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 -14.43%, its profits have fallen by -4.9%
6
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -14.43% 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.
-11.79%
-0.13
37.77%
S&P 500
13.22%
0.64
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
12.46%
EBIT Growth (5y)
23.64%
EBIT to Interest (avg)
52.91
Debt to EBITDA (avg)
0.17
Net Debt to Equity (avg)
0.08
Sales to Capital Employed (avg)
0.62
Tax Ratio
19.85%
Dividend Payout Ratio
26.82%
Pledged Shares
0
Institutional Holding
100.00%
ROCE (avg)
45.17%
ROE (avg)
40.07%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
13
Industry P/E
Price to Book Value
2.72
EV to EBIT
10.37
EV to EBITDA
5.69
EV to Capital Employed
2.59
EV to Sales
4.03
PEG Ratio
NA
Dividend Yield
2.17%
ROCE (Latest)
24.94%
ROE (Latest)
21.10%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bearish
Moving Averages
Mildly Bullish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
Mildly Bearish
OBV
No Trend
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend2What is working for the Company
DIVIDEND PAYOUT RATIO(Y)
Highest at 36.28%
DIVIDEND PER SHARE(HY)
Highest at USD 7.92
-28What is not working for the Company
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%
DEBT-EQUITY RATIO
(HY)
Highest at 8.23 %
OPERATING PROFIT MARGIN(Q)
Lowest at 67.86 %
RAW MATERIAL COST(Y)
Grown by 10.82% (YoY
NET SALES(Q)
Lowest at USD 318.98 MM
INTEREST(Q)
Highest at USD 5.6 MM
OPERATING PROFIT(Q)
Lowest at USD 216.46 MM
PRE-TAX PROFIT(Q)
Lowest at USD 101.97 MM
NET PROFIT(Q)
Lowest at USD 77.12 MM
EPS(Q)
Lowest at USD 0.41
Here's what is working for Magnolia Oil & Gas Corp.
Dividend per share
Highest at USD 7.92
in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 36.28%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Here's what is not working for Magnolia Oil & Gas Corp.
Interest Coverage Ratio
Lowest at 3,862.58 and Fallen
In each period in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Operating Cash Flow
Lowest at USD 863.71 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Operating Profit Margin
Lowest at 67.86 % and Fallen
In each period in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Debt-Equity Ratio
Highest at 8.23 % and Grown
In each half year in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Net Sales
Lowest at USD 318.98 MM
in the last five periodsMOJO Watch
Near term sales trend is negative
Net Sales (USD MM)
Interest
Highest at USD 5.6 MM
in the last five periods and Increased by 6.7% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit
Lowest at USD 216.46 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Pre-Tax Profit
Lowest at USD 101.97 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 101.97 MM has Fallen at -20.85%
over average net sales of the previous four periods of USD 128.82 MMMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 77.12 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
Net Profit
At USD 77.12 MM has Fallen at -19.98%
over average net sales of the previous four periods of USD 96.38 MMMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.41
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Raw Material Cost
Grown by 10.82% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
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