Magic Software Enterprises Ltd. (MGIC) Financial Ratios
30 years of historical data (1995–2024) · Technology · Information Technology Services
EV/EBITDA
↓
10.07
+0% vs avg
5yr avg: 10.03
30Y Low1.8·High38.0
P/FCF
↓
11.64
↓-17% vs avg
5yr avg: 14.00
30Y Low5.9·High84.9
P/B Ratio
↓
2.83
+17% vs avg
5yr avg: 2.43
30Y Low0.6·High15.1
ROE
↑
12.5%
↓+10% vs avg
5yr avg: 11.3%
30Y Low-63%·High42%
Debt/EBITDA
↑
1.05
+1% vs avg
5yr avg: 1.04
30Y Low0.0·High12.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
MGIC Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Magic Software Enterprises Ltd. trades at 23.2x earnings, roughly in line with its 5-year average of 22.9x, sitting at the 57th percentile of its historical range. Compared to the Technology sector median P/E of 29.0x, the stock trades at a discount of 20%. On a free-cash-flow basis, the stock trades at 11.6x P/FCF, 17% below the 5-year average of 14.0x.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $853M | $591M | $476M | $787M | $1.0B | $768M | $479M | $357M | $374M | $297M | $246M |
| Enterprise Value | $827M | $564M | $479M | $784M | $1.0B | $729M | $435M | $298M | $336M | $257M | $187M |
| P/E Ratio → | 23.17 | 16.04 | 12.92 | 19.54 | 34.31 | 31.94 | 37.62 | 19.56 | 23.94 | 24.70 | 15.36 |
| P/S Ratio | 1.54 | 1.07 | 0.89 | 1.39 | 2.14 | 2.07 | 1.47 | 1.26 | 1.45 | 1.47 | 1.40 |
| P/B Ratio | 2.83 | 1.96 | 1.64 | 2.58 | 3.36 | 2.61 | 1.67 | 1.30 | 1.56 | 1.33 | 1.24 |
| P/FCF | 11.64 | 8.06 | 7.06 | 15.07 | 24.33 | 15.50 | 10.75 | 15.40 | 15.50 | 10.93 | 13.28 |
| P/OCF | 11.40 | 7.89 | 6.90 | 13.90 | 23.53 | 14.68 | 10.43 | 14.85 | 14.65 | 10.62 | 12.53 |
P/E links to full P/E history page with 30-year chart
MGIC EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Magic Software Enterprises Ltd.'s enterprise value stands at 10.1x EBITDA, roughly in line with its 5-year average of 10.0x. The Technology sector median is 16.7x, placing the stock at a 40% discount on an enterprise-value basis.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 1.02 | 0.89 | 1.38 | 2.09 | 1.96 | 1.34 | 1.05 | 1.30 | 1.27 | 1.06 |
| EV / EBITDA | 10.07 | 6.87 | 6.16 | 9.66 | 14.09 | 13.37 | 9.12 | 6.73 | 8.48 | 7.92 | 5.97 |
| EV / EBIT | 13.50 | 9.19 | 7.76 | 12.56 | 18.34 | 17.49 | 13.24 | 9.08 | 12.93 | 12.17 | 9.03 |
| EV / FCF | — | 7.70 | 7.10 | 15.01 | 23.72 | 14.72 | 9.76 | 12.85 | 13.92 | 9.46 | 10.10 |
MGIC Profitability
Margins and return-on-capital ratios measuring operating efficiency
Magic Software Enterprises Ltd. earns an operating margin of 11.1%. ROE of 12.5% is modest. ROIC of 16.2% represents solid returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 28.4% | 28.4% | 28.6% | 27.4% | 27.7% | 29.5% | 31.4% | 31.2% | 32.1% | 33.9% | 35.7% |
| Operating Margin | 11.1% | 11.1% | 10.7% | 10.8% | 10.7% | 10.9% | 10.3% | 11.1% | 10.1% | 10.3% | 12.2% |
