MAGNOLIA OIL & GAS CORP - A (MGY)
US5596631094 - Common Stock
We assign a fundamental rating of 7 out of 10 to MGY. MGY was compared to 205 industry peers in the Oil, Gas & Consumable Fuels industry. Both the health and profitability get an excellent rating, making MGY a very profitable company, without any liquidiy or solvency issues. 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.
In the past year MGY had a positive cash flow from operations.
Of the past 5 years MGY 4 years were profitable.
In the past 5 years MGY always reported a positive cash flow from operatings.
1.2 Ratios
MGY has a Return On Assets of 16.47%. This is amongst the best in the industry. MGY outperforms 87.25% of its industry peers.
With an excellent Return On Equity value of 24.26%, MGY belongs to the best of the industry, outperforming 80.88% of the companies in the same industry.
The Return On Invested Capital of MGY (23.21%) is better than 95.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MGY is above the industry average of 29.03%.
The 3 year average ROIC (33.22%) for MGY is well above the current ROIC(23.21%). The reason for the recent decline needs to be investigated.
| 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
The Profit Margin of MGY (28.37%) is better than 75.98% of its industry peers.
MGY's Profit Margin has improved in the last couple of years.
MGY has a Operating Margin of 40.01%. This is in the better half of the industry: MGY outperforms 78.92% of its industry peers.
MGY's Operating Margin has been stable in the last couple of years.
MGY has a Gross Margin of 83.53%. This is amongst the best in the industry. MGY outperforms 91.67% of its industry peers.
In the last couple of years the Gross Margin of MGY has declined.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), MGY is creating value.
The number of shares outstanding for MGY has been reduced compared to 1 year ago.
Compared to 5 years ago, MGY has less shares outstanding
MGY has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.74 indicates that MGY is not in any danger for bankruptcy at the moment.
MGY has a Altman-Z score of 4.74. This is amongst the best in the industry. MGY outperforms 89.71% of its industry peers.
MGY has a debt to FCF ratio of 0.76. This is a very positive value and a sign of high solvency as it would only need 0.76 years to pay back of all of its debts.
MGY's Debt to FCF ratio of 0.76 is amongst the best of the industry. MGY outperforms 89.22% 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 Debt to Equity ratio of 0.21. This is in the better half of the industry: MGY outperforms 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.21 | ||
| Debt/FCF | 0.76 | ||
| Altman-Z | 4.74 |
ROIC/WACC2.6
WACC8.91%
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.
MGY has a Current ratio of 1.47. This is in the better half of the industry: MGY outperforms 60.29% of its industry peers.
A Quick Ratio of 1.47 indicates that MGY should not have too much problems paying its short term obligations.
The Quick ratio of MGY (1.47) is better than 67.65% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
The earnings per share for MGY have decreased strongly by -25.27% in the last year.
MGY shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 4.81% yearly.
The Revenue has grown by 30.15% in the past year. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 6.36% on average over the next years.
MGY is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.76% yearly.
EPS Next Y-5.31%
EPS Next 2Y-2.06%
EPS Next 3Y1.85%
EPS Next 5Y6.36%
Revenue Next Year7.17%
Revenue Next 2Y4.41%
Revenue Next 3Y4.76%
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.
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
With a Price/Earnings ratio of 10.90, the valuation of MGY can be described as very reasonable.
The rest of the industry has a similar Price/Earnings ratio as MGY.
MGY's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.20.
MGY is valuated reasonably with a Price/Forward Earnings ratio of 11.20.
MGY's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of MGY to the average of the S&P500 Index (23.73), we can say MGY is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 11.2 |
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 69.12% 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 70.10% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.6 | ||
| EV/EBITDA | 4.37 |
4.3 Compensation for Growth
MGY has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.27
EPS Next 2Y-2.06%
EPS Next 3Y1.85%
5. Dividend
5.1 Amount
MGY has a Yearly Dividend Yield of 2.25%.
MGY's Dividend Yield is slightly below the industry average, which is at 7.14.
Compared to an average S&P500 Dividend Yield of 2.36, MGY has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
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
MGY pays out 20.33% of its income as dividend. This is a sustainable payout ratio.
DP20.33%
EPS Next 2Y-2.06%
EPS Next 3Y1.85%
MAGNOLIA OIL & GAS CORP - A
NYSE:MGY (12/20/2024, 8:24:24 PM)
After market: 22.89 0 (0%)22.89
-0.25 (-1.08%)
Chartmill FA Rating
GICS SectorEnergy
GICS IndustryGroupEnergy
GICS IndustryOil, Gas & Consumable Fuels
Earnings (Last)
Earnings (Next)
Inst Owners117.26%
Inst Owner Change0.24%
Ins Owners1.4%
Ins Owner Change-16.52%
Market Cap4.50B
Analysts71.43
Price Target28.36 (23.9%)
Short Float %15.93%
Short Ratio17.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.25% |
Dividend Growth(5Y)N/A
DP20.33%
Div Incr Years2
Div Non Decr Years2
Ex-Date
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)1.71%
PT rev (3m)-4.14%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)-17.81%
EPS NY rev (1m)1.41%
EPS NY rev (3m)-4.72%
Revenue NQ rev (1m)0.01%
Revenue NQ rev (3m)-3.76%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.13%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.9 | ||
| Fwd PE | 11.2 | ||
| P/S | 2.76 | ||
| P/FCF | 8.6 | ||
| P/OCF | 4.76 | ||
| P/B | 2.36 | ||
| P/tB | 2.36 | ||
| EV/EBITDA | 4.37 |
EPS(TTM)2.1
EY9.17%
EPS(NY)2.04
Fwd EY8.93%
FCF(TTM)2.66
FCFY11.62%
OCF(TTM)4.81
OCFY21.01%
SpS8.3
BVpS9.71
TBVpS9.71
PEG (NY)N/A
PEG (5Y)2.27
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 | 4.74 |
F-Score6
WACC8.91%
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-5.31%
EPS Next 2Y-2.06%
EPS Next 3Y1.85%
EPS Next 5Y6.36%
Revenue 1Y (TTM)30.15%
Revenue growth 3Y31.36%
Revenue growth 5Y6.82%
Sales Q2Q%5.53%
Revenue Next Year7.17%
Revenue Next 2Y4.41%
Revenue Next 3Y4.76%
Revenue Next 5YN/A
EBIT growth 1Y8.54%
EBIT growth 3YN/A
EBIT growth 5Y8.07%
EBIT Next Year72.92%
EBIT Next 3Y22.64%
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%