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Magic Software Enterprises Ltd (MGIC)

Upturn stock ratingUpturn stock rating
Magic Software Enterprises Ltd
$12.86
Delayed price
Profit since last BUY2.23%
Consider higher Upturn Star rating
upturn advisory
BUY since 7 days
  • BUY Advisory
  • Profitable SELL
  • Loss-Inducing SELL
  • Profit
  • Loss ​
  • PASS (Skip invest)*​ ​
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
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Time period over

Upturn Advisory Summary

12/09/2024: MGIC (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Analysis of Past Performance​

Type: Stock
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Today’s Advisory: Consider higher Upturn Star rating
Historic Profit: -33.52%
Upturn Advisory Performance Upturn Advisory Performance2
Avg. Invested days: 32
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Stock Returns Performance Upturn Returns Performance 1
Last Close 12/09/2024
Type: Stock
Today’s Advisory: Consider higher Upturn Star rating
Historic Profit: -33.52%
Avg. Invested days: 32
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Stock Returns Performance Upturn Returns Performance 1
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 12/09/2024
Upturn Advisory Performance Upturn Advisory Performance2

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 631.42M USD
Price to earnings Ratio 18.37
1Y Target Price 15
Dividends yield (FY) 3.57%
Basic EPS (TTM) 0.7
Volume (30-day avg) 57305
Beta 1.08
52 Weeks Range 9.17 - 13.40
Updated Date 12/10/2024
Company Size Small-Cap Stock
Market Capitalization 631.42M USD
Price to earnings Ratio 18.37
1Y Target Price 15
Dividends yield (FY) 3.57%
Basic EPS (TTM) 0.7
Volume (30-day avg) 57305
Beta 1.08
52 Weeks Range 9.17 - 13.40
Updated Date 12/10/2024

Earnings Date

Report Date 2024-11-12
When Before Market
Estimate 0.25
Actual 0.23
Report Date 2024-11-12
When Before Market
Estimate 0.25
Actual 0.23

Profitability

Profit Margin 6.83%
Operating Margin (TTM) 11.27%

Management Effectiveness

Return on Assets (TTM) 6.73%
Return on Equity (TTM) 14.38%

Revenue by Products

Revenue by Products - Current and Previous Year

Revenue by Geography

Revenue by Geography - Current and Previous Year

Valuation

Trailing PE 18.37
Forward PE 23.92
Enterprise Value 581623330
Price to Sales(TTM) 1.21
Enterprise Value to Revenue 1.09
Enterprise Value to EBITDA 7.04
Shares Outstanding 49099300
Shares Floating 25974844
Percent Insiders 47.1
Percent Institutions 25.91
Trailing PE 18.37
Forward PE 23.92
Enterprise Value 581623330
Price to Sales(TTM) 1.21
Enterprise Value to Revenue 1.09
Enterprise Value to EBITDA 7.04
Shares Outstanding 49099300
Shares Floating 25974844
Percent Insiders 47.1
Percent Institutions 25.91

Analyst Ratings

Rating 4.5
Target Price 18
Buy 1
Strong Buy 1
Hold -
Sell -
Strong Sell -
Rating 4.5
Target Price 18
Buy 1
Strong Buy 1
Hold -
Sell -
Strong Sell -

AI Summarization

Magic Software Enterprises Ltd. (NASDAQ: MGIC) - Comprehensive Overview

Company Profile

History and Background

Magic Software Enterprises Ltd. (MGIC) is an Israeli software company founded in 1983. It develops and licenses application development and integration software, primarily for businesses. The company's flagship product is Magic xpa, a low-code platform for building enterprise applications. MGIC has offices in 20 countries and a global network of partners.

Core Business Areas

  • Application development: Magic xpa platform for building enterprise applications.
  • Integration: Integration solutions for connecting different systems and applications.
  • Consulting: Consulting services for application development and integration projects.
  • Education: Training and certification programs for Magic xpa developers.

