MAGNITE INC (MGNI) Stock Fundamental Analysis
USA - NASDAQ:MGNI - US55955D1000 - Common Stock
19.94 USD
+0.8 (+4.18%)
19.71 USD
-0.23 (-1.15%)
We assign a fundamental rating of 5 out of 10 to MGNI. MGNI was compared to 95 industry peers in the Media industry. While MGNI is still in line with the averages on profitability rating, there are concerns on its financial health. MGNI is not overvalued while it is showing excellent growth. This is an interesting 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.
MGNI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.47%, MGNI is in the better half of the industry, outperforming 66.32% of the companies in the same industry.
MGNI has a Return On Equity of 5.61%. This is in the better half of the industry: MGNI outperforms 69.47% of its industry peers.
MGNI has a better Return On Invested Capital (5.62%) than 65.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 5.61% | ||
| ROIC | 5.62% |
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 (6.30%) is better than 73.68% of its industry peers.
In the last couple of years the Profit Margin of MGNI has grown nicely.
The Operating Margin of MGNI (11.08%) is better than 64.21% of its industry peers.
MGNI has a Gross Margin of 62.33%. This is in the better half of the industry: MGNI outperforms 73.68% of its industry peers.
MGNI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.08% | ||
| PM (TTM) | 6.3% | ||
| GM | 62.33% |
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
MGNI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MGNI has been increased compared to 1 year ago.
MGNI has more shares outstanding than it did 5 years ago.
MGNI has a better debt/assets ratio than last year.
2.2 Solvency
MGNI has an Altman-Z score of 0.76. 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 (0.76) which is comparable to the rest of the industry.
MGNI has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as MGNI would need 3.29 years to pay back of all of its debts.
The Debt to FCF ratio of MGNI (3.29) is better than 77.89% of its industry peers.
A Debt/Equity ratio of 0.45 indicates that MGNI is not too dependend on debt financing.
MGNI has a Debt to Equity ratio (0.45) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 0.76 |
ROIC/WACC0.69
WACC8.19%
2.3 Liquidity
A Current Ratio of 1.00 indicates that MGNI may have some problems paying its short term obligations.
MGNI has a Current ratio of 1.00. This is comparable to the rest of the industry: MGNI outperforms 41.05% of its industry peers.
MGNI has a Quick Ratio of 1.00. This is a bad value and indicates that MGNI is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 1.00, MGNI perfoms like the industry average, outperforming 43.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 38.33% over the past year.
The Earnings Per Share has been growing by 9.04% on average over the past years. This is quite good.
The Revenue has been growing slightly by 5.52% in the past year.
Measured over the past years, MGNI shows a very strong growth in Revenue. The Revenue has been growing by 33.70% on average per year.
EPS 1Y (TTM)38.33%
EPS 3Y9.04%
EPS 5YN/A
EPS Q2Q%42.86%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y12.57%
Revenue growth 5Y33.7%
Sales Q2Q%10.35%
3.2 Future
The Earnings Per Share is expected to grow by 28.53% on average over the next years. This is a very strong growth
MGNI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.98% yearly.
EPS Next Y31.69%
EPS Next 2Y28.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.44%
Revenue Next 2Y10.42%
Revenue Next 3Y10.19%
Revenue Next 5Y10.98%
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
A Price/Earnings ratio of 24.02 indicates a rather expensive valuation of MGNI.
Based on the Price/Earnings ratio, MGNI is valued a bit cheaper than the industry average as 67.37% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.91. MGNI is around the same levels.
With a Price/Forward Earnings ratio of 17.24, MGNI is valued on the expensive side.
63.16% of the companies in the same industry are more expensive than MGNI, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.92. MGNI is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 17.24 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MGNI indicates a slightly more expensive valuation: MGNI is more expensive than 61.05% of the companies listed in the same industry.
MGNI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MGNI is cheaper than 62.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.77 | ||
| EV/EBITDA | 21.24 |
4.3 Compensation for Growth
MGNI's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as MGNI's earnings are expected to grow with 28.53% in the coming years.
PEG (NY)0.76
PEG (5Y)N/A
EPS Next 2Y28.53%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MGNI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
19.94
+0.8 (+4.18%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners105.29%
Inst Owner Change-0.88%
Ins Owners1.38%
Ins Owner Change-24.39%
Market Cap2.84B
Revenue(TTM)685.07M
Net Income(TTM)43.13M
Analysts82.86
Price Target28.38 (42.33%)
Short Float %10.29%
Short Ratio4.82
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)2
Avg EPS beat(2)47.76%
Min EPS beat(2)17.94%
Max EPS beat(2)77.58%
EPS beat(4)3
Avg EPS beat(4)22.64%
Min EPS beat(4)-8.02%
Max EPS beat(4)77.58%
EPS beat(8)6
Avg EPS beat(8)1428.47%
EPS beat(12)9
Avg EPS beat(12)982.4%
EPS beat(16)11
Avg EPS beat(16)734.38%
Revenue beat(2)2
Avg Revenue beat(2)0.71%
Min Revenue beat(2)0.47%
Max Revenue beat(2)0.94%
Revenue beat(4)2
Avg Revenue beat(4)-0.94%
Min Revenue beat(4)-4.12%
Max Revenue beat(4)0.94%
Revenue beat(8)5
Avg Revenue beat(8)0.09%
Revenue beat(12)8
Avg Revenue beat(12)2.38%
Revenue beat(16)12
Avg Revenue beat(16)4.29%
PT rev (1m)0%
PT rev (3m)42.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)0%
EPS NY rev (3m)3.88%
Revenue NQ rev (1m)-1.18%
Revenue NQ rev (3m)1.9%
Revenue NY rev (1m)-1.56%
Revenue NY rev (3m)1.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.02 | ||
| Fwd PE | 17.24 | ||
| P/S | 4.14 | ||
| P/FCF | 16.77 | ||
| P/OCF | 12.5 | ||
| P/B | 3.69 | ||
| P/tB | N/A | ||
| EV/EBITDA | 21.24 |
EPS(TTM)0.83
EY4.16%
EPS(NY)1.16
Fwd EY5.8%
FCF(TTM)1.19
FCFY5.96%
OCF(TTM)1.6
OCFY8%
SpS4.81
BVpS5.4
TBVpS-1.74
PEG (NY)0.76
PEG (5Y)N/A
Graham Number10.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 5.61% | ||
| ROCE | 6.53% | ||
| ROIC | 5.62% | ||
| ROICexc | 8.87% | ||
| ROICexgc | N/A | ||
| OM | 11.08% | ||
| PM (TTM) | 6.3% | ||
| GM | 62.33% | ||
| FCFM | 24.72% |
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
ROICexgc growth 3YN/A
ROICexgc 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 Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.29 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 98.72% | ||
| Cap/Sales | 8.43% | ||
| Interest Coverage | 2.27 | ||
| Cash Conversion | 168.93% | ||
| Profit Quality | 392.72% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 0.76 |
F-Score7
WACC8.19%
ROIC/WACC0.69
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)38.33%
EPS 3Y9.04%
EPS 5YN/A
EPS Q2Q%42.86%
EPS Next Y31.69%
EPS Next 2Y28.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.52%
Revenue growth 3Y12.57%
Revenue growth 5Y33.7%
Sales Q2Q%10.35%
Revenue Next Year9.44%
Revenue Next 2Y10.42%
Revenue Next 3Y10.19%
Revenue Next 5Y10.98%
EBIT growth 1Y485.47%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year338.89%
EBIT Next 3Y81.8%
EBIT Next 5Y49.09%
FCF growth 1Y35.6%
FCF growth 3Y24.5%
FCF growth 5Y73.12%
OCF growth 1Y32.21%
OCF growth 3Y22.93%
OCF growth 5Y49.02%
MAGNITE INC / MGNI FAQ
What is the ChartMill fundamental rating of MAGNITE INC (MGNI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MGNI.
What is the valuation status of MAGNITE INC (MGNI) stock?
ChartMill assigns a valuation rating of 5 / 10 to MAGNITE INC (MGNI). This can be considered as Fairly Valued.
How profitable is MAGNITE INC (MGNI) stock?
MAGNITE INC (MGNI) has a profitability rating of 5 / 10.
Can you provide the financial health for MGNI stock?
The financial health rating of MAGNITE INC (MGNI) is 3 / 10.