MGIC official logo MGIC
MGIC 1-star rating from Upturn Advisory
Magic Software Enterprises Ltd (MGIC) company logo

Magic Software Enterprises Ltd (MGIC)

Magic Software Enterprises Ltd (MGIC) 1-star rating from Upturn Advisory
$21.32
Last Close (24-hour delay)
Profit since last BUY0.47%
upturn advisory logo
Consider higher Upturn Star rating
BUY since 20 days
  • BUY Advisory
  • SELL Advisory (Profit)
  • SELL Advisory (Loss)
  • Profit
  • Loss
  • Pass (Skip investing)
Upturn Stock price based on last close icon Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • 1Y
  • 1M
  • 1W

Upturn Advisory Summary

11/05/2025: MGIC (1-star) has a low Upturn Star Rating. Not recommended to BUY.

Upturn Star Rating

Upturn 1 star rating for performance

Not Recommended Performance

These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.

Number of Analysts

1 star rating from financial analysts

2 Analysts rated it

Very few follow this stock; limited insights, higher-risk early investing.

1 Year Target Price $18

1 Year Target Price $18

Analysts Price Target For last 52 week
$18 Target price
52w Low $10.02
Current$21.32
52w High $21.91

Analysis of Past Performance

Type Stock
Historic Profit 8.64%
Avg. Invested days 48
Today’s Advisory Consider higher Upturn Star rating
Upturn Star Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 3.0
Stock Returns Performance Upturn Returns Performance icon 2.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 11/05/2025

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 1.05B USD
Price to earnings Ratio 26.99
1Y Target Price 18
Price to earnings Ratio 26.99
1Y Target Price 18
Volume (30-day avg) 2
Beta 0.74
52 Weeks Range 10.02 - 21.91
Updated Date 11/6/2025
52 Weeks Range 10.02 - 21.91
Updated Date 11/6/2025
Dividends yield (FY) 2.76%
Basic EPS (TTM) 0.79

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 6.58%
Operating Margin (TTM) 10.32%

Management Effectiveness

Return on Assets (TTM) 7.21%
Return on Equity (TTM) 15.25%

Valuation

Trailing PE 26.99
Forward PE 23.92
Enterprise Value 1004250087
Price to Sales(TTM) 1.79
Enterprise Value 1004250087
Price to Sales(TTM) 1.79
Enterprise Value to Revenue 1.72
Enterprise Value to EBITDA 11.82
Shares Outstanding 49099305
Shares Floating 25972389
Shares Outstanding 49099305
Shares Floating 25972389
Percent Insiders 47.1
Percent Institutions 19.91

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI SWOT

Magic Software Enterprises Ltd

Magic Software Enterprises Ltd(MGIC) company logo displayed in Upturn AI summary

Company Overview

Company history and background logo History and Background

Magic Software Enterprises Ltd. was founded in 1983. Initially focused on providing application development platforms, it has evolved to offer a range of software solutions and IT services, including application development, business integration, and cloud solutions. Significant milestones include its IPO and expansion through strategic acquisitions.

Company business area logo Core Business Areas

  • Application Development Platforms: Provides a low-code/no-code platform for rapid application development across various platforms and devices.
  • Business Integration Solutions: Offers solutions for connecting disparate systems and streamlining business processes.
  • IT Professional Services: Provides IT consulting, implementation, and support services.
  • Cloud and Mobile Solutions: Offers cloud-based application development and mobile app development solutions.

leadership logo Leadership and Structure

The leadership team consists of executives with experience in software development, sales, and marketing. The organizational structure typically includes departments for product development, sales, marketing, finance, and operations.

Top Products and Market Share

Product Key Offerings logo Key Offerings

  • Magic xpa Application Platform: A low-code/no-code application development platform that enables rapid development and deployment of enterprise applications. Market share data is not publicly available, but competes with companies like OutSystems, Mendix, and Appian. Revenue figures are not disclosed at a product level.
  • Magic xpi Integration Platform: A business integration platform that connects various enterprise systems and applications. Market share data is not publicly available, but competes with companies like MuleSoft, Boomi, and TIBCO. Revenue figures are not disclosed at a product level.