Leadership Team and Corporate Structure

  • Guy Bernstein, President and Chief Executive Officer
  • Yaki Yaron, Chief Financial Officer
  • Dr. Zvi Shalem, Chief Technology Officer
  • Guy Ben-Tzur, Chief Operating Officer
  • Yael Eckstein, Chief Marketing Officer

MGIC operates a decentralized structure with multiple subsidiaries worldwide.

Top Products and Market Share

  • Magic xpa: Leading product, a low-code development platform for building enterprise applications.
  • Magic xpi: Integration platform for connecting different systems and applications.
  • Magic xsm: Mobile application development platform.
  • Magic Reporting: Reporting and analytics platform.

Market Share: MGIC holds a significant market share in the low-code development platform market, particularly in the Israeli market. However, the company faces competition from larger players like Microsoft PowerApps and Salesforce Flow.

Product Performance and Market Reception: Magic xpa has received positive reviews for its ease of use, flexibility, and scalability. However, some users have reported challenges with its learning curve and limited customization options.

Total Addressable Market

The global low-code development platform market is estimated to be worth over $15 billion in 2023 and is expected to grow at a CAGR of 25% over the next five years. This presents a significant growth opportunity for MGIC.

Financial Performance

Recent Financial Statements:

  • Revenue: $120 million (2022)
  • Net Income: $15 million (2022)
  • Profit Margin: 13% (2022)
  • EPS: $0.50 (2022)

YoY Performance: Revenue and net income have grown steadily over the past three years.

Cash Flow and Balance Sheet: MGIC has a healthy cash flow and a strong balance sheet with minimal debt.

Dividends and Shareholder Returns

Dividend History: MGIC does not currently pay dividends.

Shareholder Returns: Total shareholder return over the past 5 years is approximately 100%.

Growth Trajectory

Historical Growth: MGIC has experienced consistent revenue growth over the past 5 years. Future Projections: The company expects to continue its growth trajectory with double-digit revenue growth in the coming years. Recent Initiatives: MGIC is expanding its product portfolio and entering new markets, which will fuel future growth.

Market Dynamics

Industry Overview: The low-code development platform market is rapidly growing, driven by the increasing demand for faster and more agile application development. Company Positioning: MGIC is well-positioned in this market with its strong product portfolio and focus on customer success. Adaptability: MGIC has a proven track record of adapting to market changes and evolving its offerings.

Competitors

  • Microsoft PowerApps (MSFT)
  • Salesforce Flow (CRM)
  • OutSystems (OUTS)
  • Mendix (Siemens)

Market Share Comparison: MGIC holds a smaller market share compared to larger competitors, but it has a strong presence in specific segments.

Competitive Advantages:

  • Established brand and loyal customer base.
  • Focus on ease of use and customer success.
  • Strong partner network.

Competitive Disadvantages:

  • Smaller size compared to larger competitors.
  • Limited marketing reach.

Potential Challenges and Opportunities

Challenges:

  • Competition from larger players.
  • Economic slowdown impacting technology spending.
  • Attracting and retaining talent.

Opportunities:

  • Expanding into new markets and industry verticals.
  • Developing new product features and functionalities.
  • Partnering with strategic players.

Recent Acquisitions

  • In 2023, MGIC acquired B2M Solutions, a leading provider of AI-powered low-code development solutions. This acquisition strengthens MGIC's position in the AI-powered low-code development market.
  • In 2021, MGIC acquired low-code application development platform, IPSoft. This acquisition expanded MGIC's product portfolio and reach.

AI-Based Fundamental Rating

  • Rating: 8/10
  • Justification: MGIC has a strong financial performance, a well-positioned product portfolio, and promising growth prospects. However, the company faces competition from larger players and needs to continue to invest in innovation to maintain its competitive edge.

Sources and Disclaimers

  • Sources:
    • MGIC Investor Relations
    • SEC filings
    • Market research reports
  • Disclaimer: This information is provided for educational purposes only and should not be considered investment advice. Please consult with a financial advisor before making any investment decisions.

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization 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 -
Sector Technology Website https://www.magicsoftware.com
Industry Information Technology Services Full time employees 3628
Headquaters -
CEO -
Website https://www.magicsoftware.com
Website https://www.magicsoftware.com
Full time employees 3628

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.

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