MAGNOLIA OIL & GAS CORP - A (MGY) Stock Fundamental Analysis
NYSE:MGY - New York Stock Exchange, Inc. - US5596631094 - Common Stock - Currency: USD
MGY gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 212 industry peers in the Oil, Gas & Consumable Fuels industry. MGY has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. 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.
In the past 5 years MGY always reported a positive cash flow from operatings.
1.2 Ratios
MGY's Return On Assets of 15.88% is amongst the best of the industry. MGY outperforms 90.57% of its industry peers.
MGY's Return On Equity of 23.40% is amongst the best of the industry. MGY outperforms 84.43% of its industry peers.
MGY's Return On Invested Capital of 20.26% is amongst the best of the industry. MGY outperforms 94.34% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for MGY is below the industry average of 27.42%.
The 3 year average ROIC (24.48%) for MGY is well above the current ROIC(20.26%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.88% | ||
| ROE | 23.4% | ||
| ROIC | 20.26% |
ROA(3y)20.55%
ROA(5y)0.48%
ROE(3y)32.85%
ROE(5y)-14.16%
ROIC(3y)24.48%
ROIC(5y)N/A
1.3 Margins
With a decent Profit Margin value of 27.38%, MGY is doing good in the industry, outperforming 78.30% of the companies in the same industry.
In the last couple of years the Profit Margin of MGY has grown nicely.
With an excellent Operating Margin value of 38.93%, MGY belongs to the best of the industry, outperforming 80.66% of the companies in the same industry.
MGY's Operating Margin has improved in the last couple of years.
MGY has a Gross Margin of 83.16%. This is amongst the best in the industry. MGY outperforms 91.51% of its industry peers.
In the last couple of years the Gross Margin of MGY has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 38.93% | ||
| PM (TTM) | 27.38% | ||
| GM | 83.16% |
OM growth 3Y-11.68%
OM growth 5Y23.44%
PM growth 3Y-10.79%
PM growth 5Y40.43%
GM growth 3Y-1.52%
GM growth 5Y-0.58%
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.
Compared to 1 year ago, MGY has less shares outstanding
The number of shares outstanding for MGY has been reduced compared to 5 years ago.
Compared to 1 year ago, MGY has an improved debt to assets ratio.
2.2 Solvency
MGY has an Altman-Z score of 4.46. This indicates that MGY is financially healthy and has little risk of bankruptcy at the moment.
MGY has a better Altman-Z score (4.46) than 90.57% of its industry peers.
MGY has a debt to FCF ratio of 0.90. This is a very positive value and a sign of high solvency as it would only need 0.90 years to pay back of all of its debts.
MGY has a Debt to FCF ratio of 0.90. This is amongst the best in the industry. MGY outperforms 90.09% of its industry peers.
A Debt/Equity ratio of 0.21 indicates that MGY is not too dependend on debt financing.
MGY has a better Debt to Equity ratio (0.21) than 70.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.9 | ||
| Altman-Z | 4.46 |
ROIC/WACC1.93
WACC10.47%
2.3 Liquidity
MGY has a Current Ratio of 1.42. This is a normal value and indicates that MGY is financially healthy and should not expect problems in meeting its short term obligations.
MGY has a better Current ratio (1.42) than 64.62% of its industry peers.
A Quick Ratio of 1.42 indicates that MGY should not have too much problems paying its short term obligations.
The Quick ratio of MGY (1.42) is better than 69.81% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 |
3. Growth
3.1 Past
The earnings per share for MGY have decreased by -2.35% in the last year.
MGY shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 47.30% yearly.
The Revenue has grown by 33.27% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 6.91% on average over the past years.
EPS 1Y (TTM)-2.35%
EPS 3Y-5.05%
EPS 5Y47.3%
EPS Q2Q%-3.85%
Revenue 1Y (TTM)33.27%
Revenue growth 3Y6.86%
Revenue growth 5Y6.91%
Sales Q2Q%1.23%
3.2 Future
MGY is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -0.98% yearly.
MGY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.02% yearly.
EPS Next Y-0.75%
EPS Next 2Y2.16%
EPS Next 3Y4.45%
EPS Next 5Y-0.98%
Revenue Next Year3.61%
Revenue Next 2Y4.28%
Revenue Next 3Y3.02%
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 decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
MGY is valuated reasonably with a Price/Earnings ratio of 10.14.
66.04% of the companies in the same industry are more expensive than MGY, based on the Price/Earnings ratio.
MGY is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
MGY is valuated reasonably with a Price/Forward Earnings ratio of 10.22.
MGY's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MGY is cheaper than 66.04% of the companies in the same industry.
MGY's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.08.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 10.22 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MGY indicates a somewhat cheap valuation: MGY is cheaper than 72.17% of the companies listed in the same industry.
MGY's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MGY is cheaper than 72.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.43 | ||
| EV/EBITDA | 4.02 |
4.3 Compensation for Growth
MGY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.21
EPS Next 2Y2.16%
EPS Next 3Y4.45%
5. Dividend
5.1 Amount
MGY has a Yearly Dividend Yield of 2.56%.
In the last 3 months the price of MGY has falen by -20.51%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
Compared to an average industry Dividend Yield of 7.52, MGY has a dividend in line with its industry peers.
MGY's Dividend Yield is comparable with the S&P500 average which is at 2.52.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
5.2 History
MGY has been paying a dividend for over 5 years, so it has already some track record.
