MAGNOLIA OIL & GAS CORP - A (MGY) Stock Fundamental Analysis
NYSE:MGY - New York Stock Exchange, Inc. - US5596631094 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to MGY. MGY was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. MGY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MGY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
MGY had positive earnings in the past year.
MGY had a positive operating cash flow in the past year.
Of the past 5 years MGY 4 years were profitable.
In the past 5 years MGY always reported a positive cash flow from operatings.
1.2 Ratios
MGY's Return On Assets of 16.22% is amongst the best of the industry. MGY outperforms 93.43% of its industry peers.
MGY has a better Return On Equity (24.05%) than 86.85% of its industry peers.
The Return On Invested Capital of MGY (20.35%) is better than 96.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MGY is in line with the industry average of 25.87%.
The last Return On Invested Capital (20.35%) for MGY is well below the 3 year average (24.48%), which needs to be investigated, but indicates that MGY had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.22% | ||
| ROE | 24.05% | ||
| ROIC | 20.35% |
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
With a decent Profit Margin value of 27.92%, MGY is doing good in the industry, outperforming 79.81% of the companies in the same industry.
MGY's Profit Margin has improved in the last couple of years.
MGY's Operating Margin of 38.88% is amongst the best of the industry. MGY outperforms 83.10% of its industry peers.
MGY's Operating Margin has improved in the last couple of years.
MGY has a Gross Margin of 83.03%. This is amongst the best in the industry. MGY outperforms 91.55% of its industry peers.
In the last couple of years the Gross Margin of MGY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.88% | ||
| PM (TTM) | 27.92% | ||
| GM | 83.03% |
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
MGY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
MGY has less shares outstanding than it did 1 year ago.
The number of shares outstanding for MGY has been reduced compared to 5 years ago.
MGY has a better debt/assets ratio than last year.
2.2 Solvency
MGY has an Altman-Z score of 4.47. This indicates that MGY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MGY (4.47) is better than 89.67% of its industry peers.
The Debt to FCF ratio of MGY is 0.87, which is an excellent value as it means it would take MGY, only 0.87 years of fcf income to pay off all of its debts.
MGY has a better Debt to FCF ratio (0.87) than 89.67% of its industry peers.
A Debt/Equity ratio of 0.20 indicates that MGY is not too dependend on debt financing.
The Debt to Equity ratio of MGY (0.20) is better than 68.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | 4.47 |
ROIC/WACC1.94
WACC10.47%
2.3 Liquidity
MGY has a Current Ratio of 1.33. This is a normal value and indicates that MGY is financially healthy and should not expect problems in meeting its short term obligations.
MGY has a Current ratio (1.33) which is comparable to the rest of the industry.
MGY has a Quick Ratio of 1.33. This is a normal value and indicates that MGY is financially healthy and should not expect problems in meeting its short term obligations.
MGY has a better Quick ratio (1.33) than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.40% over the past year.
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 strong growth in Revenue. The Revenue has grown by 34.58%.
Measured over the past years, MGY shows a small growth in Revenue. The Revenue has been growing by 6.91% on average per year.
EPS 1Y (TTM)3.4%
EPS 3Y-5.05%
EPS 5Y47.3%
EPS Q2Q%10.2%
Revenue 1Y (TTM)34.58%
Revenue growth 3Y6.86%
Revenue growth 5Y6.91%
Sales Q2Q%9.67%
3.2 Future
Based on estimates for the next years, MGY will show a decrease in Earnings Per Share. The EPS will decrease by -0.98% on average per year.
MGY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.68% yearly.
EPS Next Y-11.34%
EPS Next 2Y-3.86%
EPS Next 3Y2.14%
EPS Next 5Y-0.98%
Revenue Next Year0.23%
Revenue Next 2Y2.05%
Revenue Next 3Y3.68%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
MGY is valuated reasonably with a Price/Earnings ratio of 10.17.
Based on the Price/Earnings ratio, MGY is valued a bit cheaper than 70.89% of the companies in the same industry.
When comparing the Price/Earnings ratio of MGY to the average of the S&P500 Index (25.82), we can say MGY is valued rather cheaply.
The Price/Forward Earnings ratio is 11.27, which indicates a very decent valuation of MGY.
MGY's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of MGY to the average of the S&P500 Index (21.76), we can say MGY is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 11.27 |
4.2 Price Multiples
75.12% of the companies in the same industry are more expensive than MGY, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGY indicates a somewhat cheap valuation: MGY is cheaper than 77.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.33 | ||
| EV/EBITDA | 4.06 |
4.3 Compensation for Growth
MGY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.22
EPS Next 2Y-3.86%
EPS Next 3Y2.14%
5. Dividend
5.1 Amount
MGY has a Yearly Dividend Yield of 2.74%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 6.84, MGY has a dividend in line with its industry peers.
