MAGNOLIA OIL & GAS CORP - A (MGY) Stock Fundamental Analysis
NYSE:MGY - New York Stock Exchange, Inc. - US5596631094 - Common Stock - Currency: USD
MGY gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 208 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 has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year MGY was profitable.
MGY had a positive operating cash flow in the past year.
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
The Return On Assets of MGY (12.64%) is better than 88.94% of its industry peers.
MGY's Return On Equity of 18.63% is amongst the best of the industry. MGY outperforms 81.25% of its industry peers.
MGY has a better Return On Invested Capital (15.55%) than 91.35% 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 23.63%.
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 Profit Margin of 27.21%. This is amongst the best in the industry. MGY outperforms 80.77% of its industry peers.
MGY's Profit Margin has improved in the last couple of years.
MGY's Operating Margin of 37.37% is amongst the best of the industry. MGY outperforms 82.69% of its industry peers.
In the last couple of years the Operating Margin of MGY has grown nicely.
The Gross Margin of MGY (82.29%) is better than 92.31% 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 | 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
MGY has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for MGY has been reduced compared to 1 year ago.
Compared to 5 years ago, MGY has less shares outstanding
Compared to 1 year ago, MGY has an improved debt to assets ratio.
2.2 Solvency
MGY has an Altman-Z score of 4.46. This indicates that MGY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MGY (4.46) is better than 89.90% of its industry peers.
The Debt to FCF ratio of MGY is 1.00, which is an excellent value as it means it would take MGY, only 1.00 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 1.00, MGY belongs to the best of the industry, outperforming 88.46% of the companies in the same industry.
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 70.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.2 | ||
| Debt/FCF | 1 | ||
| Altman-Z | 4.46 |
ROIC/WACC1.69
WACC9.19%
2.3 Liquidity
A Current Ratio of 1.44 indicates that MGY should not have too much problems paying its short term obligations.
MGY has a Current ratio of 1.44. This is in the better half of the industry: MGY outperforms 65.38% of its industry peers.
A Quick Ratio of 1.44 indicates that MGY should not have too much problems paying its short term obligations.
MGY has a Quick ratio of 1.44. This is in the better half of the industry: MGY outperforms 71.15% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.44 | ||
| Quick Ratio | 1.44 |
3. Growth
3.1 Past
The earnings per share for MGY have decreased by -5.02% in the last year.
MGY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 47.30% yearly.
The Revenue for MGY has decreased by -17.65% in the past year. This is quite bad
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 decrease in Earnings Per Share. The EPS will decrease by -0.98% on average per year.
The Revenue is expected to grow by 3.77% on average over the next years.
EPS Next Y-10.71%
EPS Next 2Y-2.89%
EPS Next 3Y2.74%
EPS Next 5Y-0.98%
Revenue Next Year-0.68%
Revenue Next 2Y1.09%
Revenue Next 3Y3.77%
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 11.76.
Based on the Price/Earnings ratio, MGY is valued a bit cheaper than 65.87% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.48, MGY is valued rather cheaply.
The Price/Forward Earnings ratio is 11.98, which indicates a very decent 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.
When comparing the Price/Forward Earnings ratio of MGY to the average of the S&P500 Index (34.04), we can say MGY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 11.98 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGY is valued a bit cheaper than the industry average as 71.63% of the companies are valued more expensively.
MGY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MGY is cheaper than 70.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.53 | ||
| EV/EBITDA | 5.03 |
4.3 Compensation for Growth
MGY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.25
EPS Next 2Y-2.89%
EPS Next 3Y2.74%
5. Dividend
5.1 Amount
MGY has a Yearly Dividend Yield of 2.57%. Purely for dividend investing, there may be better candidates out there.
MGY's Dividend Yield is comparable with the industry average which is at 6.32.
Compared to an average S&P500 Dividend Yield of 2.39, MGY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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-2.89%
EPS Next 3Y2.74%
23.51
+0.13 (+0.56%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners117.37%
Inst Owner Change-0.16%
Ins Owners1.01%
Ins Owner Change0.93%
Market Cap4.52B
Analysts70
Price Target26.96 (14.67%)
Short Float %14.56%
Short Ratio10.88
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.57% |
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)1.64%
PT rev (3m)-1.61%
EPS NQ rev (1m)-2.45%
EPS NQ rev (3m)-21.66%
EPS NY rev (1m)1.8%
EPS NY rev (3m)-10.03%
Revenue NQ rev (1m)0.4%
Revenue NQ rev (3m)-4.97%
Revenue NY rev (1m)-0.15%
Revenue NY rev (3m)-3.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 11.98 | ||
| P/S | 3.4 | ||
| P/FCF | 11.53 | ||
| P/OCF | 5.24 | ||
| P/B | 2.33 | ||
| P/tB | 2.33 | ||
| EV/EBITDA | 5.03 |
EPS(TTM)2
EY8.51%
EPS(NY)1.96
Fwd EY8.34%
FCF(TTM)2.04
FCFY8.68%
OCF(TTM)4.49
OCFY19.09%
SpS6.91
BVpS10.09
TBVpS10.09
PEG (NY)N/A
PEG (5Y)0.25
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 | 4.46 |
F-Score6
WACC9.19%
ROIC/WACC1.69
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-10.71%
EPS Next 2Y-2.89%
EPS Next 3Y2.74%
EPS Next 5Y-0.98%
Revenue 1Y (TTM)-17.65%
Revenue growth 3Y6.86%
Revenue growth 5Y6.91%
Sales Q2Q%-5.27%
Revenue Next Year-0.68%
Revenue Next 2Y1.09%
Revenue Next 3Y3.77%
Revenue Next 5YN/A
EBIT growth 1Y-26.06%
EBIT growth 3Y-5.62%
EBIT growth 5Y31.97%
EBIT Next Year81.83%
EBIT Next 3Y27.19%
EBIT Next 5Y19.94%
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%