MAGNITE INC (MGNI) Stock Fundamental Analysis
USA - NASDAQ:MGNI - US55955D1000 - Common Stock
17.88 USD
+0.57 (+3.29%)
18 USD
+0.12 (+0.67%)
We assign a fundamental rating of 5 out of 10 to MGNI. MGNI was compared to 94 industry peers in the Media industry. There are concerns on the financial health of MGNI while its profitability can be described as average. MGNI is not overvalued while it is showing excellent growth. This is an interesting combination.
1. Profitability
1.1 Basic Checks
MGNI had positive earnings in the past year.
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.
Of the past 5 years MGNI 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MGNI (1.47%) is better than 65.96% of its industry peers.
Looking at the Return On Equity, with a value of 5.61%, MGNI is in the better half of the industry, outperforming 69.15% of the companies in the same industry.
MGNI has a Return On Invested Capital of 5.62%. This is in the better half of the industry: MGNI outperforms 64.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 5.61% | ||
| ROIC | 5.62% |
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
With a decent Profit Margin value of 6.30%, MGNI is doing good in the industry, outperforming 73.40% of the companies in the same industry.
In the last couple of years the Profit Margin of MGNI has grown nicely.
With a decent Operating Margin value of 11.08%, MGNI is doing good in the industry, outperforming 63.83% of the companies in the same industry.
MGNI has a better Gross Margin (62.33%) than 73.40% of its industry peers.
MGNI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.08% | ||
| PM (TTM) | 6.3% | ||
| GM | 62.33% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MGNI is destroying value.
MGNI has more shares outstanding than it did 1 year ago.
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
MGNI has an Altman-Z score of 0.69. 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 0.69, MGNI is in line with its industry, outperforming 42.55% of the companies in the same industry.
MGNI has a debt to FCF ratio of 3.29. This is a good value and a sign of high solvency as MGNI would need 3.29 years to pay back of all of its debts.
The Debt to FCF ratio of MGNI (3.29) is better than 77.66% of its industry peers.
MGNI has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
Looking at the Debt to Equity ratio, with a value of 0.45, MGNI is in line with its industry, outperforming 59.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.29 | ||
| Altman-Z | 0.69 |
ROIC/WACC0.68
WACC8.23%
2.3 Liquidity
A Current Ratio of 1.00 indicates that MGNI may have some problems paying its short term obligations.
The Current ratio of MGNI (1.00) is comparable to the rest of the industry.
A Quick Ratio of 1.00 indicates that MGNI may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.00, MGNI is in line with its industry, outperforming 42.55% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1 | ||
| Quick Ratio | 1 |
3. Growth
3.1 Past
MGNI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.33%, which is quite impressive.
Measured over the past years, MGNI shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.04% on average per year.
Looking at the last year, MGNI shows a small growth in Revenue. The Revenue has grown by 5.52% 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)38.33%
EPS 3Y9.04%
EPS 5YN/A
EPS Q2Q%42.86%
Revenue 1Y (TTM)5.52%
Revenue growth 3Y12.57%
Revenue growth 5Y33.7%
Sales Q2Q%10.35%
3.2 Future
MGNI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 28.53% yearly.
Based on estimates for the next years, MGNI will show a quite strong growth in Revenue. The Revenue will grow by 10.98% on average per year.
EPS Next Y31.69%
EPS Next 2Y28.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year10.23%
Revenue Next 2Y10.93%
Revenue Next 3Y10.19%
Revenue Next 5Y10.98%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 21.54, which indicates a rather expensive current valuation of MGNI.
Based on the Price/Earnings ratio, MGNI is valued a bit cheaper than the industry average as 65.96% of the companies are valued more expensively.
MGNI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.10.
Based on the Price/Forward Earnings ratio of 15.46, the valuation of MGNI can be described as correct.
Based on the Price/Forward Earnings ratio, MGNI is valued a bit cheaper than the industry average as 60.64% of the companies are valued more expensively.
MGNI's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.54 | ||
| Fwd PE | 15.46 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MGNI is on the same level as its industry peers.
