Magic Software Enterprises Ltd. Stock Price and Value Analysis

Should you buy Magic Software Enterprises Ltd. stock? (NasdaqGS:MGIC). Let's see how it does in our automated value investing analysis system.

MGIC Free Cash Flow Trend

Free Cash Flow trendline for MGIC
Free Cash Flow trendline for Magic Software Enterprises Ltd.

Based on historical returns, we believe that Magic Software Enterprises Ltd. can grow its free cash at a rate of about 1%. That's positive!

  • This company has fluctuating growth.
  • This company is less known than others.
  • This stock looks overpriced.
  • This company has a low dividend yield.
  • This company is making money at a modest rate.

Inside the MGIC Numbers

MGIC Price
(Magic Software Enterprises Ltd. stock price per share)
[?] MGIC Fair Price
(based on intrinsic value)
[?] MGIC Safety Price (based on a variable margin of safety) $3.03
[?] PE Ratio versus Sector 184% higher than other Technology stocks
[?] PE Ratio versus Industry 17% higher than other Software - Application stocks
[?] Free Cash Flow Jitter 31%
[?] Dividend Yield 2%
Shares Shorted 6,813

This stock has short interest! This means that people have shorted it.

Why does that matter? They've made a bet that price will decrease from where they bought it. Maybe there are financial problems, or maybe there's a value play.

As of the latest analysis, there are 6,813 shares shorted. With 26,623,343 shares available for purchase and an average trading volume over the past 10 trading days of 39,957, it would take at least 0.171 days for all of the short holders to cover their shorts.

Is Magic Software Enterprises Ltd. Stock on Sale?

We believe that Magic Software Enterprises Ltd. may be worth examining further. It's making money, which is a very positive sign. Is it on sale?

Magic Software Enterprises Ltd. looks overpriced right now. If you're looking for a bargain in the stock market, you should probably look elsewhere for a great deal. This might still be a great stock to own—but it's not on sale right now.

Should You Buy MGIC Stock?

Does Magic Software Enterprises Ltd. have a coherent story? Does it have a plan to continue to make money? Is it worth your time? Only you can decide where to go from here. Our investment guide helps you ask the right questions, including how to buy stocks. Use these research links for more information.