MAGNITE INC (MGNI) Stock Fundamental Analysis
NASDAQ:MGNI - Nasdaq - US55955D1000 - Common Stock - Currency: USD
Overall MGNI gets a fundamental rating of 5 out of 10. We evaluated MGNI against 92 industry peers in the Media industry. MGNI has only an average score on both its financial health and 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.
In multiple years MGNI reported negative net income over the last 5 years.
MGNI had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
MGNI has a better Return On Assets (0.80%) than 63.04% of its industry peers.
MGNI's Return On Equity of 2.97% is fine compared to the rest of the industry. MGNI outperforms 67.39% of its industry peers.
With a Return On Invested Capital value of 3.23%, MGNI perfoms like the industry average, outperforming 51.09% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 2.97% | ||
| ROIC | 3.23% |
ROA(3y)-3.31%
ROA(5y)-3.12%
ROE(3y)-12.06%
ROE(5y)-10.03%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MGNI's Profit Margin of 3.41% is fine compared to the rest of the industry. MGNI outperforms 67.39% of its industry peers.
In the last couple of years the Profit Margin of MGNI has grown nicely.
The Operating Margin of MGNI (7.65%) is comparable to the rest of the industry.
The Gross Margin of MGNI (61.26%) is better than 75.00% of its industry peers.
MGNI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.65% | ||
| PM (TTM) | 3.41% | ||
| GM | 61.26% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y442.58%
PM growth 5YN/A
GM growth 3Y2.46%
GM growth 5Y-0.65%
2. Health
2.1 Basic Checks
MGNI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MGNI has more shares outstanding
The number of shares outstanding for MGNI has been increased compared to 5 years ago.
MGNI has a better debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 0.59, we must say that MGNI is in the distress zone and has some risk of bankruptcy.
MGNI has a Altman-Z score (0.59) which is comparable to the rest of the industry.
The Debt to FCF ratio of MGNI is 2.94, which is a good value as it means it would take MGNI, 2.94 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MGNI (2.94) is better than 83.70% of its industry peers.
MGNI has a Debt/Equity ratio of 0.72. This is a neutral value indicating MGNI is somewhat dependend on debt financing.
MGNI has a Debt to Equity ratio of 0.72. This is comparable to the rest of the industry: MGNI outperforms 54.35% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 2.94 | ||
| Altman-Z | 0.59 |
ROIC/WACC0.39
WACC8.33%
2.3 Liquidity
A Current Ratio of 1.14 indicates that MGNI should not have too much problems paying its short term obligations.
MGNI has a worse Current ratio (1.14) than 64.13% of its industry peers.
A Quick Ratio of 1.14 indicates that MGNI should not have too much problems paying its short term obligations.
The Quick ratio of MGNI (1.14) is worse than 63.04% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 |
3. Growth
3.1 Past
MGNI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.63%, which is quite impressive.
The Earnings Per Share has been growing by 9.04% on average over the past years. This is quite good.
Looking at the last year, MGNI shows a small growth in Revenue. The Revenue has grown by 7.82% in the last year.
MGNI shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 33.70% yearly.
EPS 1Y (TTM)29.63%
EPS 3Y9.04%
EPS 5YN/A
EPS Q2Q%17.24%
Revenue 1Y (TTM)7.82%
Revenue growth 3Y12.57%
Revenue growth 5Y33.7%
Sales Q2Q%17.36%
3.2 Future
MGNI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 29.94% yearly.
MGNI is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.19% yearly.
EPS Next Y35.13%
EPS Next 2Y29.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year9.64%
Revenue Next 2Y10.31%
Revenue Next 3Y10.19%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
A Price/Earnings ratio of 18.71 indicates a rather expensive valuation of MGNI.
Based on the Price/Earnings ratio, MGNI is valued a bit cheaper than 61.96% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 29.35, MGNI is valued a bit cheaper.
A Price/Forward Earnings ratio of 13.84 indicates a correct valuation of MGNI.
Based on the Price/Forward Earnings ratio, MGNI is valued a bit cheaper than 71.74% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.10, MGNI is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 13.84 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MGNI is valued a bit more expensive than the industry average as 61.96% of the companies are valued more cheaply.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MGNI indicates a somewhat cheap valuation: MGNI is cheaper than 78.26% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.95 | ||
| EV/EBITDA | 17.72 |
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.
