MAGNITE INC (MGNI) Stock Fundamental Analysis
NASDAQ:MGNI - Nasdaq - US55955D1000 - Common Stock - Currency: USD
Taking everything into account, MGNI scores 5 out of 10 in our fundamental rating. MGNI was compared to 97 industry peers in the Media industry. While MGNI is still in line with the averages on profitability rating, there are concerns on its financial health. MGNI is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one!
1. Profitability
1.1 Basic Checks
MGNI had positive earnings in the past year.
MGNI had a positive operating cash flow in the past year.
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
MGNI's Return On Assets of 1.16% is fine compared to the rest of the industry. MGNI outperforms 63.92% of its industry peers.
The Return On Equity of MGNI (4.17%) is better than 65.98% of its industry peers.
MGNI's Return On Invested Capital of 4.81% is fine compared to the rest of the industry. MGNI outperforms 64.95% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 4.17% | ||
| ROIC | 4.81% |
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 4.58% is fine compared to the rest of the industry. MGNI outperforms 71.13% of its industry peers.
MGNI's Profit Margin has improved in the last couple of years.
The Operating Margin of MGNI (9.42%) is better than 62.89% of its industry peers.
With a decent Gross Margin value of 62.09%, MGNI is doing good in the industry, outperforming 74.23% of the companies in the same industry.
MGNI's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.42% | ||
| PM (TTM) | 4.58% | ||
| GM | 62.09% |
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.
MGNI has more shares outstanding than it did 1 year ago.
MGNI has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, MGNI has an improved debt to assets ratio.
2.2 Solvency
MGNI has an Altman-Z score of 1.00. This is a bad value and indicates that MGNI is not financially healthy and even has some risk of bankruptcy.
MGNI has a Altman-Z score (1.00) which is in line with its industry peers.
The Debt to FCF ratio of MGNI is 2.29, which is a good value as it means it would take MGNI, 2.29 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.29, MGNI belongs to the top of the industry, outperforming 87.63% of the companies in the same industry.
A Debt/Equity ratio of 0.47 indicates that MGNI is not too dependend on debt financing.
MGNI has a Debt to Equity ratio of 0.47. This is comparable to the rest of the industry: MGNI outperforms 57.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.29 | ||
| Altman-Z | 1 |
ROIC/WACC0.56
WACC8.53%
2.3 Liquidity
MGNI has a Current Ratio of 0.98. This is a bad value and indicates that MGNI is not financially healthy enough and could expect problems in meeting its short term obligations.
MGNI has a Current ratio of 0.98. This is in the lower half of the industry: MGNI underperforms 69.07% of its industry peers.
MGNI has a Quick Ratio of 0.98. This is a bad value and indicates that MGNI is not financially healthy enough and could expect problems in meeting its short term obligations.
MGNI's Quick ratio of 0.98 is on the low side compared to the rest of the industry. MGNI is outperformed by 67.01% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 |
3. Growth
3.1 Past
MGNI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 40.00%, 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 5.60% in the last year.
Measured over the past years, MGNI shows a very strong growth in Revenue. The Revenue has been growing by 33.70% on average per year.
EPS 1Y (TTM)40%
EPS 3Y9.04%
EPS 5YN/A
EPS Q2Q%140%
Revenue 1Y (TTM)5.6%
Revenue growth 3Y12.57%
Revenue growth 5Y33.7%
Sales Q2Q%11.72%
3.2 Future
MGNI is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.40% yearly.
The Revenue is expected to grow by 10.19% on average over the next years. This is quite good.
EPS Next Y25.5%
EPS Next 2Y23.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year7.55%
Revenue Next 2Y9.27%
Revenue Next 3Y10.19%
Revenue Next 5YN/A
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.
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
MGNI is valuated quite expensively with a Price/Earnings ratio of 29.31.
Based on the Price/Earnings ratio, MGNI is valued a bit cheaper than the industry average as 62.89% of the companies are valued more expensively.
MGNI's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.30.
The Price/Forward Earnings ratio is 21.17, which indicates a rather expensive current valuation of MGNI.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MGNI is on the same level as its industry peers.
MGNI is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.31 | ||
| Fwd PE | 21.17 |
4.2 Price Multiples
MGNI's Enterprise Value to EBITDA ratio is in line with the industry average.
