Magic Software Enterprises Stock Buy Hold or Sell Recommendation
| MGIC Stock | USD 11.95 0.71 6.32% |
Given the investment horizon of 90 days and your typical level of risk aversion, our recommendation regarding Magic Software Enterprises is 'Cautious 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.
Magic |
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
 |  |
Cautious Hold
Market Performance | Insignificant | Details | |
Volatility | Not too volatile | Details | |
Hype Condition | Stale | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Barely shadows the market | Details | |
Investor Sentiment | Impartial | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unavailable | Details |
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 investing.com: Magic Softwares SWOT analysis stock resilience amid tech sector challenges |
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 | 0.09 | Value At Risk | -2.37 | Potential Upside | 4.28 | Standard Deviation | 1.96 |
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 | Arrowstreet Capital Limited Partnership | 2024-06-30 | 78.3 K | Cwm Advisors, Llc | 2024-09-30 | 74.4 K | Eagle Global Advisors, Llc | 2024-09-30 | 72.8 K | Yelin Lapidot Holdings Management Ltd | 2024-06-30 | 62.1 K | Geode Capital Management, Llc | 2024-09-30 | 55.5 K | Swiss National Bank | 2024-09-30 | 53.4 K | Jpmorgan Chase & Co | 2024-06-30 | 52.5 K | Ghp Investment Advisors, Inc. | 2024-09-30 | 48.6 K | Millennium Management Llc | 2024-06-30 | 46.4 K | Clal Insurance Enterprises Holdings Ltd | 2024-09-30 | 3.4 M | Phoenix Financial Ltd | 2024-09-30 | 680.2 K |
Magic Software Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | (5.2M) | 6.2M | (37K) | (5.0M) | 22.9M | 24.0M | |
| Free Cash Flow | 40.4M | 46.2M | 35.9M | 41.9M | 64.2M | 67.4M | |
| Depreciation | 14.0M | 13.9M | 14.7M | 15.5M | 20.6M | 21.6M | |
| Other Non Cash Items | 1.9M | (70K) | 533K | (3.8M) | 561K | 407.2K | |
| Capital Expenditures | 5.5M | 6.1M | 4.6M | 7.7M | 4.8M | 3.5M | |
| Net Income | 25.6M | 30.1M | 34.9M | 46.5M | 37.0M | 38.9M | |
| End Period Cash Flow | 81.9M | 88.1M | 88.1M | 83.1M | 105.9M | 111.2M | |
| Change To Inventory | 2.2M | (7.7M) | 8.2M | 6.7M | 7.7M | 8.1M | |
| Dividends Paid | 15.0M | 12.5M | 21.8M | 24.8M | 30.8M | 32.3M | |
| Investments | 12.7M | 13.0M | (5.4M) | (27.3M) | (34.8M) | (33.1M) | |
| Net Borrowings | (12.7M) | 317K | 11.1M | 16.4M | 18.8M | 19.8M | |
| Change To Netincome | 3.6M | 3.2M | 3.6M | 5.9M | 6.8M | 3.5M |
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 | 0.03 | |
β | Beta against Dow Jones | 0.46 | |
σ | Overall volatility | 1.99 | |
Ir | Information ratio | -0.02 |
Magic Software Volatility Alert
Magic Software Enterprises has relatively low volatility with skewness of 0.96 and kurtosis of 1.41. 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 |
| Fundamentals | Magic Software | Peer Average |
| Return On Equity | 0.14 | -0.31 |
| Return On Asset | 0.0673 | -0.14 |
| Profit Margin | 0.07 % | (1.27) % |
| Operating Margin | 0.11 % | (5.51) % |
| Current Valuation | 539.82 M | 16.62 B |
| Shares Outstanding | 49.1 M | 571.82 M |
| Shares Owned By Insiders | 47.09 % | 10.09 % |
| Shares Owned By Institutions | 25.91 % | 39.21 % |
| Number Of Shares Shorted | 17.03 K | 4.71 M |
| Price To Earning | 35.52 X | 28.72 X |
| Price To Book | 1.98 X | 9.51 X |
| Price To Sales | 1.05 X | 11.42 X |
| Revenue | 535.05 M | 9.43 B |
| Gross Profit | 155.35 M | 27.38 B |
| EBITDA | 77.9 M | 3.9 B |
| Net Income | 37.03 M | 570.98 M |
| Cash And Equivalents | 92.32 M | 2.7 B |
| Cash Per Share | 1.88 X | 5.01 X |
| Total Debt | 108.72 M | 5.32 B |
| Debt To Equity | 0.27 % | 48.70 % |
| Current Ratio | 2.31 X | 2.16 X |
| Book Value Per Share | 5.42 X | 1.93 K |
| Cash Flow From Operations | 68.99 M | 971.22 M |
| Short Ratio | 0.70 X | 4.00 X |
| Earnings Per Share | 0.70 X | 3.12 X |
| Price To Earnings To Growth | 1.08 X | 4.89 X |
| Target Price | 15.0 | |
| Number Of Employees | 3.63 K | 18.84 K |
| Beta | 1.08 | -0.15 |
| Market Capitalization | 551.88 M | 19.03 B |
| Total Asset | 522.41 M | 29.47 B |
| Retained Earnings | 92.52 M | 9.33 B |
| Working Capital | 114.93 M | 1.48 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.Did You Try This Idea?
Run Soft Drinks Thematic Idea Now
Soft Drinks
Entities manufacturing and distributing non alcoholic beverages across different markets. The Soft Drinks theme has 41 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 Soft Drinks Theme or any other thematic opportunities.
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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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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 0.7 | 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.