Magic Software Enterprises Ltd (MGIC) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Magic Software Enterprises Ltd stock (MGIC) is currently trading at $17.38. Magic Software Enterprises Ltd PE ratio is 21.20. Magic Software Enterprises Ltd PS ratio (Price-to-Sales) is 1.42. Analyst consensus price target for MGIC is $18.00. WallStSmart rates MGIC as Hold.
- MGIC PE ratio analysis and historical PE chart
- MGIC PS ratio (Price-to-Sales) history and trend
- MGIC intrinsic value — DCF, Graham Number, EPV models
- MGIC stock price prediction 2025 2026 2027 2028 2029 2030
- MGIC fair value vs current price
- MGIC insider transactions and insider buying
- Is MGIC undervalued or overvalued?
- Magic Software Enterprises Ltd financial analysis — revenue, earnings, cash flow
- MGIC Piotroski F-Score and Altman Z-Score
- MGIC analyst price target and Smart Rating
Magic Software Enterprises
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MGIC Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Magic Software Enterprises Ltd (MGIC)
MGIC appears undervalued based on the Graham Formula, trading 30% below its estimated fair value of $28.67.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Magic Software Enterprises Ltd (MGIC) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in peg ratio, price/sales. Fundamentals are solid but monitor weak areas for improvement.
Magic Software Enterprises Ltd (MGIC) Key Strengths (3)
Good growth relative to its price
Paying $1.42 for every $1 of annual revenue
Solid profitability: $16 profit per $100 equity
Supporting Valuation Data
Magic Software Enterprises Ltd (MGIC) Areas to Watch (7)
Thin operating margins with cost pressures present
Premium pricing at 3.1x book value
Thin profit margins with limited profitability
Low institutional interest, mostly retail-driven
Small-cap company with higher risk but more growth potential
Solid revenue growth at 13.10% per year
Solid earnings growth at 17.60%
Supporting Valuation Data
Magic Software Enterprises Ltd (MGIC) Detailed Analysis Report
Overall Assessment
This company scores 57/100 in our Smart Analysis, earning a C grade. Out of 10 metrics analyzed, 3 register as strengths (avg 7.7/10) while 7 fall into concern territory (avg 4.7/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on PEG Ratio, Price/Sales, Return on Equity. Valuation metrics including PEG Ratio (1.08), Price/Sales (1.42) suggest the stock is attractively priced. Profitability is solid with Return on Equity at 15.60%.
The Bear Case
The primary concerns are Operating Margin, Price/Book, Profit Margin. Some valuation metrics including Price/Book (3.09) suggest expensive pricing. Growth concerns include Revenue Growth at 13.10%, EPS Growth at 17.60%, which may limit upside. Profitability pressure is visible in Operating Margin at 10.60%, Profit Margin at 6.61%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Operating Margin improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 15.60% currently healthy but needing to be sustained. Third, growth sustainability, with Revenue Growth at 13.10% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a moderate-to-high risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Mixed fundamentals with both positives (PEG Ratio, Price/Sales) and negatives (Operating Margin, Price/Book). A cautious approach is warranted. Monitor for improvement in weak areas before increasing conviction.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
MGIC Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
MGIC's Price-to-Sales ratio of 1.42x sits near its historical average of 1.42x (0th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 0% below its historical high of 1.42x set in Mar 2026, and 0% above its historical low of 1.42x in Mar 2026.
Compare MGIC with Competitors
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Data-driven financial summary for Magic Software Enterprises Ltd (MGIC) · TECHNOLOGY › INFORMATION TECHNOLOGY SERVICES
The Big Picture
Magic Software Enterprises Ltd operates as a stable business with moderate growth and solid fundamentals. Revenue reached 603M with 13% growth year-over-year. Profit margins are thin at 6.6%, typical for companies in this phase that are reinvesting heavily in growth.
Key Findings
ROE of 1560.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Generating 19M in free cash flow and 19M in operating cash flow. Earnings are translating into actual cash generation.
What to Watch Next
Margin expansion: can Magic Software Enterprises Ltd push profit margins above 15% as the business scales?
Dividend sustainability with a current yield of 5.8%. Watch payout ratio and free cash flow coverage.
Sector dynamics: monitor INFORMATION TECHNOLOGY SERVICES industry trends, competitive moves, and regulatory changes that could impact Magic Software Enterprises Ltd.
Bottom Line
Magic Software Enterprises Ltd offers stability with moderate growth and solid fundamentals. The valuation may present an opportunity for patient investors, though limited growth means returns will likely come from dividends and modest capital appreciation rather than explosive gains.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions
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About Magic Software Enterprises Ltd(MGIC)
NASDAQ
TECHNOLOGY
INFORMATION TECHNOLOGY SERVICE...
USA
Magic Software Enterprises Ltd. provides proprietary application development, business process integration, vertical software solutions, and information technology (IT) outsourcing software services in Israel and internationally. The company is headquartered in Or Yehuda, Israel.