MAGIC SOFTWARE ENTERPRISES Reports Fourth Quarter FY2022 Earnings Results
March 20, 2023
Earnings Overview
On March 9, 2023, MAGIC SOFTWARE ENTERPRISES ($NASDAQ:MGIC) revealed their financial performance for the fourth quarter of FY2022, which concluded on December 31, 2022. Total revenue had increased by 54.7% from the previous year, amounting to USD 10.1 million. Net income experienced an uplift of 10.6% over the same period, totalling USD 147.2 million.
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About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for MGIC. More…
| Total Revenues | Net Income | Net Margin |
| 566.79 | 38.77 | 7.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for MGIC. More…
| Operations | Investing | Financing |
| 49.52 | -27.34 | -18.35 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for MGIC. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 510.97 | 205.7 | 5.37 |
Key Ratios Snapshot
Some of the financial key ratios for MGIC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 20.3% | 22.1% | 10.8% |
| FCF Margin | ROE | ROA |
| 7.4% | 14.9% | 7.5% |
Stock Price
MAGIC SOFTWARE ENTERPRISES reported its fourth quarter FY2022 earnings results on Thursday, revealing a decrease in stock prices. The stock opened at $14.8 before closing at $14.4, down 1.4% from the prior closing price of $14.6. This marks a decrease in stock prices for the company that has been on an upward trend for the past few quarters. Despite the lower stock prices, MAGIC SOFTWARE ENTERPRISES reported strong financial results for the fourth quarter, including increased revenue and profits. This increase in operating income and gross margin demonstrate that MAGIC SOFTWARE ENTERPRISES is continuing to be successful, even with the lower stock prices.
MAGIC SOFTWARE ENTERPRISES also announced plans to invest in new products and services, as well as expansion into new markets. These growth investments are expected to help boost their stock prices in the near future, by creating new sources of revenue for the company. With the company’s plans to invest in new products and services and expand into new markets, they remain a strong competitor in the software industry. Live Quote…
Analysis
At GoodWhale, we provide comprehensive analysis of financial and business aspects of investments so that you can make informed decisions regarding your investments. In order to evaluate MAGIC SOFTWARE ENTERPRISES’ fundamentals, we examined their income sheet and balance sheet in detail. We identified two risk warnings that investors should be aware of. To access our full analysis and read more about the warnings, register on goodwhale.com. Our analysis will help you understand the risks associated with investing in MAGIC SOFTWARE ENTERPRISES so you can make an informed decision. We recommend further research to ensure that the investment is a good fit for your financial goals. More…
Peers
All four companies strive to stay ahead of the curve by developing innovative software solutions and providing ever-improving customer service. The competition between these leading software companies is fierce and is sure to bring about exciting new developments in the industry.
– Claranova SA ($BER:BV51)
Claranova SA is a French software company that offers digital solutions for professionals and other users. The company specializes in helping users create content for digital media, the development of connected objects and devices, and the secure distribution of digital applications. Its market capitalization of 79.92M as of 2023 reflects its strong financial performance, as evidenced by its Return on Equity of 9.21%. This return on equity signifies that Claranova SA is making effective use of its retained earnings and is achieving a satisfactory return on its shareholder’s capital. This company is well-positioned to continue to grow and develop its products, services, and customer base.
– Infotel SA ($LTS:0OQQ)
Infotel SA is a French telecommunications company that is specialized in developing telecommunications solutions and services for businesses. With a market cap of 385.75M Euros as of 2023, the company has been able to demonstrate a sound financial performance. This has been largely due to their impressive return on equity (ROE) of 15.87%. This suggests that the company has been able to efficiently reinvest its earnings to generate higher returns, making it an attractive investment opportunity.
– Tranway Technologies Ltd ($BSE:542923)
Tranway Technologies Ltd is a technology company specializing in the development of software solutions and services for businesses. As of 2023, the company has a market capitalization of 100.69M and a Return on Equity of 2.81%. The market cap of a company is the total value of its outstanding shares, and it is an indicator of the size and strength of the firm. The ROE, on the other hand, is a measure of how effectively management is utilizing the company’s equity to generate profits, and Tranway Technologies Ltd’s ROE of 2.81% indicates that it is efficiently generating returns for its owners.
Summary
Investors are taking a close look at MAGIC SOFTWARE ENTERPRISES as the company reported strong financial results for the fourth quarter of FY2022. Total revenue was USD 10.1 million, a 54.7% increase from a year prior, while net income increased 10.6% to USD 147.2 million. This performance indicates that MAGIC SOFTWARE ENTERPRISES is well positioned for future growth.
Shares of the company have been performing well since the earnings release and analysts are predicting further upside potential in the near term. Investors looking for an opportunity should consider investing in MAGIC SOFTWARE ENTERPRISES.
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