Magic Software Enterprises Ltd

Chart & Performance

D1W1MN

P/E

17.40

P/S

1.20

EPS

0.75

Div Yield, %

1.55%

Shrs. gr., 5y

0.96%

Rev. gr., 5y

13.48%

Revenues

553m

+3.26%

Net income

37m

-0.40%

CFO

75m

+8.26%

Dividend

Jun 27, 20240.204 USD/sh

Earnings

May 14, 2025

Profile

Magic 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.

URL

https://www.magicsoftware.com

IPO date

Aug 16, 1991

Employees

4,161

Domiciled in

Incorporated in

Valuation

Order:

Title USD in thousands, except ratios and share amounts	FY	FY	FY	FY	FY	FY	FY	FY	FY	FY
Title USD in thousands, except ratios and share amounts	2024‑12	2023‑12	2022‑12	2021‑12	2020‑12	2019‑12	2018‑12	2017‑12	2016‑12	2015‑12
Income
Revenues	552,520 3.26%	535,052 -5.60%	566,792 18.00%
Cost of revenue	408,003	477,704	505,936
Unusual Expense (Income)
NOPBT	144,517	57,348	60,856
NOPBT Margin	26.16%	10.72%	10.74%
Operating Taxes	11,328	9,934	11,197
Tax Rate	7.84%	17.32%	18.40%
NOPAT	133,189	47,414	49,659
Net income	36,883 -0.40%	37,031 -8.50%	40,470 35.96%
Dividends	(10,016)	(30,798)	(24,841)
Dividend yield	1.70%	6.47%	3.16%
Proceeds from repurchase of equity		22	(1,000)
BB yield		0.00%	0.00%
Debt
Debt current	27,987	33,347	25,225
Long-term debt	85,023	102,875	83,280
Deferred revenue
Other long-term liabilities	10,810	2,785	8,159
Net debt	180	20,905	15,744
Cash flow
Cash from operating activities	74,693	68,992	49,521
CAPEX	(1,535)	(1,618)	(7,659)
Cash from investing activities	(22,409)	(27,616)	(27,338)
Cash from financing activities	(45,145)	(17,293)	(18,353)
FCF	155,231	65,261	58,766
Balance
Cash	112,830	106,694	86,966
Long term investments		8,623	5,795
Excess cash	85,204	88,564	64,421
Stockholders' equity	301,069	108,337	122,512
Invested Capital	312,827	313,880	328,798
ROIC	42.50%	14.76%	15.53%
ROCE	36.31%	13.85%	15.08%
EV
Common stock shares outstanding	49,099	49,098	49,131
Price	12.03 24.15%	9.69 -39.52%	16.02 -23.45%
Market cap	590,661 24.15%	475,764 -39.56%	787,226 -23.40%
EV	614,720	521,632	844,586
EBITDA	165,340	77,901	76,330
EV/EBITDA	3.72	6.70	11.06
Interest		9,227	3,662
Interest/NOPBT		16.09%	6.02%