Magic Software Enterprises Ltd
NASDAQ:MGIC
Intrinsic Value
Magic Software Enterprises Ltd. engages in the provision of proprietary application development and business process integration platforms, vertical software solutions, and vendor of information techn... [ Read More ]
The intrinsic value of one
MGIC
stock under the Base Case scenario is
15.88
USD.
Compared to the current market price of 11.45 USD,
Magic Software Enterprises Ltd
is
Undervalued by 28%.
Magic Software Enterprises Ltd's market capitalization is 562.1m USD.
MGIC stock price is 11.45 USD.
MGIC stock price (11.45 USD) is 28% less than its Intrinsic Value (15.88 USD).
MGIC stock price (11.45 USD) is 35% less than its Relative Value (17.55 USD). Open Relative Valuation
MGIC has upside potential of 25% compared to the average analyst price target.
Open Wall St Estimates
MGIC's Altman Z-Score is equal to 2.5.
MGIC's ROIC (Return on Invested Capital) has decreased in the last 3 years from 12% to 12%.
MGIC has positive Operating Income for the last twelve months.
MGIC's ROIC (Return on Invested Capital) for the past 12 months is positive and is equal to 12%.
MGIC's Revenue is forecast to grow at a rate of 4% per year over the next 3 years.
MGIC's ROE (Return on Equity) for the past 12 months is positive and is equal to 14%.
MGIC's ROE (Return on Equity) has increased in the last 3 years from 11% to 14%.
MGIC's Revenue has dropped by 6% over the past 12 months.
MGIC has positive Net Income for the last twelve months.
MGIC has positive three-year average ROE (Return on Equity): 13%. The company is efficient at transforming stockholders' equity into net income.
MGIC has positive three-year average ROIC (Return on Invested Capital): 13%. The company is efficient at using invested capital to generate operating income.
MGIC's Revenue has been growing by 13% per year for the last 3 years.
MGIC has positive Gross Profit for the last twelve months.
MGIC has positive Free Cash Flow for the last twelve months.
MGIC has negative Net Debt. This means that the company has more cash and short-term investments (107m USD) than debt (75m USD).
MGIC's short-term assets (257m USD) exceed its short-term liabilties (142m USD).
MGIC's long-term assets (524m USD) exceed its long-term liabilties (258m USD).
MGIC's D/E (Debt to Equity) is very low and is equal to 0.28.
Valuation Backtest
Magic Software Enterprises Ltd
Run backtest to discover the historical profit from buying and selling
MGIC
stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
Magic Software Enterprises Ltd
Balance Sheet Decomposition
Magic Software Enterprises Ltd
| Current Assets | 257.3m |
| Cash & Short-Term Investments | 107.1m |
| Receivables | 150.2m |
| Non-Current Assets | 267.1m |
| PP&E | 33.7m |
| Intangibles | 216.7m |
| Other Non-Current Assets | 16.7m |
| Current Liabilities | 142m |
| Accounts Payable | 28.4m |
| Accrued Liabilities | 41.5m |
| Other Current Liabilities | 72.1m |
| Non-Current Liabilities | 116.5m |
| Long-Term Debt | 75.4m |
| Other Non-Current Liabilities | 41.1m |
Earnings Waterfall
Magic Software Enterprises Ltd
|
Revenue
|
535.1m
USD
|
|
Cost of Revenue
|
-382.1m
USD
|
|
Gross Profit
|
153m
USD
|
|
Operating Expenses
|
-95.9m
USD
|
|
Operating Income
|
57.1m
USD
|
|
Other Expenses
|
-20.1m
USD
|
|
Net Income
|
37m
USD
|
Free Cash Flow Analysis
Magic Software Enterprises Ltd
What is Free Cash Flow?
MGIC Profitability Score
Profitability Due Diligence
Magic Software Enterprises Ltd's profitability score is 55/100. The higher the profitability score, the more profitable the company is.
Score
Magic Software Enterprises Ltd's profitability score is 55/100. The higher the profitability score, the more profitable the company is.
MGIC Solvency Score
Solvency Due Diligence
Magic Software Enterprises Ltd's solvency score is 61/100. The higher the solvency score, the more solvent the company is.
Score
Magic Software Enterprises Ltd's solvency score is 61/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
MGIC Price Targets Summary
Magic Software Enterprises Ltd
According to Wall Street analysts, the average 1-year price target for
MGIC
is 14.28 USD
with a low forecast of 14.14 USD and a high forecast of 14.7 USD.
Shareholder Return
MGIC Price
Magic Software Enterprises Ltd
| Average Annual Return | 21.82% |
| Standard Deviation of Annual Returns | 35.68% |
| Max Drawdown | -65% |
| Market Capitalization | 562.1m USD |
| Shares Outstanding | 49 099 300 |
| Percentage of Shares Shorted | 0.05% |
Company Profile
Magic Software Enterprises Ltd
Country
Industry
Market Cap
Dividend Yield
Description
Magic Software Enterprises Ltd. engages in the provision of proprietary application development and business process integration platforms, vertical software solutions, and vendor of information technology (IT) outsourcing software services. The firm is a vendor of information technology (IT) outsourcing services. Its software technology is used by customers to develop, deploy and integrate on premise, mobile and cloud-based business. The company operates through two segments: software solutions and IT professional services. The software services segment includes software technology and complementary services. The IT professional services segment offers IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, and communications services and solutions. Its product portfolio includes Magic xpa Application Platform, AppBuilder Application Platform and Magic xpi Integration Platform. Its vertical software packages include Leap, Hermes Solution, HR Pulse and MBS Solution.
Contact
IPO
Employees
Officers
The intrinsic value of one
MGIC
stock under the Base Case scenario is
15.88
USD.
Compared to the current market price of 11.45 USD,
Magic Software Enterprises Ltd
is
Undervalued by 28%.
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