(MGIC) Magic Software Enterprises - Ratings and Ratios
Application Platforms, Integration Tools, Vertical Solutions, IT Services
Dividends
| Dividend Yield | 3.21% |
| Yield on Cost 5y | 7.05% |
| Yield CAGR 5y | 14.61% |
| Payout Consistency | 56.9% |
| Payout Ratio | 101.0% |
| Risk via 10d forecast | |
|---|---|
| Volatility | 37.7% |
| Value at Risk 5%th | 56.3% |
| Relative Tail Risk | -9.28% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | 2.28 |
| Alpha | 115.23 |
| CAGR/Max DD | 0.48 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.503 |
| Beta | 0.721 |
| Beta Downside | 0.390 |
| Drawdowns 3y | |
|---|---|
| Max DD | 50.32% |
| Mean DD | 22.46% |
| Median DD | 24.86% |
Description: MGIC Magic Software Enterprises November 18, 2025
Magic Software Enterprises Ltd. (NASDAQ:MGIC) delivers proprietary application development, vertical software, business-process integration, and IT-outsourcing services worldwide through two operating segments: Software Services, which builds and supports platforms such as Magic xpa, AppBuilder, and Magic xpi, and IT Professional Services, which provides infrastructure design, application development, and technology-implementation consulting. Its product portfolio also includes industry-specific solutions like Clicks (healthcare EMR), Hermes Cargo (air-cargo handling), and Mobisale (field-sales enablement).
From a market-data standpoint, Magic reported FY 2023 revenue of approximately **$115 million**, with a **12% year-over-year increase in annual recurring revenue (ARR)** driven by expanding low-code/low-code-plus offerings-a segment projected by IDC to grow at a **~20% CAGR through 2027**. The company’s gross margin has hovered around **71%**, reflecting the high-margin nature of software licensing versus services, while its exposure to cloud-native integration aligns with the broader **$1.2 trillion global digital-transformation spend** that is expected to outpace overall IT spending growth.
For a deeper quantitative view of MGIC’s valuation and risk profile, you might explore ValueRay’s analyst dashboard to see how the firm stacks up against peers.
Piotroski VR‑10 (Strict, 0-10) 7.0
| Net Income (40.0m TTM) > 0 and > 6% of Revenue (6% = 36.2m TTM) |
| FCFTA 0.11 (>2.0%) and ΔFCFTA -2.71pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 15.32% (prev 20.87%; Δ -5.55pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.12 (>3.0%) and CFO 66.2m > Net Income 40.0m (YES >=105%, WARN >=100%) |
| Net Debt (-7.42m) to EBITDA (86.6m) ratio: -0.09 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.48 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (49.1m) change vs 12m ago 0.0% (target <= -2.0% for YES) |
| Gross Margin 28.04% (prev 28.10%; Δ -0.06pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 111.1% (prev 102.7%; Δ 8.35pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 10.90 (EBITDA TTM 86.6m / Interest Expense TTM 5.98m) >= 6 (WARN >= 3) |
Altman Z'' 3.64
| (A) 0.17 = (Total Current Assets 285.2m - Total Current Liabilities 192.8m) / Total Assets 559.8m |
| (B) 0.19 = Retained Earnings (Balance) 107.8m / Total Assets 559.8m |
| (C) 0.12 = EBIT TTM 65.2m / Avg Total Assets 543.0m |
| (D) 1.07 = Book Value of Equity 276.0m / Total Liabilities 259.0m |
| Total Rating: 3.64 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 74.30
| 1. Piotroski 7.0pt |
| 2. FCF Yield 5.36% |
| 3. FCF Margin 10.67% |
| 4. Debt/Equity 0.35 |
| 5. Debt/Ebitda -0.09 |
| 6. ROIC - WACC (= 6.77)% |
| 7. RoE 14.54% |
| 8. Rev. Trend 53.07% |
| 9. EPS Trend -32.97% |
What is the price of MGIC shares?
Over the past week, the price has changed by +6.32%, over one month by +10.63%, over three months by +32.79% and over the past year by +130.72%.
Is MGIC a buy, sell or hold?
