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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 9/10

vs
industry
vs
history
Cash to Debt 21.68
MGIC's Cash to Debt is ranked higher than
50% of the 1781 Companies
in the Global Software - Application industry.

( Industry Median: 20.60 vs. MGIC: 21.68 )
Ranked among companies with meaningful Cash to Debt only.
MGIC' s 10-Year Cash to Debt Range
Min: 0.25  Med: 13.62 Max: No Debt
Current: 21.68
Equity to Asset 0.80
MGIC's Equity to Asset is ranked higher than
82% of the 1579 Companies
in the Global Software - Application industry.

( Industry Median: 0.61 vs. MGIC: 0.80 )
Ranked among companies with meaningful Equity to Asset only.
MGIC' s 10-Year Equity to Asset Range
Min: 0.27  Med: 0.72 Max: 0.84
Current: 0.8
0.27
0.84
Interest Coverage 136.36
MGIC's Interest Coverage is ranked lower than
63% of the 1164 Companies
in the Global Software - Application industry.

( Industry Median: 10000.00 vs. MGIC: 136.36 )
Ranked among companies with meaningful Interest Coverage only.
MGIC' s 10-Year Interest Coverage Range
Min: 5  Med: 121.60 Max: 9999.99
Current: 136.36
5
9999.99
F-Score: 3
Z-Score: 4.83
WACC vs ROIC
10.28%
18.24%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 6/10

vs
industry
vs
history
Operating margin (%) 12.57
MGIC's Operating margin (%) is ranked higher than
74% of the 1748 Companies
in the Global Software - Application industry.

( Industry Median: 5.11 vs. MGIC: 12.57 )
Ranked among companies with meaningful Operating margin (%) only.
MGIC' s 10-Year Operating margin (%) Range
Min: -53.31  Med: 5.43 Max: 17.31
Current: 12.57
-53.31
17.31
Net-margin (%) 9.32
MGIC's Net-margin (%) is ranked higher than
73% of the 1748 Companies
in the Global Software - Application industry.

( Industry Median: 3.20 vs. MGIC: 9.32 )
Ranked among companies with meaningful Net-margin (%) only.
MGIC' s 10-Year Net-margin (%) Range
Min: -55.88  Med: 5.56 Max: 21.58
Current: 9.32
-55.88
21.58
ROE (%) 8.31
MGIC's ROE (%) is ranked higher than
56% of the 1703 Companies
in the Global Software - Application industry.

( Industry Median: 6.27 vs. MGIC: 8.31 )
Ranked among companies with meaningful ROE (%) only.
MGIC' s 10-Year ROE (%) Range
Min: -62.87  Med: 7.21 Max: 42.86
Current: 8.31
-62.87
42.86
ROA (%) 6.78
MGIC's ROA (%) is ranked higher than
68% of the 1788 Companies
in the Global Software - Application industry.

( Industry Median: 3.29 vs. MGIC: 6.78 )
Ranked among companies with meaningful ROA (%) only.
MGIC' s 10-Year ROA (%) Range
Min: -36.79  Med: 5.17 Max: 24.43
Current: 6.78
-36.79
24.43
ROC (Joel Greenblatt) (%) 100.46
MGIC's ROC (Joel Greenblatt) (%) is ranked higher than
73% of the 1761 Companies
in the Global Software - Application industry.

( Industry Median: 24.35 vs. MGIC: 100.46 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
MGIC' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -280.18  Med: 29.83 Max: 318.11
Current: 100.46
-280.18
318.11
Revenue Growth (3Y)(%) 7.40
MGIC's Revenue Growth (3Y)(%) is ranked higher than
57% of the 1315 Companies
in the Global Software - Application industry.

( Industry Median: 5.30 vs. MGIC: 7.40 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
MGIC' s 10-Year Revenue Growth (3Y)(%) Range
Min: -11  Med: 4.50 Max: 25.6
Current: 7.4
-11
25.6
EBITDA Growth (3Y)(%) 6.50
MGIC's EBITDA Growth (3Y)(%) is ranked lower than
51% of the 1053 Companies
in the Global Software - Application industry.

( Industry Median: 6.80 vs. MGIC: 6.50 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
MGIC' s 10-Year EBITDA Growth (3Y)(%) Range
Min: -12.1  Med: 21.55 Max: 82.8
Current: 6.5
-12.1
82.8
EPS Growth (3Y)(%) -4.20
MGIC's EPS Growth (3Y)(%) is ranked lower than
61% of the 975 Companies
in the Global Software - Application industry.

