Magic Software Enterprises Ltd

Chart & Performance

D1W1MN

P/E

15.76

P/S

1.09

EPS

0.75

Div Yield, %

5.28%

Shrs. gr., 5y

0.96%

Rev. gr., 5y

13.48%

Revenues

535m

-5.60%

Net income

37m

-8.50%

CFO

69m

+39.32%

Dividend

Jun 27, 20240.204 USD/sh

Earnings

Mar 11, 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	2023‑12	2022‑12	2021‑12	2020‑12	2019‑12	2018‑12	2017‑12	2016‑12	2015‑12	2014‑12
Income
Revenues	535,052 -5.60%	566,792 18.00%	480,325 29.40%
Cost of revenue	477,704	505,936	426,583
Unusual Expense (Income)
NOPBT	57,348	60,856	53,742
NOPBT Margin	10.72%	10.74%	11.19%
Operating Taxes	9,934	11,197	10,359
Tax Rate	17.32%	18.40%	19.28%
NOPAT	47,414	49,659	43,383
Net income	37,031 -8.50%	40,470 35.96%	29,767 18.19%
Dividends	(30,798)	(24,841)	(21,780)
Dividend yield	6.47%	3.16%	2.12%
Proceeds from repurchase of equity	22	(1,000)
BB yield	0.00%	0.00%
Debt
Debt current	33,347	25,225	18,962
Long-term debt	102,875	83,280	68,052
Deferred revenue			4,550
Other long-term liabilities	2,785	8,159	13,892
Net debt	20,905	15,744	(12,969)
Cash flow
Cash from operating activities	68,992	49,521	40,493
CAPEX	(1,618)	(7,659)	(4,632)
Cash from investing activities	(27,616)	(27,338)	(18,454)
Cash from financing activities	(17,293)	(18,353)	(21,286)
FCF	65,261	58,766	28,981
Balance
Cash	106,694	86,966	94,818
Long term investments	8,623	5,795	5,165
Excess cash	88,564	64,421	75,967
Stockholders' equity	108,337	122,512	94,557
Invested Capital	313,880	328,798	310,676
ROIC	14.76%	15.53%	14.61%
ROCE	13.85%	15.08%	13.28%
EV
Common stock shares outstanding	49,098	49,131	49,100
Price	9.69 -39.52%	16.02 -23.45%	20.93 33.74%
Market cap	475,764 -39.56%	787,226 -23.40%	1,027,664 33.88%
EV	521,632	844,586	1,055,547
EBITDA	77,901	76,330	68,414
EV/EBITDA	6.70	11.06	15.43
Interest	9,227	3,662	3,155
Interest/NOPBT	16.09%	6.02%	5.87%