%
FCF growth 3Y21.95%
FCF growth 5Y11.86%
OCF growth 1Y-32.01%
OCF growth 3Y19.75%
OCF growth 5Y10.29%
MAGIC SOFTWARE ENTERPRISES / MGIC FAQ
Can you provide the ChartMill fundamental rating for MAGIC SOFTWARE ENTERPRISES?
ChartMill assigns a fundamental rating of 5 / 10 to MGIC.
What is the valuation status for MGIC stock?
ChartMill assigns a valuation rating of 4 / 10 to MAGIC SOFTWARE ENTERPRISES (MGIC). This can be considered as Fairly Valued.
What is the profitability of MGIC stock?
MAGIC SOFTWARE ENTERPRISES (MGIC) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for MGIC stock?
The Price/Earnings (PE) ratio for MAGIC SOFTWARE ENTERPRISES (MGIC) is 25.23 and the Price/Book (PB) ratio is 4.44.
Can you provide the expected EPS growth for MGIC stock?
The Earnings per Share (EPS) of MAGIC SOFTWARE ENTERPRISES (MGIC) is expected to grow by 13.94% in the next year.