MAGNOLIA OIL & GAS CORP - A (MGY) Stock Fundamental Analysis
NYSE:MGY - New York Stock Exchange, Inc. - US5596631094 - Common Stock - Currency: USD
Overall MGY gets a fundamental rating of 7 out of 10. We evaluated MGY against 212 industry peers in the Oil, Gas & Consumable Fuels industry. MGY scores excellent points on both the profitability and health parts. This is a solid base for a good stock. MGY is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year MGY was profitable.
MGY had a positive operating cash flow in the past year.
MGY had positive earnings in 4 of the past 5 years.
MGY had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With an excellent Return On Assets value of 16.47%, MGY belongs to the best of the industry, outperforming 87.86% of the companies in the same industry.
Looking at the Return On Equity, with a value of 24.26%, MGY belongs to the top of the industry, outperforming 81.07% of the companies in the same industry.
MGY has a Return On Invested Capital of 23.21%. This is amongst the best in the industry. MGY outperforms 95.15% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MGY is above the industry average of 28.73%.
The last Return On Invested Capital (23.21%) for MGY is well below the 3 year average (33.22%), which needs to be investigated, but indicates that MGY had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.47% | ||
| ROE | 24.26% | ||
| ROIC | 23.21% |
ROA(3y)24.24%
ROA(5y)-1.81%
ROE(3y)43.58%
ROE(5y)-17.4%
ROIC(3y)33.22%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 28.37%, MGY is doing good in the industry, outperforming 77.67% of the companies in the same industry.
In the last couple of years the Profit Margin of MGY has grown nicely.
MGY's Operating Margin of 40.01% is amongst the best of the industry. MGY outperforms 80.10% of its industry peers.
In the last couple of years the Operating Margin of MGY has remained more or less at the same level.
MGY has a Gross Margin of 83.53%. This is amongst the best in the industry. MGY outperforms 91.75% of its industry peers.
MGY's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 40.01% | ||
| PM (TTM) | 28.37% | ||
| GM | 83.53% |
OM growth 3YN/A
OM growth 5Y1.18%
PM growth 3YN/A
PM growth 5Y1.63%
GM growth 3Y2.02%
GM growth 5Y-1.6%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so MGY is creating value.
The number of shares outstanding for MGY has been reduced compared to 1 year ago.
MGY has less shares outstanding than it did 5 years ago.
The debt/assets ratio for MGY has been reduced compared to a year ago.
2.2 Solvency
MGY has an Altman-Z score of 4.91. This indicates that MGY is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of MGY (4.91) is better than 89.81% of its industry peers.
The Debt to FCF ratio of MGY is 0.76, which is an excellent value as it means it would take MGY, only 0.76 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MGY (0.76) is better than 89.32% of its industry peers.
MGY has a Debt/Equity ratio of 0.21. This is a healthy value indicating a solid balance between debt and equity.
MGY has a better Debt to Equity ratio (0.21) than 66.99% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 4.91 |
ROIC/WACC2.6
WACC8.94%
2.3 Liquidity
MGY has a Current Ratio of 1.47. This is a normal value and indicates that MGY is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.47, MGY perfoms like the industry average, outperforming 59.71% of the companies in the same industry.
A Quick Ratio of 1.47 indicates that MGY should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.47, MGY is doing good in the industry, outperforming 66.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
MGY shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -25.27%.
Measured over the past 5 years, MGY shows a small growth in Earnings Per Share. The EPS has been growing by 4.81% on average per year.
Looking at the last year, MGY shows a very strong growth in Revenue. The Revenue has grown by 30.15%.
Measured over the past years, MGY shows a small growth in Revenue. The Revenue has been growing by 6.82% on average per year.
EPS 1Y (TTM)-25.27%
EPS 3Y374.01%
EPS 5Y4.81%
EPS Q2Q%-1.85%
Revenue 1Y (TTM)30.15%
Revenue growth 3Y31.36%
Revenue growth 5Y6.82%
Sales Q2Q%5.53%
3.2 Future
Based on estimates for the next years, MGY will show a small growth in Earnings Per Share. The EPS will grow by 6.36% on average per year.
The Revenue is expected to grow by 5.18% on average over the next years.
EPS Next Y-6.34%
EPS Next 2Y-1.55%
EPS Next 3Y2.44%
EPS Next 5Y6.36%
Revenue Next Year7.25%
Revenue Next 2Y4.26%
Revenue Next 3Y5.18%
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 Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.50, which indicates a very decent valuation of MGY.
MGY's Price/Earnings is on the same level as the industry average.
MGY is valuated cheaply when we compare the Price/Earnings ratio to 28.47, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 11.70, which indicates a very decent valuation of MGY.
Based on the Price/Forward Earnings ratio, MGY is valued a bit cheaper than the industry average as 63.59% of the companies are valued more expensively.
MGY is valuated cheaply when we compare the Price/Forward Earnings ratio to 92.74, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 11.7 |
4.2 Price Multiples
69.90% of the companies in the same industry are more expensive than MGY, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MGY is valued a bit cheaper than the industry average as 71.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.08 | ||
| EV/EBITDA | 4.6 |
4.3 Compensation for Growth
The excellent profitability rating of MGY may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.39
EPS Next 2Y-1.55%
EPS Next 3Y2.44%
5. Dividend
5.1 Amount
MGY has a Yearly Dividend Yield of 2.12%.
