MAGNITE INC (MGNI)
US55955D1000 - Common Stock
We assign a fundamental rating of 4 out of 10 to MGNI. MGNI was compared to 96 industry peers in the Media industry. MGNI scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. MGNI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
MGNI had positive earnings in the past year.
In the past year MGNI had a positive cash flow from operations.
In the past 5 years MGNI reported 4 times negative net income.
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 -3.19%, MGNI is doing worse than 64.21% of the companies in the same industry.
MGNI's Return On Equity of -11.25% is on the low side compared to the rest of the industry. MGNI is outperformed by 62.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.19% | ||
| ROE | -11.25% | ||
| ROIC | N/A |
ROA(3y)-3.57%
ROA(5y)-4.57%
ROE(3y)-13.05%
ROE(5y)-15.18%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
With a Gross Margin value of 45.07%, MGNI perfoms like the industry average, outperforming 53.68% of the companies in the same industry.
MGNI's Gross Margin has declined in the last couple of years.
MGNI does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 45.07% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-19.52%
GM growth 5Y-8.18%
2. Health
2.1 Basic Checks
MGNI does not have a ROIC to compare to the WACC, probably because it is not profitable.
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
Based on the Altman-Z score of 0.29, we must say that MGNI is in the distress zone and has some risk of bankruptcy.
With a Altman-Z score value of 0.29, MGNI is not doing good in the industry: 70.53% of the companies in the same industry are doing better.
The Debt to FCF ratio of MGNI is 3.79, which is a good value as it means it would take MGNI, 3.79 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.79, MGNI belongs to the top of the industry, outperforming 83.16% of the companies in the same industry.
MGNI has a Debt/Equity ratio of 0.79. This is a neutral value indicating MGNI is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.79, MGNI is in line with its industry, outperforming 42.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | 3.79 | ||
| Altman-Z | 0.29 |
ROIC/WACCN/A
WACC7.81%
2.3 Liquidity
A Current Ratio of 1.10 indicates that MGNI should not have too much problems paying its short term obligations.
MGNI's Current ratio of 1.10 is on the low side compared to the rest of the industry. MGNI is outperformed by 76.84% of its industry peers.
A Quick Ratio of 1.10 indicates that MGNI should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.10, MGNI is not doing good in the industry: 75.79% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 |
3. Growth
3.1 Past
MGNI shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.33%.
Measured over the past years, MGNI shows a very strong growth in Earnings Per Share. The EPS has been growing by 81.71% on average per year.
MGNI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.43%.
The Revenue has been growing by 37.80% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)-8.33%
EPS 3Y81.71%
EPS 5YN/A
EPS growth Q2Q25%
Revenue 1Y (TTM)8.43%
Revenue growth 3Y40.89%
Revenue growth 5Y37.8%
Revenue growth Q2Q14.68%
3.2 Future
MGNI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.87% yearly.
Based on estimates for the next years, MGNI will show a quite strong growth in Revenue. The Revenue will grow by 12.74% on average per year.
EPS Next Y47.02%
EPS Next 2Y30.44%
EPS Next 3Y28.87%
EPS Next 5YN/A
Revenue Next Year10.62%
Revenue Next 2Y10.47%
Revenue Next 3Y12.74%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.80, which indicates a rather expensive current valuation of MGNI.
The rest of the industry has a similar Price/Earnings ratio as MGNI.
The average S&P500 Price/Earnings ratio is at 28.91. MGNI is valued slightly cheaper when compared to this.
With a Price/Forward Earnings ratio of 13.05, MGNI is valued correctly.
Based on the Price/Forward Earnings ratio, MGNI is valued a bit cheaper than the industry average as 71.58% of the companies are valued more expensively.
MGNI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 13.05 |
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 77.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.52 | ||
| EV/EBITDA | 18.54 |
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.
A more expensive valuation may be justified as MGNI's earnings are expected to grow with 28.87% in the coming years.
PEG (NY)0.46
PEG (5Y)N/A
EPS Next 2Y30.44%
EPS Next 3Y28.87%
5. Dividend
5.1 Amount
No dividends for MGNI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MAGNITE INC
NASDAQ:MGNI (5/16/2024, 4:20:02 PM)
After market: 11.97 -0.02 (-0.17%)11.99
+2.19 (+22.35%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.68B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.8 | ||
| Fwd PE | 13.05 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.46
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -3.19% | ||
| ROE | -11.25% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 45.07% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.26
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.79 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.1 | ||
| Quick Ratio | 1.1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-8.33%
EPS 3Y81.71%
EPS 5Y
EPS growth Q2Q
EPS Next Y47.02%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)8.43%
Revenue growth 3Y40.89%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y