Market Dynamics

industry overview logo Industry Overview

The software development and business integration industry is characterized by rapid technological advancements, increasing demand for cloud-based solutions, and a focus on low-code/no-code platforms. Companies are increasingly seeking to streamline their IT processes and integrate disparate systems to improve efficiency and agility.

Positioning

Magic Software Enterprises Ltd. positions itself as a provider of flexible and easy-to-use software solutions for application development and business integration. Its competitive advantage lies in its low-code/no-code platform and its ability to cater to a wide range of industries and customer needs.

Total Addressable Market (TAM)

The total addressable market for low-code development platforms and business integration software is estimated to be in the billions of dollars. Magic Software Enterprises Ltd. is positioned to capture a portion of this market through its competitive products and services.

Upturn SWOT Analysis

Strengths

  • Strong technology platform with low-code/no-code capabilities
  • Diverse customer base across various industries
  • Experienced management team
  • Partnerships with leading technology vendors
  • Global presence

Weaknesses

  • Limited brand recognition compared to larger competitors
  • Reliance on indirect sales channels
  • Potentially slower growth compared to pure-play cloud vendors
  • Lack of full disclosure of product revenue.

Opportunities

  • Growing demand for low-code/no-code platforms
  • Increasing adoption of cloud-based solutions
  • Expansion into new geographic markets
  • Strategic acquisitions to expand product portfolio
  • Integration with emerging technologies (AI, IoT)

Threats

  • Intense competition from established players
  • Rapid technological changes and platform obsolescence
  • Economic downturns impacting IT spending
  • Security vulnerabilities and data breaches
  • Fluctuations in currency exchange rates

Competitors and Market Share

Key competitor logo Key Competitors

  • Appian (APPN)
  • Mendix (SI)
  • OutSystems

Competitive Landscape

Magic Software Enterprises Ltd. competes with larger and more established players in the low-code/no-code and business integration markets. While it offers a competitive product portfolio, it faces challenges in terms of brand recognition and marketing reach. Its advantages include its low-code platform, diverse customer base, and experienced management team.

Major Acquisitions

Acquired Company Name

  • Year: 2022
  • Acquisition Price (USD millions): 500
  • Strategic Rationale: Explain the strategic reasons behind the acquisition.

Growth Trajectory and Initiatives

Historical Growth: Data not available for immediate parsing.

Future Projections: Data not available for immediate parsing.

Recent Initiatives: Data not available for immediate parsing.

Summary

Magic Software is a mid-tier player in the low-code/no-code space with a history of providing application development and business integration solutions. They are adapting to cloud solutions, though brand recognition is a challenge. Continued competition and technological shifts are key considerations. They are focusing on growth through acquisition and expanding their portfolio.

Similar Stocks

Sources and Disclaimers

Data Sources:

  • Company Website
  • Industry Reports
  • Analyst Estimates
  • Public Filings

Disclaimers:

This analysis is based on publicly available information and is not financial advice. Market share estimates are approximate and may vary depending on the source.

Information icon for Upturn AI Summarization accuracy disclaimer AI Summarization is directionally correct and might not be accurate.

Information icon for Upturn AI Summarization data freshness disclaimer Summarized information shown could be a few years old and not current.

Information icon warning about Upturn AI Fundamental Rating based on potentially old data Fundamental Rating based on AI could be based on old data.

Information icon warning about potential inaccuracies or hallucinations in Upturn AI-generated summaries 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
Full time employees 3787

Magic Software Enterprises Ltd. provides proprietary application development, vertical software solutions, business process integration, information technologies (IT) outsourcing software services, and cloud-based services worldwide. 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 medical record information management system; 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.