MGNI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MGNI is cheaper than 64.89% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.03 | ||
| EV/EBITDA | 19.3 |
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 28.53% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.68
PEG (5Y)N/A
EPS Next 2Y28.53%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for MGNI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.88
+0.57 (+3.29%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners105.29%
Inst Owner Change-0.81%
Ins Owners1.38%
Ins Owner Change-24.39%
Market Cap2.55B
Revenue(TTM)685.07M
Net Income(TTM)43.13M
Analysts82.86
Price Target28.38 (58.72%)
Short Float %9.91%
Short Ratio4.8
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)2
Avg EPS beat(2)47.76%
Min EPS beat(2)17.94%
Max EPS beat(2)77.58%
EPS beat(4)3
Avg EPS beat(4)22.64%
Min EPS beat(4)-8.02%
Max EPS beat(4)77.58%
EPS beat(8)6
Avg EPS beat(8)1428.47%
EPS beat(12)9
Avg EPS beat(12)982.4%
EPS beat(16)11
Avg EPS beat(16)734.38%
Revenue beat(2)2
Avg Revenue beat(2)0.71%
Min Revenue beat(2)0.47%
Max Revenue beat(2)0.94%
Revenue beat(4)2
Avg Revenue beat(4)-0.94%
Min Revenue beat(4)-4.12%
Max Revenue beat(4)0.94%
Revenue beat(8)5
Avg Revenue beat(8)0.09%
Revenue beat(12)8
Avg Revenue beat(12)2.38%
Revenue beat(16)12
Avg Revenue beat(16)4.29%
PT rev (1m)0%
PT rev (3m)23.62%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)0%
EPS NY rev (3m)3.88%
Revenue NQ rev (1m)-1.18%
Revenue NQ rev (3m)1.9%
Revenue NY rev (1m)-0.86%
Revenue NY rev (3m)2.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.54 | ||
| Fwd PE | 15.46 | ||
| P/S | 3.72 | ||
| P/FCF | 15.03 | ||
| P/OCF | 11.21 | ||
| P/B | 3.31 | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.3 |
EPS(TTM)0.83
EY4.64%
EPS(NY)1.16
Fwd EY6.47%
FCF(TTM)1.19
FCFY6.65%
OCF(TTM)1.6
OCFY8.92%
SpS4.81
BVpS5.4
TBVpS-1.74
PEG (NY)0.68
PEG (5Y)N/A
Graham Number10.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.47% | ||
| ROE | 5.61% | ||
| ROCE | 6.53% | ||
| ROIC | 5.62% | ||
| ROICexc | 8.87% | ||
| ROICexgc | N/A | ||
| OM | 11.08% | ||
| PM (TTM) | 6.3% | ||
| GM | 62.33% | ||
| FCFM | 24.72% |
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
ROICexgc growth 3YN/A
ROICexgc 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-Score7
Asset Turnover0.23
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.45 | ||
| Debt/FCF | 3.29 | ||
| Debt/EBITDA | 2.59 | ||
| Cap/Depr | 98.72% | ||
| Cap/Sales | 8.43% | ||
| Interest Coverage | 2.27 | ||
| Cash Conversion | 168.93% | ||
| Profit Quality | 392.72% | ||
| Current Ratio | 1 | ||
| Quick Ratio | 1 | ||
| Altman-Z | 0.69 |
F-Score7
WACC8.23%
ROIC/WACC0.68
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)38.33%
EPS 3Y9.04%
EPS 5YN/A
EPS Q2Q%42.86%
EPS Next Y31.69%
EPS Next 2Y28.53%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.52%
Revenue growth 3Y12.57%
Revenue growth 5Y33.7%
Sales Q2Q%10.35%
Revenue Next Year10.23%
Revenue Next 2Y10.93%
Revenue Next 3Y10.19%
Revenue Next 5Y10.98%
EBIT growth 1Y485.47%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year338.89%
EBIT Next 3Y81.8%
EBIT Next 5Y49.09%
FCF growth 1Y35.6%
FCF growth 3Y24.5%
FCF growth 5Y73.12%
OCF growth 1Y32.21%
OCF growth 3Y22.93%
OCF growth 5Y49.02%
MAGNITE INC / MGNI FAQ
What is the ChartMill fundamental rating of MAGNITE INC (MGNI) stock?
ChartMill assigns a fundamental rating of 5 / 10 to MGNI.
What is the valuation status of MAGNITE INC (MGNI) stock?
ChartMill assigns a valuation rating of 5 / 10 to MAGNITE INC (MGNI). This can be considered as Fairly Valued.
How profitable is MAGNITE INC (MGNI) stock?
MAGNITE INC (MGNI) has a profitability rating of 5 / 10.
Can you provide the financial health for MGNI stock?
The financial health rating of MAGNITE INC (MGNI) is 3 / 10.