A more expensive valuation may be justified as MGNI's earnings are expected to grow with 29.94% in the coming years.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y29.94%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for MGNI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
13.095
-0.54 (-3.93%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners90.74%
Inst Owner Change6.52%
Ins Owners2.26%
Ins Owner Change-3.2%
Market Cap1.87B
Analysts82
Price Target20.98 (60.21%)
Short Float %7.6%
Short Ratio4.55
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)-2.49%
Min EPS beat(2)-8.02%
Max EPS beat(2)3.04%
EPS beat(4)2
Avg EPS beat(4)2820.98%
Min EPS beat(4)-11.02%
Max EPS beat(4)11299.9%
EPS beat(8)6
Avg EPS beat(8)1462.34%
EPS beat(12)8
Avg EPS beat(12)972.93%
EPS beat(16)10
Avg EPS beat(16)758.11%
Revenue beat(2)1
Avg Revenue beat(2)1.07%
Min Revenue beat(2)-1.07%
Max Revenue beat(2)3.21%
Revenue beat(4)2
Avg Revenue beat(4)1.27%
Min Revenue beat(4)-1.07%
Max Revenue beat(4)3.21%
Revenue beat(8)5
Avg Revenue beat(8)0.94%
Revenue beat(12)9
Avg Revenue beat(12)4.26%
Revenue beat(16)12
Avg Revenue beat(16)5.85%
PT rev (1m)4.73%
PT rev (3m)15.77%
EPS NQ rev (1m)0%
EPS NQ rev (3m)2.86%
EPS NY rev (1m)-0.27%
EPS NY rev (3m)1.08%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.24%
Revenue NY rev (1m)-0.47%
Revenue NY rev (3m)-0.7%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.71 | ||
| Fwd PE | 13.84 | ||
| P/S | 2.8 | ||
| P/FCF | 9.95 | ||
| P/OCF | 7.96 | ||
| P/B | 2.44 | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.72 |
EPS(TTM)0.7
EY5.35%
EPS(NY)0.95
Fwd EY7.22%
FCF(TTM)1.32
FCFY10.05%
OCF(TTM)1.65
OCFY12.56%
SpS4.67
BVpS5.37
TBVpS-1.8
PEG (NY)0.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 0.8% | ||
| ROE | 2.97% | ||
| ROCE | 3.76% | ||
| ROIC | 3.23% | ||
| ROICexc | 5.02% | ||
| ROICexgc | N/A | ||
| OM | 7.65% | ||
| PM (TTM) | 3.41% | ||
| GM | 61.26% | ||
| FCFM | 28.16% |
ROA(3y)-3.31%
ROA(5y)-3.12%
ROE(3y)-12.06%
ROE(5y)-10.03%
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 3Y442.58%
PM growth 5YN/A
GM growth 3Y2.46%
GM growth 5Y-0.65%
F-Score9
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.72 | ||
| Debt/FCF | 2.94 | ||
| Debt/EBITDA | 5.02 | ||
| Cap/Depr | 80.45% | ||
| Cap/Sales | 7.04% | ||
| Interest Coverage | 1.39 | ||
| Cash Conversion | 214.61% | ||
| Profit Quality | 825.64% | ||
| Current Ratio | 1.14 | ||
| Quick Ratio | 1.14 | ||
| Altman-Z | 0.59 |
F-Score9
WACC8.33%
ROIC/WACC0.39
Cap/Depr(3y)38.84%
Cap/Depr(5y)36.21%
Cap/Sales(3y)6.92%
Cap/Sales(5y)7.38%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)29.63%
EPS 3Y9.04%
EPS 5YN/A
EPS Q2Q%17.24%
EPS Next Y35.13%
EPS Next 2Y29.94%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.82%
Revenue growth 3Y12.57%
Revenue growth 5Y33.7%
Sales Q2Q%17.36%
Revenue Next Year9.64%
Revenue Next 2Y10.31%
Revenue Next 3Y10.19%
Revenue Next 5YN/A
EBIT growth 1Y134.59%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year338.34%
EBIT Next 3Y81.8%
EBIT Next 5YN/A
FCF growth 1Y6.3%
FCF growth 3Y24.5%
FCF growth 5Y73.12%
OCF growth 1Y9.72%
OCF growth 3Y22.93%
OCF growth 5Y49.02%