MAGNITE INC (MGNI) Stock Fundamental Analysis
NASDAQ:MGNI - Nasdaq - US55955D1000 - Common Stock - Currency: USD
Taking everything into account, MGNI scores 5 out of 10 in our fundamental rating. MGNI was compared to 97 industry peers in the Media industry. There are concerns on the financial health of MGNI while its profitability can be described as average. MGNI is not priced too expensively while it is growing strongly. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
MGNI had positive earnings in the past year.
MGNI had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MGNI reported negative net income in multiple years.
MGNI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of MGNI (1.16%) is better than 63.92% of its industry peers.
MGNI has a Return On Equity of 4.17%. This is in the better half of the industry: MGNI outperforms 65.98% of its industry peers.
MGNI has a Return On Invested Capital of 4.81%. This is in the better half of the industry: MGNI outperforms 64.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 4.17% | ||
| ROIC | 4.81% |
ROA(3y)-3.31%
ROA(5y)-3.12%
ROE(3y)-12.06%
ROE(5y)-10.03%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of MGNI (4.58%) is better than 73.20% of its industry peers.
In the last couple of years the Profit Margin of MGNI has grown nicely.
Looking at the Operating Margin, with a value of 9.42%, MGNI is in the better half of the industry, outperforming 62.89% of the companies in the same industry.
MGNI has a better Gross Margin (62.09%) than 74.23% of its industry peers.
MGNI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.42% | ||
| PM (TTM) | 4.58% | ||
| GM | 62.09% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y442.58%
PM growth 5YN/A
GM growth 3Y2.46%
GM growth 5Y-0.65%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MGNI is destroying value.
Compared to 1 year ago, MGNI has more shares outstanding
MGNI has more shares outstanding than it did 5 years ago.
The debt/assets ratio for MGNI has been reduced compared to a year ago.
2.2 Solvency
MGNI has an Altman-Z score of 0.79. This is a bad value and indicates that MGNI is not financially healthy and even has some risk of bankruptcy.
MGNI has a Altman-Z score (0.79) which is comparable to the rest of the industry.
MGNI has a debt to FCF ratio of 2.29. This is a good value and a sign of high solvency as MGNI would need 2.29 years to pay back of all of its debts.
MGNI has a better Debt to FCF ratio (2.29) than 87.63% of its industry peers.
MGNI has a Debt/Equity ratio of 0.47. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.47, MGNI perfoms like the industry average, outperforming 57.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.29 | ||
| Altman-Z | 0.79 |
ROIC/WACC0.57
WACC8.47%
2.3 Liquidity
A Current Ratio of 0.98 indicates that MGNI may have some problems paying its short term obligations.
MGNI has a Current ratio of 0.98. This is in the lower half of the industry: MGNI underperforms 69.07% of its industry peers.
MGNI has a Quick Ratio of 0.98. This is a bad value and indicates that MGNI is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of MGNI (0.98) is worse than 67.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
MGNI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.00%, which is quite impressive.
MGNI shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.04% yearly.
The Revenue has been growing slightly by 5.60% in the past year.
The Revenue has been growing by 33.70% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)40%
EPS 3Y9.04%
EPS 5YN/A
EPS Q2Q%140%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y12.57%
Revenue growth 5Y33.7%
Sales Q2Q%11.72%
3.2 Future
Based on estimates for the next years, MGNI will show a very strong growth in Earnings Per Share. The EPS will grow by 23.40% on average per year.
Based on estimates for the next years, MGNI will show a quite strong growth in Revenue. The Revenue will grow by 10.19% on average per year.
EPS Next Y25.5%
EPS Next 2Y23.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.55%
Revenue Next 2Y9.27%
Revenue Next 3Y10.19%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 24.44 indicates a rather expensive valuation of MGNI.
Compared to the rest of the industry, the Price/Earnings ratio of MGNI indicates a somewhat cheap valuation: MGNI is cheaper than 64.95% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. MGNI is around the same levels.
The Price/Forward Earnings ratio is 17.66, which indicates a rather expensive current valuation of MGNI.
61.86% of the companies in the same industry are more expensive than MGNI, based on the Price/Forward Earnings ratio.