| Net Profit Margin | 6.7% | 6.7% | 6.9% | 7.1% | 6.2% | 6.8% | 6.2% | 7.0% | 6.0% | 7.0% | 9.2% |
Return on Capital
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 12.5% | 12.5% | 12.4% | 13.2% | 9.9% | 8.7% | 7.2% | 7.7% | 6.7% | 6.7% | 8.3% |
| ROA | 6.9% | 6.9% | 7.2% | 8.1% | 6.4% | 5.9% | 5.3% | 5.6% | 4.7% | 5.1% | 7.0% |
| ROIC | 16.2% | 16.2% | 14.4% | 15.8% | 14.4% | 12.2% | 11.0% | 11.4% | 10.1% | 9.7% | 12.3% |
| ROCE | 16.3% | 16.3% | 15.5% | 17.1% | 14.2% | 11.6% | 10.4% | 10.7% | 9.3% | 8.6% | 10.4% |
MGIC Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Magic Software Enterprises Ltd. carries a Debt/EBITDA ratio of 1.0x, which is manageable (64% below the sector average of 2.9x). The company holds a net cash position — cash of $113M exceeds total debt of $86M, providing substantial financial flexibility for buybacks, acquisitions, or weathering downturns. Interest coverage of 9.1x is adequate, though a cyclical earnings downturn could tighten the margin of safety.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.29 | 0.29 | 0.37 | 0.26 | 0.20 | 0.17 | 0.13 | 0.10 | 0.16 | 0.16 | 0.02 |
| Debt / EBITDA | 1.05 | 1.05 | 1.40 | 0.98 | 0.87 | 0.91 | 0.79 | 0.63 | 0.95 | 1.09 | 0.10 |
| Net Debt / Equity | — | -0.09 | 0.01 | -0.01 | -0.08 | -0.13 | -0.15 | -0.21 | -0.16 | -0.18 | -0.30 |
| Net Debt / EBITDA | -0.32 | -0.32 | 0.04 | -0.04 | -0.37 | -0.71 | -0.93 | -1.33 | -0.97 | -1.23 | -1.88 |
| Debt / FCF | — | -0.36 | 0.04 | -0.06 | -0.62 | -0.78 | -0.99 | -2.55 | -1.58 | -1.47 | -3.18 |
| Interest Coverage | 9.09 | 9.09 | 6.19 | 25.22 | 13.48 | 66.10 | 89.98 | 32.02 | 21.89 | 45.74 | — |
Net cash position: cash ($113M) exceeds total debt ($86M)
MGIC Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.62x means Magic Software Enterprises Ltd. can comfortably meet its short-term obligations, though there is limited excess liquidity.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.62 | 1.62 | 1.81 | 1.61 | 1.89 | 2.49 | 3.07 | 3.99 | 3.07 | 3.55 | 4.77 |
| Quick Ratio | 1.62 | 1.62 | 1.81 | 1.65 | 1.89 | 2.50 | 3.08 | 4.06 | 3.07 | 3.55 | 4.77 |
| Cash Ratio | 0.71 | 0.71 | 0.75 | 0.56 | 0.72 | 1.06 | 1.43 | 2.15 | 1.53 | 1.97 | 2.70 |
| Asset Turnover | — | 1.02 | 1.02 | 1.11 | 0.98 | 0.84 | 0.80 | 0.78 | 0.75 | 0.64 | 0.73 |
| Inventory Turnover | — | — | — | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 98.95 | 95.21 | 99.96 | 112.86 | 115.42 | 117.57 | 118.89 | 123.46 | 122.97 | 117.12 |
MGIC Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Magic Software Enterprises Ltd. returns 1.2% to shareholders annually primarily through dividends. The payout ratio of 27.2% is conservative, leaving significant room for dividend growth or reinvestment. The earnings yield of 4.3% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.2% | 1.7% | 6.5% | 3.2% | 2.1% | 1.6% | 3.1% | 3.8% | 2.5% | 2.6% | 3.2% |
