How to buy Magic Software Enterprises stock | $16.44

Magic Software Enterprises Ltd is a software-application business based in the US. Magic Software Enterprises shares (MGIC) are listed on the NASDAQ and all prices are listed in US Dollars. Magic Software Enterprises employs 3,039 staff and has a trailing 12-month revenue of around 0.00.

Magic Software Enterprises stock price (NASDAQ: MGIC)

Use our graph to track the performance of MGIC stocks over time.

Magic Software Enterprises shares at a glance

• Key figures

Information last updated 2021-07-31.

Latest market close	$16.44
52-week range	$11.82 - $18.12
50-day moving average	$16.50
200-day moving average	$16.41
Wall St. target price	$20.00
PE ratio	33.5769
Dividend yield	$0.385 (2.19%)
Earnings per share (TTM)	$0.52

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Is it a good time to buy Magic Software Enterprises stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Technical Analysis of Magic Software Enterprises Ltd by TradingView

This chart is not advice or a guarantee of success. Rather, it gauges the real-time recommendations of three popular technical indicators: moving averages, oscillators and pivots. Finder is not responsible for how your stock performs.

Magic Software Enterprises price performance over time

Historical closes compared with the close of $16.44 from 2021-05-28

1 week (2021-07-21)	N/A
1 month (2021-07-01)	0.80%
3 months (2021-04-30)	0.31%
6 months (2021-01-28)	N/A

1 year (2020-07-28)	N/A
2 years (2019-07-28)	N/A
3 years (2018-07-28)	N/A
5 years (2016-07-28)	N/A

Is Magic Software Enterprises under- or over-valued?

Valuing Magic Software Enterprises stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Magic Software Enterprises's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Magic Software Enterprises's P/E ratio

Magic Software Enterprises's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 34x. In other words, Magic Software Enterprises shares trade at around 34x recent earnings.

That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.

Magic Software Enterprises's PEG ratio

Magic Software Enterprises's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 1.08. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.

The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Magic Software Enterprises's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.

Magic Software Enterprises's EBITDA

Magic Software Enterprises's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $59.6 million.

The EBITDA is a measure of a Magic Software Enterprises's overall financial performance and is widely used to measure a its profitability.

Magic Software Enterprises financials

Revenue TTM	$393.3 million
Operating margin TTM	11.48%
Gross profit TTM	$109.6 million
Return on assets TTM	6.7%
Return on equity TTM	11.28%
Profit margin	6.83%
Book value	$5.19
Market capitalisation	$856.2 million

TTM: trailing 12 months

Shorting Magic Software Enterprises shares

There are currently 54,859 Magic Software Enterprises shares held short by investors – that's known as Magic Software Enterprises's "short interest". This figure is 72% up from 31,900 last month.

There are a few different ways that this level of interest in shorting Magic Software Enterprises shares can be evaluated.

Magic Software Enterprises's "short interest ratio" (SIR)

Magic Software Enterprises's "short interest ratio" (SIR) is the quantity of Magic Software Enterprises shares currently shorted divided by the average quantity of Magic Software Enterprises shares traded daily (recently around 38633.098591549). Magic Software Enterprises's SIR currently stands at 1.42. In other words for every 100,000 Magic Software Enterprises shares traded daily on the market, roughly 1420 shares are currently held short.

However Magic Software Enterprises's short interest can also be evaluated against the total number of Magic Software Enterprises shares, or, against the total number of tradable Magic Software Enterprises shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Magic Software Enterprises's short interest could be expressed as 0% of the outstanding shares (for every 100,000 Magic Software Enterprises shares in existence, roughly 0 shares are currently held short) or 0.0021% of the tradable shares (for every 100,000 tradable Magic Software Enterprises shares, roughly 2 shares are currently held short).

Such a low SIR usually points to an optimistic outlook for the share price, with fewer people currently willing to bet against Magic Software Enterprises.

Find out more about how you can short Magic Software Enterprises stock.

Magic Software Enterprises share dividends

Dividend payout ratio: 63.11% of net profits

Recently Magic Software Enterprises has paid out, on average, around 63.11% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 2.19% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Magic Software Enterprises shareholders could enjoy a 2.19% return on their shares, in the form of dividend payments. In Magic Software Enterprises's case, that would currently equate to about $0.385 per share.

Magic Software Enterprises's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

Magic Software Enterprises's most recent dividend payout was on 6 April 2021. The latest dividend was paid out to all shareholders who bought their shares by 23 March 2021 (the "ex-dividend date").

Have Magic Software Enterprises's shares ever split?

Magic Software Enterprises's shares were split on a 3:1 basis on 13 February 2000. So if you had owned 1 share the day before before the split, the next day you'd have owned 3 shares. This wouldn't directly have changed the overall worth of your Magic Software Enterprises shares – just the quantity. However, indirectly, the new 66.7% lower share price could have impacted the market appetite for Magic Software Enterprises shares which in turn could have impacted Magic Software Enterprises's share price.

Magic Software Enterprises share price volatility

Over the last 12 months, Magic Software Enterprises's shares have ranged in value from as little as $11.8217 up to $18.1227. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Magic Software Enterprises's is 1.3814. This would suggest that Magic Software Enterprises's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

Magic Software Enterprises overview

Magic Software Enterprises Ltd. provides proprietary application development, business process integration, vertical software solutions, and information technologies (IT) outsourcing software services in Israel and internationally. The company's Software Services segment develops, markets, sells, and supports application platform, software applications, and 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 offers proprietary application platforms, such as Magic xpa for developing and deploying business applications; AppBuilder for building, deploying, and maintaining high-end and mainframe-grade business applications; Magic xpi for application integration; Magic xpc, a hybrid integration platform as a service; Magic SmartUX, a mobile development application platform; and FactoryEye for virtualization of production data. It also provides vertical software solutions comprising Clicks, a software solution for healthcare providers; Leap, a software solution for business support systems; Hermes Solution, a packaged software solution for managing air cargo ground handling; HR Pulse, a customized single-tenant software as a service tool; and MBS Solution, a proprietary system for managing TV broadcast management. In addition, the company provides software maintenance, support, training, and consulting services.

Frequently asked questions

What percentage of Magic Software Enterprises is owned by insiders or institutions?
Currently 46.684% of Magic Software Enterprises shares are held by insiders and 23.93% by institutions. How many people work for Magic Software Enterprises?
Latest data suggests 3,039 work at Magic Software Enterprises. When does the fiscal year end for Magic Software Enterprises?
Magic Software Enterprises's fiscal year ends in December. Where is Magic Software Enterprises based?
Magic Software Enterprises's address is: Terminal Center, Or Yehuda, Israel, 60375 01 What is Magic Software Enterprises's ISIN number?
Magic Software Enterprises's international securities identification number is: IL0010823123 What is Magic Software Enterprises's CUSIP number?
Magic Software Enterprises's Committee on Uniform Securities Identification Procedures number is: 559166103