MAGNOLIA OIL & GAS CORP - A (MGY) Stock Fundamental Analysis
USA - NYSE:MGY - US5596631094 - Common Stock
24.8 USD
-0.06 (-0.24%)
24.8 USD
0 (0%)
Taking everything into account, MGY scores 6 out of 10 in our fundamental rating. MGY was compared to 210 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making MGY a very profitable company, without any liquidiy or solvency issues. MGY has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
MGY had positive earnings in the past year.
In the past year MGY had a positive cash flow from operations.
MGY had positive earnings in 4 of the past 5 years.
MGY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of MGY (12.64%) is better than 93.33% of its industry peers.
The Return On Equity of MGY (18.63%) is better than 80.48% of its industry peers.
MGY's Return On Invested Capital of 15.55% is amongst the best of the industry. MGY outperforms 92.86% of its industry peers.
MGY had an Average Return On Invested Capital over the past 3 years of 24.48%. This is above the industry average of 21.71%.
The 3 year average ROIC (24.48%) for MGY is well above the current ROIC(15.55%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.64% | ||
| ROE | 18.63% | ||
| ROIC | 15.55% |
ROA(3y)20.55%
ROA(5y)0.48%
ROE(3y)32.85%
ROE(5y)-14.16%
ROIC(3y)24.48%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 27.21%, MGY belongs to the top of the industry, outperforming 83.81% of the companies in the same industry.
MGY's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 37.37%, MGY belongs to the top of the industry, outperforming 83.81% of the companies in the same industry.
MGY's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 82.29%, MGY belongs to the top of the industry, outperforming 91.43% of the companies in the same industry.
MGY's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 37.37% | ||
| PM (TTM) | 27.21% | ||
| GM | 82.29% |
OM growth 3Y-11.68%
OM growth 5Y23.44%
PM growth 3Y-10.79%
PM growth 5Y40.43%
GM growth 3Y-1.52%
GM growth 5Y-0.58%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MGY is creating value.
MGY has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, MGY has less shares outstanding
The debt/assets ratio for MGY has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 4.61 indicates that MGY is not in any danger for bankruptcy at the moment.
MGY has a Altman-Z score of 4.61. This is amongst the best in the industry. MGY outperforms 89.05% of its industry peers.
MGY has a debt to FCF ratio of 1.00. This is a very positive value and a sign of high solvency as it would only need 1.00 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.00, MGY belongs to the best of the industry, outperforming 89.05% of the companies in the same industry.
MGY has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
MGY has a better Debt to Equity ratio (0.20) than 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 4.61 |
ROIC/WACC1.77
WACC8.81%
2.3 Liquidity
MGY has a Current Ratio of 1.44. This is a normal value and indicates that MGY is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.44, MGY is in the better half of the industry, outperforming 66.19% of the companies in the same industry.
A Quick Ratio of 1.44 indicates that MGY should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.44, MGY is doing good in the industry, outperforming 70.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
MGY shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.02%.
Measured over the past years, MGY shows a very strong growth in Earnings Per Share. The EPS has been growing by 47.30% on average per year.
Looking at the last year, MGY shows a very negative growth in Revenue. The Revenue has decreased by -17.65% in the last year.
The Revenue has been growing slightly by 6.91% on average over the past years.
EPS 1Y (TTM)-5.02%
EPS 3Y-5.05%
EPS 5Y47.3%
EPS Q2Q%-22.5%
Revenue 1Y (TTM)-17.65%
Revenue growth 3Y6.86%
Revenue growth 5Y6.91%
Sales Q2Q%-5.27%
3.2 Future
Based on estimates for the next years, MGY will show a small growth in Earnings Per Share. The EPS will grow by 5.88% on average per year.
Based on estimates for the next years, MGY will show a small growth in Revenue. The Revenue will grow by 5.91% on average per year.
EPS Next Y-10.97%
EPS Next 2Y-2.54%
EPS Next 3Y2.73%
EPS Next 5Y5.88%
Revenue Next Year0.38%
Revenue Next 2Y2.45%
Revenue Next 3Y4.42%
Revenue Next 5Y5.91%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 12.40, the valuation of MGY can be described as correct.
Based on the Price/Earnings ratio, MGY is valued a bit cheaper than the industry average as 65.24% of the companies are valued more expensively.
MGY is valuated cheaply when we compare the Price/Earnings ratio to 27.06, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 12.55, which indicates a correct valuation of MGY.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGY is on the same level as its industry peers.
MGY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.64, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.4 | ||
| Fwd PE | 12.55 |
4.2 Price Multiples
75.24% of the companies in the same industry are more expensive than MGY, based on the Enterprise Value to EBITDA ratio.
70.48% of the companies in the same industry are more expensive than MGY, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.05 | ||
| EV/EBITDA | 5.28 |
4.3 Compensation for Growth
MGY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-2.54%
EPS Next 3Y2.73%
5. Dividend
5.1 Amount
MGY has a Yearly Dividend Yield of 2.44%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.00, MGY has a dividend in line with its industry peers.
MGY's Dividend Yield is comparable with the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
5.2 History
MGY has been paying a dividend for over 5 years, so it has already some track record.
Dividend Growth(5Y)N/A
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
29.60% of the earnings are spent on dividend by MGY. This is a low number and sustainable payout ratio.
