ScoreWhy is Magnolia Oil & Gas Corp. ?
1
High Management Efficiency with a high ROE of 40.07%
2
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.17 times
3
Healthy long term growth as Net Sales has grown by an annual rate of 12.46% and Operating profit at 23.64%
4
The company has declared Negative results for the last 9 consecutive quarters
- OPERATING CASH FLOW(Y) Lowest at USD 863.71 MM
- INTEREST COVERAGE RATIO(Q) Lowest at 3,862.58
- ROCE(HY) Lowest at 19.24%
5
With ROE of 21.10%, it has a attractive valuation with a 2.72 Price to Book Value
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -13.04%, its profits have fallen by -4.9%
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -13.04% returns in the last 1 year, the stock has also underperformed S&P 500 in each of the last 3 annual periods
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Magnolia Oil & Gas Corp. should be less than 10%
- Overall Portfolio exposure to Oil should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Oil)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Magnolia Oil & Gas Corp. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Magnolia Oil & Gas Corp.
4.39%
-0.21
37.58%
S&P 500
22.36%
0.70
20.15%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
19.67%
EBIT Growth (5y)
22.92%
EBIT to Interest (avg)
52.91
Debt to EBITDA (avg)
0.17
Net Debt to Equity (avg)
0.08
Sales to Capital Employed (avg)
0.58
Tax Ratio
19.85%
Dividend Payout Ratio
34.71%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
45.17%
ROE (avg)
40.07%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
23
Industry P/E
Price to Book Value
3.90
EV to EBIT
17.58
EV to EBITDA
8.74
EV to Capital Employed
3.70
EV to Sales
5.88
PEG Ratio
NA
Dividend Yield
1.14%
ROCE (Latest)
21.07%
ROE (Latest)
17.16%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend23What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 1,037.11 MM
DIVIDEND PER SHARE(HY)
Highest at USD 0
INTEREST COVERAGE RATIO(Q)
Highest at 5,373.2
RAW MATERIAL COST(Y)
Fallen by -31.62% (YoY
DEBT-EQUITY RATIO
(HY)
Lowest at 4.55 %
NET SALES(Q)
Highest at USD 478.81 MM
OPERATING PROFIT(Q)
Highest at USD 361.08 MM
OPERATING PROFIT MARGIN(Q)
Highest at 75.41 %
PRE-TAX PROFIT(Q)
Highest at USD 235.6 MM
NET PROFIT(Q)
Highest at USD 184.28 MM
EPS(Q)
Highest at USD 0.98
-4What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 0 times
INTEREST(Q)
Highest at USD 6.72 MM
Here's what is working for Magnolia Oil & Gas Corp.
Net Sales
At USD 478.81 MM has Grown at 45.09%
over average net sales of the previous four periods of USD 330.01 MMMOJO Watch
Near term sales trend is very positive
Net Sales (USD MM)
Interest Coverage Ratio
Highest at 5,373.2
in the last five periodsMOJO Watch
The company's ability to manage interest payments is improving
Operating Profit to Interest
Pre-Tax Profit
At USD 235.6 MM has Grown at 131.35%
over average net sales of the previous four periods of USD 101.84 MMMOJO Watch
Near term Pre-Tax Profit trend is very positive
Pre-Tax Profit (USD MM)
Net Profit
At USD 184.28 MM has Grown at 132.08%
over average net sales of the previous four periods of USD 79.4 MMMOJO Watch
Near term Net Profit trend is very positive
Net Profit (USD MM)
Dividend per share
Highest at USD 0 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Operating Cash Flow
Highest at USD 1,037.11 MM
in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 478.81 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 361.08 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 75.41 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 235.6 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 184.28 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.98
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Lowest at 4.55 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -31.62% (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
Depreciation
Highest at USD 118.38 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for Magnolia Oil & Gas Corp.
Interest
At USD 6.72 MM has Grown at 11.93%
period on period (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Interest
Highest at USD 6.72 MM
in the last five periods and Increased by 11.93% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Debtors Turnover Ratio
Lowest at 0 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio
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