Magic Software (MGIC) Fundamental Analysis: Revenue, Earnings & Valuation

7.24 / 10

Outperform

Magic Software demonstrates solid fundamentals with strengths in revenue, net income, and asset efficiency, but carries risks in inventory turnover and days sales outstanding. The fundamental score of 7.2/10 and positive factors like PB-ROE and Asset-MV support potential upside, while longer collection periods and slow inventory rotation temper enthusiasm.

Analysis Checks(9/10)

Revenue-MV

Value-0.26

Score2/3

Weight7.97%

1M Return7.23%

Days sales outstanding

Value88.02

Score0/3

Weight-1.58%

1M Return-1.40%

Profit-MV

Value0.46

Score2/3

Weight5.96%

1M Return6.09%

Net income-Revenue

Value-0.70

Score3/3

Weight5.73%

1M Return5.64%

PB-ROE

Value1.24

Score3/3

Weight13.96%

1M Return13.67%

Rate of return on total assets (%)

Value8.76

Score3/3

Weight4.65%

1M Return3.53%

Annualized return on total assets (%)

Value11.69

Score3/3

Weight4.65%

1M Return3.53%

Asset-MV

Value-0.50

Score3/3

Weight50.61%

1M Return27.51%

Inventory turnover days

Value232.28

Score3/3

Weight1.63%

1M Return1.44%

Cash-MV

Value-0.07

Score2/3

Weight6.42%

1M Return6.93%

Is MGIC undervalued or overvalued?

MGIC scores 7.24/10 on fundamentals and holds a Discounted valuation at present. Backed by its 9.72% ROE, 7.85% net margin, 26.90 P/E ratio, 3.57 P/B ratio, and 17.14% earnings growth, these metrics solidify its Outperform investment rating.