MAGNITE INC (MGNI) Stock Fundamental Analysis
USA - NASDAQ:MGNI - US55955D1000 - Common Stock
21.78 USD
-0.5 (-2.24%)
21.79 USD
+0.01 (+0.05%)
MGNI gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 98 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 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.
MGNI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of MGNI (1.47%) is better than 66.33% of its industry peers.
Looking at the Return On Equity, with a value of 5.61%, MGNI is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
MGNI's Return On Invested Capital of 5.62% is fine compared to the rest of the industry. MGNI outperforms 65.31% 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
MGNI's Profit Margin of 6.30% is fine compared to the rest of the industry. MGNI outperforms 72.45% of its industry peers.
MGNI's Profit Margin has improved in the last couple of years.
MGNI's Operating Margin of 11.08% is fine compared to the rest of the industry. MGNI outperforms 63.27% of its industry peers.
Looking at the Gross Margin, with a value of 62.33%, MGNI is in the better half of the industry, outperforming 72.45% 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 | 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
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
The number of shares outstanding for MGNI has been increased compared to 5 years ago.
MGNI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.88, we must say that MGNI is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.88, MGNI is in line with its industry, outperforming 47.96% of the companies in the same 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.
Looking at the Debt to FCF ratio, with a value of 3.29, MGNI is in the better half of the industry, outperforming 79.59% of the companies in the same industry.
MGNI has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.45, MGNI perfoms like the industry average, outperforming 58.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 0.88 |
ROIC/WACC0.67
WACC8.35%
2.3 Liquidity
A Current Ratio of 1.00 indicates that MGNI may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.00, MGNI is doing worse than 62.24% of the companies in the same industry.
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.
Looking at the Quick ratio, with a value of 1.00, MGNI is doing worse than 61.22% 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.
Measured over the past years, MGNI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.04% on average per year.
MGNI shows a small growth in Revenue. In the last year, the Revenue has grown by 5.52%.
MGNI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.70% yearly.
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
Based on estimates for the next years, MGNI will show a quite strong growth in Revenue. The Revenue will grow by 10.98% on average per year.
EPS Next Y31.69%
EPS Next 2Y28.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year11.18%
Revenue Next 2Y11.75%
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 26.24 indicates a quite expensive valuation of MGNI.
MGNI's Price/Earnings ratio is a bit cheaper when compared to the industry. MGNI is cheaper than 65.31% of the companies in the same industry.
MGNI is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.76, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 18.83, which indicates a rather expensive current 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 61.22% of the companies listed in the same industry.
MGNI's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.24 | ||
| Fwd PE | 18.83 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MGNI.
MGNI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MGNI is cheaper than 62.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.31 | ||
| EV/EBITDA | 24.57 |
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)0.83
PEG (5Y)N/A
EPS Next 2Y28.53%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for MGNI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
21.78
-0.5 (-2.24%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners105.29%
Inst Owner Change8.52%
Ins Owners1.38%
Ins Owner Change-24.39%
Market Cap3.10B
Analysts82.86
Price Target28.38 (30.3%)
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)0.65%
EPS NY rev (1m)-1.23%
EPS NY rev (3m)4.93%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.08%
Revenue NY rev (1m)0.97%
Revenue NY rev (3m)3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.24 | ||
| Fwd PE | 18.83 | ||
| P/S | 4.53 | ||
| P/FCF | 18.31 | ||
| P/OCF | 13.65 | ||
| P/B | 4.04 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.57 |
EPS(TTM)0.83
EY3.81%
EPS(NY)1.16
Fwd EY5.31%
FCF(TTM)1.19
FCFY5.46%
OCF(TTM)1.6
OCFY7.32%
SpS4.81
BVpS5.4
TBVpS-1.74
PEG (NY)0.83
PEG (5Y)N/A
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
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 Turnover0.23
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 | 0.88 |
F-Score7
WACC8.35%
ROIC/WACC0.67
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 Year11.18%
Revenue Next 2Y11.75%
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%