Magic Software Enterprises Ltd
NASDAQ:MGIC

Watchlist Manager
Magic Software Enterprises Ltd Logo
Magic Software Enterprises Ltd
NASDAQ:MGIC
Watchlist
Price: 10.99 USD -1.61%
Market Cap: 539.6m USD
Have any thoughts about
Magic Software Enterprises Ltd?
Write Note

Intrinsic Value

The intrinsic value of one MGIC stock under the Base Case scenario is 16.33 USD. Compared to the current market price of 10.99 USD, Magic Software Enterprises Ltd is Undervalued by 33%.

The Intrinsic Value is calculated as the average of DCF and Relative values:

MGIC Intrinsic Value
16.33 USD
Undervaluation 33%
Intrinsic Value
Price
Worst Case
Base Case
Best Case

Valuation Backtest
Magic Software Enterprises Ltd

Backtest Intrinsic Value
Dive into the past to invest in the future

Uncover deeper insights with the Valuation Backtest. Learn how current stock valuations stack up against historical averages to gauge true investment potential.

Start backtest now and learn if your stock is truly undervalued or overvalued!

Run Backtest
Backtest Conclusion
Very Attractive
Current Valuation
+45%
Avg Valuation
-12%
Worst Valuation
-49%
Best Valuation
+45%

Stock is trading at its lowest valuation over the past 5 years.

Backtest Example
Register to View Results
Register to View Results

To access the results of this valuation backtest, please register an account with us. Registration is quick and gives you instant access to insights on 3 stocks per week for free.

Backtest Unavailable

The backtest for MGIC cannot be conducted due to limitations such as insufficient data or other constraints. Please select a different stock or adjust your settings.

Backtest In Progress...
Backtest In Progress...
How do you feel about MGIC?
Bearish
Neutral
Bullish

Fundamental Analysis

Risks & Rewards

 

 

 

 

View All Risks & Rewards
Company Quality
No Indicators Selected
Select Indicators

Select up to 3 indicators:

Insider Trading
0-3
Months
0-6
Months
0-12
Months
0-36
Months
No Periods Selected
Select Periods

Select up to 2 periods:

Notes
AI Assistant
AI Assistant
Ask me anything about Magic Software Enterprises Ltd

Provide an overview of the primary business activities
of Magic Software Enterprises Ltd.

What unique competitive advantages
does Magic Software Enterprises Ltd hold over its rivals?

What risks and challenges
does Magic Software Enterprises Ltd face in the near future?

Summarize the latest earnings call
of Magic Software Enterprises Ltd.

Is it considered overvalued or undervalued
based on the latest financial data?

Show all valuation multiples
for Magic Software Enterprises Ltd.

Provide P/S
for Magic Software Enterprises Ltd.

Provide P/E
for Magic Software Enterprises Ltd.

Provide P/OCF
for Magic Software Enterprises Ltd.

Provide P/FCFE
for Magic Software Enterprises Ltd.

Provide P/B
for Magic Software Enterprises Ltd.

Provide EV/S
for Magic Software Enterprises Ltd.

Provide EV/GP
for Magic Software Enterprises Ltd.

Provide EV/EBITDA
for Magic Software Enterprises Ltd.

Provide EV/EBIT
for Magic Software Enterprises Ltd.

Provide EV/OCF
for Magic Software Enterprises Ltd.

Provide EV/FCFF
for Magic Software Enterprises Ltd.

Provide EV/IC
for Magic Software Enterprises Ltd.

Show me price targets
for Magic Software Enterprises Ltd made by professional analysts.

What are the Revenue projections
for Magic Software Enterprises Ltd?

How accurate were the past Revenue estimates
for Magic Software Enterprises Ltd?

What are the Net Income projections
for Magic Software Enterprises Ltd?

How accurate were the past Net Income estimates
for Magic Software Enterprises Ltd?

What are the EPS projections
for Magic Software Enterprises Ltd?

How accurate were the past EPS estimates
for Magic Software Enterprises Ltd?

What are the EBIT projections
for Magic Software Enterprises Ltd?

How accurate were the past EBIT estimates
for Magic Software Enterprises Ltd?

Compare the revenue forecasts
for Magic Software Enterprises Ltd with those of its competitors based on recent analyst estimates.

Compare the intrinsic valuations
of Magic Software Enterprises Ltd and its key competitors using the latest financial data.

Compare historical revenue growth rates
of Magic Software Enterprises Ltd against its competitors.

Analyze the profit margins
(gross, operating, and net) of Magic Software Enterprises Ltd compared to its peers.

Compare the P/E ratios
of Magic Software Enterprises Ltd against its peers.

Discuss the investment returns and shareholder value creation
comparing Magic Software Enterprises Ltd with its peers.

Analyze the financial leverage
of Magic Software Enterprises Ltd compared to its main competitors.

Show all profitability ratios
for Magic Software Enterprises Ltd.

Provide ROE
for Magic Software Enterprises Ltd.

Provide ROA
for Magic Software Enterprises Ltd.

Provide ROIC
for Magic Software Enterprises Ltd.

Provide ROCE
for Magic Software Enterprises Ltd.

Provide Gross Margin
for Magic Software Enterprises Ltd.

Provide Operating Margin
for Magic Software Enterprises Ltd.

Provide Net Margin
for Magic Software Enterprises Ltd.

Provide FCF Margin
for Magic Software Enterprises Ltd.

Show all solvency ratios
for Magic Software Enterprises Ltd.

Provide D/E Ratio
for Magic Software Enterprises Ltd.

