MAGNITE INC (MGNI)
US55955D1000 - Common Stock
Taking everything into account, MGNI scores 4 out of 10 in our fundamental rating. MGNI was compared to 91 industry peers in the Media industry. The financial health of MGNI is average, but there are quite some concerns on its profitability. MGNI is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year MGNI was profitable.
In the past year MGNI had a positive cash flow from operations.
MGNI had negative earnings in 4 of the past 5 years.
Of the past 5 years MGNI 4 years had a positive operating cash flow.
1.2 Ratios
MGNI's Return On Assets of 0.63% is in line compared to the rest of the industry. MGNI outperforms 56.98% of its industry peers.
MGNI's Return On Equity of 2.38% is in line compared to the rest of the industry. MGNI outperforms 56.98% of its industry peers.
MGNI has a Return On Invested Capital (2.74%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.63% | ||
| ROE | 2.38% | ||
| ROIC | 2.74% |
ROA(3y)-3.57%
ROA(5y)-4.57%
ROE(3y)-13.05%
ROE(5y)-15.18%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of MGNI (2.62%) is better than 60.47% of its industry peers.
Looking at the Operating Margin, with a value of 6.96%, MGNI is in line with its industry, outperforming 51.16% of the companies in the same industry.
Looking at the Gross Margin, with a value of 60.51%, MGNI is in the better half of the industry, outperforming 70.93% of the companies in the same industry.
MGNI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.96% | ||
| PM (TTM) | 2.62% | ||
| GM | 60.51% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-19.52%
GM growth 5Y-8.18%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MGNI is destroying value.
The number of shares outstanding for MGNI has been increased compared to 1 year ago.
Compared to 5 years ago, MGNI has more shares outstanding
MGNI has a better debt/assets ratio than last year.
2.2 Solvency
MGNI has an Altman-Z score of 0.73. This is a bad value and indicates that MGNI is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 0.73, MGNI perfoms like the industry average, outperforming 41.86% of the companies in the same industry.
MGNI has a debt to FCF ratio of 3.53. This is a good value and a sign of high solvency as MGNI would need 3.53 years to pay back of all of its debts.
MGNI's Debt to FCF ratio of 3.53 is amongst the best of the industry. MGNI outperforms 82.56% of its industry peers.
A Debt/Equity ratio of 0.76 indicates that MGNI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.76, MGNI perfoms like the industry average, outperforming 52.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 0.73 |
ROIC/WACC0.33
WACC8.26%
2.3 Liquidity
A Current Ratio of 1.11 indicates that MGNI should not have too much problems paying its short term obligations.
MGNI's Current ratio of 1.11 is on the low side compared to the rest of the industry. MGNI is outperformed by 67.44% of its industry peers.
A Quick Ratio of 1.11 indicates that MGNI should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.11, MGNI is doing worse than 63.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
MGNI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.65%, which is quite impressive.
MGNI shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 81.71% yearly.
Looking at the last year, MGNI shows a quite strong growth in Revenue. The Revenue has grown by 8.70% in the last year.
Measured over the past years, MGNI shows a very strong growth in Revenue. The Revenue has been growing by 37.80% on average per year.
EPS 1Y (TTM)32.65%
EPS 3Y81.71%
EPS 5YN/A
EPS Q2Q%41.67%
Revenue 1Y (TTM)8.7%
Revenue growth 3Y40.89%
Revenue growth 5Y37.8%
Sales Q2Q%12.24%
3.2 Future
MGNI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 32.05% yearly.
MGNI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.70% yearly.
EPS Next Y43.7%
EPS Next 2Y32.9%
EPS Next 3Y32.05%
EPS Next 5YN/A
Revenue Next Year12.29%
Revenue Next 2Y11.36%
Revenue Next 3Y11.54%
Revenue Next 5Y10.7%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 26.35, which means the current valuation is very expensive for MGNI.
Compared to the rest of the industry, the Price/Earnings ratio of MGNI is on the same level as its industry peers.
When comparing the Price/Earnings ratio of MGNI to the average of the S&P500 Index (27.41), we can say MGNI is valued inline with the index average.
The Price/Forward Earnings ratio is 17.96, which indicates a rather expensive current valuation of MGNI.
60.47% of the companies in the same industry are more expensive than MGNI, based on the Price/Forward Earnings ratio.
MGNI is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 23.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.35 | ||
| Fwd PE | 17.96 |
4.2 Price Multiples
65.12% of the companies in the same industry are cheaper than MGNI, based on the Enterprise Value to EBITDA ratio.