( Industry Median: 6.70 vs. MGIC: -4.20 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
MGIC' s 10-Year EPS Growth (3Y)(%) Range
Min: -32.5  Med: 43.10 Max: 131
Current: -4.2
-32.5
131
» MGIC's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2014

MGIC Guru Trades in Q3 2014

Jim Simons 33,352 sh (New)
» More
Q4 2014

MGIC Guru Trades in Q4 2014

Jim Simons 89,831 sh (+169.34%)
» More
Q1 2015

MGIC Guru Trades in Q1 2015

Jim Simons 91,972 sh (+2.38%)
» More
Q2 2015

MGIC Guru Trades in Q2 2015

Jim Simons 88,952 sh (-3.28%)
» More
» Details

Insider Trades

Latest Guru Trades with MGIC

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

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Ratios

vs
industry
vs
history
P/E(ttm) 16.52
MGIC's P/E(ttm) is ranked higher than
66% of the 1109 Companies
in the Global Software - Application industry.

( Industry Median: 24.00 vs. MGIC: 16.52 )
Ranked among companies with meaningful P/E(ttm) only.
MGIC' s 10-Year P/E(ttm) Range
Min: 3.2  Med: 14.50 Max: 57.86
Current: 16.52
3.2
57.86
Forward P/E 8.57
MGIC's Forward P/E is ranked higher than
89% of the 528 Companies
in the Global Software - Application industry.

( Industry Median: 19.16 vs. MGIC: 8.57 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 17.10
MGIC's PE(NRI) is ranked higher than
66% of the 1101 Companies
in the Global Software - Application industry.

( Industry Median: 23.80 vs. MGIC: 17.10 )
Ranked among companies with meaningful PE(NRI) only.
MGIC' s 10-Year PE(NRI) Range
Min: 6.93  Med: 16.26 Max: 60.75
Current: 17.1
6.93
60.75
P/B 1.36
MGIC's P/B is ranked higher than
75% of the 1572 Companies
in the Global Software - Application industry.

( Industry Median: 2.63 vs. MGIC: 1.36 )
Ranked among companies with meaningful P/B only.
MGIC' s 10-Year P/B Range
Min: 0.5  Med: 1.48 Max: 3.75
Current: 1.36
0.5
3.75
P/S 1.55
MGIC's P/S is ranked higher than
56% of the 1715 Companies
in the Global Software - Application industry.

( Industry Median: 2.00 vs. MGIC: 1.55 )
Ranked among companies with meaningful P/S only.
MGIC' s 10-Year P/S Range
Min: 0.55  Med: 1.42 Max: 3.36
Current: 1.55
0.55
3.36
EV-to-EBIT 8.57
MGIC's EV-to-EBIT is ranked higher than
73% of the 1149 Companies
in the Global Software - Application industry.

( Industry Median: 16.13 vs. MGIC: 8.57 )
Ranked among companies with meaningful EV-to-EBIT only.
MGIC' s 10-Year EV-to-EBIT Range
Min: -140.8  Med: 9.35 Max: 574.8
Current: 8.57
-140.8
574.8
PEG 1.14
MGIC's PEG is ranked higher than
68% of the 487 Companies
in the Global Software - Application industry.

( Industry Median: 1.75 vs. MGIC: 1.14 )
Ranked among companies with meaningful PEG only.
MGIC' s 10-Year PEG Range
Min: 0.11  Med: 0.56 Max: 1.58
Current: 1.14
0.11
1.58
Shiller P/E 14.83
MGIC's Shiller P/E is ranked higher than
79% of the 699 Companies
in the Global Software - Application industry.

( Industry Median: 28.94 vs. MGIC: 14.83 )
Ranked among companies with meaningful Shiller P/E only.
MGIC' s 10-Year Shiller P/E Range
Min: 12.19  Med: 21.58 Max: 99.5
Current: 14.83
12.19
99.5
Current Ratio 4.14
MGIC's Current Ratio is ranked higher than
81% of the 1625 Companies
in the Global Software - Application industry.

( Industry Median: 2.07 vs. MGIC: 4.14 )
Ranked among companies with meaningful Current Ratio only.
MGIC' s 10-Year Current Ratio Range
Min: 0.79  Med: 2.18 Max: 5.24
Current: 4.14
0.79
5.24
Quick Ratio 4.14
MGIC's Quick Ratio is ranked higher than
82% of the 1625 Companies
in the Global Software - Application industry.