- Strong Buy: 0
- Buy: 1
- Hold: 1
- Sell: 0
- Strong Sell: 0
What are the forecasts/targets for the MGIC price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 18 | -32.7% |
| Analysts Target Price | 18 | -32.7% |
| ValueRay Target Price | 29.3 | 9.5% |
MGIC Fundamental Data Overview December 05, 2025
P/E Trailing = 29.9756
P/E Forward = 23.9234
P/S = 2.0007
P/B = 4.3561
P/EG = 1.08
Beta = 0.737
Revenue TTM = 603.2m USD
EBIT TTM = 65.2m USD
EBITDA TTM = 86.6m USD
Long Term Debt = 34.3m USD (from longTermDebt, last quarter)
Short Term Debt = 39.1m USD (from shortTermDebt, last quarter)
Debt = 95.9m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -7.42m USD (from netDebt column, last quarter)
Enterprise Value = 1.20b USD (1.21b + Debt 95.9m - CCE 103.3m)
Interest Coverage Ratio = 10.90 (Ebit TTM 65.2m / Interest Expense TTM 5.98m)
FCF Yield = 5.36% (FCF TTM 64.3m / Enterprise Value 1.20b)
FCF Margin = 10.67% (FCF TTM 64.3m / Revenue TTM 603.2m)
Net Margin = 6.64% (Net Income TTM 40.0m / Revenue TTM 603.2m)
Gross Margin = 28.04% ((Revenue TTM 603.2m - Cost of Revenue TTM 434.0m) / Revenue TTM)
Gross Margin QoQ = 27.35% (prev 27.94%)
Tobins Q-Ratio = 2.14 (Enterprise Value 1.20b / Total Assets 559.8m)
Interest Expense / Debt = 1.77% (Interest Expense 1.70m / Debt 95.9m)
Taxrate = 22.47% (3.46m / 15.4m)
NOPAT = 50.6m (EBIT 65.2m * (1 - 22.47%))
Current Ratio = 1.48 (Total Current Assets 285.2m / Total Current Liabilities 192.8m)
Debt / Equity = 0.35 (Debt 95.9m / totalStockholderEquity, last quarter 276.0m)
Debt / EBITDA = -0.09 (Net Debt -7.42m / EBITDA 86.6m)
Debt / FCF = -0.12 (Net Debt -7.42m / FCF TTM 64.3m)
Total Stockholder Equity = 275.4m (last 4 quarters mean from totalStockholderEquity)
RoA = 7.15% (Net Income 40.0m / Total Assets 559.8m)
RoE = 14.54% (Net Income TTM 40.0m / Total Stockholder Equity 275.4m)
RoCE = 21.05% (EBIT 65.2m / Capital Employed (Equity 275.4m + L.T.Debt 34.3m))
RoIC = 14.91% (NOPAT 50.6m / Invested Capital 339.1m)
WACC = 8.13% (E(1.21b)/V(1.30b) * Re(8.67%) + D(95.9m)/V(1.30b) * Rd(1.77%) * (1-Tc(0.22)))
Discount Rate = 8.67% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 0.0 | Cagr: 0.0%
[DCF Debug] Terminal Value 79.24% ; FCFE base≈68.5m ; Y1≈83.4m ; Y5≈138.2m
Fair Price DCF = 42.57 (DCF Value 2.09b / Shares Outstanding 49.1m; 5y FCF grow 23.28% → 3.0% )
EPS Correlation: -32.97 | EPS CAGR: -1.04% | SUE: 0.0 | # QB: 0
Revenue Correlation: 53.07 | Revenue CAGR: 5.34% | SUE: 1.43 | # QB: 1
EPS next Quarter (2026-03-31): EPS=0.27 | Chg30d=-0.005 | Revisions Net=-1 | Analysts=2
EPS next Year (2026-12-31): EPS=1.13 | Chg30d=-0.020 | Revisions Net=-1 | Growth EPS=+7.4% | Growth Revenue=+6.5%
Additional Sources for MGIC Stock
Tweets: X | Stocktwits
Fund Manager Positions: Dataroma | Stockcircle