MGNI's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.37 | ||
| EV/EBITDA | 24.5 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MGNI's earnings are expected to grow with 32.05% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.6
PEG (5Y)N/A
EPS Next 2Y32.9%
EPS Next 3Y32.05%
5. Dividend
5.1 Amount
No dividends for MGNI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MAGNITE INC
NASDAQ:MGNI (1/3/2025, 8:00:01 PM)
After market: 17.15 +0.02 (+0.12%)17.13
+1.03 (+6.4%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners75.34%
Inst Owner Change14.32%
Ins Owners2.22%
Ins Owner Change-14.5%
Market Cap2.41B
Analysts82
Price Target18.87 (10.16%)
Short Float %5.78%
Short Ratio4.28
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-3.99%
Min EPS beat(2)-11.02%
Max EPS beat(2)3.04%
EPS beat(4)3
Avg EPS beat(4)2823.31%
Min EPS beat(4)-11.02%
Max EPS beat(4)11299.9%
EPS beat(8)6
Avg EPS beat(8)1459.97%
EPS beat(12)9
Avg EPS beat(12)973.91%
EPS beat(16)11
Avg EPS beat(16)760.62%
Revenue beat(2)0
Avg Revenue beat(2)-0.57%
Min Revenue beat(2)-1.07%
Max Revenue beat(2)-0.07%
Revenue beat(4)2
Avg Revenue beat(4)0.74%
Min Revenue beat(4)-1.07%
Max Revenue beat(4)3.02%
Revenue beat(8)5
Avg Revenue beat(8)2.02%
Revenue beat(12)9
Avg Revenue beat(12)5.07%
Revenue beat(16)12
Avg Revenue beat(16)6.09%
PT rev (1m)5.25%
PT rev (3m)5.97%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.83%
EPS NY rev (1m)0%
EPS NY rev (3m)1.94%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.5%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.35 | ||
| Fwd PE | 17.96 | ||
| P/S | 3.65 | ||
| P/FCF | 15.37 | ||
| P/OCF | 11.5 | ||
| P/B | 3.32 | ||
| P/tB | N/A | ||
| EV/EBITDA | 24.5 |
EPS(TTM)0.65
EY3.79%
EPS(NY)0.95
Fwd EY5.57%
FCF(TTM)1.11
FCFY6.51%
OCF(TTM)1.49
OCFY8.7%
SpS4.7
BVpS5.16
TBVpS-2.18
PEG (NY)0.6
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.63% | ||
| ROE | 2.38% | ||
| ROCE | 3.47% | ||
| ROIC | 2.74% | ||
| ROICexc | 3.88% | ||
| ROICexgc | N/A | ||
| OM | 6.96% | ||
| PM (TTM) | 2.62% | ||
| GM | 60.51% | ||
| FCFM | 23.72% |
ROA(3y)-3.57%
ROA(5y)-4.57%
ROE(3y)-13.05%
ROE(5y)-15.18%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-19.52%
GM growth 5Y-8.18%
F-Score7
Asset Turnover0.24
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 3.53 | ||
| Debt/EBITDA | 5.23 | ||
| Cap/Depr | 89.17% | ||
| Cap/Sales | 7.98% | ||
| Interest Coverage | 1.2 | ||
| Cash Conversion | 199.3% | ||
| Profit Quality | 906.84% | ||
| Current Ratio | 1.11 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 0.73 |
F-Score7
WACC8.26%
ROIC/WACC0.33
Cap/Depr(3y)18.63%
Cap/Depr(5y)32.52%
Cap/Sales(3y)6.65%
Cap/Sales(5y)8.52%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)32.65%
EPS 3Y81.71%
EPS 5YN/A
EPS Q2Q%41.67%
EPS Next Y43.7%
EPS Next 2Y32.9%
EPS Next 3Y32.05%
EPS Next 5YN/A
Revenue 1Y (TTM)8.7%
Revenue growth 3Y40.89%
Revenue growth 5Y37.8%
Sales Q2Q%12.24%
Revenue Next Year12.29%
Revenue Next 2Y11.36%
Revenue Next 3Y11.54%
Revenue Next 5Y10.7%
EBIT growth 1Y121.77%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year208.03%
EBIT Next 3Y50.4%
EBIT Next 5Y38.4%
FCF growth 1Y14.8%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y21.56%
OCF growth 3YN/A
OCF growth 5YN/A