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Upturn AI SWOT - About
MGIC 
Magic Software Enterprises Ltd (MGIC)
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Upturn Advisory Summary
09/12/2025: 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 09/12/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 1.01B USD | Price to earnings Ratio 25.86 | 1Y Target Price 18 |
Price to earnings Ratio 25.86 | 1Y Target Price 18 | ||
Volume (30-day avg) 2 | Beta 0.97 | 52 Weeks Range 9.96 - 22.00 | Updated Date 09/14/2025 |
52 Weeks Range 9.96 - 22.00 | Updated Date 09/14/2025 | ||
Dividends yield (FY) 2.90% | 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 25.86 | Forward PE 23.92 | Enterprise Value 1022005503 | Price to Sales(TTM) 1.73 |
Enterprise Value 1022005503 | Price to Sales(TTM) 1.73 | ||
Enterprise Value to Revenue 1.75 | Enterprise Value to EBITDA 12.03 | 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 low-code application development platforms, it expanded its offerings through acquisitions and partnerships. Over time, it evolved into a global provider of end-to-end integration and application development solutions.
Core Business Areas
- Integration Solutions: Provides enterprise integration platform (iPaaS) solutions, enabling organizations to connect various systems and applications, on-premises and in the cloud. This includes data mapping, business process orchestration, and API management.
- Application Development: Offers a low-code application development platform, allowing businesses to create and deploy custom applications quickly and efficiently. This includes mobile, web, and desktop applications.
- IT Outsourcing and Consulting: Provides IT outsourcing, IT consulting, and professional services to aid the client's digital transformation.
Leadership and Structure
The leadership team consists of experienced executives in the software industry. The organizational structure includes departments for sales, marketing, research and development, customer support, and finance. As of the last update, Guy Bernstein is the CEO.
Top Products and Market Share
Key Offerings
- Magic xpi Integration Platform: A comprehensive integration platform that connects various enterprise systems and applications. Competitors include Dell Boomi, MuleSoft (Salesforce), and Informatica. Market share data specific to Magic xpi alone is challenging to pinpoint precisely, but Magic software has a small but growing share in the overall iPaaS market.
- Magic App Builder: A low-code application development platform designed for rapid development and deployment of business applications. Competitors include OutSystems, Mendix (Siemens), and Microsoft Power Apps. No specific market share data available but growing, focusing on specific industries. Revenue attributable to App Builder is a growing percentage of total company revenue.
Market Dynamics
Industry Overview
The integration platform (iPaaS) and low-code application development markets are experiencing rapid growth, driven by increasing digitalization and the need for agile application development. These markets are characterized by intense competition and rapid technological advancements.
Positioning
Magic Software Enterprises Ltd is positioned as a provider of flexible and cost-effective integration and application development solutions, targeting small to medium-sized enterprises (SMEs) and large organizations. Its competitive advantages include its ease of use, rapid deployment capabilities, and focus on customer success.
Total Addressable Market (TAM)
The combined TAM for iPaaS and low-code application development is estimated to be over $40 billion. Magic Software Enterprises Ltd is positioned to capture a larger share of this TAM through strategic partnerships and product innovation.
Upturn SWOT Analysis
Strengths
- Strong product portfolio
- Established customer base
- Experienced management team
- Low-code platform reduces development time and costs
- Global presence
Weaknesses
- Smaller market share compared to larger competitors
- Dependence on partnerships for some sales channels
- Brand recognition is lower than competitors
Opportunities
- Growing demand for integration solutions
- Expansion into new geographies
- Increasing adoption of low-code platforms
- Strategic acquisitions to enhance product offerings
Threats
- Intense competition from established players
- Rapid technological changes
- Economic downturns affecting IT spending
- Security vulnerabilities in software platforms
Competitors and Market Share
Key Competitors
- CRM
- INTC
- ORCL
- SAP
Competitive Landscape
Magic Software Enterprises Ltd competes with larger, well-established players in the integration and application development markets. Its competitive advantages include its ease of use, rapid deployment capabilities, and focus on customer success. The main disadvantage is that it is smaller than its competitors and has lower brand recognition.
Major Acquisitions
PowWow Mobile
- Year: 2019
- Acquisition Price (USD millions): 13.3
- Strategic Rationale: The acquisition of PowWow Mobile aimed to enhance Magic's low-code platform with mobile application development capabilities.
Roshtov Software Industries
- Year: 2021
- Acquisition Price (USD millions): 38
- Strategic Rationale: The acquisition of Roshtov Software Industries enhance their application development capabilities
Growth Trajectory and Initiatives
Historical Growth: The company has experienced steady growth in revenue and earnings over the past few years, driven by increasing demand for its integration and application development solutions.
Future Projections: Analysts project continued growth for Magic Software Enterprises Ltd, driven by the expansion of the iPaaS and low-code markets. Continued growth may depend on the performance of its App Builder platform.
Recent Initiatives: Strategic acquisitions, partnerships, and product enhancements are among the recent initiatives undertaken by Magic Software Enterprises Ltd.
Summary
Magic Software is a growing player in the integration and low-code development space. It has a solid product portfolio and a history of steady growth. Magic Software Enterprises Ltd faces significant competition from larger companies. Continued growth will depend on successful product innovation and market penetration, especially in US markets.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings
- Analyst Reports
- Industry Research Reports
Disclaimers:
The information provided is for informational purposes only and does not constitute financial advice. Market data is dynamic and subject to change.
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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