Provide D/A Ratio
for Magic Software Enterprises Ltd.

Provide Interest Coverage Ratio
for Magic Software Enterprises Ltd.

Provide Altman Z-Score Ratio
for Magic Software Enterprises Ltd.

Provide Quick Ratio
for Magic Software Enterprises Ltd.

Provide Current Ratio
for Magic Software Enterprises Ltd.

Provide Cash Ratio
for Magic Software Enterprises Ltd.

What is the historical Revenue growth
over the last 5 years for Magic Software Enterprises Ltd?

What is the historical Net Income growth
over the last 5 years for Magic Software Enterprises Ltd?

What is the current Free Cash Flow
of Magic Software Enterprises Ltd?

Discuss the annual earnings per share (EPS)
trend over the past five years for Magic Software Enterprises Ltd.

Financials
Annual
Quarterly
TTM
Annual
Quarterly
TTM

Balance Sheet Decomposition
Magic Software Enterprises Ltd

Current Assets 261.6m
Cash & Short-Term Investments 108.4m
Receivables 153.2m
Non-Current Assets 265.4m
PP&E 32.5m
Intangibles 217.8m
Other Non-Current Assets 15m
Current Liabilities 157.8m
Accounts Payable 29.6m
Accrued Liabilities 45.3m
Other Current Liabilities 82.9m
Non-Current Liabilities 100.3m
Long-Term Debt 61.5m
Other Non-Current Liabilities 38.8m
Efficiency

Earnings Waterfall
Magic Software Enterprises Ltd

Revenue
522m USD
Cost of Revenue
-372.7m USD
Gross Profit
149.3m USD
Operating Expenses
-93.6m USD
Operating Income
55.7m USD
Other Expenses
-22.3m USD
Net Income
33.4m USD

Free Cash Flow Analysis
Magic Software Enterprises Ltd

Last Value
3-Years Average
FCF Margin
Conversion Rate
Earnings Calls

In Q2 2024, Magic Software's revenue decreased by 1% to $136.3 million, mainly due to currency headwinds and a decline in demand from U.S. blue-chip customers. However, Israel's revenue grew by 12.6% and North America saw an increase of 11.1% quarter-on-quarter, aided by the acquisition of Theoris, Inc. Operating margins remained stable at 13.4%. The company reiterated its 2024 revenue guidance of $540-$550 million. Despite challenges, Magic Software continues to invest in cloud services and digital technology, foreseeing potential growth as market conditions stabilize.

What is Earnings Call?
Fundamental Scores

MGIC Profitability Score
Profitability Due Diligence

Magic Software Enterprises Ltd's profitability score is 54/100. The higher the profitability score, the more profitable the company is.

Positive Free Cash Flow
Positive Gross Profit
Positive 3-Year Average ROE
Positive 3-Years Revenue Growth
54/100
Profitability
Score

Magic Software Enterprises Ltd's profitability score is 54/100. 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.

Low D/E
Negative Net Debt
Long-Term Solvency
Short-Term Solvency
61/100
Solvency
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

Wall Street analysts forecast MGIC stock price to rise over the next 12 months.

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.

Lowest
Price Target
14.14 USD
29% Upside
Average
Price Target
14.28 USD
30% Upside
Highest
Price Target
14.7 USD
34% Upside
View Analyst Estimates
View Analyst Estimates
Want to learn more about Wall St estimates for MGIC?

Click here to dive deeper.

Dividends

Dividend Yield
Lowest
Average
Highest
Dividend Per Share
N/A
Growth 3Y
Growth 5Y
Growth 10Y
Dividend Safety Score
Very
Unsafe
Unsafe
Safe
Very
Safe
0
25
50
75
100
Shareholder Yield

Current shareholder yield for MGIC is .

Shareholder yield represents the total return a company provides to its shareholders, calculated as the sum of dividend yield, buyback yield, and debt paydown yield. What is shareholder yield?

Shareholder Yield
Dividend Yield
Lowest
Average
Highest
Buyback Yield
Lowest
Average
Highest
Debt Paydown Yield
Lowest
Average
Highest

Profile

Magic Software Enterprises Ltd Logo
Magic Software Enterprises Ltd

Country

Israel

Industry

Technology

Market Cap

539.6m USD

Dividend Yield

4.83%

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

Or Yehuda
Yaadut Canada 1 str; Terminal Center
+97235389292.0
www.magicsoftware.com

IPO

1991-08-16

Employees

3 040

Officers

Chairman of Software Solutions Division
Mr. Arik Kilman
President of Integration Solutions Division
Mr. Arik Faingold
Chief Executive Officer of Coretech Consulting Group LLC, Fusion Solution LLC & Xsell Resources Inc.
Mr. Yakov Tsaroya
Chief Executive Officer of Comblack I.T. Ltd.
Mr. Eli Schwartz
Chief Executive Officer of CommIT Technology Solutions Ltd
Mr. Idan Faingold
CEO & Director
Mr. Guy Bernstein
Show More
Chief Financial Officer
Mr. Asaf Berenstin
Vice President Technology & Innovation
Mr. Yuval Lavi
Chief Marketing Officer
Ms. Karin Netzer
Chief Executive Officer of Complete Business Solutions
Yael Ilan
Show Less

See Also

Discover More
What is the Intrinsic Value of one MGIC stock?

The intrinsic value of one MGIC stock under the Base Case scenario is 16.33 USD.

Is MGIC stock undervalued or overvalued?

Compared to the current market price of 10.99 USD, Magic Software Enterprises Ltd is Undervalued by 33%.

Back to Top