MAGNITE INC (MGNI) Stock Fundamental Analysis
NASDAQ:MGNI - Nasdaq - US55955D1000 - Common Stock - Currency: USD
Overall MGNI gets a fundamental rating of 5 out of 10. We evaluated MGNI against 97 industry peers in the Media industry. MGNI has only an average score on both its financial health and profitability. MGNI is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year MGNI was profitable.
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.
Of the past 5 years MGNI 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MGNI (0.80%) is better than 61.86% of its industry peers.
MGNI has a Return On Equity of 2.97%. This is in the better half of the industry: MGNI outperforms 67.01% of its industry peers.
MGNI has a Return On Invested Capital of 3.23%. This is comparable to the rest of the industry: MGNI outperforms 56.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 2.97% | ||
| ROIC | 3.23% |
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 (3.41%) is better than 70.10% of its industry peers.
In the last couple of years the Profit Margin of MGNI has grown nicely.
MGNI's Operating Margin of 7.65% is in line compared to the rest of the industry. MGNI outperforms 57.73% of its industry peers.
Looking at the Gross Margin, with a value of 61.26%, MGNI is in the better half of the industry, outperforming 75.26% of the companies in the same industry.
In the last couple of years the Gross Margin of MGNI has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.65% | ||
| PM (TTM) | 3.41% | ||
| GM | 61.26% |
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.
MGNI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.55, we must say that MGNI is in the distress zone and has some risk of bankruptcy.
MGNI's Altman-Z score of 0.55 is on the low side compared to the rest of the industry. MGNI is outperformed by 61.86% of its industry peers.
The Debt to FCF ratio of MGNI is 2.94, which is a good value as it means it would take MGNI, 2.94 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 2.94, MGNI belongs to the best of the industry, outperforming 82.47% of the companies in the same industry.
MGNI has a Debt/Equity ratio of 0.72. This is a neutral value indicating MGNI is somewhat dependend on debt financing.
MGNI has a Debt to Equity ratio (0.72) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | 0.55 |
ROIC/WACC0.39
WACC8.23%
2.3 Liquidity
A Current Ratio of 1.14 indicates that MGNI should not have too much problems paying its short term obligations.
MGNI has a Current ratio of 1.14. This is in the lower half of the industry: MGNI underperforms 61.86% of its industry peers.
MGNI has a Quick Ratio of 1.14. This is a normal value and indicates that MGNI is financially healthy and should not expect problems in meeting its short term obligations.
MGNI's Quick ratio of 1.14 is on the low side compared to the rest of the industry. MGNI is outperformed by 60.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
MGNI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.63%, 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.
Looking at the last year, MGNI shows a small growth in Revenue. The Revenue has grown by 7.82% in the last year.
The Revenue has been growing by 33.70% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)29.63%
EPS 3Y9.04%
EPS 5YN/A
EPS Q2Q%17.24%
Revenue 1Y (TTM)7.82%
Revenue growth 3Y12.57%
Revenue growth 5Y33.7%
Sales Q2Q%17.36%
3.2 Future
MGNI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 26.77% yearly.
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 Y31.77%
EPS Next 2Y26.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.35%
Revenue Next 2Y10.15%
Revenue Next 3Y10.19%
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 accelerating.
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
The Price/Earnings ratio is 17.37, which indicates a rather expensive current 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 67.01% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MGNI to the average of the S&P500 Index (28.18), we can say MGNI is valued slightly cheaper.
The Price/Forward Earnings ratio is 13.18, which indicates a correct valuation of MGNI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGNI indicates a somewhat cheap valuation: MGNI is cheaper than 72.16% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of MGNI to the average of the S&P500 Index (20.81), we can say MGNI is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.37 | ||
| Fwd PE | 13.18 |
4.2 Price Multiples
MGNI's Enterprise Value to EBITDA ratio is in line with the industry average.
MGNI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MGNI is cheaper than 78.35% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.14 | ||
| EV/EBITDA | 16.27 |
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 26.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y26.77%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for MGNI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:MGNI (5/5/2025, 3:39:45 PM)
12.16
+0.05 (+0.41%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners90.74%
Inst Owner Change-2.15%
Ins Owners2.26%
Ins Owner Change-3.2%
Market Cap1.72B
Analysts82
Price Target19.93 (63.9%)
Short Float %10.18%
Short Ratio4.88
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)-2.49%
Min EPS beat(2)-8.02%
Max EPS beat(2)3.04%
EPS beat(4)2
Avg EPS beat(4)2820.98%
Min EPS beat(4)-11.02%
Max EPS beat(4)11299.9%
EPS beat(8)6
Avg EPS beat(8)1462.34%
EPS beat(12)8
Avg EPS beat(12)972.93%
EPS beat(16)10
Avg EPS beat(16)758.11%
Revenue beat(2)1
Avg Revenue beat(2)1.07%
Min Revenue beat(2)-1.07%
Max Revenue beat(2)3.21%
Revenue beat(4)2
Avg Revenue beat(4)1.27%
Min Revenue beat(4)-1.07%
Max Revenue beat(4)3.21%
Revenue beat(8)5
Avg Revenue beat(8)0.94%
Revenue beat(12)9
Avg Revenue beat(12)4.26%
Revenue beat(16)12
Avg Revenue beat(16)5.85%
PT rev (1m)-4.87%
PT rev (3m)-0.53%
EPS NQ rev (1m)-3.38%
EPS NQ rev (3m)10.42%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.75%
Revenue NQ rev (1m)1.44%
Revenue NQ rev (3m)1.92%
Revenue NY rev (1m)-0.22%
Revenue NY rev (3m)-0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 17.37 | ||
| Fwd PE | 13.18 | ||
| P/S | 2.57 | ||
| P/FCF | 9.14 | ||
| P/OCF | 7.31 | ||
| P/B | 2.24 | ||
| P/tB | N/A | ||
| EV/EBITDA | 16.27 |
EPS(TTM)0.7
EY5.76%
EPS(NY)0.92
Fwd EY7.59%
FCF(TTM)1.33
FCFY10.94%
OCF(TTM)1.66
OCFY13.68%
SpS4.73
BVpS5.43
TBVpS-1.82
PEG (NY)0.55
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 2.97% | ||
| ROCE | 3.76% | ||
| ROIC | 3.23% | ||
| ROICexc | 5.02% | ||
| ROICexgc | N/A | ||
| OM | 7.65% | ||
| PM (TTM) | 3.41% | ||
| GM | 61.26% | ||
| FCFM | 28.16% |
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-Score9
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 2.94 | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 80.45% | ||
| Cap/Sales | 7.04% | ||
| Interest Coverage | 1.39 | ||
| Cash Conversion | 214.61% | ||
| Profit Quality | 825.64% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 0.55 |
F-Score9
WACC8.23%
ROIC/WACC0.39
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)29.63%
EPS 3Y9.04%
EPS 5YN/A
EPS Q2Q%17.24%
EPS Next Y31.77%
EPS Next 2Y26.77%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.82%
Revenue growth 3Y12.57%
Revenue growth 5Y33.7%
Sales Q2Q%17.36%
Revenue Next Year9.35%
Revenue Next 2Y10.15%
Revenue Next 3Y10.19%
Revenue Next 5YN/A
EBIT growth 1Y134.59%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year333.37%
EBIT Next 3Y81.8%
EBIT Next 5YN/A
FCF growth 1Y6.3%
FCF growth 3Y24.5%
FCF growth 5Y73.12%
OCF growth 1Y9.72%
OCF growth 3Y22.93%
OCF growth 5Y49.02%