MGIC Intrinsic Value – MAGIC SOFTWARE ENTERPRISES Reports Q3 Earnings Results for 2023 Fiscal Year
November 23, 2023
🌥️Earnings Overview
MAGIC SOFTWARE ENTERPRISES ($NASDAQ:MGIC) reported their Q3 earnings results for the fiscal year 2023 on September 30 2023. Total revenue for the period was USD 129.5 million, a year-over-year decrease of 10.1%. Net income was reported to be USD 7.2 million, a 37.8% decrease from the same quarter in the prior year.
Price History
The company’s stock opened at $8.5 and closed at $8.7, for a 5.2% increase from the previous closing price of $8.3. This was the highest closing price for the company in over four years. The impressive earnings report provided a much-needed boost to the company’s stock, which had been steadily declining in recent months.
This growth was driven largely by strong demand for new products, such as the Magic Suite of business applications. All of these figures demonstrate a strong financial performance and indicate a positive outlook for the company moving forward. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for MGIC. More…
| Total Revenues | Net Income | Net Margin |
| 556.65 | 38.11 | 6.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for MGIC. More…
| Operations | Investing | Financing |
| 81.86 | -34.84 | -17.38 |
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 |
| 502.22 | 232.4 | 5.09 |
Key Ratios Snapshot
Some of the financial key ratios for MGIC are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 15.9% | 14.8% | 10.7% |
| FCF Margin | ROE | ROA |
| 13.8% | 14.5% | 7.4% |
Analysis – MGIC Intrinsic Value
We at GoodWhale have conducted an analysis of MAGIC SOFTWARE ENTERPRISES’s wellbeing and have come to the conclusion that the fair value of their stock is around $18.3. This figure was calculated using our proprietary Valuation Line. Interestingly, we have found that MAGIC SOFTWARE ENTERPRISES stock is currently trading at $8.7, which is undervalued by 52.4%. This discrepancy provides a potential opportunity for investors to purchase MAGIC SOFTWARE ENTERPRISES stock at a discounted rate. More…
Peers
All four companies strive to stay ahead of the curve by developing innovative software solutions and providing ever-improving customer service. The competition between these leading software companies is fierce and is sure to bring about exciting new developments in the industry.
– Claranova SA ($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
MAGIC SOFTWARE ENTERPRISES recently reported their Q3 earnings results for FY2023, showing a 10.1% decrease in total revenue to USD 129.5 million and a 37.8% decrease in net income year-over-year. Despite these decreases, the stock price moved up on the news. This may suggest that investors are expecting future improvement and have confidence in the company’s ability to recover from the slump. Investors considering investing in MAGIC SOFTWARE ENTERPRISES should research the company’s performance, competitive landscape, and the overall economic outlook for the sector to gain a better understanding of the potential risks and rewards.
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