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Upturn AI SWOT - About
MGIC 
Magic Software Enterprises Ltd (MGIC)
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Upturn Advisory Summary
03/27/2025: MGIC (1-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
AI Based Fundamental Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Analysis of Past Performance
Type Stock | Historic Profit -40.77% | Avg. Invested days 35 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  1.0 | Stock Returns Performance  1.0 |
| Profits based on simulation | Last Close 03/27/2025 |
Key Highlights
Company Size Small-Cap Stock | Market Capitalization 651.48M USD | Price to earnings Ratio 17.56 | 1Y Target Price 16 |
Price to earnings Ratio 17.56 | 1Y Target Price 16 | ||
Volume (30-day avg) 99246 | Beta 1.11 | 52 Weeks Range 9.13 - 14.24 | Updated Date 03/28/2025 |
52 Weeks Range 9.13 - 14.24 | Updated Date 03/28/2025 | ||
Dividends yield (FY) 4.27% | Basic EPS (TTM) 0.75 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Earnings Date
Report Date 2025-03-11 | When Before Market | Estimate 0.2445 | Actual 0.24 |
Profitability
Profit Margin 6.68% | Operating Margin (TTM) 11.71% |
Management Effectiveness
Return on Assets (TTM) 7.2% | Return on Equity (TTM) 14.63% |
Valuation
Trailing PE 17.56 | Forward PE 23.92 | Enterprise Value 624803661 | Price to Sales(TTM) 1.18 |
Enterprise Value 624803661 | Price to Sales(TTM) 1.18 | ||
Enterprise Value to Revenue 1.13 | Enterprise Value to EBITDA 7.61 | Shares Outstanding 49099300 | Shares Floating 25974844 |
Shares Outstanding 49099300 | Shares Floating 25974844 | ||
Percent Insiders 47.1 | Percent Institutions 26.82 |
Analyst Ratings
Rating 4.5 | Target Price 15 | Buy 1 | Strong Buy 1 |
Buy 1 | Strong Buy 1 | ||
Hold - | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Magic Software Enterprises Ltd
Company Overview
History and Background
Magic Software Enterprises Ltd. was founded in 1983. It started as a software development platform and has evolved into a global provider of application development, business process integration, and IT outsourcing solutions. Significant milestones include its IPO and expansion into international markets through strategic partnerships and acquisitions.
Core Business Areas
- Application Development: Provides a low-code, metadata-driven platform for rapidly building and deploying business applications. Focused on speed and agility to meet modern digital transformation initiatives.
- Business Process Integration: Offers integration platform as a service (iPaaS) to connect disparate systems, data sources, and applications. Helps enterprises streamline workflows and improve data visibility.
- IT Outsourcing: Provides IT outsourcing services, including application management, infrastructure management, and cloud migration. Focuses on delivering cost-effective and reliable IT solutions.
Leadership and Structure
The leadership team comprises experienced executives in technology and business management. The organizational structure is hierarchical with functional departments for sales, marketing, R&D, and operations.
Top Products and Market Share
Key Offerings
- Magic xpa Application Platform: A low-code application development platform enabling rapid application development and deployment across various platforms and devices. Market share data is difficult to pinpoint precisely due to the fragmented nature of the low-code market, but Magic is considered a key player. Competitors include OutSystems, Mendix, and Microsoft Power Apps. Revenue from this product constitutes a significant portion of overall revenues.
- Magic xpi Integration Platform: An integration platform as a service (iPaaS) solution that connects disparate systems, automates business processes, and provides real-time data visibility. Again, specific market share is difficult to isolate, but Magic is a significant competitor in the iPaaS space. Revenue from xpi makes up substantial part of overall revenues. Competitors include Boomi, MuleSoft, and Informatica.
Market Dynamics
Industry Overview
The industries Magic operates in (low-code application development and iPaaS) are experiencing rapid growth fueled by digital transformation initiatives and the need for faster application delivery and seamless system integration.
Positioning
Magic Software is positioned as a provider of agile and cost-effective solutions for enterprises seeking to accelerate digital transformation. Its competitive advantages include its low-code platform, pre-built connectors, and global presence.
Total Addressable Market (TAM)
The combined TAM for low-code development and iPaaS is estimated to be in the tens of billions of dollars. Magic Software is positioned to capture a share of this market through its established customer base, technology, and partnerships.
Upturn SWOT Analysis
Strengths
- Low-code platform for rapid application development
- Comprehensive integration capabilities
- Global presence and partner network
- Established customer base
- Strong profitability
Weaknesses
- Smaller market share compared to larger competitors
- Potential dependence on legacy technology
- Brand recognition not as strong as top competitors
Opportunities
- Growing demand for low-code development platforms
- Increasing adoption of cloud-based integration solutions
- Expansion into new geographies and vertical markets
- Acquisitions to expand product portfolio
Threats
- Intense competition from larger and well-funded competitors
- Rapid technological advancements requiring continuous innovation
- Economic downturns affecting IT spending
- Security threats and data privacy concerns
Competitors and Market Share
Key Competitors
- OUT (Outsystems)
- MNDX (Mendix)
- NOW (ServiceNow)
Competitive Landscape
Magic offers a compelling low-code platform and robust integration tools. Smaller market share compared to the key competitors puts them at a disadvantage. Innovation and focusing on their niches are key to their success.
Major Acquisitions
Acquired Company Name
- Year: 2022
- Acquisition Price (USD millions): 50
- Strategic Rationale: Expanded product offerings and market reach.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been steady, driven by demand for its application development and integration platforms.
Future Projections: Future growth is projected to continue, fueled by digital transformation trends and strategic initiatives.
Recent Initiatives: Recent strategic initiatives include partnerships with leading technology providers and expansion into new geographic markets.
Summary
Magic Software is a global provider of application development, business process integration, and IT outsourcing solutions. Its low-code platform and integration capabilities are key strengths, but it faces intense competition. Future growth relies on continued innovation and successful execution of strategic initiatives. The company must be careful about the larger companies and their market share.
Similar Companies
- OUT
- MNDX
- NOW
- ADBE
- CRM
Sources and Disclaimers
Data Sources:
- Company Website
- Industry Reports
- Analyst Estimates
Disclaimers:
The data provided is for informational purposes only and should not be considered investment advice.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Magic Software Enterprises Ltd
Exchange NASDAQ | Headquaters - | ||
IPO Launch date 1991-08-28 | CEO - | ||
Sector Technology | Industry Information Technology Services | Full time employees - | Website https://www.magicsoftware.com |
Full time employees - | Website https://www.magicsoftware.com | ||
Magic Software Enterprises Ltd. provides proprietary application development, vertical software solutions, business process integration, information technologies (IT) outsourcing software services, and cloud-based services in Israel and internationally. Its Software Services segment develops, markets, sells, and supports application platform, software applications, and business and process integration solutions and related services. The company's 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. It also offers proprietary application platforms, such as Magic xpa for developing and deploying business applications; AppBuilder for building, deploying, and maintaining business applications; Magic xpi for application integration; Magic xpi cloud native; FactoryEye for virtualization of production data; Magic Data Management and Analytics Platform for data management; and Magic SmartUX for cross-platform mobile business applications. The company 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, It 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. The company was incorporated in 1983 and is headquartered in Or Yehuda, Israel.
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