MGY's Dividend Yield is comparable with the S&P500 average which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
MGY has been paying a dividend for over 5 years, so it has already some track record.
MGY has decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
22.04% of the earnings are spent on dividend by MGY. This is a low number and sustainable payout ratio.
DP22.04%
EPS Next 2Y-3.86%
EPS Next 3Y2.14%
21.67
-0.04 (-0.18%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners115.84%
Inst Owner Change-0.77%
Ins Owners1.47%
Ins Owner Change0.94%
Market Cap4.21B
Analysts70.91
Price Target26.93 (24.27%)
Short Float %15%
Short Ratio8.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
Yearly Dividend0.49
Dividend Growth(5Y)N/A
DP22.04%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.37%
Min EPS beat(2)-0.2%
Max EPS beat(2)8.94%
EPS beat(4)3
Avg EPS beat(4)5.77%
Min EPS beat(4)-0.2%
Max EPS beat(4)9.06%
EPS beat(8)5
Avg EPS beat(8)5.67%
EPS beat(12)9
Avg EPS beat(12)10.39%
EPS beat(16)13
Avg EPS beat(16)10.79%
Revenue beat(2)1
Avg Revenue beat(2)0.29%
Min Revenue beat(2)-0.57%
Max Revenue beat(2)1.14%
Revenue beat(4)2
Avg Revenue beat(4)0.07%
Min Revenue beat(4)-0.9%
Max Revenue beat(4)1.14%
Revenue beat(8)3
Avg Revenue beat(8)-0.71%
Revenue beat(12)5
Avg Revenue beat(12)-0.05%
Revenue beat(16)9
Avg Revenue beat(16)1.18%
PT rev (1m)-6.19%
PT rev (3m)-7.37%
EPS NQ rev (1m)-19.37%
EPS NQ rev (3m)-17.39%
EPS NY rev (1m)-10.67%
EPS NY rev (3m)-11.48%
Revenue NQ rev (1m)-5.12%
Revenue NQ rev (3m)-4.67%
Revenue NY rev (1m)-2.49%
Revenue NY rev (3m)-1.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.17 | ||
| Fwd PE | 11.27 | ||
| P/S | 2.52 | ||
| P/FCF | 9.33 | ||
| P/OCF | 4.5 | ||
| P/B | 2.17 | ||
| P/tB | 2.17 | ||
| EV/EBITDA | 4.06 |
EPS(TTM)2.13
EY9.83%
EPS(NY)1.92
Fwd EY8.87%
FCF(TTM)2.32
FCFY10.72%
OCF(TTM)4.82
OCFY22.22%
SpS8.59
BVpS9.97
TBVpS9.97
PEG (NY)N/A
PEG (5Y)0.22
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.22% | ||
| ROE | 24.05% | ||
| ROCE | 25.27% | ||
| ROIC | 20.35% | ||
| ROICexc | 22.53% | ||
| ROICexgc | 22.53% | ||
| OM | 38.88% | ||
| PM (TTM) | 27.92% | ||
| GM | 83.03% | ||
| FCFM | 27.05% |
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-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.87 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 114.29% | ||
| Cap/Sales | 29.03% | ||
| Interest Coverage | 29.69 | ||
| Cash Conversion | 87.24% | ||
| Profit Quality | 96.88% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 4.47 |
F-Score7
WACC10.47%
ROIC/WACC1.94
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)3.4%
EPS 3Y-5.05%
EPS 5Y47.3%
EPS Q2Q%10.2%
EPS Next Y-11.34%
EPS Next 2Y-3.86%
EPS Next 3Y2.14%
EPS Next 5Y-0.98%
Revenue 1Y (TTM)34.58%
Revenue growth 3Y6.86%
Revenue growth 5Y6.91%
Sales Q2Q%9.67%
Revenue Next Year0.23%
Revenue Next 2Y2.05%
Revenue Next 3Y3.68%
Revenue Next 5YN/A
EBIT growth 1Y21.23%
EBIT growth 3Y-5.62%
EBIT growth 5Y31.97%
EBIT Next Year83.65%
EBIT Next 3Y25.68%
EBIT Next 5Y19.94%
FCF growth 1Y-40.56%
FCF growth 3Y-7.7%
FCF growth 5Y15.35%
OCF growth 1Y-26.86%
OCF growth 3Y5.31%
OCF growth 5Y7.29%