( Industry Median: 1.92 vs. MGIC: 4.14 )
Ranked among companies with meaningful Quick Ratio only.
MGIC' s 10-Year Quick Ratio Range
Min: 0.78  Med: 2.16 Max: 5.24
Current: 4.14
0.78
5.24
Days Sales Outstanding 93.09
MGIC's Days Sales Outstanding is ranked lower than
69% of the 1511 Companies
in the Global Software - Application industry.

( Industry Median: 69.32 vs. MGIC: 93.09 )
Ranked among companies with meaningful Days Sales Outstanding only.
MGIC' s 10-Year Days Sales Outstanding Range
Min: 74.96  Med: 101.81 Max: 160.94
Current: 93.09
74.96
160.94

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 3.03
MGIC's Dividend Yield is ranked higher than
74% of the 1264 Companies
in the Global Software - Application industry.

( Industry Median: 1.77 vs. MGIC: 3.03 )
Ranked among companies with meaningful Dividend Yield only.
MGIC' s 10-Year Dividend Yield Range
Min: 1.97  Med: 4.09 Max: 31.25
Current: 3.03
1.97
31.25
Dividend Payout 0.50
MGIC's Dividend Payout is ranked higher than
77% of the 766 Companies
in the Global Software - Application industry.

( Industry Median: 9999.00 vs. MGIC: 0.50 )
Ranked among companies with meaningful Dividend Payout only.
MGIC' s 10-Year Dividend Payout Range
Min: 0.74  Med: 0.93 Max: 4.67
Current: 0.5
0.74
4.67
Yield on cost (5-Year) 3.03
MGIC's Yield on cost (5-Year) is ranked higher than
65% of the 1295 Companies
in the Global Software - Application industry.

( Industry Median: 2.02 vs. MGIC: 3.03 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
MGIC' s 10-Year Yield on cost (5-Year) Range
Min: 1.97  Med: 4.09 Max: 31.25
Current: 3.03
1.97
31.25
Share Buyback Rate -5.30
MGIC's Share Buyback Rate is ranked lower than
66% of the 1149 Companies
in the Global Software - Application industry.

( Industry Median: -2.20 vs. MGIC: -5.30 )
Ranked among companies with meaningful Share Buyback Rate only.
MGIC' s 10-Year Share Buyback Rate Range
Min: 0  Med: -4.40 Max: -28.1
Current: -5.3

Valuation & Return

vs
industry
vs
history
Price/Net Cash 7.07
MGIC's Price/Net Cash is ranked higher than
62% of the 526 Companies
in the Global Software - Application industry.

( Industry Median: 10.71 vs. MGIC: 7.07 )
Ranked among companies with meaningful Price/Net Cash only.
MGIC' s 10-Year Price/Net Cash Range
Min: 1.85  Med: 8.12 Max: 440
Current: 7.07
1.85
440
Price/Net Current Asset Value 2.75
MGIC's Price/Net Current Asset Value is ranked higher than
76% of the 1036 Companies
in the Global Software - Application industry.

( Industry Median: 6.56 vs. MGIC: 2.75 )
Ranked among companies with meaningful Price/Net Current Asset Value only.
MGIC' s 10-Year Price/Net Current Asset Value Range
Min: 1  Med: 4.78 Max: 82.67
Current: 2.75
1
82.67
Price/Tangible Book 2.59
MGIC's Price/Tangible Book is ranked higher than
62% of the 1327 Companies
in the Global Software - Application industry.

( Industry Median: 4.00 vs. MGIC: 2.59 )
Ranked among companies with meaningful Price/Tangible Book only.
MGIC' s 10-Year Price/Tangible Book Range
Min: 0.36  Med: 2.52 Max: 15.9
Current: 2.59
0.36
15.9
Price/Projected FCF 1.40
MGIC's Price/Projected FCF is ranked higher than
56% of the 823 Companies
in the Global Software - Application industry.

( Industry Median: 1.66 vs. MGIC: 1.40 )
Ranked among companies with meaningful Price/Projected FCF only.
MGIC' s 10-Year Price/Projected FCF Range
Min: 0.45  Med: 1.59 Max: 15.22
Current: 1.4
0.45
15.22
Price/Median PS Value 1.09
MGIC's Price/Median PS Value is ranked lower than
53% of the 1520 Companies
in the Global Software - Application industry.

