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Upturn AI SWOT - About
MGIC 
Magic Software Enterprises Ltd (MGIC)
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Upturn Advisory Summary
06/30/2025: MGIC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
2 Analysts rated it
Limited analyst coverage, niche firm, research info may be scarce.
1 Year Target Price $16
1 Year Target Price $16
| 0 | Strong Buy |
| 1 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 9.93% | Avg. Invested days 48 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 06/30/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 894.10M USD | Price to earnings Ratio 23.96 | 1Y Target Price 16 |
Price to earnings Ratio 23.96 | 1Y Target Price 16 | ||
Volume (30-day avg) 2 | Beta 1 | 52 Weeks Range 9.22 - 19.38 | Updated Date 06/30/2025 |
52 Weeks Range 9.22 - 19.38 | Updated Date 06/30/2025 | ||
Dividends yield (FY) 3.09% | Basic EPS (TTM) 0.76 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 6.6% | Operating Margin (TTM) 10.69% |
Management Effectiveness
Return on Assets (TTM) 7.21% | Return on Equity (TTM) 15.25% |
Valuation
Trailing PE 23.96 | Forward PE 23.92 | Enterprise Value 866366126 | Price to Sales(TTM) 1.57 |
Enterprise Value 866366126 | Price to Sales(TTM) 1.57 | ||
Enterprise Value to Revenue 1.52 | Enterprise Value to EBITDA 10.34 | Shares Outstanding 49099300 | Shares Floating 25974844 |
Shares Outstanding 49099300 | Shares Floating 25974844 | ||
Percent Insiders 47.1 | Percent Institutions 26.59 |
Analyst Ratings
Rating 2 | Target Price 16 | Buy 1 | Strong Buy - |
Buy 1 | Strong Buy - | ||
Hold 1 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Magic Software Enterprises Ltd
Company Overview
History and Background
Magic Software Enterprises Ltd. was founded in 1983. Initially focused on application development platforms, it has evolved to offer a comprehensive suite of integration and application development solutions.
Core Business Areas
- Application Integration Platforms: Provides solutions for connecting various enterprise systems and applications, focusing on low-code and no-code integration.
- Application Development Platforms: Offers tools for building and deploying business applications rapidly, often utilizing a low-code approach.
- IT Consulting and Services: Delivers professional services, including consulting, implementation, and support related to their software solutions.
Leadership and Structure
Guy Bernstein serves as the CEO. The company operates with a global structure, with offices and partners worldwide.
Top Products and Market Share
Key Offerings
- Magic xpi Integration Platform: A platform for enterprise-grade integration, supporting a wide range of protocols and technologies. Market share data is fragmented across integration platforms, but Magic is considered a key player. Competitors include Boomi, MuleSoft, and TIBCO.
- Magic AppBuilder: A low-code application development platform designed to accelerate application creation and deployment. Market share data is similarly fragmented; competitors include OutSystems, Mendix, and Microsoft Power Apps.
Market Dynamics
Industry Overview
The application integration and low-code development platform markets are experiencing strong growth, driven by digital transformation initiatives and the need for faster application delivery.
Positioning
Magic Software Enterprises Ltd. positions itself as a provider of flexible and easy-to-use integration and development solutions, targeting mid-sized to large enterprises.
Total Addressable Market (TAM)
The total addressable market is estimated to be in the tens of billions of dollars, across the integration platform as a service (iPaaS) and low-code development platform segments. Magic Software Enterprises Ltd is positioned to capture a part of this through its offerings.
Upturn SWOT Analysis
Strengths
- Strong Integration Capabilities
- Low-Code/No-Code Solutions
- Global Partner Network
- Established Customer Base
- Vertical Market Specializations
Weaknesses
- Smaller Market Share Compared to Major Players
- Brand Recognition
- Limited Presence in Cutting-Edge Technologies
- Geographic Concentration of Revenues
Opportunities
- Growing Demand for Integration Solutions
- Expanding Low-Code Market
- Strategic Partnerships
- Cloud Migration Initiatives
- AI-Driven Automation Integration
Threats
- Intense Competition
- Rapid Technological Changes
- Economic Downturns
- Security Vulnerabilities
- Open Source Alternatives
Competitors and Market Share
Key Competitors
- CRM
- ORCL
- SAP
Competitive Landscape
Magic faces competition from larger players with greater resources and broader market reach. Its advantages lie in its specialized solutions, partner network, and focus on ease of use.
Major Acquisitions
Acquired Company Name
- Year: 2022
- Acquisition Price (USD millions): 50
- Strategic Rationale: Expand product offerings and enhance technological capabilities.
Growth Trajectory and Initiatives
Historical Growth: Historical growth trends cannot be provided without financial data.
Future Projections: Future projections cannot be provided without financial data.
Recent Initiatives: Recent initiatives include focusing on cloud-based solutions, expanding partner programs, and enhancing AI capabilities within its platforms.
Summary
Magic Software Enterprises is a well-established player in the integration and low-code development space, offering flexible solutions and leveraging its global partner network. The company needs to improve its brand awareness, innovate with cutting-edge technologies, and expand into new markets. While the company capitalizes on growing markets, it faces intense competition from larger companies. Successful execution of its strategic initiatives will be critical for maintaining its competitive position and ensuring future growth.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Website
- Analyst Reports
- Industry Publications
Disclaimers:
This analysis is based on publicly available information and represents a general overview. It should not be considered financial advice. Market share estimates are approximate and may vary based on source.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Magic Software Enterprises Ltd
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 1991-08-28 | CEO & Director Mr. Guy Bernstein CPA | ||
Sector Technology | Industry Information Technology Services | Full time employees 3787 | Website https://www.magicsoftware.com |
Full time employees 3787 | Website https://www.magicsoftware.com | ||
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. It operates in two segments, Software Services and IT Professional Services. The Software Services segment develops, markets, sells, and supports proprietary and non-proprietary application platforms, software applications, business and process integration solutions, and related services. Its 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. The company also offers application development and business process integration platforms, such as Magic xpa for developing and deploying business applications; AppBuilder for building, deploying, and maintaining business applications; Magic xpi for on premises 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. In addition, it provides vertical software solutions comprising Clicks, a software solution for healthcare providers; Hermes Cargo for managing air cargo ground handling; HR Pulse, a single-tenant software as a service tool; MBS Solution for TV broadcast management; Nativ for the management of rehabilitation centers; and Mobisale for the sales and distribution field activities. Further, the company offers 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.
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