MAGNITE INC (MGNI) Stock Fundamental Analysis
NASDAQ:MGNI - Nasdaq - US55955D1000 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MGNI. MGNI was compared to 93 industry peers in the Media industry. The financial health of MGNI is average, but there are quite some concerns on its profitability. MGNI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
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.
In the past 5 years MGNI reported 4 times negative net income.
MGNI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MGNI has a Return On Assets of 0.63%. This is comparable to the rest of the industry: MGNI outperforms 57.47% of its industry peers.
Looking at the Return On Equity, with a value of 2.38%, MGNI is in line with its industry, outperforming 57.47% of the companies in the same industry.
The Return On Invested Capital of MGNI (2.74%) 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
MGNI's Profit Margin of 2.62% is fine compared to the rest of the industry. MGNI outperforms 60.92% of its industry peers.
MGNI has a Operating Margin (6.96%) which is comparable to the rest of the industry.
Looking at the Gross Margin, with a value of 60.51%, MGNI is in the better half of the industry, outperforming 71.26% of the companies in the same industry.
In the last couple of years the Gross Margin of MGNI has declined.
| 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.
MGNI has more shares outstanding than it did 5 years ago.
MGNI has a better debt/assets ratio than last year.
2.2 Solvency
MGNI has an Altman-Z score of 0.75. This is a bad value and indicates that MGNI is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.75, MGNI is in line with its industry, outperforming 47.13% of the companies in the same industry.
The Debt to FCF ratio of MGNI is 3.53, which is a good value as it means it would take MGNI, 3.53 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 3.53, MGNI belongs to the top of the industry, outperforming 82.76% of the companies in the same industry.
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 51.72% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.76 | ||
| Debt/FCF | 3.53 | ||
| Altman-Z | 0.75 |
ROIC/WACC0.33
WACC8.26%
2.3 Liquidity
MGNI has a Current Ratio of 1.11. This is a normal value and indicates that MGNI is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of MGNI (1.11) is worse than 67.82% of its industry peers.
A Quick Ratio of 1.11 indicates that MGNI should not have too much problems paying its short term obligations.
MGNI has a worse Quick ratio (1.11) than 64.37% of its industry peers.
| 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.
MGNI shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.70%.
MGNI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 37.80% yearly.
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
The Earnings Per Share is expected to grow by 29.83% on average over the next years. This is a very strong growth
Based on estimates for the next years, MGNI will show a quite strong growth in Revenue. The Revenue will grow by 10.70% on average per year.
EPS Next Y43.39%
EPS Next 2Y32.53%
EPS Next 3Y29.83%
EPS Next 5YN/A
Revenue Next Year12.29%
Revenue Next 2Y11.27%
Revenue Next 3Y11.45%
Revenue Next 5Y10.7%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 27.36, which means the current valuation is very expensive for MGNI.
MGNI's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.47, MGNI is valued at the same level.
With a Price/Forward Earnings ratio of 18.75, MGNI is valued on the expensive side.
MGNI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MGNI is cheaper than 63.22% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 92.74, MGNI is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.36 | ||
| Fwd PE | 18.75 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGNI is valued a bit more expensive than the industry average as 64.37% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGNI is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.96 | ||
| EV/EBITDA | 25.28 |
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 29.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.63
PEG (5Y)N/A
EPS Next 2Y32.53%
EPS Next 3Y29.83%
5. Dividend
5.1 Amount
No dividends for MGNI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
MAGNITE INC
NASDAQ:MGNI (2/5/2025, 3:23:59 PM)
17.785
+0.07 (+0.42%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners75.34%
Inst Owner Change0.12%
Ins Owners2.22%
Ins Owner Change-0.09%
Market Cap2.50B
Analysts82
Price Target20.04 (12.68%)
Short Float %6.37%
Short Ratio5.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/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)6.18%
PT rev (3m)12.51%
EPS NQ rev (1m)-0.73%
EPS NQ rev (3m)-4.53%
EPS NY rev (1m)-0.21%
EPS NY rev (3m)1.73%
Revenue NQ rev (1m)-0.1%
Revenue NQ rev (3m)-0.6%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.36 | ||
| Fwd PE | 18.75 | ||
| P/S | 3.78 | ||
| P/FCF | 15.96 | ||
| P/OCF | 11.94 | ||
| P/B | 3.45 | ||
| P/tB | N/A | ||
| EV/EBITDA | 25.28 |
EPS(TTM)0.65
EY3.65%
EPS(NY)0.95
Fwd EY5.33%
FCF(TTM)1.11
FCFY6.27%
OCF(TTM)1.49
OCFY8.38%
SpS4.7
BVpS5.16
TBVpS-2.18
PEG (NY)0.63
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 | 0.75 |
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 Y43.39%
EPS Next 2Y32.53%
EPS Next 3Y29.83%
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 2Y11.27%
Revenue Next 3Y11.45%
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