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* 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.
FRA:MGK vs IBM, ACN, FISV: OCF Margin % Comparison
For the Information Technology Services subindustry, Magic Software Enterprises's OCF Margin %, along with its competitors' market caps and OCF Margin % 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 OCF Margin % vs Software Industry
For the Software industry and Technology sector, Magic Software Enterprises's OCF Margin % distribution charts can be found below:
* The bar in red indicates where Magic Software Enterprises's OCF Margin % 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.
Magic Software Enterprises (FRA:MGK) has a OCF Margin % of 12.03% as of Sep. 2025. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Magic Software Enterprises and its competitors. This is near median its historical median of 12.02. Over the past decade, Magic Software Enterprises' OCF Margin % has ranged from 8.46 to 14.11.
Is Magic Software Enterprises' OCF Margin % too high?
Magic Software Enterprises' current OCF Margin % of 12.03% is near median its 10-year median of 12.02. Over the past 10 years, this metric has ranged from a low of 8.46 to a high of 14.11. The Software industry median OCF Margin % is 6.67. Magic Software Enterprises' value of 12.03% is 80.4% above this industry median. 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' OCF Margin % compare to IBM and ACN?
Magic Software Enterprises' OCF Margin % of 12.03% can be compared against companies in the Software industry. The industry median OCF Margin % is 6.67. Magic Software Enterprises' value of 12.03% is 80.4% above this benchmark. Historically, Magic Software Enterprises' own OCF Margin % has ranged from 8.46 to 14.11 over the past decade. While the company's 10-year median is 12.02 vs. the industry median of 6.67, Magic Software Enterprises has consistently been above 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 OCF Margin % for a Software company?
The median OCF Margin % among Software companies is 6.67, based on 2,818 companies in the industry. Companies in the top quartile (top 25%) have a OCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, OCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Magic Software Enterprises's current OCF Margin % of 12.03% is 80.4% above 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 OCF Margin % mean?
A high OCF Margin % can signal that a stock is expensive relative to its fundamentals. OCF Margin is the ratio of Cash Flow from Operations to Total Revenue. View historical data on Magic Software Enterprises and its competitors. For the Software industry, the median OCF Margin % is 6.67 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magic Software Enterprises's current OCF Margin % is 12.03%, which is near median its own 10-year median of 12.02. 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 OCF Margin % of 12.03%. 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 OCF Margin % is 12.03%, which is near median its 10-year median of 12.02 and 80.4% above the Software industry median of 6.67. 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 OCF Margin % calculated?
OCF Margin % is calculated from a company's financial statements. For Magic Software Enterprises (FRA:MGK), the current OCF Margin % is 12.03% 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:
OCF Margin %: 12.03% (near median its 10-year median of 12.02)
GF Value™: €12.26 vs. price of €16.10 (31.3% above fair value)
Industry Position: 80.4% above the Software median
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 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
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