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Upturn AI SWOT - About
MGIC 
Magic Software Enterprises Ltd (MGIC)
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Upturn Advisory Summary
10/15/2025: 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
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 5.53% | Avg. Invested days 46 | 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 10/15/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.05B USD | Price to earnings Ratio 26.77 | 1Y Target Price 18 |
Price to earnings Ratio 26.77 | 1Y Target Price 18 | ||
Volume (30-day avg) 2 | Beta 0.93 | 52 Weeks Range 9.82 - 21.69 | Updated Date 10/15/2025 |
52 Weeks Range 9.82 - 21.69 | Updated Date 10/15/2025 | ||
Dividends yield (FY) 2.82% | Basic EPS (TTM) 0.78 |
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 26.77 | 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 20.29 |
Upturn AI SWOT
Magic Software Enterprises Ltd
Company Overview
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.
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 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
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
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 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.
Peer Comparison
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.
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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