Magic Software Enterprises (MGIC)
Market Price (11/18/2025): $24.1 | Market Cap: $1.2 BilSector: Information Technology | Industry: IT Consulting & Other Services
Magic Software Enterprises (MGIC)
Market Price (11/18/2025): $24.1Market Cap: $1.2 BilSector: Information TechnologyIndustry: IT Consulting & Other Services
Investment Highlights
Why It Matters
Which of these 2 stories sounds closer for this stock?
1. Generates cash flow
The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.
2. Riding a trend
Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 6.4%, Dividend Yield is 3.2% | Trading close to highsDist 52W High is -0.2%, Dist 3Y High is -0.2% | Stock price has recently run up significantly12M Rtn12 month market price return is 124% |
| Low stock price volatilityVol 12M is 37% | Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 50% | |
| Megatrend and thematic driversMegatrends include Cloud Computing, and Automation & Robotics. Themes include Enterprise Application Integration, Hybrid Cloud Solutions, Show more. |
| Attractive yieldTotal YieldTotal Yield = Earnings Yield + Dividend Yield, Earnings Yield = Net Income / Market Cap Dividend Yield = Total Dividends / Market Cap is 6.4%, Dividend Yield is 3.2% |
| Low stock price volatilityVol 12M is 37% |
| Megatrend and thematic driversMegatrends include Cloud Computing, and Automation & Robotics. Themes include Enterprise Application Integration, Hybrid Cloud Solutions, Show more. |
| Trading close to highsDist 52W High is -0.2%, Dist 3Y High is -0.2% |
| Stock price has recently run up significantly12M Rtn12 month market price return is 124% |
| Valuation getting more expensiveP/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 50% |
Market Valuation & Key Metrics
MGIC Stock
Why The Stock Moved
Qualitative Assessment
AI Generated Analysis | Feedback
Magic Software Enterprises (MGIC) experienced an approximate 18.2% stock price increase in the period from July 31, 2025, to November 18, 2025, driven by several key factors:
1. Strong Second Quarter 2025 Financial Performance: Magic Software Enterprises reported robust financial results for the second quarter of 2025 on August 13, 2025. The company announced a record Q2 revenue of $151.6 million, an 11.3% increase year-over-year. Additionally, non-GAAP net income rose by 8.7% to $12.7 million, or $0.26 per diluted share, surpassing analysts' consensus estimates of $0.24.
2. Upward Revision of Full-Year 2025 Revenue Guidance: Following the strong Q2 performance, Magic Software Enterprises raised its full-year 2025 revenue guidance to a range of $600 million to $610 million. This revised outlook suggested an anticipated annual revenue growth rate of approximately 8.6% to 10.4% compared to the prior fiscal year, signaling continued operational momentum and a favorable outlook for the latter half of the year.
Stock Movement Drivers
Return vs. Risk
Price Returns Compared
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| MGIC Return | 63% | 37% | -21% | -36% | 29% | 109% | 201% |
| Peers Return | -1% | 2% | -1% | 5% | -16% | -36% | -43% |
| S&P 500 Return | 16% | 27% | -19% | 24% | 23% | 13% | 107% |
Monthly Win Rates [3] | |||||||
| MGIC Win Rate | 58% | 50% | 42% | 33% | 67% | 80% | |
| Peers Win Rate | 7% | 13% | 7% | 16% | 15% | 40% | |
| S&P 500 Win Rate | 58% | 75% | 42% | 67% | 75% | 70% | |
Max Drawdowns [4] | |||||||
| MGIC Max Drawdown | -35% | -6% | -29% | -46% | -2% | -3% | |
| Peers Max Drawdown | -9% | -1% | -3% | -0% | -20% | -49% | |
| S&P 500 Max Drawdown | -31% | -1% | -25% | -1% | -2% | -15% | |
[1] Cumulative total returns since the beginning of 2020
[2] Peers: GIB, ARBB, GLE, GMM, LZMH.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 11/17/2025 (YTD)
How Low Can It Go
| Event | MGIC | S&P 500 |
|---|---|---|
| 2022 Inflation Shock | ||
| % Loss | -66.6% | -25.4% |
| % Gain to Breakeven | 199.6% | 34.1% |
| Time to Breakeven | Not Fully Recovered days | 464 days |
| 2020 Covid Pandemic | ||
| % Loss | -44.3% | -33.9% |
| % Gain to Breakeven | 79.7% | 51.3% |
| Time to Breakeven | 84 days | 148 days |
| 2018 Correction | ||
| % Loss | -18.5% | -19.8% |
| % Gain to Breakeven | 22.7% | 24.7% |
| Time to Breakeven | 71 days | 120 days |
| 2008 Global Financial Crisis | ||
| % Loss | -66.1% | -56.8% |
| % Gain to Breakeven | 194.7% | 131.3% |
| Time to Breakeven | 373 days | 1480 days |
Compare to GIB, ARBB, GLE, GMM, LZMH
In The Past
Magic Software Enterprises's stock fell -66.6% during the 2022 Inflation Shock from a high on 11/12/2021. A -66.6% loss requires a 199.6% gain to breakeven.
