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TextMagic ASOTSE:MAGIC 46 Debt-to-Equity is 0.01 as of Jun. 2026, which is at its 10-year median of 0.01. GuruFocus rates OTSE:MAGIC with a GF Score™ of 46/100 and a GF Value™ of €3.47 (Possible Value Trap). The stock has 2 warning signs investors should review. Among 2,238 Software companies, TextMagic AS ranks better than 99.96% on this metric.
A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.
The historical rank and industry rank for TextMagic AS's Debt-to-Equity or its related term are showing as below:
OTSE:MAGIC'
s Debt-to-Equity Range Over the Past 10 Years
Min: 0.01 Med: 0.01 Max: 0.01
Current: 0.01
During the past 5 years, the highest Debt-to-Equity Ratio of TextMagic AS was 0.01. The lowest was 0.01. And the median was 0.01.
OTSE:MAGIC's Debt-to-Equity is ranked better than 99.96% of 2238
companies
in the Software industry
Industry Median: 0.2
vs OTSE:MAGIC: 0.01
Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.
TextMagic AS Debt-to-Equity Related Terms
TextMagic AS Debt-to-Equity Historical Data
* Premium members only.
The historical data trend for TextMagic AS's Debt-to-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
OTSE:MAGIC vs CRM, SHOP, UBER: Debt-to-Equity Comparison
For the Software - Application subindustry, TextMagic AS's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
TextMagic AS Debt-to-Equity vs Software Industry
For the Software industry and Technology sector, TextMagic AS's Debt-to-Equity distribution charts can be found below:
* The bar in red indicates where TextMagic AS's Debt-to-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TextMagic AS (OTSE:MAGIC) has a Debt-to-Equity of 0.01 as of Jun. 2026. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on TextMagic AS and its competitors. This is near median its historical median of 0.01. Over the past decade, TextMagic AS's Debt-to-Equity has ranged from 0.01 to 0.01. According to the industry distribution chart, TextMagic AS ranks #1 out of 2238 companies in the Software industry, placing it in the top 0%.
Is TextMagic AS's Debt-to-Equity too high?
TextMagic AS's current Debt-to-Equity of 0.01 is near median its 10-year median of 0.01. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 0.01. The Software industry median Debt-to-Equity is 0.20. TextMagic AS's value of 0.01 is 95% below this industry median. Based on the distribution chart, TextMagic AS ranks #1 out of 2238 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, TextMagic AS has a GF Score™ of 46/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does TextMagic AS's Debt-to-Equity compare to CRM and SHOP?
According to the Software industry distribution chart, TextMagic AS ranks #1 out of 2238 companies for Debt-to-Equity. This places TextMagic AS in the top 0% of its industry — outperforming the majority of peers. The industry median Debt-to-Equity is 0.20. TextMagic AS's value of 0.01 is 95% below this benchmark. Historically, TextMagic AS's own Debt-to-Equity has ranged from 0.01 to 0.01 over the past decade. While the company's 10-year median is 0.01 vs. the industry median of 0.20, TextMagic AS has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Debt-to-Equity for a Software company?
The median Debt-to-Equity among Software companies is 0.20, based on 2,238 companies in the industry. Companies in the top quartile (top 25%) have a Debt-to-Equity significantly above this median, while those in the bottom quartile fall well below. However, Debt-to-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. TextMagic AS's current Debt-to-Equity of 0.01 is 95% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Debt-to-Equity mean?
A high Debt-to-Equity can signal that a stock is expensive relative to its fundamentals. Debt-to-Equity ratio represents the ratio of total debt to total company equity. View historical data on TextMagic AS and its competitors. For the Software industry, the median Debt-to-Equity is 0.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. TextMagic AS's current Debt-to-Equity is 0.01, which is near median its own 10-year median of 0.01. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is TextMagic AS stock overvalued right now?
Based on GuruFocus' analysis, TextMagic AS (OTSE:MAGIC) is currently considered Possible Value Trap. The stock's GF Value™ is €3.47, compared to a current price of €1.69 — trading 51.3% below its estimated fair value. The current Debt-to-Equity is 0.01, which is near median its 10-year median of 0.01 and 95% below the Software industry median of 0.20. TextMagic AS's overall GF Score™ is 46/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Debt-to-Equity calculated?
Debt-to-Equity is calculated from a company's financial statements. For TextMagic AS (OTSE:MAGIC), the current Debt-to-Equity is 0.01 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is TextMagic AS (OTSE:MAGIC) Overvalued in 2026?
Based on GuruFocus' analysis, TextMagic AS stock appears to be undervalued.
The current stock price of €1.69 is trading 51.3% below its estimated GF Value™ of €3.47.
GuruFocus considers TextMagic AS to be Possible Value Trap.
Key valuation signals for OTSE:MAGIC:
Debt-to-Equity: 0.01 (near median its 10-year median of 0.01)
GF Value™: €3.47 vs. price of €1.69 (51.3% below fair value)
Industry Position: 95% below the Software median (#1 of 2238)
No single metric tells the full story. See the OTSE:MAGIC stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
TextMagic AS is a text messaging company that helps businesses engage with customers. The Group's activities include the management and development of software products. The company operates mainly in the U.S., the U.K., Canada, Australia, and other countries. TextMagic enables companies to transform customer experiences through its text messaging marketing software, which can be used to send notifications, alerts, reminders, confirmations, and SMS marketing campaigns anytime, anywhere. Its product and service lines include text messaging services, which generate maximum revenue, virtual mobile number services, other TextMagic platform services, and the Voog.com platform. The company derives the majority of its revenue from the United States.
46GF Score
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