Magyar Bancorp's 23% CAGR Over 5 Years: An Analysis of Shareholder Returns and EPS Growth

Magyar Bancorp's (NASDAQ:MGYR) stock has risen 162% over the last five years, with a 23% CAGR for shareholders. However, the share price growth is lower than the 38% annual increase in earnings per share (EPS) during the same period. The stock's P/E ratio is 11.31, suggesting market apprehension. The total shareholder return over the last five years is 183%, exceeding the share price return due to dividend payments.

July 02, 2025

Magyar Bancorp, Inc. (NASDAQ: MGYR), a mid-tier stock holding company, has experienced significant growth over the last five years. The stock has risen by 162%, with a compound annual growth rate (CAGR) of 23% for shareholders. However, this growth in share price has lagged behind the 38% annual increase in earnings per share (EPS) over the same period [1].

Despite the robust earnings growth, the stock's price-to-earnings (P/E) ratio stands at 11.31, indicating market apprehension. This suggests that investors are cautious about the stock's valuation, potentially due to concerns over future growth prospects or other risk factors. The total shareholder return over the last five years has been 183%, surpassing the share price return by a significant margin. This is largely attributed to dividend payments, which have contributed to the overall return for shareholders [1].

Technical analysis of MGYR's stock price provides additional insights. The stock has been in a narrow and strong rising trend in the short term, with expectations of further increases. The stock is expected to rise by 11.23% over the next three months, with a 90% probability of holding a price between $18.89 and $19.59 at the end of this period [1]. The stock has shown a general buy signal, with the short-term moving average above the long-term average, but there are also mixed signals from the 3-month Moving Average Convergence Divergence (MACD) and a sell signal from a pivot top point [1].

Support levels for MGYR are at $16.61, where an upwards reaction can be expected. The stock's risk is considered very low, with controlled movements and good liquidity. The recommended stop-loss is at $16.55, reflecting the stock's low daily movements [1].

For the upcoming trading day on August 22, 2025, MGYR is expected to open at $17.24 and move between $16.98 and $17.32, with a possible trading interval of +/-$0.336 (+/-1.98%) up or down from the last closing price [1]. The stock is closer to resistance from accumulated volume at $17.25 than support at $16.61, making the trading risk/reward intra-day less attractive.

References:
[1] https://stockinvest.us/stock/MGYR
[2] https://www.quiverquant.com/stock/MGYR/institutions/