Magic Software Enterprises Ltd.

Magic Software Enterprises provides software services, IT outsourcing, and cloud-based services internationally. Its Software Services segment develops and supports business applications and integration solutions. The company offers proprietary application platforms for developing, deploying, and maintaining business applications. It also provides vertical software solutions for various industries, including healthcare, cargo management, and more. Additionally, Magic Software offers software maintenance, support, training, and consulting services. The company was formerly known as Mashov Software Export (1983) Ltd. and changed its name in 1991. It was incorporated in 1983 and is headquartered in Or Yehuda, Israel.

Overview

Sector

IT Services

Target Price

34.4 USD

Current Price

15.2 USD

Potential

126%

Strengths

With an appreciation Potential of 126.10%, based on our fundamental analysis, it suggests the stock may be undervalued.
Price to book ratio (2.70) is lower than the sector mean (4.87).
The company has low debt. Net Debt to EBITDA Ratio is -0.64 and it is lower than the sector mean.
The company has high returns. ROIC (22.24%) is higher than the sector mean (15.63%).
EV/EBITDA (8.27) is lower than the sector mean (36.44).
EV/EBIT (11.32) is lower than the sector mean.
Price to free cash flow (10.58) is lower than the sector mean.

Weaknesses

No significant weaknesses identified based on the analyzed metrics.

Key Financial Data

Indicator	Value
PER	20.3
EV/EBITDA	8.3
Price/Free Cash Flow'	10.6
ROIC	22.2%
Net Debt/EBITDA	-0.6