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MGICMagic Software Enterprises Ltd.
$17.38$853M
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MGIC logoMagic Software Enterprises Ltd.(MGIC)Earnings, Financials & Key Ratios

MGIC•NASDAQ
$17.38
23.2× P/E·Price updated Jun 20, 2026
SectorTechnologyIndustryIT ServicesSub-IndustryIT Consulting and Systems Integration
AboutMagic Software Enterprises Ltd. provides proprietary application development, business process integration, vertical software solutions, and information technologies (IT) outsourcing software services in Israel and internationally. The company's Software Services segment develops, markets, sells, and supports application platform, software applications, and business and process integration solutions and related services. Its IT Professional Services segment offers IT services in the areas of infrastructure design and delivery, application development, technology planning and implementation services, communications services and solutions, and supplemental outsourcing services. The company offers proprietary application platforms, such as Magic xpa for developing and deploying business applications; AppBuilder for building, deploying, and maintaining high-end and mainframe-grade business applications; Magic xpi for application integration; FactoryEye for virtualization of production data; BusinessEye for organizational business intelligence; and Magic SmartUX for cross-platform mobile business applications. It also provides vertical software solutions comprising Clicks, a software solution for healthcare providers; Leap, a software solution for business support systems; Hermes Cargo, a packaged software solution for managing air cargo ground handling; HR Pulse, a single-tenant software as a service tool; MBS Solution, a system for managing TV broadcast management; Nativ, a system for management of rehabilitation centers; and Mobisale, a system for sales and distribution field activities for consumer goods manufacturers and wholesalers. In addition, the company provides software maintenance, support, training, and consulting services. The company was formerly known as Mashov Software Export (1983) Ltd. and changed its name to Magic Software Enterprises Ltd. in 1991. Magic Software Enterprises Ltd. was incorporated in 1983 and is headquartered in Or Yehuda, Israel.Show more
  • Revenue$553M+3.3%
  • EBITDA$82M+5.7%
  • Net Income$37M-0.4%
  • EPS (Diluted)0.75
  • Gross Margin28.45%-0.5%
  • EBITDA Margin14.85%+2.3%
  • Operating Margin11.08%+3.8%
  • Net Margin6.68%-3.5%
  • ROE12.46%+0.3%

MGIC Price & Volume

Magic Software Enterprises Ltd. (MGIC) stock price & volume — 10-year historical chart

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Service-Heavy Revenue Growth Faces Margin Constraints

Investment Thesis • Updated 2025Q3

VerdictNeutral
Growth:Accelerating
Profitability:Moderate
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Geopolitical and labor concentration

Key Thesis Takeaways

  • Magic Software demonstrates a rebounding top-line trajectory with 13.1% year-over-year revenue growth in 2025Q3, yet the firm remains tethered to a labor-intensive service model that limits operating margins to 10.6%.
  • While the company has successfully deleveraged its balance sheet, reducing total debt to $95.9M, the heavy reliance on inorganic growth via $225.7M in goodwill warrants caution regarding organic scalability.
  • Investors should monitor the firm's ability to maintain consistent cash conversion, as evidenced by the volatile operating cash flow to net income ratio that has fluctuated between 0.41 and 3.20 over the last ten quarters.

Verdict Logic

while the forward P/E of 14.98 suggests a reasonable valuation, the persistent 10.6% operating margin and reliance on acquisition-driven growth create significant uncertainty regarding long-term earnings quality.

MGIC Growth Metrics

Magic Software Enterprises Ltd. (MGIC) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR

Revenue CAGR

10 Years12.89%
5 Years11.15%
3 Years4.78%
TTM12.65%

Profit CAGR

10 Years9.12%
5 Years12.72%
3 Years7.41%
TTM14.98%

EPS CAGR

10 Years7.62%
5 Years23.6%
3 Years7.13%
TTM15.71%

Return on Capital

10 Years12.43%
5 Years14.97%
3 Years16.33%
Last Year16.31%

MGIC Recent Earnings

Magic Software Enterprises Ltd. (MGIC) EPS & revenue vs analyst estimates — last 4 quarters

