22.45 USD
+0.6 (+2.75%)
At close: Feb 9, 2026
22.189 USD
-0.26 (-1.16%)
After Hours: 2/9/2026, 8:15:32 PM
Taking everything into account, MGIC scores 5 out of 10 in our fundamental rating. MGIC was compared to 277 industry peers in the Software industry. While MGIC has a great profitability rating, 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
- MGIC had positive earnings in the past year.
- MGIC had a positive operating cash flow in the past year.
- MGIC had positive earnings in each of the past 5 years.
- In the past 5 years MGIC always reported a positive cash flow from operatings.
1.2 Ratios
- With a decent Return On Assets value of 7.16%, MGIC is doing good in the industry, outperforming 77.62% of the companies in the same industry.
- MGIC has a Return On Equity of 13.92%. This is amongst the best in the industry. MGIC outperforms 80.51% of its industry peers.
- MGIC has a better Return On Invested Capital (13.66%) than 90.61% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MGIC is above the industry average of 10.91%.
- The last Return On Invested Capital (13.66%) for MGIC is above the 3 year average (13.11%), which is a sign of increasing profitability.
| 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's Profit Margin of 6.64% is fine compared to the rest of the industry. MGIC outperforms 65.70% of its industry peers.
- In the last couple of years the Profit Margin of MGIC has remained more or less at the same level.
- MGIC has a Operating Margin of 10.94%. This is in the better half of the industry: MGIC outperforms 76.53% of its industry peers.
- In the last couple of years the Operating Margin of MGIC has remained more or less at the same level.
- The Gross Margin of MGIC (28.38%) is worse than 79.78% of its industry peers.
- MGIC's Gross Margin has declined in the last couple of years.
| 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
- MGIC has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
- The number of shares outstanding for MGIC remains at a similar level compared to 1 year ago.
- The number of shares outstanding for MGIC has been increased compared to 5 years ago.
- 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.
- MGIC has a better Debt to FCF ratio (1.92) than 67.87% of its industry peers.
- A Debt/Equity ratio of 0.23 indicates that MGIC is not too dependend on debt financing.
- MGIC has a Debt to Equity ratio (0.23) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.23 | ||
| Debt/FCF | 1.92 | ||
| Altman-Z | N/A |
ROIC/WACC1.41
WACC9.71%
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.
- MGIC has a Quick Ratio of 1.61. This is a normal value and indicates that MGIC is financially healthy and should not expect problems in meeting its short term obligations.
- MGIC has a Quick ratio (1.61) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
- The Earnings Per Share has been growing slightly by 6.38% over the past year.
- Measured over the past years, MGIC shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.14% on average per year.
- Looking at the last year, MGIC shows a small growth in Revenue. The Revenue has grown by 3.35% in the last year.
- The Revenue has been growing by 11.18% on average over the past years. This is quite good.
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
- Based on estimates for the next years, MGIC will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.10% on average per year.
- MGIC is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.56% yearly.
EPS Next Y11.77%
EPS Next 2Y10.63%
EPS Next 3Y10.1%
EPS Next 5YN/A
Revenue Next Year11.76%
Revenue Next 2Y8.96%
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 22.45, which indicates a rather expensive current valuation of MGIC.
- Compared to the rest of the industry, the Price/Earnings ratio of MGIC indicates a somewhat cheap valuation: MGIC is cheaper than 66.79% of the companies listed in the same industry.
- MGIC is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.06, which is the current average of the S&P500 Index.
- MGIC is valuated rather expensively with a Price/Forward Earnings ratio of 19.51.
- 68.23% of the companies in the same industry are more expensive than MGIC, based on the Price/Forward Earnings ratio.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.86, MGIC is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 19.51 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MGIC indicates a rather cheap valuation: MGIC is cheaper than 82.31% of the companies listed in the same industry.
- MGIC's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MGIC is cheaper than 74.01% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.57 | ||
| EV/EBITDA | 13.96 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of MGIC may justify a higher PE ratio.
PEG (NY)1.91
PEG (5Y)2.21
EPS Next 2Y10.63%
EPS Next 3Y10.1%
5. Dividend
5.1 Amount
- MGIC has a Yearly Dividend Yield of 1.40%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.61, MGIC pays a better dividend. On top of this MGIC pays more dividend than 93.86% of the companies listed in the same industry.
- MGIC's Dividend Yield is slightly below the S&P500 average, which is at 1.80.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
5.2 History
- The dividend of MGIC decreases each year by -7.77%.
- MGIC has been paying a dividend for at least 10 years, so it has 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 2Y10.63%
EPS Next 3Y10.1%
22.45
+0.6 (+2.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-18 2025-11-18/bmo
Earnings (Next)03-09 2026-03-09/bmo
Inst Owners20.69%
Inst Owner Change0.07%
Ins Owners0.39%
Ins Owner ChangeN/A
Market Cap1.10B
Revenue(TTM)553.00M
Net Income(TTM)38.83M
Analysts80
Price Target18.36 (-18.22%)
Short Float %0.39%
Short Ratio2.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.4% |
Yearly Dividend0.2
Dividend Growth(5Y)-7.77%
DP97.86%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
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)-1.9%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.02%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.45 | ||
| Fwd PE | 19.51 | ||
| P/S | 1.88 | ||
| P/FCF | 21.57 | ||
| P/OCF | 20.04 | ||
| P/B | 3.95 | ||
| P/tB | 20.8 | ||
| EV/EBITDA | 13.96 |
EPS(TTM)1
EY4.45%
EPS(NY)1.15
Fwd EY5.12%
FCF(TTM)1.04
FCFY4.64%
OCF(TTM)1.12
OCFY4.99%
SpS11.91
BVpS5.68
TBVpS1.08
PEG (NY)1.91
PEG (5Y)2.21
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
WACC9.71%
ROIC/WACC1.41
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 Y11.77%
EPS Next 2Y10.63%
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 Year11.76%
Revenue Next 2Y8.96%
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.
Can you provide the valuation status for MAGIC SOFTWARE ENTERPRISES?
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.
What is the expected EPS growth for MAGIC SOFTWARE ENTERPRISES (MGIC) stock?
The Earnings per Share (EPS) of MAGIC SOFTWARE ENTERPRISES (MGIC) is expected to grow by 11.77% in the next year.
Is the dividend of MAGIC SOFTWARE ENTERPRISES sustainable?
The dividend rating of MAGIC SOFTWARE ENTERPRISES (MGIC) is 3 / 10 and the dividend payout ratio is 97.86%.