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29

MGIC

💻 Technology

Magic Software Enterprises Ltd.

Conservative #1150Aggressive #1183Moderate RiskHigh 99
$17.38+0.00%
Day High$18.29
Day Low$17.25
Volume0.1M
Mkt Cap$853M
52W Low $1252W High $28
Market Cap
$953M
P/E Ratio
23.8
Sector avg: 87.4
Rev Growth
3.3%
Sector avg: 14.8%
Earnings Growth
-0.4%
Profit Margin
6.6%
Sector avg: -109.6%
Debt/Equity
0.35

Why This Score

MGIC scores 28.8 on the Conservative profile, blending a fundamental score (80% weight, emphasizing quality and stability (84% of fundamental weight)) with a machine-learning signal (20% weight) trained on 82 features across 30 years of data.

Strengths
  • High conviction (99/100) — fundamental and ML signals agree on this stock.
Risk Factors
  • Liquidity concern: Limited trading volume or float results in a 25-point penalty for execution risk.
  • Above-average volatility (11.6%) may not suit conservative risk tolerance.

Net penalties of -25.0 points significantly impact the ranking. Without these adjustments, MGIC would rank considerably higher.

Score Breakdown

Overall Score28.8
Fundamental Score50.0
ML Score49.0

Score by Horizon

3 Month
69.0
6 Month
77.1
Primary
1 Year
81.1

Quality Assessment

B
Earnings Grade
Solid fundamentals with minor quality concerns

Position Sizing

Suggested Allocation
5%
Confidence
high

Score Composition Waterfall

How each component affects the final score
Backtested Scoring Levers (IC-calibrated from 30y ElasticNet)
Weinstein (12.1%)
0
Declining
Sentiment (2.5%)
59
Neutral
Analyst (6.4%)
50
Neutral
Tradability (post-hoc)
0
Grade Fvery low volume, very low dollar volume
Base
24.8
SHAP
+1.6
Factors
+0.6
Conviction
+1.8
Final
28.8
Positive adjustment
Negative adjustment
Base blend
Final score

Signal SegmentsComputed from ML features

Fundamental (Valuation, Quality, Growth)53.0
Technical (Momentum, Weinstein, Volatility)58.0
External (Sentiment, Analyst, Macro)77.0
Scores below 50 indicate weakness in that segment relative to the universe.

Data Quality

Score
Features
Confidence
Feature Coverage89%

Growth Estimates

Short-term
-5.2% to +1.2%
Medium-term
-7.8% to +1.8%
Long-term
-10.4% to +2.4%

ML Model Core Features100 trained inputs → ML Score: 49

These features are direct inputs to the machine learning model. The model was trained on these signals alongside 100 features (including 12 momentum/technical indicators) to produce the ML percentile score.

Analyst Intelligence
Consensus Score50.0/100
Target Upside+3.1%
Coverage6 analysts
Market Sentiment
Sentiment Score58.7/100
News Volume1 articles
Technical Stage
Weinstein Stage4 — Declining
12M Momentum+0.6%
6M Momentum-0.1%
Volatility+0.1%
Momentum & Technical
Momentum Acceleration+65.8%
Momentum ConsistencyDivergent (-0.08)
Relative Strength vs Sector+57.2%
Trend Strength (ADX Proxy)Strong (5.0)
Momentum Quality+0.447
Momentum BreadthNarrow
Macro Regime
Bull RegimeYes
High Vol RegimeNo
S&P 500 Return+25.0%
Yield Curve-0.1bp

Sector-Relative AnalysisIn-model features

Value Trap Signal
25%
Moderate — watch growth
Sector RevGr Rank
P27
Revenue growth vs Technology peers
Sector PE Rank
P49
Valuation vs Technology peers
Sector FCF Rank
P69
Free cash flow vs Technology peers
Growth Deviation
-0.1σ
Z-score vs sector median
Stagnation Flag
NO
Not flagged

Analysis Signals

Scoring Factors
Fundamental score of 76 relative to sector peers76/100
Machine learning model ranks this stock at the 81th percentileP81
ML model weight reduced to 9% due to macro conditions: market in extended rally phase; yield curve inverted (recession indicator); late-cycle economic indicators detected9% ML weight
SHAP feature alignment: +3.1pt (features align with model priorities)
Blend: 91% fund (75.6) + 9% ML (81.1) + SHAP(+3.1) = 79.2
Factor quality: +1.2pt (multi-factor composite)
Risk assessment: moderate. Annualized volatility 11.6%. Max drawdown 26% (-7.4 pts)Moderate
Market cap adjustment: -15.0 points ($1.0B market cap)-15.0 pts
Conviction bonus: +3.5pt (conviction=99)
Risk Factors
Earnings quality grade B: adequate earnings quality with minor concerns. Score adjusted by -5 pointsGrade B
Quality concern: High accrual ratio (-58.5%) — earnings quality concernFlag

