कंपनी का अवलोकन
Magic Software Enterprises Ltd. operates globally by delivering proprietary application development, verticalized software solutions, business process integration, information technology outsourcing services, and cloud-based infrastructure. The company functions within the Technology sector, specifically classified under the Information Technology Services industry, which denotes its role in providing specialized technical expertise and digital tools to diverse client bases. Its operational scale is defined by a market capitalization of $952.53M, an annual revenue of $603.22M, and a workforce comprising 3787 employees. These financial metrics suggest a mid-cap enterprise with substantial revenue generation capabilities, indicating a significant market presence within the specialized software services niche rather than a large-cap dominant player.
वित्तीय स्वास्थ्य
The company reported a Trailing Twelve Months (TTM) revenue of $603.22M and net income of $39.88M, with an EBITDA of $76.76M, highlighting a distinct gap between total revenue and bottom-line profit that reveals a substantial cost structure involving operating expenses, taxes, and interest. The generation of $70.09M in Free Cash Flow demonstrates strong financial flexibility, allowing the firm to fund operations, repay debt, or invest in technology without relying heavily on external capital markets. Profitability analysis shows a Gross Margin of 28.2%, an Operating Margin of 10.6%, and a Profit Margin of 6.6%, where the widening gap from gross to profit margin indicates significant overhead costs relative to sales volume. Regarding solvency, the company holds $103.31M in cash against $95.89M in debt, resulting in a Debt to Equity ratio of 31.87, which suggests a balance sheet that is moderately leveraged rather than purely conservative. Liquidity is supported by a Current Ratio of 1.48, indicating that current assets comfortably exceed current liabilities and providing a buffer against short-term obligations. Return on Equity stands at 15.6% while Return on Assets is 7.4%, metrics that collectively reveal management's effectiveness in generating returns on shareholder capital versus the total asset base employed.
मूल्यांकन आकलन
Valuation multiples show a P/E Ratio (TTM) of 23.66 compared to a Forward P/E of 17.20, implying that the market expects earnings to grow in the future to justify the lower forward multiple relative to current profitability. The Price to Book ratio is recorded at 3.45, indicating that the market values the company at a significant premium over its tangible book value, reflecting intangible assets and growth potential. Alternative valuation measures include a Price to Sales ratio of 1.58 and an EV/EBITDA of 12.63, which suggest the stock is priced moderately relative to its sales volume and enterprise earnings before interest, taxes, depreciation, and amortization. The stock price has fluctuated between a 52-Week High of $28.00 and a 52-Week Low of $11.65, providing a historical trading range context for assessing current valuation levels. The Beta of 0.75 indicates that the stock's price volatility is lower than that of the broader market, suggesting it may act as a less aggressive correlate to overall market movements.
Growth & Income
Revenue growth stands at 13.1% year-over-year while earnings growth reaches 17.6% year-over-year, indicating that profitability is expanding at a faster rate than top-line sales, which often implies improving operational leverage or cost efficiency. The company offers a Dividend Yield of 5.2% with a Payout Ratio of 104.8%, meaning the current dividend payments exceed the reported net income, a situation that requires careful monitoring regarding sustainability based on cash flow rather than just accounting earnings. Since the payout ratio exceeds 100%, the firm is effectively utilizing cash reserves or non-recurring items to fund dividends, rather than reinvesting all earnings into internal growth projects. Overall, the growth and income profile presents a hybrid characteristic of moderate revenue expansion coupled with high dividend yield, though the payout sustainability depends on maintaining cash flow levels above the dividend distribution.