Magic Software Enterprises Stock Buy Hold or Sell Recommendation

MGIC Stock  USD 11.84  0.20  1.66%   
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Magic Software Enterprises is 'Strong Hold'. Macroaxis provides Magic Software buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding MGIC positions.
  
Check out Magic Software Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
In addition, we conduct extensive research on individual companies such as Magic and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Magic Software Enterprises. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.

Execute Magic Software Buy or Sell Advice

The Magic recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Magic Software Enterprises. Macroaxis does not own or have any residual interests in Magic Software Enterprises or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Magic Software's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Magic SoftwareBuy Magic Software
Strong Hold

Market Performance

WeakDetails

Volatility

Not too volatileDetails

Hype Condition

StaleDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Very LowDetails

Economic Sensitivity

Slowly supersedes the marketDetails

Investor Sentiment

AlarmedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Magic Software Enterprises has a Risk Adjusted Performance of 0.0362, Jensen Alpha of 0.0627, Total Risk Alpha of 0.0083, Sortino Ratio of 0.0284 and Treynor Ratio of 0.1922
Our investment recommendation tool can cross-verify current analyst consensus on Magic Software Enterprises and to analyze the entity potential to grow in the current economic cycle. To make sure Magic Software Enter is not overpriced, please verify all Magic Software Enterprises fundamentals, including its shares owned by insiders, revenue, total debt, as well as the relationship between the price to earning and net income . Given that Magic Software Enter has a price to earning of 35.52 X, we recommend you to check Magic Software market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your last-minute risk tolerance and investing horizon.

Magic Software Trading Alerts and Improvement Suggestions

Magic Software Enter is unlikely to experience financial distress in the next 2 years
About 47.0% of the company outstanding shares are owned by corporate insiders
Latest headline from news.google.com: Magic Software Enterprises Raised to Strong-Buy at StockNews.com - MarketBeat

Magic Software Returns Distribution Density

The distribution of Magic Software's historical returns is an attempt to chart the uncertainty of Magic Software's future price movements. The chart of the probability distribution of Magic Software daily returns describes the distribution of returns around its average expected value. We use Magic Software Enterprises price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Magic Software returns is essential to provide solid investment advice for Magic Software.
Mean Return
0.08
Value At Risk
-2.72
Potential Upside
4.59
Standard Deviation
2.16
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Magic Software historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Magic Stock Institutional Investors

Shares
Nuveen Asset Management, Llc2024-09-30
73 K
Eagle Global Advisors, Llc2024-09-30
72.8 K
Yelin Lapidot Holdings Management Ltd2024-09-30
62.1 K
Geode Capital Management, Llc2024-09-30
55.5 K
Swiss National Bank2024-09-30
53.4 K
Ghp Investment Advisors, Inc.2024-09-30
48.6 K
Marshall Wace Asset Management Ltd2024-09-30
40.8 K
Jane Street Group Llc2024-06-30
28.9 K
Tidal Investments Llc.2024-09-30
28.9 K
Clal Insurance Enterprises Holdings Ltd2024-09-30
3.4 M
Phoenix Financial Ltd2024-09-30
680.2 K
Note, although Magic Software's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Magic Software Cash Flow Accounts

201920202021202220232024 (projected)
Change In Cash(5.2M)6.2M(37K)(5.0M)22.9M24.0M
Free Cash Flow40.4M46.2M35.9M41.9M64.2M67.4M
Depreciation14.0M13.9M14.7M15.5M20.6M21.6M
Other Non Cash Items1.9M(70K)533K(3.8M)561K407.2K
Capital Expenditures5.5M6.1M4.6M7.7M4.8M3.5M
Net Income25.6M30.1M34.9M46.5M37.0M38.9M
End Period Cash Flow81.9M88.1M88.1M83.1M105.9M111.2M
Change To Inventory2.2M(7.7M)8.2M6.7M7.7M8.1M
Dividends Paid15.0M12.5M21.8M24.8M(30.8M)(29.3M)
Investments12.7M13.0M(5.4M)(27.3M)(34.8M)(33.1M)
Net Borrowings(12.7M)317K11.1M16.4M18.8M19.8M
Change To Netincome3.6M3.2M3.6M5.9M6.8M3.5M