( Industry Median: 1.11 vs. MGIC: 1.09 )
Ranked among companies with meaningful Price/Median PS Value only.
MGIC' s 10-Year Price/Median PS Value Range
Min: 0.2  Med: 0.89 Max: 5.76
Current: 1.09
0.2
5.76
Price/Peter Lynch Fair Value 1.31
MGIC's Price/Peter Lynch Fair Value is ranked higher than
59% of the 347 Companies
in the Global Software - Application industry.

( Industry Median: 1.60 vs. MGIC: 1.31 )
Ranked among companies with meaningful Price/Peter Lynch Fair Value only.
MGIC' s 10-Year Price/Peter Lynch Fair Value Range
Min: 0.4  Med: 0.71 Max: 1.64
Current: 1.31
0.4
1.64
Price/Graham Number 1.35
MGIC's Price/Graham Number is ranked higher than
65% of the 853 Companies
in the Global Software - Application industry.

( Industry Median: 2.03 vs. MGIC: 1.35 )
Ranked among companies with meaningful Price/Graham Number only.
MGIC' s 10-Year Price/Graham Number Range
Min: 0.54  Med: 1.64 Max: 5.92
Current: 1.35
0.54
5.92
Earnings Yield (Greenblatt) (%) 11.66
MGIC's Earnings Yield (Greenblatt) (%) is ranked higher than
82% of the 1711 Companies
in the Global Software - Application industry.

( Industry Median: 2.80 vs. MGIC: 11.66 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
MGIC' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 0.2  Med: 9.60 Max: 869.7
Current: 11.66
0.2
869.7
Forward Rate of Return (Yacktman) (%) 13.81
MGIC's Forward Rate of Return (Yacktman) (%) is ranked higher than
60% of the 694 Companies
in the Global Software - Application industry.

( Industry Median: 10.48 vs. MGIC: 13.81 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
MGIC' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: -94.9  Med: 5.60 Max: 85
Current: 13.81
-94.9
85

Analyst Estimate

Dec15 Dec16
Revenue(Mil) 173 192
EPS($) 0.57 0.69
EPS without NRI($) 0.57 0.69

Business Description

Industry: Application Software » Software - Application
Compare:CRM, SQI, RHT, INTU, ADBE » details
Traded in other countries:MGIC.Israel, MGK.Germany,
Magic Software Enterprises Ltd. was incorporated under the laws of the State of Israel in February 1983 as Mashov Software Export (1983) Ltd., The Company provides application development and business process integration software solutions and related professional services, and a vendor of IT outsourcing services. Its software is used by customers to develop, deploy and integrate on-premise, mobile and cloud-based business applications quickly and cost effectively. In addition, its technology enables enterprises to accelerate the process of delivering business solutions that meet current and future needs and allow customers to dramatically improve their business performance and return on investment. With respect to IT outsourcing services, it offers a complete portfolio of professional services in the areas of infrastructure design and delivery, application development, technology consulting planning and implementation services, support services and supplemental staffing services. Its IT services offerings consist of a variety of professional services: Infrastructure design and delivery - management of complex, tailor-made projects and telecom infrastructure projects in wireless and wire-line as well as IT consulting services, Application development - development of on-premise, mobile and cloud applications, Technology consulting, planning and implementation services - planning and execution of end-to-end, large-scale, complex solutions in networking, cyber security, command & control and high performance transactions systems, Support services - technical support services through local customer support centers around the world and online customer support centers, Staffing services to a wide variety of companies - staffing services for technical personnel to supplement the in-house capabilities of its customers. Its wholly-owned subsidiaries, Coretech Consulting Group LLC, Fusion Solutions LLC, Xsell Resources Inc., Allstates Consulting Services LLC, and the Comm-IT Group provide advanced IT consulting and staffing services to a wide variety of companies including Fortune 1000 companies. Its technical personnel generally supplement the in-house capabilities of its clients. The Company's competitors are Kony, IBM, Microsoft, Adobe, Oracle, SAP Sybase and Antenna Software/Pegasystems. With Magic xpi, we compete in the integration platform market. Among its current competitors are IBM, Informatica, TIBCO, and Software AG.
» More Articles for MGIC

Headlines

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Best Performing Gurus of Past Six Months are John Paulson, First Eagle and Michael Price Jun 11 2013 
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