Magic Software Enterprises Ltd
NASDAQ:MGIC

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Magic Software Enterprises Ltd Logo
Magic Software Enterprises Ltd
NASDAQ:MGIC
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Price: 10.99 USD 0.64% Market Closed
Market Cap: 539.6m USD
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Intrinsic Value

The intrinsic value of one MGIC stock under the Base Case scenario is 16.27 USD. Compared to the current market price of 10.99 USD, Magic Software Enterprises Ltd is Undervalued by 32%.

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

MGIC Intrinsic Value
16.27 USD
Undervaluation 32%
Intrinsic Value
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Base Case
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Magic Software Enterprises Ltd

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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.

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Fundamental Analysis

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Financials
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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
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 15.3 USD with a low forecast of 15.15 USD and a high forecast of 15.75 USD.

Lowest
Price Target
15.15 USD
38% Upside
Average
Price Target
15.3 USD
39% Upside
Highest
Price Target
15.75 USD
43% Upside
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Dividends

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Dividend Per Share
N/A
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Growth 10Y
Dividend Safety Score
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0
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Shareholder Yield

Current shareholder yield for MGIC is .

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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
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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
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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 16.27 USD.

Is MGIC stock undervalued or overvalued?

Compared to the current market price of 10.99 USD, Magic Software Enterprises Ltd is Undervalued by 32%.

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