MGIC$27.45
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Powered by LiveAIOverall Analysis
BuyMagic Software Enterprises exhibits a solid fundamental profile with strong growth and profitability, supported by positive long-term thematic trends. Technical indicators are mixed, suggesting potential short-term volatility but an overall positive trend.
Thematic
Magic Software Enterprises is well-positioned to benefit from trends in digital transformation, cloud computing, and application modernization. Its focus on business process integration and enterprise software solutions aligns with growing demand for efficiency and automation.
Fundamental
Magic Software Enterprises demonstrates robust financial health with consistent revenue growth, healthy profitability, and a strong balance sheet. The company is effectively converting revenue into profit and has a manageable debt level.
Technical
The stock is trading above key moving averages, indicating a generally upward trend. However, some short-term oscillators suggest potential overbought conditions or a need for consolidation.
| Factor | Score |
|---|---|
| Digital Transformation | 85 |
| Cloud Computing Adoption | 80 |
| Industry Vertical Specialization | 75 |
| AI and Automation Trends | 70 |
| Global Market Presence | 80 |
| Factor | Score |
|---|---|
| Revenue Growth | 75 |
| Profitability | 70 |
| Earnings Per Share (EPS) | 75 |
| Valuation | 65 |
| Balance Sheet Health | 85 |
| Cash Flow | 80 |
| Factor | Score |
|---|---|
| Trend | 80 |
| Momentum | 50 |
| Volume | 60 |
| Support/Resistance | 75 |
| Performance | 85 |
AI Investing Checklist
Powered by LiveAIBullish Points (7)
Strong Recent Performance
The stock has shown significant positive performance across multiple recent periods: 5D (+0.56%), 1M (+18.56%), 6M (+76.78%), YTD (+85.1%), and 1Y (+92.2%). This indicates strong upward momentum and investor interest.
Favorable P/E Ratio (TTM)
The trailing twelve months (TTM) Price-to-Earnings (P/E) ratio is 37.2, and the P/S ratio is 2.5. While the P/E might seem high, comparing it to industry averages or growth prospects is crucial. The P/S ratio of 2.5 suggests that for every dollar of sales, the market values the company at $2.50, which could be considered reasonable depending on the industry and growth.
Bearish Points (7)
High P/E Ratio (TTM)
The TTM P/E ratio of 37.2 is relatively high, especially when compared to potential sector averages. This suggests the stock may be overvalued and could be susceptible to a price correction if growth expectations are not met.
Slowing Revenue Growth (Year-over-Year)
While recent quarterly revenues are provided, year-over-year revenue growth figures are not directly available. However, the reported revenues show fluctuations (e.g., 2024Q4 revenue of $142.58M vs. 2023Q4 revenue of $137.32M, representing about 3.8% growth), which warrants monitoring for deceleration trends.
Calendar
April 2025
22
Ex-Dividend Date
May 2025
7
Next Dividend Date
August 2025
14
Next Earnings Date
H: $0.25
A: $0.25
L: $0.25
Profile
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.
Seasonals
Price Target
16.00 USD
The 39 analysts offering 1 year price forecasts for MGIC have a max estimate of 16.00 and a min estimate of 16.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
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