MGNI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.44 | ||
| Fwd PE | 17.66 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MGNI is on the same level as its industry peers.
74.23% of the companies in the same industry are more expensive than MGNI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.92 | ||
| EV/EBITDA | 22.42 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MGNI's earnings are expected to grow with 23.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)N/A
EPS Next 2Y23.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for MGNI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
18.82
+0.59 (+3.24%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners96.49%
Inst Owner Change8.88%
Ins Owners2.07%
Ins Owner Change2.75%
Market Cap2.66B
Analysts82
Price Target19.31 (2.6%)
Short Float %11.77%
Short Ratio6.55
Dividend
| Industry Rank | Sector 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)1
Avg EPS beat(2)34.78%
Min EPS beat(2)-8.02%
Max EPS beat(2)77.58%
EPS beat(4)2
Avg EPS beat(4)15.4%
Min EPS beat(4)-11.02%
Max EPS beat(4)77.58%
EPS beat(8)6
Avg EPS beat(8)1446.17%
EPS beat(12)8
Avg EPS beat(12)979.27%
EPS beat(16)10
Avg EPS beat(16)732.44%
Revenue beat(2)1
Avg Revenue beat(2)-1.82%
Min Revenue beat(2)-4.12%
Max Revenue beat(2)0.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-4.12%
Max Revenue beat(4)0.47%
Revenue beat(8)4
Avg Revenue beat(8)-0.24%
Revenue beat(12)8
Avg Revenue beat(12)3%
Revenue beat(16)12
Avg Revenue beat(16)5.44%
PT rev (1m)-1.49%
PT rev (3m)-7.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-14.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-7.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.91%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.44 | ||
| Fwd PE | 17.66 | ||
| P/S | 3.94 | ||
| P/FCF | 10.92 | ||
| P/OCF | 8.91 | ||
| P/B | 3.58 | ||
| P/tB | N/A | ||
| EV/EBITDA | 22.42 |
EPS(TTM)0.77
EY4.09%
EPS(NY)1.07
Fwd EY5.66%
FCF(TTM)1.72
FCFY9.16%
OCF(TTM)2.11
OCFY11.23%
SpS4.78
BVpS5.26
TBVpS-1.96
PEG (NY)0.96
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 4.17% | ||
| ROCE | 5.59% | ||
| ROIC | 4.81% | ||
| ROICexc | 7.74% | ||
| ROICexgc | N/A | ||
| OM | 9.42% | ||
| PM (TTM) | 4.58% | ||
| GM | 62.09% | ||
| FCFM | 36.04% |
ROA(3y)-3.31%
ROA(5y)-3.12%
ROE(3y)-12.06%
ROE(5y)-10.03%
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 3YN/A
OM growth 5YN/A
PM growth 3Y442.58%
PM growth 5YN/A
GM growth 3Y2.46%
GM growth 5Y-0.65%
F-Score7
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.29 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 90.87% | ||
| Cap/Sales | 8.16% | ||
| Interest Coverage | 1.75 | ||
| Cash Conversion | 240.28% | ||
| Profit Quality | 786.69% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 0.79 |
F-Score7
WACC8.47%
ROIC/WACC0.57
Cap/Depr(3y)38.84%
Cap/Depr(5y)36.21%
Cap/Sales(3y)6.92%
Cap/Sales(5y)7.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)40%
EPS 3Y9.04%
EPS 5YN/A
EPS Q2Q%140%
EPS Next Y25.5%
EPS Next 2Y23.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.6%
Revenue growth 3Y12.57%
Revenue growth 5Y33.7%
Sales Q2Q%11.72%
Revenue Next Year7.55%
Revenue Next 2Y9.27%
Revenue Next 3Y10.19%
Revenue Next 5YN/A
EBIT growth 1Y192.91%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year320.71%
EBIT Next 3Y81.8%
EBIT Next 5YN/A
FCF growth 1Y146.11%
FCF growth 3Y24.5%
FCF growth 5Y73.12%
OCF growth 1Y112.83%
OCF growth 3Y22.93%
OCF growth 5Y49.02%