MGY's Dividend Yield is slightly below the industry average, which is at 6.57.
Compared to an average S&P500 Dividend Yield of 2.28, MGY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
5.2 History
MGY has been paying a dividend for less than 5 years, so it still needs to build a track record.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
20.33% of the earnings are spent on dividend by MGY. This is a low number and sustainable payout ratio.
DP20.33%
EPS Next 2Y-1.55%
EPS Next 3Y2.44%
MAGNOLIA OIL & GAS CORP - A
NYSE:MGY (2/4/2025, 8:04:00 PM)
After market: 24.16 0 (0%)24.16
+0.49 (+2.07%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners117.26%
Inst Owner Change0.13%
Ins Owners1.4%
Ins Owner Change-16.49%
Market Cap4.75B
Analysts71.43
Price Target29 (20.03%)
Short Float %16.11%
Short Ratio16.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.12% |
Yearly Dividend0.42
Dividend Growth(5Y)N/A
DP20.33%
Div Incr Years2
Div Non Decr Years2
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.17%
Min EPS beat(2)5.28%
Max EPS beat(2)9.06%
EPS beat(4)3
Avg EPS beat(4)4.23%
Min EPS beat(4)-2.71%
Max EPS beat(4)9.06%
EPS beat(8)6
Avg EPS beat(8)11.53%
EPS beat(12)10
Avg EPS beat(12)9.89%
EPS beat(16)14
Avg EPS beat(16)15.72%
Revenue beat(2)1
Avg Revenue beat(2)-0.14%
Min Revenue beat(2)-0.9%
Max Revenue beat(2)0.63%
Revenue beat(4)2
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-1.95%
Max Revenue beat(4)2.87%
Revenue beat(8)2
Avg Revenue beat(8)-2.06%
Revenue beat(12)6
Avg Revenue beat(12)0.73%
Revenue beat(16)10
Avg Revenue beat(16)2.19%
PT rev (1m)2.02%
PT rev (3m)4.01%
EPS NQ rev (1m)-2.93%
EPS NQ rev (3m)-20.22%
EPS NY rev (1m)-1.09%
EPS NY rev (3m)0.67%
Revenue NQ rev (1m)-1.2%
Revenue NQ rev (3m)-4.92%
Revenue NY rev (1m)0.08%
Revenue NY rev (3m)0.38%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.5 | ||
| Fwd PE | 11.7 | ||
| P/S | 2.91 | ||
| P/FCF | 9.08 | ||
| P/OCF | 5.02 | ||
| P/B | 2.49 | ||
| P/tB | 2.49 | ||
| EV/EBITDA | 4.6 |
EPS(TTM)2.1
EY8.69%
EPS(NY)2.06
Fwd EY8.54%
FCF(TTM)2.66
FCFY11.01%
OCF(TTM)4.81
OCFY19.9%
SpS8.3
BVpS9.71
TBVpS9.71
PEG (NY)N/A
PEG (5Y)2.39
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.47% | ||
| ROE | 24.26% | ||
| ROCE | 25.8% | ||
| ROIC | 23.21% | ||
| ROICexc | 26.05% | ||
| ROICexgc | 26.05% | ||
| OM | 40.01% | ||
| PM (TTM) | 28.37% | ||
| GM | 83.53% | ||
| FCFM | 32.05% |
ROA(3y)24.24%
ROA(5y)-1.81%
ROE(3y)43.58%
ROE(5y)-17.4%
ROIC(3y)33.22%
ROIC(5y)N/A
ROICexc(3y)44.61%
ROICexc(5y)N/A
ROICexgc(3y)44.61%
ROICexgc(5y)N/A
ROCE(3y)36.94%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y17.21%
ROICexc growth 3YN/A
ROICexc growth 5Y17.51%
OM growth 3YN/A
OM growth 5Y1.18%
PM growth 3YN/A
PM growth 5Y1.63%
GM growth 3Y2.02%
GM growth 5Y-1.6%
F-Score6
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.76 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 104.24% | ||
| Cap/Sales | 25.88% | ||
| Interest Coverage | 24.79 | ||
| Cash Conversion | 89.35% | ||
| Profit Quality | 112.97% | ||
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 4.91 |
F-Score6
WACC8.94%
ROIC/WACC2.6
Cap/Depr(3y)147.35%
Cap/Depr(5y)117.87%
Cap/Sales(3y)28%
Cap/Sales(5y)33.35%
Profit Quality(3y)112.11%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-25.27%
EPS 3Y374.01%
EPS 5Y4.81%
EPS Q2Q%-1.85%
EPS Next Y-6.34%
EPS Next 2Y-1.55%
EPS Next 3Y2.44%
EPS Next 5Y6.36%
Revenue 1Y (TTM)30.15%
Revenue growth 3Y31.36%
Revenue growth 5Y6.82%
Sales Q2Q%5.53%
Revenue Next Year7.25%
Revenue Next 2Y4.26%
Revenue Next 3Y5.18%
Revenue Next 5YN/A
EBIT growth 1Y8.54%
EBIT growth 3YN/A
EBIT growth 5Y8.07%
EBIT Next Year72.31%
EBIT Next 3Y23.54%
EBIT Next 5Y16.73%
FCF growth 1Y-41.39%
FCF growth 3Y56.6%
FCF growth 5Y11.38%
OCF growth 1Y-26.7%
OCF growth 3Y40.27%
OCF growth 5Y7.71%