Magic Software Enterprises (MGIC) Stock Price, News & Analysis

Company Overview

Magic Software Enterprises Ltd. provides proprietary application development, vertical software solutions, business process integration, information technologies (IT) outsourcing software services, and cloud-based services in Israel and internationally. Its Software Services segment develops, markets, sells, and supports application platform, software applications, and business and process integration solutions and related services. The company's IT Professional Services segment offers IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, and supplemental outsourcing services. It also offers proprietary application platforms, such as Magic xpa for developing and deploying business applications; AppBuilder for building, deploying, and maintaining business applications; Magic xpi for application integration; Magic xpi cloud native; FactoryEye for virtualization of production data; Magic Data Management and Analytics Platform for data management; and Magic SmartUX for cross-platform mobile business applications. The company also provides vertical software solutions comprising Clicks, a software solution for healthcare providers; Leap, a software solution for business support systems; Hermes Cargo, a packaged software solution for managing air cargo ground handling; HR Pulse, a single-tenant software as a service tool; MBS Solution, a system for managing TV broadcast management; Nativ, a system for management of rehabilitation centers; and Mobisale, a system for sales and distribution field activities for consumer goods manufacturers and wholesalers. In addition, It provides software maintenance, support, training, and consulting services. The company was formerly known as Mashov Software Export (1983) Ltd. and changed its name to Magic Software Enterprises Ltd. in 1991. The company was incorporated in 1983 and is headquartered in Or Yehuda, Israel.

Key Stats

• Today's Range: $11.70 to $12.30
• 50-Day Range: $10.75 to $12.86
• 52-Week Range: $9.38 to $13.40
• Volume: 70,976 shs
• Average Volume: 55,259 shs
• Market Capitalization: $591.15 million
• P/E Ratio: 17.20
• Dividend Yield: 3.90%
• Price Target: $15.00
• Consensus Rating: Buy

Magic Software Enterprises Stock Analysis - MarketRank™

Magic Software Enterprises scored higher than 46% of companies evaluated by MarketBeat, and ranked 425th out of 653 stocks in the computer and technology sector. Scores are calculated by averaging available category scores, with extra weight given to analysis and valuation.

Analyst's Opinion

• Score: 2.5 / 5
• Analyst Rating: Buy

Consensus Rating

Magic Software Enterprises has received a consensus rating of Buy. The company's average rating score is 3.00, and is based on 1 buy rating, no hold ratings, and no sell ratings.

Amount of Analyst Coverage

Magic Software Enterprises has only been the subject of 1 research reports in the past 90 days.

Earnings and Valuation

• Score: 1.9 / 5
• Proj. Earnings Growth: 4.21%

Earnings Growth

Earnings for Magic Software Enterprises are expected to grow by 4.21% in the coming year, from $0.95 to $0.99 per share.

Price to Earnings Ratio vs. the Market

The P/E ratio of Magic Software Enterprises is 17.20, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 113.39.

Price to Earnings Ratio vs. Sector

The P/E ratio of Magic Software Enterprises is 17.20, which means that it is trading at a less expensive P/E ratio than the Computer and Technology sector average P/E ratio of about 237.69.

Price to Book Value per Share Ratio

Magic Software Enterprises has a P/B Ratio of 2.03. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

Short Interest

• Score: 3.0 / 5
• Short Interest Level: Healthy

Percentage of Shares Shorted

0.64% of the float of Magic Software Enterprises has been sold short.

Short Interest Ratio / Days to Cover

Magic Software Enterprises has a short interest ratio ("days to cover") of 2.3, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Magic Software Enterprises has recently increased by 498.15%, indicating that investor sentiment is decreasing significantly.

Dividend

• Score: 2.5 / 5
• Dividend Strength: Moderate

Dividend Yield

Magic Software Enterprises pays a meaningful dividend of 3.26%, higher than the bottom 25% of all stocks that pay dividends.

Dividend Growth

Magic Software Enterprises does not have a long track record of dividend growth.

Dividend Coverage

The dividend payout ratio of Magic Software Enterprises is 67.14%. This payout ratio is at a healthy, sustainable level, below 75%.

Dividend Sustainability

Based on earnings estimates, Magic Software Enterprises will have a dividend payout ratio of 47.47% next year. This indicates that Magic Software Enterprises will be able to sustain or increase its dividend.

Sustainability and ESG

• Score: N/A
• Environmental Score: N/A

Percentage of Shares Shorted

0.64% of the float of Magic Software Enterprises has been sold short.

Short Interest Ratio / Days to Cover

Magic Software Enterprises has a short interest ratio ("days to cover") of 2.3, which is generally considered an acceptable ratio of short interest to trading volume.

Change versus previous month

Short interest in Magic Software Enterprises has recently increased by 498.15%, indicating that investor sentiment is decreasing significantly.