| Payout Ratio | 27.2% | 27.2% | 83.2% | 61.4% | 73.2% | 49.6% | 73.8% | 68.1% | 60.6% | 54.8% | 48.1% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.3% | 6.2% | 7.7% | 5.1% | 2.9% | 3.1% | 2.7% | 5.1% | 4.2% | 4.0% | 6.5% |
| FCF Yield | 8.6% | 12.4% | 14.2% | 6.6% | 4.1% | 6.5% | 9.3% | 6.5% | 6.5% | 9.1% | 7.5% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 1.2% | 1.7% | 6.5% | 3.2% | 2.1% | 1.6% | 3.1% | 3.8% | 2.5% | 2.6% | 3.2% |
| Shares Outstanding | — | $49M | $49M | $49M | $49M | $49M | $49M | $47M | $45M | $45M | $44M |
Peer Comparison
Compare MGIC with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 MGICYou | $853M | 23.2 | 10.1 | 11.6 | 28.4% | 11.1% | 12.5% | 16.2% | 1.0 |
 PEGA | $5B | 14.1 | 17.1 | 10.4 | 75.9% | 15.1% | 57.3% | 27.2% | 0.3 |
 APPN | $2B | 1269.7 | 170.6 | 26.0 | 72.5% | 0.1% | — | 0.3% | 33.5 |
 AGYS | $2B | 64.3 | 47.4 | 36.2 | 61.9% | 12.6% | 13.1% | 12.8% | 0.4 |
 PCTY | $5B | 25.1 | 13.0 | 15.8 | 68.8% | 19.1% | 20.0% | 26.2% | 0.5 |
 MSFT | $2.8T | 27.8 | 17.8 | 39.4 | 68.8% | 45.6% | 33.3% | 24.9% | 0.7 |
 NOW | $98B | 56.9 | 38.2 | 21.5 | 77.5% | 13.7% | 15.5% | 12.4% | 1.3 |
 MNDY | $4B | 31.9 | 207.0 | 11.8 | 89.2% | -0.1% | 10.4% | -2.4% | 25.9 |
 ASAN | $2B | -8.7 | — | 19.0 | 89.0% | -25.0% | -99.1% | -62.4% | — |
 ORCL | $530B | 31.6 | 22.8 | — | 65.2% | 30.8% | 53.4% | 11.0% | 5.4 |
 SAP | $181B | 22.6 | 14.2 | 19.9 | 73.8% | 26.7% | 15.5% | 16.0% | 0.7 |
| Technology Median | — | 29.0 | 16.7 | 19.2 | 48.8% | 0.2% | 1.6% | 2.7% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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MGIC — Frequently Asked Questions
Quick answers to the most common questions about buying MGIC stock.
What is Magic Software Enterprises Ltd.'s P/E ratio?
Magic Software Enterprises Ltd.'s current P/E ratio is 23.2x. The historical average is 24.5x. This places it at the 57th percentile of its historical range.
What is Magic Software Enterprises Ltd.'s EV/EBITDA?
Magic Software Enterprises Ltd.'s current EV/EBITDA is 10.1x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 10.9x.
What is Magic Software Enterprises Ltd.'s ROE?
Magic Software Enterprises Ltd.'s return on equity (ROE) is 12.5%. The historical average is 2.5%.
Is MGIC stock overvalued?
Based on historical data, Magic Software Enterprises Ltd. is trading at a P/E of 23.2x. This is at the 57th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is Magic Software Enterprises Ltd.'s dividend yield?
Magic Software Enterprises Ltd.'s current dividend yield is 1.17% with a payout ratio of 27.2%.
What are Magic Software Enterprises Ltd.'s profit margins?
Magic Software Enterprises Ltd. has 28.4% gross margin and 11.1% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does Magic Software Enterprises Ltd. have?
Magic Software Enterprises Ltd.'s Debt/EBITDA ratio is 1.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.