MAGNOLIA OIL & GAS CORP - A (MGY) Stock Fundamental Analysis
USA - NYSE:MGY - US5596631094 - Common Stock
23 USD
+0.24 (+1.05%)
23 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to MGY. MGY was compared to 209 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 is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MGY was profitable.
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 has a better Return On Assets (12.64%) than 93.30% of its industry peers.
With an excellent Return On Equity value of 18.63%, MGY belongs to the best of the industry, outperforming 80.86% of the companies in the same industry.
With an excellent Return On Invested Capital value of 15.55%, MGY belongs to the best of the industry, outperforming 92.82% of the companies in the same industry.
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 last Return On Invested Capital (15.55%) 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 | 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
MGY has a better Profit Margin (27.21%) than 83.73% of its industry peers.
In the last couple of years the Profit Margin of MGY has grown nicely.
Looking at the Operating Margin, with a value of 37.37%, MGY belongs to the top of the industry, outperforming 84.69% of the companies in the same industry.
In the last couple of years the Operating Margin of MGY has grown nicely.
MGY has a Gross Margin of 82.29%. This is amongst the best in the industry. MGY outperforms 91.39% of its industry peers.
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.
Compared to 1 year ago, MGY has less shares outstanding
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 4.39. This indicates that MGY is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 4.39, MGY belongs to the best of the industry, outperforming 87.56% of the companies in the same industry.
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.
MGY has a Debt to FCF ratio of 1.00. This is amongst the best in the industry. MGY outperforms 88.52% of its industry peers.
MGY has a Debt/Equity ratio of 0.20. This is a healthy value indicating a solid balance between debt and equity.
The Debt to Equity ratio of MGY (0.20) is better than 68.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 4.39 |
ROIC/WACC1.83
WACC8.49%
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.
The Current ratio of MGY (1.44) is better than 64.59% of its industry peers.
MGY has a Quick 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.
MGY has a Quick ratio of 1.44. This is in the better half of the industry: MGY outperforms 68.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
MGY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -10.29%.
MGY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 47.30% yearly.
MGY shows a small growth in Revenue. In the last year, the Revenue has grown by 7.25%.
The Revenue has been growing slightly by 6.91% on average over the past years.
EPS 1Y (TTM)-10.29%
EPS 3Y-5.05%
EPS 5Y47.3%
EPS Q2Q%-22.64%
Revenue 1Y (TTM)7.25%
Revenue growth 3Y6.86%
Revenue growth 5Y6.91%
Sales Q2Q%-2.46%
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.
MGY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.91% yearly.
EPS Next Y-12%
EPS Next 2Y-3.22%
EPS Next 3Y2.68%
EPS Next 5Y5.88%
Revenue Next Year-0.23%
Revenue Next 2Y1.87%
Revenue Next 3Y4.33%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
MGY is valuated correctly with a Price/Earnings ratio of 12.23.
Compared to the rest of the industry, the Price/Earnings ratio of MGY indicates a somewhat cheap valuation: MGY is cheaper than 62.68% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of MGY to the average of the S&P500 Index (26.76), we can say MGY is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.81, the valuation of MGY can be described as very reasonable.
Based on the Price/Forward Earnings ratio, MGY is valued a bit cheaper than 60.77% of the companies in the same industry.
MGY is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.23 | ||
| Fwd PE | 11.81 |
4.2 Price Multiples
MGY's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MGY is cheaper than 76.56% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MGY is valued a bit cheaper than 73.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.18 | ||
| EV/EBITDA | 4.91 |
4.3 Compensation for Growth
The excellent profitability rating of MGY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.26
EPS Next 2Y-3.22%
EPS Next 3Y2.68%
5. Dividend
5.1 Amount
MGY has a Yearly Dividend Yield of 2.64%.
MGY's Dividend Yield is comparable with the industry average which is at 6.15.
Compared to an average S&P500 Dividend Yield of 2.31, MGY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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 29.60% of its income as dividend. This is a sustainable payout ratio.
DP29.6%
EPS Next 2Y-3.22%
EPS Next 3Y2.68%
23
+0.24 (+1.05%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners116.85%
Inst Owner Change-0.38%
Ins Owners1.01%
Ins Owner Change0.56%
Market Cap4.39B
Revenue(TTM)1.32B
Net Income(TTM)361.63M
Analysts71.67
Price Target27.17 (18.13%)
Short Float %12%
Short Ratio10.25
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.64% |
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)-0.23%
PT rev (3m)0.34%
EPS NQ rev (1m)-1.21%
EPS NQ rev (3m)-1.97%
EPS NY rev (1m)-1.72%
EPS NY rev (3m)-1.45%
Revenue NQ rev (1m)-0.54%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)-0.6%
Revenue NY rev (3m)0.3%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.23 | ||
| Fwd PE | 11.81 | ||
| P/S | 3.3 | ||
| P/FCF | 11.18 | ||
| P/OCF | 5.08 | ||
| P/B | 2.26 | ||
| P/tB | 2.26 | ||
| EV/EBITDA | 4.91 |
EPS(TTM)1.88
EY8.17%
EPS(NY)1.95
Fwd EY8.47%
FCF(TTM)2.06
FCFY8.95%
OCF(TTM)4.53
OCFY19.68%
SpS6.97
BVpS10.18
TBVpS10.18
PEG (NY)N/A
PEG (5Y)0.26
Graham Number20.75
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
ROICexgc growth 3Y-24.52%
ROICexgc 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 | 4.39 |
F-Score6
WACC8.49%
ROIC/WACC1.83
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)-10.29%
EPS 3Y-5.05%
EPS 5Y47.3%
EPS Q2Q%-22.64%
EPS Next Y-12%
EPS Next 2Y-3.22%
EPS Next 3Y2.68%
EPS Next 5Y5.88%
Revenue 1Y (TTM)7.25%
Revenue growth 3Y6.86%
Revenue growth 5Y6.91%
Sales Q2Q%-2.46%
Revenue Next Year-0.23%
Revenue Next 2Y1.87%
Revenue Next 3Y4.33%
Revenue Next 5Y5.91%
EBIT growth 1Y-26.06%
EBIT growth 3Y-5.62%
EBIT growth 5Y31.97%
EBIT Next Year82.86%
EBIT Next 3Y27.71%
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%
MAGNOLIA OIL & GAS CORP - A / MGY FAQ
Can you provide the ChartMill fundamental rating for MAGNOLIA OIL & GAS CORP - A?
ChartMill assigns a fundamental rating of 7 / 10 to MGY.
What is the valuation status of MAGNOLIA OIL & GAS CORP - A (MGY) stock?
ChartMill assigns a valuation rating of 6 / 10 to MAGNOLIA OIL & GAS CORP - A (MGY). This can be considered as Fairly Valued.
How profitable is MAGNOLIA OIL & GAS CORP - A (MGY) stock?
MAGNOLIA OIL & GAS CORP - A (MGY) has a profitability rating of 9 / 10.
Can you provide the PE and PB ratios for MGY stock?
The Price/Earnings (PE) ratio for MAGNOLIA OIL & GAS CORP - A (MGY) is 12.23 and the Price/Book (PB) ratio is 2.26.
What is the earnings growth outlook for MAGNOLIA OIL & GAS CORP - A?
The Earnings per Share (EPS) of MAGNOLIA OIL & GAS CORP - A (MGY) is expected to decline by -12% in the next year.