Latest Ratios: P/E Ratio 23.2x · EV/EBITDA 10.1x · ROE 12.5%. (1995–2024 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| 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
Enterprise-value multiples — capital-structure-neutral measures of total business value
| 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 |
Margins and return-on-capital ratios measuring operating efficiency
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% |
| 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% |
Solvency and debt-coverage ratios — lower is generally safer
| 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)
Short-term solvency ratios and asset-utilisation metrics
| 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 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
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% |
| 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 |
Geopolitical and labor concentration
Based on current market data, MGIC trades at a forward P/E of 14.98, which appears to discount the firm as a steady-state utility rather than a high-growth software entity, especially when compared to the significantly higher multiples commanded by pure-play SaaS peers like Pegasystems.
The valuation gap suggests that investors are skeptical of the company's ability to transition its legacy integration business into a high-margin SaaS model. While the PEG ratio of 0.98 implies a reasonable price relative to growth, the market likely requires evidence of sustained organic expansion before re-rating the stock toward sector averages.
According to reported financial statements, MGIC's ROIC has remained stagnant in the 3.4% to 4.4% range over the last ten quarters, indicating that the company is struggling to compound capital efficiently due to the low-margin nature of its professional services segment.
The persistent low ROIC suggests that the firm's capital allocation strategy, while disciplined, is not generating significant economic value above its cost of capital. Investors should monitor whether the shift toward FactoryEye can improve these returns by increasing the proportion of high-margin software revenue in the total mix.
As evidenced by the quarterly data, MGIC's DSO has remained elevated, frequently exceeding 350 days, which suggests significant friction in the cash conversion cycle and potential challenges in collecting payments from its enterprise client base in a timely manner.
Such extended collection periods are characteristic of long-term, project-based IT service contracts and may indicate that the company lacks sufficient leverage over its customers. This inefficiency ties up significant liquidity, limiting the firm's ability to reinvest in R&D or pursue more aggressive growth initiatives.
Based on recent balance sheet filings, MGIC maintains a D/E ratio of 0.32, which, when combined with an interest coverage ratio of 10.08, suggests that the company is well-positioned to service its debt obligations even in a higher interest rate environment.
The company's fortress-like balance sheet provides a necessary buffer against the inherent volatility of its project-based revenue model. This financial flexibility is a key defensive attribute, allowing the firm to navigate geopolitical and operational risks without the immediate threat of liquidity distress.
The most commonly misapplied metric for MGIC is the standard P/E ratio, which obscures the underlying quality of earnings by failing to distinguish between high-margin proprietary software maintenance and low-margin, labor-intensive IT professional services that dominate the company's consolidated income statement.
Analysts should instead focus on a sum-of-the-parts valuation or an EV/EBITDA multiple adjusted for the specific margins of each segment. Relying on a blended P/E ratio risks mispricing the firm by treating its entire revenue stream as a uniform, high-growth software business, which it is not.
Includes 30+ ratios · 30 years · Updated daily
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Quick answers to the most common questions about buying MGIC stock.
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.
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.
Magic Software Enterprises Ltd.'s return on equity (ROE) is 12.5%. The historical average is 2.5%.
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.
Magic Software Enterprises Ltd.'s current dividend yield is 1.17% with a payout ratio of 27.2%.
Magic Software Enterprises Ltd. has 28.4% gross margin and 11.1% operating margin. Operating margin between 10-20% is typical for established companies.
Magic Software Enterprises Ltd.'s Debt/EBITDA ratio is 1.0x, indicating moderate leverage. A ratio below 2x is generally considered financially healthy.