Preserve Wealth
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Asset Allocation
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Trade Ideas
Select past ideas related to MGIC. For more, see Trefis Trade Ideas.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 10312025 | ZBRA | Zebra Technologies | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -10.7% | -10.7% | -10.7% |
| 10312025 | ACN | Accenture | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | -2.0% | -2.0% | -3.5% |
| 10312025 | ADBE | Adobe | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | -2.7% | -2.7% | -3.9% |
| 10312025 | TXN | Texas Instruments | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -1.3% | -1.3% | -1.3% |
| 10242025 | MRVL | Marvell Technology | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 2.8% | 2.8% | 0.0% |
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 10312025 | ZBRA | Zebra Technologies | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | -10.7% | -10.7% | -10.7% |
| 10312025 | ACN | Accenture | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | -2.0% | -2.0% | -3.5% |
| 10312025 | ADBE | Adobe | Dip Buy | DB | P/E OPMDip Buy with Low PE and High MarginBuying dips for companies with tame PE and meaningfully high operating margin | -2.7% | -2.7% | -3.9% |
| 10312025 | TXN | Texas Instruments | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | -1.3% | -1.3% | -1.3% |
| 10242025 | MRVL | Marvell Technology | Monopoly | MY | Getting CheaperMonopoly-Like with P/S DeclineLarge cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple | 2.8% | 2.8% | 0.0% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons for Magic Software Enterprises
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 4.37 |
| Mkt Cap | 10.0 |
| Rev LTM | 8,249 |
| Op Inc LTM | 1,337 |
| FCF LTM | 1,008 |
| FCF 3Y Avg | 983 |
| CFO LTM | 1,144 |
| CFO 3Y Avg | 1,126 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 10.2% |
| Rev Chg 3Y Avg | 5.6% |
| Rev Chg Q | 10.5% |
| QoQ Delta Rev Chg LTM | 2.5% |
| Op Mgn LTM | 13.5% |
| Op Mgn 3Y Avg | 13.5% |
| QoQ Delta Op Mgn LTM | -0.1% |
| CFO/Rev LTM | 11.7% |
| CFO/Rev 3Y Avg | 13.4% |
| FCF/Rev LTM | 10.5% |
| FCF/Rev 3Y Avg | 12.0% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 10.0 |
| P/S | 1.6 |
| P/EBIT | 13.4 |
| P/E | 21.0 |
| P/CFO | 15.1 |
| Total Yield | 7.6% |
| Dividend Yield | 1.6% |
| FCF Yield 3Y Avg | 9.3% |
| D/E | 0.2 |
| Net D/E | 0.1 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -10.1% |
| 3M Rtn | -8.4% |
| 6M Rtn | -43.2% |
| 12M Rtn | -21.9% |
| 3Y Rtn | 33.5% |
| 1M Excs Rtn | -10.2% |
| 3M Excs Rtn | -10.1% |
| 6M Excs Rtn | -55.1% |
| 12M Excs Rtn | -57.1% |
| 3Y Excs Rtn | -30.0% |
Segment Financials
Revenue by Segment
| $ Mil | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| Information Technology (IT) professional services | 442 | 467 | 385 | 285 | 239 |
| Software services | 93 | 99 | 96 | 86 | 86 |
| Unallocated expense | 0 | 0 | 0 | ||
| Total | 535 | 567 | 480 | 371 | 326 |
| $ Mil | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| Information Technology (IT) professional services | 41 | 40 | 37 | 26 | 23 |
| Software services | 21 | 27 | 21 | 22 | 14 |
| Unallocated expense | -5 | -5 | -6 | -7 | -3 |
| Total | 57 | 62 | 52 | 41 | 34 |
Returns Analyses
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 6302025 | 8132025 | 6-K 6/30/2025 |
| 3312025 | 5212025 | 6-K 3/31/2025 |
| 12312024 | 5152025 | 20-F 12/31/2024 |
| 9302024 | 11182024 | 6-K 9/30/2024 |
| 6302024 | 8142024 | 6-K 6/30/2024 |
| 3312024 | 5162024 | 6-K 3/31/2024 |
| 12312023 | 5132024 | 20-F 12/31/2023 |
| 9302023 | 11142023 | 6-K 9/30/2023 |
| 6302023 | 8142023 | 6-K 6/30/2023 |
| 3312023 | 5182023 | 6-K 3/31/2023 |
| 12312022 | 5112023 | 20-F 12/31/2022 |
| 9302022 | 11142022 | 6-K 9/30/2022 |
| 6302022 | 8112022 | 6-K 6/30/2022 |
| 3312022 | 5122022 | 6-K 3/31/2022 |
| 12312021 | 5122022 | 20-F 12/31/2021 |
| 9302021 | 11152021 | 6-K 9/30/2021 |
External Quote Links
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