72.16% of the companies in the same industry are more expensive than MGNI, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.1 | ||
| EV/EBITDA | 27.69 |
4.3 Compensation for Growth
MGNI's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as MGNI's earnings are expected to grow with 23.40% in the coming years.
PEG (NY)1.15
PEG (5Y)N/A
EPS Next 2Y23.4%
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for MGNI!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
22.57
-0.88 (-3.75%)
Chartmill FA Rating
GICS SectorCommunication Services
GICS IndustryGroupMedia & Entertainment
GICS IndustryMedia
Earnings (Last)
Earnings (Next)
Inst Owners96.49%
Inst Owner Change0%
Ins Owners2.07%
Ins Owner Change-8.12%
Market Cap3.18B
Analysts82.86
Price Target19.96 (-11.56%)
Short Float %14.11%
Short Ratio7.66
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)34.78%
Min EPS beat(2)-8.02%
Max EPS beat(2)77.58%
EPS beat(4)2
Avg EPS beat(4)15.4%
Min EPS beat(4)-11.02%
Max EPS beat(4)77.58%
EPS beat(8)6
Avg EPS beat(8)1446.17%
EPS beat(12)8
Avg EPS beat(12)979.27%
EPS beat(16)10
Avg EPS beat(16)732.44%
Revenue beat(2)1
Avg Revenue beat(2)-1.82%
Min Revenue beat(2)-4.12%
Max Revenue beat(2)0.47%
Revenue beat(4)1
Avg Revenue beat(4)-1.2%
Min Revenue beat(4)-4.12%
Max Revenue beat(4)0.47%
Revenue beat(8)4
Avg Revenue beat(8)-0.24%
Revenue beat(12)8
Avg Revenue beat(12)3%
Revenue beat(16)12
Avg Revenue beat(16)5.44%
PT rev (1m)1.86%
PT rev (3m)-4.71%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-8.37%
EPS NY rev (1m)0%
EPS NY rev (3m)-4.76%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.31 | ||
| Fwd PE | 21.17 | ||
| P/S | 4.72 | ||
| P/FCF | 13.1 | ||
| P/OCF | 10.68 | ||
| P/B | 4.29 | ||
| P/tB | N/A | ||
| EV/EBITDA | 27.69 |
EPS(TTM)0.77
EY3.41%
EPS(NY)1.07
Fwd EY4.72%
FCF(TTM)1.72
FCFY7.63%
OCF(TTM)2.11
OCFY9.36%
SpS4.78
BVpS5.26
TBVpS-1.96
PEG (NY)1.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.16% | ||
| ROE | 4.17% | ||
| ROCE | 5.59% | ||
| ROIC | 4.81% | ||
| ROICexc | 7.74% | ||
| ROICexgc | N/A | ||
| OM | 9.42% | ||
| PM (TTM) | 4.58% | ||
| GM | 62.09% | ||
| FCFM | 36.04% |
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-Score7
Asset Turnover0.25
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.47 | ||
| Debt/FCF | 2.29 | ||
| Debt/EBITDA | 2.81 | ||
| Cap/Depr | 90.87% | ||
| Cap/Sales | 8.16% | ||
| Interest Coverage | 1.75 | ||
| Cash Conversion | 240.28% | ||
| Profit Quality | 786.69% | ||
| Current Ratio | 0.98 | ||
| Quick Ratio | 0.98 | ||
| Altman-Z | 1 |
F-Score7
WACC8.53%
ROIC/WACC0.56
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)40%
EPS 3Y9.04%
EPS 5YN/A
EPS Q2Q%140%
EPS Next Y25.5%
EPS Next 2Y23.4%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)5.6%
Revenue growth 3Y12.57%
Revenue growth 5Y33.7%
Sales Q2Q%11.72%
Revenue Next Year7.55%
Revenue Next 2Y9.27%
Revenue Next 3Y10.19%
Revenue Next 5YN/A
EBIT growth 1Y192.91%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year320.71%
EBIT Next 3Y81.8%
EBIT Next 5YN/A
FCF growth 1Y146.11%
FCF growth 3Y24.5%
FCF growth 5Y73.12%
OCF growth 1Y112.83%
OCF growth 3Y22.93%
OCF growth 5Y49.02%