DP29.6%
EPS Next 2Y-2.54%
EPS Next 3Y2.73%
24.8
-0.06 (-0.24%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners117.37%
Inst Owner Change-0.67%
Ins Owners1.01%
Ins Owner Change0.56%
Market Cap4.73B
Analysts71.67
Price Target27.19 (9.64%)
Short Float %13.82%
Short Ratio10.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.44% |
Yearly Dividend0.49
Dividend Growth(5Y)N/A
DP29.6%
Div Incr Years0
Div Non Decr Years0
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.82%
Min EPS beat(2)-0.2%
Max EPS beat(2)9.83%
EPS beat(4)3
Avg EPS beat(4)6.91%
Min EPS beat(4)-0.2%
Max EPS beat(4)9.83%
EPS beat(8)5
Avg EPS beat(8)4.43%
EPS beat(12)9
Avg EPS beat(12)10.3%
EPS beat(16)13
Avg EPS beat(16)9.15%
Revenue beat(2)2
Avg Revenue beat(2)0.97%
Min Revenue beat(2)0.8%
Max Revenue beat(2)1.14%
Revenue beat(4)3
Avg Revenue beat(4)0.5%
Min Revenue beat(4)-0.57%
Max Revenue beat(4)1.14%
Revenue beat(8)4
Avg Revenue beat(8)0.06%
Revenue beat(12)5
Avg Revenue beat(12)-0.54%
Revenue beat(16)9
Avg Revenue beat(16)0.73%
PT rev (1m)0.84%
PT rev (3m)2.23%
EPS NQ rev (1m)-0.29%
EPS NQ rev (3m)0.53%
EPS NY rev (1m)0%
EPS NY rev (3m)1.5%
Revenue NQ rev (1m)0.33%
Revenue NQ rev (3m)1.22%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.4 | ||
| Fwd PE | 12.55 | ||
| P/S | 3.56 | ||
| P/FCF | 12.05 | ||
| P/OCF | 5.48 | ||
| P/B | 2.44 | ||
| P/tB | 2.44 | ||
| EV/EBITDA | 5.28 |
EPS(TTM)2
EY8.06%
EPS(NY)1.98
Fwd EY7.97%
FCF(TTM)2.06
FCFY8.3%
OCF(TTM)4.53
OCFY18.25%
SpS6.97
BVpS10.18
TBVpS10.18
PEG (NY)N/A
PEG (5Y)0.26
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.64% | ||
| ROE | 18.63% | ||
| ROCE | 19.31% | ||
| ROIC | 15.55% | ||
| ROICexc | 17.24% | ||
| ROICexgc | 17.24% | ||
| OM | 37.37% | ||
| PM (TTM) | 27.21% | ||
| GM | 82.29% | ||
| FCFM | 29.54% |
ROA(3y)20.55%
ROA(5y)0.48%
ROE(3y)32.85%
ROE(5y)-14.16%
ROIC(3y)24.48%
ROIC(5y)N/A
ROICexc(3y)31.92%
ROICexc(5y)N/A
ROICexgc(3y)31.92%
ROICexgc(5y)N/A
ROCE(3y)30.4%
ROCE(5y)N/A
ROICexcg growth 3Y-24.52%
ROICexcg growth 5Y40.31%
ROICexc growth 3Y-24.52%
ROICexc growth 5Y40.53%
OM growth 3Y-11.68%
OM growth 5Y23.44%
PM growth 3Y-10.79%
PM growth 5Y40.43%
GM growth 3Y-1.52%
GM growth 5Y-0.58%
F-Score6
Asset Turnover0.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1 | ||
| Debt/EBITDA | 0.43 | ||
| Cap/Depr | 110.7% | ||
| Cap/Sales | 35.45% | ||
| Interest Coverage | 14.05 | ||
| Cash Conversion | 93.65% | ||
| Profit Quality | 108.56% | ||
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 | ||
| Altman-Z | 4.61 |
F-Score6
WACC8.81%
ROIC/WACC1.77
Cap/Depr(3y)146.5%
Cap/Depr(5y)125.19%
Cap/Sales(3y)33.02%
Cap/Sales(5y)31.51%
Profit Quality(3y)108.03%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-5.02%
EPS 3Y-5.05%
EPS 5Y47.3%
EPS Q2Q%-22.5%
EPS Next Y-10.97%
EPS Next 2Y-2.54%
EPS Next 3Y2.73%
EPS Next 5Y5.88%
Revenue 1Y (TTM)-17.65%
Revenue growth 3Y6.86%
Revenue growth 5Y6.91%
Sales Q2Q%-5.27%
Revenue Next Year0.38%
Revenue Next 2Y2.45%
Revenue Next 3Y4.42%
Revenue Next 5Y5.91%
EBIT growth 1Y-26.06%
EBIT growth 3Y-5.62%
EBIT growth 5Y31.97%
EBIT Next Year81.83%
EBIT Next 3Y27.19%
EBIT Next 5Y20.42%
FCF growth 1Y-36.4%
FCF growth 3Y-7.7%
FCF growth 5Y15.35%
OCF growth 1Y-21.5%
OCF growth 3Y5.31%
OCF growth 5Y7.29%