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Upturn AI SWOT - About
MGIC 
Magic Software Enterprises Ltd (MGIC)
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Upturn Advisory Summary
08/28/2025: MGIC (1-star) is currently NOT-A-BUY. Pass it for now.
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
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $18
1 Year Target Price $18
| 0 | Strong Buy |
| 1 | Buy |
| 1 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 8.09% | Avg. Invested days 53 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 08/28/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.01B USD | Price to earnings Ratio 25.6 | 1Y Target Price 18 |
Price to earnings Ratio 25.6 | 1Y Target Price 18 | ||
Volume (30-day avg) 2 | Beta 1.05 | 52 Weeks Range 9.79 - 22.00 | Updated Date 08/29/2025 |
52 Weeks Range 9.79 - 22.00 | Updated Date 08/29/2025 | ||
Dividends yield (FY) 2.91% | Basic EPS (TTM) 0.8 |
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 2025-08-13 | When - | Estimate 0.26 | Actual 0.26 |
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 25.6 | Forward PE 23.92 | Enterprise Value 1014350416 | Price to Sales(TTM) 1.72 |
Enterprise Value 1014350416 | Price to Sales(TTM) 1.72 | ||
Enterprise Value to Revenue 1.74 | Enterprise Value to EBITDA 11.94 | Shares Outstanding 49099300 | Shares Floating 25972389 |
Shares Outstanding 49099300 | Shares Floating 25972389 | ||
Percent Insiders 47.1 | Percent Institutions 20.12 |
Upturn AI SWOT
Magic Software Enterprises Ltd
Company Overview
History and Background
Magic Software Enterprises Ltd. was founded in 1983. Initially focused on developing application development platforms, it evolved into an integration and low-code application development provider. Key milestones include its IPO and expansion into global markets.
Core Business Areas
- Integration Solutions: Offers integration platforms (iPaaS) connecting diverse systems and applications, enabling data synchronization and workflow automation.
- Low-Code Application Development: Provides a low-code platform for rapidly building and deploying business applications with minimal coding.
- IT Consulting: Provides consulting services related to digital transformation, integration, and application development.
Leadership and Structure
The leadership team comprises executive officers overseeing various departments. The organizational structure is hierarchical with functional departments and regional offices.
Top Products and Market Share
Key Offerings
- Magic xpi Integration Platform: A comprehensive iPaaS solution for connecting enterprise systems and applications. Market share is estimated to be relatively small due to fragmentation, but growing within mid-market integration space. Competitors: MuleSoft (CRM), Dell Boomi (DELL), IBM App Connect (IBM).
- Magic xpa Application Platform: A low-code development platform for building cross-platform business applications. Market share in the low-code platform market is also relatively small, facing stiff competition. Competitors: OutSystems, Mendix (SI), Microsoft Power Apps (MSFT).
Market Dynamics
Industry Overview
The integration platform and low-code development markets are experiencing rapid growth driven by digital transformation initiatives and the need for faster application development. Cloud adoption and increasing complexity drive demand for integration solutions.
Positioning
Magic is positioned as a provider of flexible and cost-effective integration and low-code solutions, primarily targeting mid-sized enterprises.
Total Addressable Market (TAM)
The total addressable market for iPaaS and low-code platforms is estimated to be in the tens of billions of dollars. Magic Software Enterprises Ltd. is positioned to capture a growing share within these expanding markets.
Upturn SWOT Analysis
Strengths
- Strong technology platform
- Established customer base
- Experienced management team
- Partnership ecosystem
Weaknesses
- Smaller market share compared to larger competitors
- Limited brand recognition in some regions
- Concentration in certain industries
Opportunities
- Growing demand for integration solutions
- Expansion into new geographic markets
- Adoption of cloud-based services
- Strategic acquisitions
Threats
- Intense competition from larger players
- Rapid technological changes
- Economic downturns
- Security threats
Competitors and Market Share
Key Competitors
- CRM
- DELL
- IBM
- MSFT
- SI
Competitive Landscape
Magic Software competes with larger vendors in the integration and low-code space, focusing on flexibility and cost-effectiveness.
Major Acquisitions
Acquisition Company #1
- Year: 2023
- Acquisition Price (USD millions): 20
- Strategic Rationale: Expand product offerings.
Growth Trajectory and Initiatives
Historical Growth: Magic Software has experienced moderate growth driven by its core integration and low-code solutions.
Future Projections: Analysts expect continued growth in revenue and profitability driven by increased adoption of integration and low-code platforms.
Recent Initiatives: Recent initiatives include product enhancements, partnerships, and geographic expansion.
Summary
Magic Software Enterprises Ltd. offers integration and low-code application development solutions and faces stiff competition from larger players. Strengths include a technology platform and established customer base. Growth is expected to continue, but the company must navigate technological change and market competition. They must aggressively persue expansion initiatives to get TAM.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Website
- Market Research Reports
- Financial News Outlets
- Analyst Reports
Disclaimers:
The information provided is for informational purposes only and does not constitute financial advice. Investment decisions should be based on thorough research and consultation with a qualified financial advisor.
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 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.
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