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Magnolia Oil & GasMGY +3.07%93 Return-on-Tangible-Equity is 34.77% as of Jun. 2026, which is 87% above its 10-year median of 18.60. GuruFocus rates MGY with a GF Score™ of 93/100 and a GF Value™ of $29.06 (Modestly Undervalued). The stock has 2 warning signs investors should review. Among 957 Oil & Gas companies, Magnolia Oil & Gas ranks better than 78.37% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Magnolia Oil & Gas's annualized net income for the quarter that ended in Jun. 2026 was $727 Mil. Magnolia Oil & Gas's average shareholder tangible equity for the quarter that ended in Jun. 2026 was $2,091 Mil. Therefore, Magnolia Oil & Gas's annualized Return-on-Tangible-Equity for the quarter that ended in Jun. 2026 was 34.77%.
The historical rank and industry rank for Magnolia Oil & Gas's Return-on-Tangible-Equity or its related term are showing as below:
MGY'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -105.49 Med: 18.6 Max: 74.71
Current: 21.26
During the past 10 years, Magnolia Oil & Gas's highest Return-on-Tangible-Equity was 74.71%. The lowest was -105.49%. And the median was 18.60%.
MGY's Return-on-Tangible-Equity is ranked better than 78.37% of 957
companies
in the Oil & Gas industry
Industry Median: 7.33
vs MGY: 21.26
Magnolia Oil & Gas (NYSE:MGY) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Magnolia Oil & Gas Return-on-Tangible-Equity Related Terms
Magnolia Oil & Gas Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Magnolia Oil & Gas's Return-on-Tangible-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.
Magnolia Oil & Gas Return-on-Tangible-Equity Chart
MGY vs MUR, MTDR, CNX: Return-on-Tangible-Equity Comparison
For the Oil & Gas E&P subindustry, Magnolia Oil & Gas's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-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.
Magnolia Oil & Gas Return-on-Tangible-Equity vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Magnolia Oil & Gas's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Magnolia Oil & Gas's Return-on-Tangible-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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Jun. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 34.77% mean?
Magnolia Oil & Gas (MGY) has a Return-on-Tangible-Equity of 34.77% as of Jun. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Magnolia Oil & Gas and its competitors. This is 87% above median its historical median of 18.60. According to the industry distribution chart, Magnolia Oil & Gas ranks #207 out of 957 companies in the Oil & Gas industry, placing it in the top 21.6%.
Is Magnolia Oil & Gas' Return-on-Tangible-Equity too high?
Magnolia Oil & Gas' current Return-on-Tangible-Equity of 34.77% is 87% above median its 10-year median of 18.60. The Oil & Gas industry median Return-on-Tangible-Equity is 7.33. Magnolia Oil & Gas' value of 34.77% is 374.4% above this industry median. Based on the distribution chart, Magnolia Oil & Gas ranks #207 out of 957 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Magnolia Oil & Gas has a GF Score™ of 93/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Magnolia Oil & Gas' Return-on-Tangible-Equity compare to MUR and MTDR?
According to the Oil & Gas industry distribution chart, Magnolia Oil & Gas ranks #207 out of 957 companies for Return-on-Tangible-Equity. This places Magnolia Oil & Gas in the top 22% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.33. Magnolia Oil & Gas' value of 34.77% is 374.4% above this benchmark. While the company's 10-year median is 18.60 vs. the industry median of 7.33, Magnolia Oil & Gas 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 Return-on-Tangible-Equity for an Oil & Gas company?
The median Return-on-Tangible-Equity among Oil & Gas companies is 7.33, based on 957 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Magnolia Oil & Gas's current Return-on-Tangible-Equity of 34.77% is 374.4% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Magnolia Oil & Gas and its competitors. For the Oil & Gas industry, the median Return-on-Tangible-Equity is 7.33 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magnolia Oil & Gas's current Return-on-Tangible-Equity is 34.77%, which is 87% above median its own 10-year median of 18.60. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magnolia Oil & Gas stock overvalued right now?
Based on GuruFocus' analysis, Magnolia Oil & Gas (MGY) is currently considered Modestly Undervalued. The stock's GF Value™ is $29.06, compared to a current price of $25.85 — trading 11% below its estimated fair value. The current Return-on-Tangible-Equity is 34.77%, which is 87% above median its 10-year median of 18.60 and 374.4% above the Oil & Gas industry median of 7.33. Magnolia Oil & Gas' overall GF Score™ is 93/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Magnolia Oil & Gas (MGY), the current Return-on-Tangible-Equity is 34.77% 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 Magnolia Oil & Gas (MGY) Overvalued in 2026?
Based on GuruFocus' analysis, Magnolia Oil & Gas stock appears to be undervalued.
The current stock price of $25.85 is trading 11% below its estimated GF Value™ of $29.06.
GuruFocus considers Magnolia Oil & Gas to be Modestly Undervalued.
Key valuation signals for MGY:
Return-on-Tangible-Equity: 34.77% (87% above median its 10-year median of 18.60)
GF Value™: $29.06 vs. price of $25.85 (11% below fair value)
Industry Position: 374.4% above the Oil & Gas median (#207 of 957)
No single metric tells the full story. See the MGY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magnolia Oil & Gas Corp is an independent oil and natural gas company engaged in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquids (NGL) reserves. The company's oil and natural gas properties are located in Karnes County and the Giddings area of South Texas, where it targets the Eagle Ford Shale and Austin Chalk formations. It focuses on generating value for shareholders by delivering steady, moderate annual production growth resulting from its capital spending philosophy. The company operates in only one segment and derives the majority of its revenue from the sale of crude oil, natural gas, and natural gas liquids (NGLs).
93GF Score
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