Magnolia Oil & Gas Corp. (MGY) 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

EQT Corp.

Ovintiv, Inc.

Antero Resources Corp.

Devon Energy Corp.

Range Resources Corp.

SM Energy Co.

Magnolia Oil & Gas Corp.

Pioneer Natural Resources Co.

Marathon Oil Corp.

Diamondback Energy, Inc.

Murphy Oil Corp.

Why is Magnolia Oil & Gas Corp. ?

High Management Efficiency with a high ROE of 40.07%

Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.17 times

Healthy long term growth as Net Sales has grown by an annual rate of 12.46% and Operating profit at 23.64%

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%

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%

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 Report

Verdict Report

How 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.

27.95%

-0.21

37.58%

S&P 500

14.9%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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

Institutional Holding

100.00%

ROCE (avg)

45.17%

ROE (avg)

40.07%

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

3.55

EV to EBIT

15.99

EV to EBITDA

7.95

EV to Capital Employed

3.37

EV to Sales

5.35

PEG Ratio

Dividend Yield

1.26%

ROCE (Latest)

21.07%

ROE (Latest)

17.16%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Bullish

OBV

Mildly Bearish

No Trend

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

DIVIDEND PAYOUT RATIO(Y)

Highest at 40.34%

DIVIDEND PER SHARE(HY)

Highest at USD 8.13

-16What is not working for the Company

INTEREST(9M)

At USD 16.36 MM has Grown at 35.7%

ROCE(HY)

Lowest at 16.65%

RAW MATERIAL COST(Y)

Grown by 13.35% (YoY

NET SALES(Q)

Lowest at USD 317.63 MM

OPERATING PROFIT(Q)

Lowest at USD 210.13 MM

PRE-TAX PROFIT(Q)

Lowest at USD 88.22 MM

NET PROFIT(Q)

Lowest at USD 67.86 MM

EPS(Q)

Lowest at USD 0.37

Here's what is working for Magnolia Oil & Gas Corp.

Dividend per share

Highest at USD 8.13 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 40.34% and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 116.05 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 Magnolia Oil & Gas Corp.

Interest

At USD 16.36 MM has Grown at 35.7%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Sales

Lowest at USD 317.63 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 210.13 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Pre-Tax Profit

Lowest at USD 88.22 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Pre-Tax Profit

At USD 88.22 MM has Fallen at -21.3%

over average net sales of the previous four periods of USD 112.09 MM

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (USD MM)

Net Profit

Lowest at USD 67.86 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Net Profit

At USD 67.86 MM has Fallen at -21.13%

over average net sales of the previous four periods of USD 86.05 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.37

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)

Raw Material Cost

Grown by 13.35% (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