News and Social Media

• Score: 1.1 / 5
• News Sentiment: N/A

News Sentiment

Magic Software Enterprises has a news sentiment score of 0.04. This score is calculated as an average of sentiment of articles about the company over the last seven days and ranges from 2 (good news) to -2 (bad news). This is a lower news sentiment than the 0.64 average news sentiment score of Computer and Technology companies.

News Coverage This Week

MarketBeat has tracked 1 news article for Magic Software Enterprises this week, compared to 2 articles on an average week.

MarketBeat Follows

Only 3 people have added Magic Software Enterprises to their MarketBeat watchlist in the last 30 days. This is a decrease of 0% compared to the previous 30 days.

Company Ownership

• Score: 0.0 / 5
• Insider Trading: N/A

Insider Buying vs. Insider Selling

In the past three months, Magic Software Enterprises insiders have not sold or bought any company stock.

Percentage Held by Insiders

Only 4.49% of the stock of Magic Software Enterprises is held by insiders.

Percentage Held by Institutions

Only 24.70% of the stock of Magic Software Enterprises is held by institutions.

MGIC Stock Analysis - Frequently Asked Questions

How have MGIC shares performed this year?

Magic Software Enterprises' stock was trading at $9.69 at the beginning of the year. Since then, MGIC shares have increased by 24.3% and is now trading at $12.04.
View the best growth stocks for 2024 here.

How were Magic Software Enterprises' earnings last quarter?

Magic Software Enterprises Ltd. (NASDAQ:MGIC) issued its quarterly earnings results on Wednesday, August, 14th. The software maker reported $0.24 earnings per share for the quarter, beating analysts' consensus estimates of $0.22 by $0.02. The software maker earned $136.25 million during the quarter, compared to analysts' expectations of $132.10 million. Magic Software Enterprises had a net margin of 6.49% and a trailing twelve-month return on equity of 15.42%.

Who are Magic Software Enterprises' major shareholders?

Top institutional investors of Magic Software Enterprises include ARK Investment Management LLC (0.37%), Assenagon Asset Management S.A. (0.29%), Inspire Investing LLC (0.15%) and Tidal Investments LLC (0.06%).

How do I buy shares of Magic Software Enterprises?

Shares of MGIC stock can be purchased through any online brokerage account. Popular online brokerages with access to the U.S. stock market include Charles Schwab, E*TRADE, Fidelity, and Vanguard Brokerage Services.
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What other stocks do shareholders of Magic Software Enterprises own?

Based on aggregate information from My MarketBeat watchlists, some other companies that Magic Software Enterprises investors own include YETI (YETI), Enterprise Products Partners (EPD), Innovative Industrial Properties (IIPR), Academy Sports and Outdoors (ASO), AbbVie (ABBV) and NVIDIA (NVDA).

Company Calendar

• Last Earnings: 8/14/2024
• Today: 12/21/2024
• Ex-Dividend for 1/8 Dividend: 12/23/2024
• Fiscal Year End: 12/31/2024
• Dividend Payable: 1/08/2025

Industry, Sector and Symbol

• Stock Exchange: NASDAQ
• Sector: Computer and Technology
• Industry: Prepackaged software
• Sub-Industry: Computer Software
• Current Symbol: NASDAQ:MGIC
• CUSIP: N/A
• CIK: 876779
• Web: www.magicsoftware.com
• Phone: (723) 538-9292
• Fax: 972-3538-9333
• Employees: 3,628
• Year Founded: 1983

Price Target and Rating

• Average Stock Price Target: $15.00
• High Stock Price Target: $15.00
• Low Stock Price Target: $15.00
• Potential Upside/Downside: +24.6%
• Consensus Rating: Buy
• Rating Score (0-4): 3.00
• Research Coverage: 1 Analysts

Profitability

• EPS (Most Recent Fiscal Year): $0.70
• Trailing P/E Ratio: 17.20
• Forward P/E Ratio: 12.67
• P/E Growth: N/A
• Net Income: $37.03 million
• Net Margins: 6.49%
• Pretax Margin: 9.58%
• Return on Equity: 15.42%
• Return on Assets: 8.66%

Debt

• Debt-to-Equity Ratio: 0.13
• Current Ratio: 1.76
• Quick Ratio: 1.76

Sales & Book Value

• Annual Sales: $535.48 million
• Price / Sales: 1.10
• Cash Flow: $1.34 per share
• Price / Cash Flow: 8.99
• Book Value: $5.93 per share
• Price / Book: 2.03

Miscellaneous

• Outstanding Shares: 49,099,000
• Free Float: 46,894,000
• Market Cap: $591.15 million
• Optionable: Optionable
• Beta: 1.09