Magic Software Enterprises (FRA:MGK) Dividend Payout Ratio: 1.18 (As of Sep. 2025) — 146% Above Median

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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 Dividend Payout Ratio?

Magic Software Enterprises FRA:MGK 90 Dividend Payout Ratio is 1.18 as of Sep. 2025, which is 146% above its 10-year median of 0.48. 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.

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Magic Software Enterprises's Dividend Payout Ratio for the months ended in Sep. 2025 was 1.18.

The historical rank and industry rank for Magic Software Enterprises's Dividend Payout Ratio or its related term are showing as below:

FRA:MGK' s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.34   Med: 0.48   Max: 0.9
Current: 0.9

During the past 13 years, the highest Dividend Payout Ratio of Magic Software Enterprises was 0.90. The lowest was 0.34. And the median was 0.48.

FRA:MGK's Dividend Payout Ratio is not ranked
in the Software industry.
Industry Median: 0.39 vs FRA:MGK: 0.90

As of today (2026-08-17), the Dividend Yield % of Magic Software Enterprises is 0.00%.

During the past 13 years, the highest Trailing Annual Dividend Yield of Magic Software Enterprises was 7.81%. The lowest was 1.37%. And the median was 3.25%.

Magic Software Enterprises's Dividends per Share for the months ended in Sep. 2025 was €0.25.

During the past 12 months, Magic Software Enterprises's average Dividends Per Share Growth Rate was 300.50% per year. During the past 3 years, the average Dividends Per Share Growth Rate was -11.20% per year. During the past 5 years, the average Dividends Per Share Growth Rate was 15.10% per year. During the past 10 years, the average Dividends Per Share Growth Rate was 14.50% per year.

During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Magic Software Enterprises was 39.90% per year. The lowest was -11.20% per year. And the median was 11.25% per year.

The growth rate is calculated with least square regression.

For more information regarding to dividend, please check our Dividend Page.

* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.

Magic Software Enterprises (FRA:MGK) Dividend Payout Ratio Explanation

In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.

Magic Software Enterprises Dividend Payout Ratio Related Terms

Magic Software Enterprises Dividend Payout Ratio Historical Data

* Premium members only.

The historical data trend for Magic Software Enterprises's Dividend Payout Ratio 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 Dividend Payout Ratio Chart

Magic Software Enterprises Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Dividend Payout Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.34 0.72 0.48 0.63 0.47

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
Dividend Payout Ratio 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 0.00 0.98 0.00 1.26 1.18

FRA:MGK vs IBM, ACN, FISV: Dividend Payout Ratio Comparison

For the Information Technology Services subindustry, Magic Software Enterprises's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio 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 Dividend Payout Ratio vs Software Industry

For the Software industry and Technology sector, Magic Software Enterprises's Dividend Payout Ratio distribution charts can be found below:

* The bar in red indicates where Magic Software Enterprises's Dividend Payout Ratio falls into.


FRA:MGK
90GF Score
Magic Software Enterprises Ltd FRA:MGK
Dividend Payout Ratio is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Magic Software Enterprises Dividend Payout Ratio Calculation

The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.

Magic Software Enterprises's Dividend Payout Ratio for the fiscal year that ended in Dec. 2024 is calculated as

Dividend Payout Ratio=Dividends per Share (A: Dec. 2024 )/ EPS without NRI (A: Dec. 2024 )
=0.42/ 0.888
=0.47

Magic Software Enterprises's Dividend Payout Ratio for the quarter that ended in Sep. 2025 is calculated as

Dividend Payout Ratio=Dividends per Share (Q: Sep. 2025 )/ EPS without NRI (Q: Sep. 2025 )
=0.252/ 0.213
=1.18

* 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 Dividend Payout Ratio →
What does a Dividend Payout Ratio of 1.18 mean?
Magic Software Enterprises (FRA:MGK) has a Dividend Payout Ratio of 1.18 as of Sep. 2025. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Magic Software Enterprises and its competitors. This is 146% above median its historical median of 0.48. Over the past decade, Magic Software Enterprises' Dividend Payout Ratio has ranged from 0.34 to 0.90.
Is Magic Software Enterprises' Dividend Payout Ratio too high?
Magic Software Enterprises' current Dividend Payout Ratio of 1.18 is 146% above median its 10-year median of 0.48. Over the past 10 years, this metric has ranged from a low of 0.34 to a high of 0.90. The Software industry median Dividend Payout Ratio is 0.39. Magic Software Enterprises' value of 1.18 is 202.6% 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' Dividend Payout Ratio compare to IBM and ACN?
Magic Software Enterprises' Dividend Payout Ratio of 1.18 can be compared against companies in the Software industry. The industry median Dividend Payout Ratio is 0.39. Magic Software Enterprises' value of 1.18 is 202.6% above this benchmark. Historically, Magic Software Enterprises' own Dividend Payout Ratio has ranged from 0.34 to 0.90 over the past decade. While the company's 10-year median is 0.48 vs. the industry median of 0.39, 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 Dividend Payout Ratio for a Software company?
The median Dividend Payout Ratio among Software companies is 0.39, based on 879 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Magic Software Enterprises's current Dividend Payout Ratio of 1.18 is 202.6% 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 Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Magic Software Enterprises and its competitors. For the Software industry, the median Dividend Payout Ratio is 0.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magic Software Enterprises's current Dividend Payout Ratio is 1.18, which is 146% above median its own 10-year median of 0.48. 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 Dividend Payout Ratio of 1.18. 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 Dividend Payout Ratio is 1.18, which is 146% above median its 10-year median of 0.48 and 202.6% above the Software industry median of 0.39. 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 Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Magic Software Enterprises (FRA:MGK), the current Dividend Payout Ratio is 1.18 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:

  • Dividend Payout Ratio: 1.18 (146% above median its 10-year median of 0.48)
  • GF Value™: €12.26 vs. price of €16.10 (31.3% above fair value)
  • GF Score™: 90/100 with 1 warning sign
  • Industry Position: 202.6% 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 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

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

€16.10
Price
€12.26
GF Value