MAGNOLIA OIL & GAS CORP - A (MGY) Stock Fundamental Analysis
NYSE:MGY - New York Stock Exchange, Inc. - US5596631094 - Common Stock - Currency: USD
Taking everything into account, MGY scores 7 out of 10 in our fundamental rating. MGY was compared to 213 industry peers in the Oil, Gas & Consumable Fuels industry. MGY gets an excellent profitability rating and is at the same time showing great financial health properties. MGY has a correct valuation and a medium growth rate.
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.
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.
With an excellent Return On Equity value of 24.05%, MGY belongs to the best of the industry, outperforming 87.79% of the companies in the same industry.
MGY has a Return On Invested Capital of 20.35%. This is amongst the best in the industry. MGY outperforms 96.24% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MGY is in line with the industry average of 23.55%.
The 3 year average ROIC (24.48%) for MGY is well above the current ROIC(20.35%). The reason for the recent decline needs to be investigated.
| 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
MGY has a Profit Margin of 27.92%. This is amongst the best in the industry. MGY outperforms 81.22% of its industry peers.
MGY's Profit Margin has improved in the last couple of years.
MGY has a Operating Margin of 38.88%. This is amongst the best in the industry. MGY outperforms 83.57% of its industry peers.
In the last couple of years the Operating Margin of MGY has grown nicely.
The Gross Margin of MGY (83.03%) is better than 92.02% of its industry peers.
MGY's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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
MGY has an Altman-Z score of 4.79. This indicates that MGY is financially healthy and has little risk of bankruptcy at the moment.
MGY has a better Altman-Z score (4.79) 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.
With an excellent Debt to FCF ratio value of 0.87, MGY belongs to the best of the industry, outperforming 89.67% 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's Debt to Equity ratio of 0.20 is fine compared to the rest of the industry. MGY outperforms 69.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 0.87 | ||
| Altman-Z | 4.79 |
ROIC/WACC2.29
WACC8.89%
2.3 Liquidity
A Current Ratio of 1.33 indicates that MGY should not have too much problems paying its short term obligations.
MGY's Current ratio of 1.33 is fine compared to the rest of the industry. MGY outperforms 60.09% of its industry peers.
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's Quick ratio of 1.33 is fine compared to the rest of the industry. MGY outperforms 67.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
MGY shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 3.40%.
The Earnings Per Share has been growing by 47.30% on average over the past years. This is a very strong growth
Looking at the last year, MGY shows a very strong growth in Revenue. The Revenue has grown by 34.58%.
The Revenue has been growing slightly by 6.91% on average over the past years.
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
The Earnings Per Share is expected to decrease by -0.98% on average over the next years.
Based on estimates for the next years, MGY will show a small growth in Revenue. The Revenue will grow by 3.51% on average per year.
EPS Next Y-11.34%
EPS Next 2Y-3.86%
EPS Next 3Y2.14%
EPS Next 5Y-0.98%
Revenue Next Year-0.3%
Revenue Next 2Y1.61%
Revenue Next 3Y3.51%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.37, which indicates a very decent valuation of MGY.
Based on the Price/Earnings ratio, MGY is valued a bit cheaper than the industry average as 69.48% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.31. MGY is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 12.60 indicates a correct valuation of MGY.
MGY's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.13. MGY is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 12.6 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGY is valued a bit cheaper than the industry average as 75.12% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, MGY is valued a bit cheaper than 73.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.43 | ||
| EV/EBITDA | 4.52 |
4.3 Compensation for Growth
MGY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.24
EPS Next 2Y-3.86%
EPS Next 3Y2.14%
5. Dividend
5.1 Amount
MGY has a Yearly Dividend Yield of 2.54%.
Compared to an average industry Dividend Yield of 6.58, MGY has a dividend in line with its industry peers.
Compared to an average S&P500 Dividend Yield of 2.40, MGY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
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
MGY pays out 22.04% of its income as dividend. This is a sustainable payout ratio.
DP22.04%
EPS Next 2Y-3.86%
EPS Next 3Y2.14%
24.22
+0.61 (+2.58%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners116.27%
Inst Owner Change-0.76%
Ins Owners1%
Ins Owner Change0.94%
Market Cap4.70B
Analysts70.48
Price Target26.37 (8.88%)
Short Float %15.03%
Short Ratio9.1
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.54% |
Yearly Dividend0.49
Dividend Growth(5Y)N/A
DP22.04%
Div Incr Years0
Div Non Decr Years0
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)-2.06%
PT rev (3m)-9.73%
EPS NQ rev (1m)1.08%
EPS NQ rev (3m)-21.62%
EPS NY rev (1m)0%
EPS NY rev (3m)-11.48%
Revenue NQ rev (1m)0.24%
Revenue NQ rev (3m)-6.36%
Revenue NY rev (1m)-0.53%
Revenue NY rev (3m)-4.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.37 | ||
| Fwd PE | 12.6 | ||
| P/S | 2.82 | ||
| P/FCF | 10.43 | ||
| P/OCF | 5.03 | ||
| P/B | 2.43 | ||
| P/tB | 2.43 | ||
| EV/EBITDA | 4.52 |
EPS(TTM)2.13
EY8.79%
EPS(NY)1.92
Fwd EY7.94%
FCF(TTM)2.32
FCFY9.59%
OCF(TTM)4.82
OCFY19.88%
SpS8.59
BVpS9.97
TBVpS9.97
PEG (NY)N/A
PEG (5Y)0.24
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 | 4.79 |
F-Score7
WACC8.89%
ROIC/WACC2.29
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 Year-0.3%
Revenue Next 2Y1.61%
Revenue Next 3Y3.51%
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%