The dividend of MGY decreased in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years2
Div Non Decr Years2
5.3 Sustainability
MGY pays out 21.80% of its income as dividend. This is a sustainable payout ratio.
DP21.8%
EPS Next 2Y2.16%
EPS Next 3Y4.45%
21.09
+0.37 (+1.79%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners115.84%
Inst Owner Change-0.64%
Ins Owners1.47%
Ins Owner Change0.38%
Market Cap4.09B
Analysts70.48
Price Target28.71 (36.13%)
Short Float %16.79%
Short Ratio13.85
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
Yearly Dividend0.49
Dividend Growth(5Y)N/A
DP21.8%
Div Incr Years2
Div Non Decr Years2
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9%
Min EPS beat(2)8.94%
Max EPS beat(2)9.06%
EPS beat(4)4
Avg EPS beat(4)7.14%
Min EPS beat(4)5.28%
Max EPS beat(4)9.06%
EPS beat(8)6
Avg EPS beat(8)5.95%
EPS beat(12)10
Avg EPS beat(12)10.48%
EPS beat(16)14
Avg EPS beat(16)13.48%
Revenue beat(2)1
Avg Revenue beat(2)0.03%
Min Revenue beat(2)-0.57%
Max Revenue beat(2)0.63%
Revenue beat(4)2
Avg Revenue beat(4)0.51%
Min Revenue beat(4)-0.9%
Max Revenue beat(4)2.87%
Revenue beat(8)2
Avg Revenue beat(8)-1.56%
Revenue beat(12)5
Avg Revenue beat(12)0.66%
Revenue beat(16)9
Avg Revenue beat(16)1.65%
PT rev (1m)-1.75%
PT rev (3m)0.99%
EPS NQ rev (1m)1.75%
EPS NQ rev (3m)9.93%
EPS NY rev (1m)-0.91%
EPS NY rev (3m)1.03%
Revenue NQ rev (1m)1.38%
Revenue NQ rev (3m)4.64%
Revenue NY rev (1m)-0.29%
Revenue NY rev (3m)2.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.14 | ||
| Fwd PE | 10.22 | ||
| P/S | 2.5 | ||
| P/FCF | 9.43 | ||
| P/OCF | 4.44 | ||
| P/B | 2.14 | ||
| P/tB | 2.14 | ||
| EV/EBITDA | 4.02 |
EPS(TTM)2.08
EY9.86%
EPS(NY)2.06
Fwd EY9.79%
FCF(TTM)2.24
FCFY10.61%
OCF(TTM)4.75
OCFY22.5%
SpS8.43
BVpS9.86
TBVpS9.86
PEG (NY)N/A
PEG (5Y)0.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.88% | ||
| ROE | 23.4% | ||
| ROCE | 25.15% | ||
| ROIC | 20.26% | ||
| ROICexc | 22.58% | ||
| ROICexgc | 22.58% | ||
| OM | 38.93% | ||
| PM (TTM) | 27.38% | ||
| GM | 83.16% | ||
| FCFM | 26.55% |
ROA(3y)20.55%
ROA(5y)0.48%
ROE(3y)32.85%
ROE(5y)-14.16%
ROIC(3y)24.48%
ROIC(5y)N/A
ROICexc(3y)31.92%
ROICexc(5y)N/A
ROICexgc(3y)31.92%
ROICexgc(5y)N/A
ROCE(3y)30.4%
ROCE(5y)N/A
ROICexcg growth 3Y-24.52%
ROICexcg growth 5Y40.31%
ROICexc growth 3Y-24.52%
ROICexc growth 5Y40.53%
OM growth 3Y-11.68%
OM growth 5Y23.44%
PM growth 3Y-10.79%
PM growth 5Y40.43%
GM growth 3Y-1.52%
GM growth 5Y-0.58%
F-Score7
Asset Turnover0.58
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.9 | ||
| Debt/EBITDA | 0.37 | ||
| Cap/Depr | 117.43% | ||
| Cap/Sales | 29.76% | ||
| Interest Coverage | 18.74 | ||
| Cash Conversion | 87.61% | ||
| Profit Quality | 96.94% | ||
| Current Ratio | 1.42 | ||
| Quick Ratio | 1.42 | ||
| Altman-Z | 4.46 |
F-Score7
WACC10.47%
ROIC/WACC1.93
Cap/Depr(3y)146.5%
Cap/Depr(5y)125.19%
Cap/Sales(3y)33.02%
Cap/Sales(5y)31.51%
Profit Quality(3y)108.03%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-2.35%
EPS 3Y-5.05%
EPS 5Y47.3%
EPS Q2Q%-3.85%
EPS Next Y-0.75%
EPS Next 2Y2.16%
EPS Next 3Y4.45%
EPS Next 5Y-0.98%
Revenue 1Y (TTM)33.27%
Revenue growth 3Y6.86%
Revenue growth 5Y6.91%
Sales Q2Q%1.23%
Revenue Next Year3.61%
Revenue Next 2Y4.28%
Revenue Next 3Y3.02%
Revenue Next 5YN/A
EBIT growth 1Y14.67%
EBIT growth 3Y-5.62%
EBIT growth 5Y31.97%
EBIT Next Year96.34%
EBIT Next 3Y26.95%
EBIT Next 5Y19.94%
FCF growth 1Y0.75%
FCF growth 3Y-7.7%
FCF growth 5Y15.35%
OCF growth 1Y7.6%
OCF growth 3Y5.31%
OCF growth 5Y7.29%