Magic Software Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Magic Software or Software sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Magic Software's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Magic stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
0.06
β
Beta against Dow Jones0.37
σ
Overall volatility
2.16
Ir
Information ratio 0.02

Magic Software Volatility Alert

Magic Software Enterprises has relatively low volatility with skewness of 0.89 and kurtosis of 0.81. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Magic Software's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Magic Software's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Magic Software Fundamentals Vs Peers

Comparing Magic Software's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Magic Software's direct or indirect competition across all of the common fundamentals between Magic Software and the related equities. This way, we can detect undervalued stocks with similar characteristics as Magic Software or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Magic Software's fundamental indicators could also be used in its relative valuation, which is a method of valuing Magic Software by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Magic Software to competition
FundamentalsMagic SoftwarePeer Average
Return On Equity0.14-0.31
Return On Asset0.0673-0.14
Profit Margin0.07 %(1.27) %
Operating Margin0.11 %(5.51) %
Current Valuation573.95 M16.62 B
Shares Outstanding49.1 M571.82 M
Shares Owned By Insiders47.09 %10.09 %
Shares Owned By Institutions25.91 %39.21 %
Number Of Shares Shorted129.16 K4.71 M
Price To Earning35.52 X28.72 X
Price To Book2.08 X9.51 X
Price To Sales1.11 X11.42 X
Revenue535.05 M9.43 B
Gross Profit155.35 M27.38 B
EBITDA82.27 M3.9 B
Net Income37.03 M570.98 M
Cash And Equivalents92.32 M2.7 B
Cash Per Share1.88 X5.01 X
Total Debt108.72 M5.32 B
Debt To Equity0.27 %48.70 %
Current Ratio2.31 X2.16 X
Book Value Per Share5.42 X1.93 K
Cash Flow From Operations68.99 M971.22 M
Short Ratio0.70 X4.00 X
Earnings Per Share0.69 X3.12 X
Price To Earnings To Growth1.08 X4.89 X
Target Price15.0
Number Of Employees3.63 K18.84 K
Beta1.08-0.15
Market Capitalization581.34 M19.03 B
Total Asset522.41 M29.47 B
Retained Earnings92.52 M9.33 B
Working Capital114.93 M1.48 B

Magic Software Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Magic . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Magic Software Buy or Sell Advice

When is the right time to buy or sell Magic Software Enterprises? Buying financial instruments such as Magic Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.

Use Investing Ideas to Build Portfolios

In addition to having Magic Software in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Warren Buffett Holdings
Warren Buffett Holdings Theme
A long-term portfolio of publicly-traded stocks on US exchanges that are owned by Warren Buffett's holding company Berkshire Hathaway. The Warren Buffett Holdings theme has 45 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Warren Buffett Holdings Theme or any other thematic opportunities.
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When determining whether Magic Software Enter offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Magic Software's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Magic Software Enterprises Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Magic Software Enterprises Stock:
Check out Magic Software Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Magic Software. If investors know Magic will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Magic Software listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.10)
Earnings Share
0.69
Revenue Per Share
10.659
Quarterly Revenue Growth
(0.08)
Return On Assets
0.0673
The market value of Magic Software Enter is measured differently than its book value, which is the value of Magic that is recorded on the company's balance sheet. Investors also form their own opinion of Magic Software's value that differs from its market value or its book value, called intrinsic value, which is Magic Software's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Magic Software's market value can be influenced by many factors that don't directly affect Magic Software's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Magic Software's value and its price as these two are different measures arrived at by different means. Investors typically determine if Magic Software is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Magic Software's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.