Magic Software Enterprises Ltd. (MGIC) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Olo, Inc.

HealthStream, Inc.

Karooooo Ltd.

Magic Software Enterprises Ltd.

Matterport, Inc.

Enfusion, Inc.

Digital Turbine, Inc.

BigCommerce Holdings, Inc.

Planet Labs PBC

Health Catalyst, Inc.

Thorne HealthTech, Inc.

Why is Magic Software Enterprises Ltd. ?

High Management Efficiency with a high ROE of 15.88%

Company has a low Debt to Equity ratio (avg) at times

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 55.08 MM
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%
DIVIDEND PER SHARE(HY) Lowest at USD 4.09

With ROE of 16.78%, it has a attractive valuation with a 2.98 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 123.73%, its profits have risen by 9.1% ; the PEG ratio of the company is 2

Market Beating Performance

The stock has generated a return of 123.73% in the last 1 year, much higher than market (S&P 500) returns of 15.98%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Magic Software Enterprises Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Magic Software Enterprises Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Magic Software Enterprises Ltd.

67.41%

3.91

38.02%

S&P 500

13.99%

0.81

19.85%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

10.90%

EBIT Growth (5y)

11.71%

EBIT to Interest (avg)

13.69

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.16

Sales to Capital Employed (avg)

1.60

Tax Ratio

20.23%

Dividend Payout Ratio

58.57%

Pledged Shares

Institutional Holding

22.41%

ROCE (avg)

26.48%

ROE (avg)

15.88%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.98

EV to EBIT

12.07

EV to EBITDA

9.03

EV to Capital Employed

3.37

EV to Sales

1.33

PEG Ratio

1.97

Dividend Yield

0.18%

ROCE (Latest)

27.89%

ROE (Latest)

16.78%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

4What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 2,963.31

NET SALES(Q)

Highest at USD 151.64 MM

PRE-TAX PROFIT(Q)

Highest at USD 15.04 MM

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 55.08 MM

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DIVIDEND PER SHARE(HY)

Lowest at USD 4.09

OPERATING PROFIT MARGIN(Q)

Lowest at 14.17 %

Here's what is working for Magic Software Enterprises Ltd.

Interest Coverage Ratio

Highest at 2,963.31

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Net Sales

Highest at USD 151.64 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Pre-Tax Profit

Highest at USD 15.04 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Depreciation

Highest at USD 5.72 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Magic Software Enterprises Ltd.

Operating Cash Flow

Lowest at USD 55.08 MM and Fallen

In each year in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Operating Profit Margin

Lowest at 14.17 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Dividend per share

Lowest at USD 4.09

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)