Full history →
●Beat EPS 5/12 qtrs (42%)●Beat Revenue 7/12 qtrs (64%)
Q2 2026Latest
Mar 10, 2026
Metric
Actual
Est
EPS
$0.24-14.3%
$0.28
Rev
—
$157M
Q4 2025
Nov 18, 2025
Metric
Actual
Est
EPS
$0.25-13.8%
$0.29
Rev
$162M+3.1%
$157M
Q3 2025
Aug 13, 2025
Metric
Actual
Est
EPS
$0.26+8.3%
$0.24
Rev
$152M-2.0%
$155M
Q2 2025
May 21, 2025
Metric
Actual
Est
EPS
$0.25+0.0%
$0.25
Rev
$147M+2.5%
$144M
QuarterDateEPS (Act vs Est)Revenue (Act vs Est)
Q2 2026LatestMar 10, 2026
$0.24vs $0.28-14.3%
—vs $157M
Q4 2025Nov 18, 2025
$0.25vs $0.29-13.8%
$162Mvs $157M+3.1%
Q3 2025Aug 13, 2025
$0.26vs $0.24+8.3%
$152Mvs $155M-2.0%
Q2 2025May 21, 2025
$0.25vs $0.25+0.0%
$147Mvs $144M+2.5%
Based on last 12 quarters of dataView full earnings history →

Latest MGIC News

Recent stock market news and headlines for Magic Software Enterprises Ltd. (MGIC)

PRNewsWire·5 days ago
MGIC Investment Corporation Schedules 2nd Quarter 2026 Earnings Call

MILWAUKEE, July 2, 2026 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) has announced plans to release its second quarter 2026 financial results after the market closes on Wednesday, July 29, 2026. A conference call/webcast has been scheduled for 10:00 a.m.

Zacks Investment Research·6 days ago
MGIC Investment's Mortgage Insurance Drives Growth and Profitability

MTG relies on its mortgage insurance business to generate recurring premiums, investment income and consistent earnings across housing cycles.

Peers Comparison

Key metrics vs top competitors for Magic Software Enterprises Ltd. (MGIC)

Full Screener →
CompanyPriceMarket CapP/E RatioRev Growth (1Y)Net MarginROEDiv Yield
MGIC logoMGICMagic Software Enterprises Ltd.Current
$17.38$853.35M23.173.26%6.68%12.46%1.17%
PEGA logoPEGAPegasystems Inc.
$32.21$5.44B15.1216.61%20.04%50.21%—
APPN logoAPPNAppian Corporation
$24.68$1.83B1495.7617.81%0.12%——
AGYS logoAGYSAgilysys, Inc.
$112.83$3.18B82.9615.85%12.15%12.72%—
PCTY logoPCTYPaylocity Holding Corporation
$118.84$6.36B29.5613.74%14.94%22.36%—
MSFT logoMSFTMicrosoft Corporation
$388.84$2.89T28.5114.93%39.34%33.13%—

Compare MGIC vs Peers

Magic Software Enterprises Ltd. (MGIC) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.

Closest Rival

vs PEGA

Most directly comparable listed peer for MGIC.

Scale Benchmark

vs MSFT

Larger-name benchmark to compare MGIC against a more recognizable public peer.

Peer Set

Compare Top 5

vs PEGA, APPN, AGYS, PCTY

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MGIC Frequently Asked Questions

Magic Software Enterprises Ltd. (MGIC) stock FAQ — growth, dividends, profitability & financials explained

Growth & Financials
What is Magic Software Enterprises Ltd.'s revenue?

Magic Software Enterprises Ltd. (MGIC) reported $603.2M in revenue for fiscal year 2024. This represents a 2275% increase from $25.4M in 1995.

How fast is Magic Software Enterprises Ltd. growing?

Magic Software Enterprises Ltd. (MGIC) grew revenue by 3.3% over the past year. Growth has been modest.

Is MGIC profitable?

Yes, Magic Software Enterprises Ltd. (MGIC) is profitable, generating $40.0M in net income for fiscal year 2024 (6.7% net margin).

Dividend & Returns
Does MGIC pay dividends?

Yes, Magic Software Enterprises Ltd. (MGIC) pays a dividend with a yield of 1.17%. This makes it attractive for income-focused investors.

What is MGIC's return on equity?

Magic Software Enterprises Ltd. (MGIC) has a return on equity (ROE) of 12.5%. This is reasonable for most industries.

What is Magic Software Enterprises Ltd.'s free cash flow?

Magic Software Enterprises Ltd. (MGIC) generated $64.5M in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

What if you invested $1,000 in MGIC back in 1995?

Total return calculator · dividends reinvested · 31+ years of data

See returns →