Sector Peer Comparison(Technology — Rank #252 of 290 stocks)

StockScoreP/ERev GrowthMarginMkt Cap
MGIC28.823.83.3%6.6%$953M
MPWR84.891.721.2%81.0%$57.1B
ZM84.218.03.1%21.7%$27.7B
NVDA80.645.2114.2%55.8%$4.5T
CRUS79.719.16.0%17.5%$7.4B
ASML77.848.115.6%29.4%$546.0B
IDCC77.431.8-4.0%48.8%$9.7B
CSCO77.127.65.3%18.0%$303.6B
RMBS75.548.320.7%32.3%$11.0B
DBX75.313.91.9%17.7%$6.4B
FSLR75.017.326.7%30.7%$24.2B
SIMO74.79.210.2%13.8%$4.5B
ADI74.374.116.9%20.6%$165.1B
AAPL72.533.16.4%27.0%$3.9T
OLED72.527.012.4%34.3%$5.9B
AMAT72.336.44.4%24.7%$281.7B
Sector Average47.487.414.8%-109.6%

Market Sentimentvia FMP

Analyst Consensus
Buy6 analysts
Buy: 2Hold: 2Sell: 2
Price Target
$19consensus
Low $15Median $19High $22
+6.4% to consensus target

Company Overviewvia FMP

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.

CEO
Yakov Tsaroya
Employees
3,628
Beta
0.75
Industry
Information Technology Services
FMP-Identified Peers

Technical Picturecomputed from daily prices

RSI (14)
24.8
Oversold
Trend
Bearish
10-day vs 50-day MA
From 52W High
-37.9%
High: $28
From 52W Low
+49.2%
Low: $11.65
Moving Averages
10-Day
$19.50
Below
20-Day
$22.30
Below
50-Day
$24.90
Below
200-Day
$21.10
Below
60-Day Support
$17.06
60-Day Resistance
$28
Weinstein Stage Analysisbased on 200-day SMA framework
Stage 4 — DecliningScore: 16/100

Stock is in a downtrend below the 200-day moving average. Price is below both the 50-day and 200-day SMAs, indicating sustained selling pressure.

Unfavorable technical position; wait for Stage 1 basing
Transition signal: 3→4
Price vs 200 SMA
-17.6%
200 SMA Slope (60d)
+19.91%
Rising
Volume Ratio
1.57x
10d avg vs 50d avg
Days in Stage
8
Confidence: 50%
Recent Gap UpRecent Gap Down

Financial Statementslast 4 quarters via FMP

MetricQ3 2025Q2 2025Q1 2025Q4 2024
Revenue$162M$152M$147M$143M
Gross Profit$44M$42M$41M$42M
Operating Income$17M$16M$16M$17M
Net Income$10M$10M$9M$11M
EPS (Diluted)$0.20$0.20$0.19$0.22
Gross Margin27.3%27.9%27.6%29.4%
Operating Margin10.6%10.3%10.7%11.7%
Net Margin6.1%6.6%6.4%7.4%

Why This Stock

TechnologyP/E ratio of 23.8Valuation below sector median (P/E 23.8)

Tradability FilterGrade F — 0/100Score impact: -21.6pt

Low Tradability Warning

This stock has limited trading volume and/or float. Institutional investors may face difficulty entering or exiting positions without significant price impact. A post-hoc penalty has been applied to the composite score (this is not a backtested model factor — it is a practical tradability overlay).

Volume
0
40K avg/day
Dollar Vol
0
$699K/day
Float
0
26M shares
Mkt Cap
0
$953M
Range
0
140% spread
Composite Liquidity Score0/100
FDCBA
very low volumevery low dollar volume

Multi-Year Range Analysis

Sideways: 0/100
YearLowHighRangeStatus
2021$14.87$25.4952.6%Wide
2022$14.01$21.6742.9%Wide
2023$8.15$17.5072.9%Wide
2024$9.38$13.4035.3%Wide
2025$11.36$27.4482.9%Wide
3-Year Range
108.4%
Narrow Years
0 / 5
Sideways Penalty
None

Growth Projection Adjustment

0.15x dampening
weinstein declining

Growth estimates have been dampened based on technical and fundamental signals. This is a post-hoc adjustment to prevent overly optimistic projections for stocks showing declining momentum or deteriorating fundamentals.

Free Float
52.9%
Outstanding Shares
49M
Bid-Ask Spread
140.0%
Institutional Tradable
No

Scores are generated by a multi-stage ML pipeline combining fundamental analysis, ensemble predictions, and structural risk signals. All data is for research purposes only and does not constitute financial advice. Past performance does not guarantee future results.