Magic Software Enterprises (FRA:MGK) EBIT: €58.8 Mil (TTM As of Sep. 2025)

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FRA:MGK Magic Software Enterprises Ltd FRA:MGK
90 GF Score
Price €16.10
GF Value €12.26
! 1 Warning Sign
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What is Magic Software Enterprises EBIT?

Magic Software Enterprises FRA:MGK 90 EBIT is €58.8 Mil as of Sep. 2025. GuruFocus rates FRA:MGK with a GF Score™ of 90/100 and a GF Value™ of €12.26. The stock has 1 warning sign investors should review.

Magic Software Enterprises's earnings before interest and taxes (EBIT) for the three months ended in Sep. 2025 was €14.6 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Sep. 2025 was €58.8 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Magic Software Enterprises's annualized ROC % for the quarter that ended in Sep. 2025 was 14.43%. Magic Software Enterprises's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2025 was 144.43%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Magic Software Enterprises's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Sep. 2025 was 7.30%.

Magic Software Enterprises  (FRA:MGK) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Magic Software Enterprises's annualized ROC % for the quarter that ended in Sep. 2025 is calculated as:

ROC % (Q: Sep. 2025 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Jun. 2025 ) + Invested Capital (Q: Sep. 2025 ))/ count )
=58.328 * ( 1 - 22.47% )/( (321.105 + 305.876)/ 2 )
=45.2216984/313.4905
=14.43 %

where

Invested Capital(Q: Jun. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=469.612 - 70.514 - ( 77.993 - max(0, 143.312 - 230.407+77.993))
=321.105

Invested Capital(Q: Sep. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=476.955 - 92.344 - ( 88.016 - max(0, 164.236 - 242.971+88.016))
=305.876

Note: The Operating Income data used here is four times the quarterly (Sep. 2025) data.

2. Joel Greenblatt's definition of Return on Capital:

Magic Software Enterprises's annualized ROC (Joel Greenblatt) % for the quarter that ended in Sep. 2025 is calculated as:

ROC (Joel Greenblatt) %(Q: Sep. 2025 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Jun. 2025  Q: Sep. 2025
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=58.328/( ( (29.299 + max(17.956, 0)) + (27.663 + max(5.85, 0)) )/ 2 )
=58.328/( ( 47.255 + 33.513 )/ 2 )
=58.328/40.384
=144.43 %

where Working Capital is:

Working Capital(Q: Jun. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(132.598 + 0 + 2.8421709430404E-14) - (70.514 + 20.636 + 23.492)
=17.956

Working Capital(Q: Sep. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(136.769 + 0 + 0) - (92.344 + 15.438 + 23.137)
=5.85

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Sep. 2025) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Magic Software Enterprises's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Sep. 2025 )
=58.769/805.243
=7.30 %

* 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.

Magic Software Enterprises EBIT Related Terms

Magic Software Enterprises EBIT Historical Data

* Premium members only.

The historical data trend for Magic Software Enterprises's EBIT 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.

Magic Software Enterprises EBIT Chart

Magic Software Enterprises Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 31.25 43.74 56.50 53.59 58.60

Magic Software Enterprises Quarterly Data
Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 13.58 16.06 14.56 13.56 14.58

FRA:MGK vs IBM, ACN, FISV: EBIT Comparison

For the Information Technology Services subindustry, Magic Software Enterprises's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT 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.

Magic Software Enterprises EV-to-EBIT vs Software Industry

For the Software industry and Technology sector, Magic Software Enterprises's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Magic Software Enterprises's EV-to-EBIT falls into.


FRA:MGK
90GF Score
Magic Software Enterprises Ltd FRA:MGK
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Magic Software Enterprises EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Sep. 2025 adds up the quarterly data reported by the company within the most recent 12 months, which was €58.8 Mil.

* 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.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €58.8 Mil mean?
Magic Software Enterprises (FRA:MGK) has a EBIT of €58.8 Mil as of Sep. 2025. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Magic Software Enterprises.
Is Magic Software Enterprises' EBIT too high?
Magic Software Enterprises' current EBIT is €58.8 Mil. Overall, Magic Software Enterprises has a GF Score™ of 90/100, reflecting its overall financial health beyond just this single metric.
How does Magic Software Enterprises' EBIT compare to IBM and ACN?
Magic Software Enterprises' EBIT of €58.8 Mil can be compared against companies in the Software industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Software company?
A good EBIT depends on the Software industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Magic Software Enterprises. Magic Software Enterprises's current EBIT is €58.8 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magic Software Enterprises stock overvalued right now?
Magic Software Enterprises (FRA:MGK) has a current EBIT of €58.8 Mil. The stock's GF Value™ is €12.26, compared to a current price of €16.10 — trading 31.3% above its estimated fair value. The current EBIT is €58.8 Mil. Magic Software Enterprises' overall GF Score™ is 90/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Magic Software Enterprises (FRA:MGK), the current EBIT is €58.8 Mil as of Sep. 2025. 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 Magic Software Enterprises (FRA:MGK) Overvalued in 2026?

Based on GuruFocus' analysis, Magic Software Enterprises stock appears to be overvalued. The current stock price of €16.10 is trading 31.3% above its estimated GF Value™ of €12.26.

Key valuation signals for FRA:MGK:

  • EBIT: €58.8 Mil
  • GF Value™: €12.26 vs. price of €16.10 (31.3% above fair value)
  • GF Score™: 90/100 with 1 warning sign

No single metric tells the full story. See the FRA:MGK stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Magic Software Enterprises Business Description

Address Yahadut Canada 1 Street, Terminal Center, Or Yehuda, ISR, 6037501
Magic Software Enterprises Ltd is a software development company. The company's operating segment includes Software Services and IT Professional Services. The company generates maximum revenue from the IT Professional Services segment. IT Professional Services segment offers IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, as well as supplemental outsourcing services. Geographically, it derives a majority of revenue from the United States and also has a presence in Israel, Europe, Japan, and Other countries.
90GF Score

Get the complete analysis for FRA:MGK

EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€16.10
Price
€12.26
GF Value