Magic Software Enterprises is in the technology sector and application software industry. The company CEO is Guy Bernstein. Magic Software Enterprises is a software development company. It provides application development, business process integration platforms, vertical software solutions and professional services to develop mobile and cloud based business applications.



Previous Intraday Performance:

The MGIC shares had a previous change of 1.54% which opened at 8.58 and closed at 8.58. It moved to an intraday high of 8.62 and a low of 8.51.

SeekingAlpha:  Magic Software Enterprises Ltd. (MGIC) CEO Guy Bernstein on Q1 2019 Results – Earnings Call Transcript

Historical Performance:

Over the last five trading days, MGIC shares returned 0.82% and in the past 30 trading days it returned -9.11%. Over three months, it changed 0.27%. In one year it has changed 2.46% and within that year its 52 week high was 10.20 and its 52 week low was 7.29. MGIC stock is 17.70% above its 52 week low.

Our calculations result in a 200 day moving average of 8.45 and a 50 day moving average of 8.99. Right now, MGIC stock is trading 1.52% above its 200 day moving average and may be a good opportunity to buy.

SeekingAlpha:  Magic Software EPS in-line, misses on revenue

Liquidity:

The company has a market cap of $419.5m with 48.9m shares outstanding and a float of 48.9m shares. Trading volume was 8,262 shares and has experienced an average volume of 31,348 shares. Our calculation, using the current average volume and close price, leads me to believe that the liquidity is bad, highly speculative and an investor may want to avoid this stock.

Earnings:

The last annual reported EPS for Magic Software Enterprises was 0.39 which ended on 31st of December 2018, which according to the previous close, that is a PE of 22.00. Based on 2 analyst estimates, the consensus EPS for the next quarter is 0.14. The trailing twelve month EPS reported is 0.56 (trailing twelve month diluted EPS is 0.40).

Below was the last reported quarterly diluted earnings per share:

1stQtr 2019Reported 05-16-2019: 0.11
4thQtr 2018Reported 03-04-2019: 0.06
3rdQtr 2018Reported 11-13-2018: 0.10
2ndQtr 2018Reported 08-08-2018: 0.13
1stQtr 2018Reported 05-16-2018: 0.10

Base on our calculations, the intrinsic value per share is 6.33, which means it might be overvalued by -35.51%.

The long-term trend of the EPS is a vital number as it helps understand the future potential of Magic Software Enterprises.



Indicators Also to Watch:

Based on the latest filings, there is 24.40% of institutional ownership.

The beta was calculated to be 0.98.

SeekingAlpha:  Magic Software EPS in-line, misses on revenue

Fundamental Numbers:

Based on last reported financials, the company’s return on assets is 5.43%, profit margin is 8.97%, price-to-sales is 1.44 and price-to-book is 1.70.

Company Score Card:

Results are out of six:
 2  : Growth Expectations Result
 5  : Financial Safety Result
 2  : Past Performance Result
 2  : Valuation Result
 2  : Dividend Safety Result
 2  : Overall Result

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Jake McWilliams
I am an independent trader, analyst and algorithmic trading expert, having worked both for the sell side (brokerage) and the buy side (fund administration). I have been trading professionally for about 20 years. I trade stocks and forex and I play both long and short positions in underlying asset or through options. I have experience with discretionary and fully automated systems (Metatrader and Quantshare).

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