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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Olo, Inc.

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Magic Software Enterprises Ltd.

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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 Sep 25

INTEREST(Q) At USD 1.7 MM has Grown at 134.21%
OPERATING PROFIT MARGIN(Q) Lowest at 13.74 %

With ROE of 17.24%, it has a very attractive valuation with a 3.45 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 38.82%, its profits have risen by 16.9% ; the PEG ratio of the company is 1.2

High Institutional Holdings at 22.41%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 38.82% in the last 1 year, much higher than market (S&P 500) returns of 14.90%

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?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Magic Software Enterprises Ltd.

38.82%

1.32

47.66%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.03%

EBIT Growth (5y)

11.63%

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

3.45

EV to EBIT

14.08

EV to EBITDA

10.63

EV to Capital Employed

3.75

EV to Sales

1.53

PEG Ratio

1.18

Dividend Yield

0.15%

ROCE (Latest)

26.62%

ROE (Latest)

17.24%

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

Mildly Bearish

Bullish

Dow Theory

Bearish

OBV

No Trend

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

5What is working for the Company

PRE-TAX PROFIT(Q)

Highest at USD 15.59 MM

RAW MATERIAL COST(Y)

Fallen by 1.53% (YoY

NET SALES(Q)

Highest at USD 161.66 MM

OPERATING PROFIT(Q)

Highest at USD 22.21 MM

-3What is not working for the Company

INTEREST(Q)

At USD 1.7 MM has Grown at 134.21%

OPERATING PROFIT MARGIN(Q)

Lowest at 13.74 %

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

Pre-Tax Profit

Highest at USD 15.59 MM and Grown

In each period in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is very positive

Pre-Tax Profit (USD MM)

Net Sales

Highest at USD 161.66 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 22.21 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Raw Material Cost

Fallen by 1.53% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

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

Interest

At USD 1.7 MM has Grown at 134.21%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Operating Profit Margin

Lowest at 13.74 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales