Magic Software Enterprises Ltd Financials

MGIC

Source SEC Filings (10-K/10-Q) Updated Dec 31, 2021 Currency USD FYE December

This page shows Magic Software Enterprises Ltd (MGIC) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 13 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Financial Profile 58/100

Based on FY2021 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability

Magic Software Enterprises Ltd has an operating margin of 10.7%, meaning the company retains $11 of operating profit per $100 of revenue. This results in a moderate score of 46/100, indicating healthy but not exceptional operating efficiency. This is down from 10.9% the prior year.

Growth

Magic Software Enterprises Ltd's revenue surged 29.4% year-over-year to $480.3M, reflecting rapid business expansion. This strong growth earns a score of 82/100.

Leverage

100

Magic Software Enterprises Ltd carries a low D/E ratio of 0.12, meaning only $0.12 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 100/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

Magic Software Enterprises Ltd's current ratio of 2.28 indicates adequate short-term liquidity, earning a score of 42/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow

Magic Software Enterprises Ltd has a free cash flow margin of 7.6%, earning a moderate score of 44/100. The company generates positive cash flow after capital investments, but with room for improvement.

Returns

Magic Software Enterprises Ltd's ROE of 11.1% shows moderate profitability relative to equity, earning a score of 36/100. This is up from 9.7% the prior year.

Altman Z-Score Safe

4.04

Magic Software Enterprises Ltd scores 4.04, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($853.3M) relative to total liabilities ($226.8M). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Neutral

5/9

Magic Software Enterprises Ltd passes 5 of 9 financial strength tests. All 4 profitability signals pass (positive income, cash flow, and earnings quality), no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.

Earnings Quality Cash-Backed

1.29x

For every $1 of reported earnings, Magic Software Enterprises Ltd generates $1.29 in operating cash flow ($37.8M OCF vs $29.3M net income). This indicates profits are well-supported by actual cash generation, not accounting adjustments.

Interest Coverage Safe

60.7x

Magic Software Enterprises Ltd earns $60.7 in operating income for every $1 of interest expense ($51.2M vs $844K). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.

Key Financial Metrics

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Earnings & Revenue

Revenue

$480.3M

YoY+29.4%

5Y CAGR+19.0%

10Y CAGR+15.5%

Magic Software Enterprises Ltd generated $480.3M in revenue in fiscal year 2021. This represents an increase of 29.4% from the prior year.

EBITDA

$66.1M

YoY+21.2%

5Y CAGR+15.1%

10Y CAGR+12.8%

Magic Software Enterprises Ltd's EBITDA was $66.1M in fiscal year 2021, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 21.2% from the prior year.

Net Income

$29.3M

YoY+16.5%

5Y CAGR+15.7%

10Y CAGR+6.9%

Magic Software Enterprises Ltd reported $29.3M in net income in fiscal year 2021. This represents an increase of 16.5% from the prior year.

EPS (Diluted)

N/A

Cash & Balance Sheet

Free Cash Flow

$36.4M

YoY-26.6%

5Y CAGR+6.0%

10Y CAGR+9.5%

Magic Software Enterprises Ltd generated $36.4M in free cash flow in fiscal year 2021, representing cash available after capex. This represents a decrease of 26.6% from the prior year.

Cash & Debt

$88.1M

YoY-0.0%

5Y CAGR+3.2%

10Y CAGR+11.9%

Magic Software Enterprises Ltd held $88.1M in cash against $32.5M in long-term debt as of fiscal year 2021.

Dividends Per Share

N/A

Shares Outstanding

49M

YoY+0.1%

5Y CAGR+2.0%

10Y CAGR+3.0%

Magic Software Enterprises Ltd had 49M shares outstanding in fiscal year 2021. This represents an increase of 0.1% from the prior year.

Margins & Returns

Gross Margin

27.7%

YoY-1.8pp

5Y CAGR-6.2pp

10Y CAGR-13.0pp

Magic Software Enterprises Ltd's gross margin was 27.7% in fiscal year 2021, indicating the percentage of revenue retained after direct costs. This is down 1.8 percentage points from the prior year.

Operating Margin

10.7%

YoY-0.3pp

5Y CAGR+0.2pp

10Y CAGR-2.3pp

Magic Software Enterprises Ltd's operating margin was 10.7% in fiscal year 2021, reflecting core business profitability. This is down 0.3 percentage points from the prior year.

Net Margin

6.1%

YoY-0.7pp

5Y CAGR-0.9pp

10Y CAGR-7.2pp

Magic Software Enterprises Ltd's net profit margin was 6.1% in fiscal year 2021, showing the share of revenue converted to profit. This is down 0.7 percentage points from the prior year.

Return on Equity

11.1%

YoY+1.4pp

5Y CAGR+3.8pp

10Y CAGR-3.3pp

Magic Software Enterprises Ltd's ROE was 11.1% in fiscal year 2021, measuring profit generated per dollar of shareholder equity. This is up 1.4 percentage points from the prior year.

Capital Allocation

R&D Spending

$9.0M

YoY+2.3%

5Y CAGR+9.0%

10Y CAGR+16.0%

Magic Software Enterprises Ltd invested $9.0M in research and development in fiscal year 2021. This represents an increase of 2.3% from the prior year.

Share Buybacks

N/A

Capital Expenditures

$1.4M

YoY-48.1%

5Y CAGR+12.5%

10Y CAGR+11.2%

Magic Software Enterprises Ltd invested $1.4M in capex in fiscal year 2021, funding long-term assets and infrastructure. This represents a decrease of 48.1% from the prior year.

MGIC Income Statement

Metric	FY21	FY20	FY19	FY18	FY17	FY16
Revenue	$480.3M+29.4%	$371.2M+14.0%	$325.6M+14.5%	$284.4M+10.2%	$258.1M+28.0%	$201.6M
Cost of Revenue	$347.3M+32.8%	$261.6M+17.0%	$223.5M+14.3%	$195.6M+11.6%	$175.2M+31.3%	$133.4M
Gross Profit	$133.0M+21.4%	$109.6M+7.3%	$102.1M+15.0%	$88.8M+7.0%	$83.0M+21.6%	$68.3M
R&D Expenses	$9.0M+2.3%	$8.8M+6.7%	$8.2M+44.6%	$5.7M-17.9%	$6.9M+18.9%	$5.8M
SG&A Expenses	$32.1M+14.8%	$28.0M-5.3%	$29.5M+21.7%	$24.3M+6.3%	$22.8M+30.0%	$17.6M
Operating Income	$51.2M+26.2%	$40.6M+20.6%	$33.7M+6.2%	$31.7M+22.1%	$26.0M+23.1%	$21.1M
Interest Expense	-$844K-37.5%	-$614K-64.2%	-$374K+62.1%	-$986K+12.3%	-$1.1M-464.8%	-$199K
Income Tax	$10.4M+42.2%	$7.3M+6.0%	$6.9M-2.8%	$7.1M+11.7%	$6.3M+60.3%	$3.9M
Net Income	$29.3M+16.5%	$25.2M+24.3%	$20.3M+1.9%	$19.9M+28.8%	$15.4M+9.0%	$14.2M
EPS (Diluted)	N/A	N/A	N/A	N/A	$0.35+29.6%	$0.27

Metric	Q4'21	Q4'20	Q4'19	Q4'18	Q2'18	Q4'17	Q4'16	Q4'15
Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Cost of Revenue	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Gross Profit	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
R&D Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
SG&A Expenses	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Interest Expense	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Income Tax	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Income	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
EPS (Diluted)	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

MGIC Balance Sheet

Metric	FY21	FY20	FY19	FY18	FY17	FY16
Total Assets	$492.0M+10.0%	$447.4M+10.6%	$404.6M+11.7%	$362.3M+5.8%	$342.5M+8.3%	$316.4M
Current Assets	$246.8M+16.8%	$211.2M+3.0%	$205.1M-2.9%	$211.2M+16.3%	$181.6M+14.7%	$158.4M
Cash & Equivalents	$88.1M0.0%	$88.1M+7.6%	$81.9M-6.0%	$87.1M+14.5%	$76.1M+1.0%	$75.3M
Inventory	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	$117.0M+27.2%	$92.0M-4.9%	$96.7M+7.1%	$90.3M+10.0%	$82.1M+32.2%	$62.0M
Goodwill	$146.8M+8.2%	$135.7M+15.2%	$117.7M+23.9%	$95.0M-3.2%	$98.2M+7.9%	$91.0M
Total Liabilities	$226.8M+21.3%	$187.0M+19.3%	$156.8M+32.5%	$118.3M-10.5%	$132.3M+10.0%	$120.2M
Current Liabilities	$108.3M+27.6%	$84.8M+26.8%	$66.9M+26.4%	$52.9M-10.7%	$59.2M+32.6%	$44.7M
Long-Term Debt	$32.5M+37.8%	$23.6M+12.1%	$21.1M-18.0%	$25.7M-25.7%	$34.6M+1.1%	$34.2M
Total Equity	$265.2M+1.8%	$260.4M+5.1%	$247.8M+1.6%	$244.0M+16.0%	$210.3M+7.2%	$196.2M
Retained Earnings	$43.2M+8.9%	$39.7M+40.1%	$28.4M-7.1%	$30.5M+18.7%	$25.7M+29.7%	$19.8M

Metric	Q4'21	Q4'20	Q4'19	Q4'18	Q2'18	Q4'17	Q4'16	Q4'15
Total Assets	$492.0M+10.0%	$447.4M+10.6%	$404.6M+11.7%	$362.3M+6.9%	$339.0M-1.0%	$342.5M+8.3%	$316.4M+31.9%	$239.8M
Current Assets	$246.8M+16.8%	$211.2M+3.0%	$205.1M-2.9%	$211.2M+15.2%	$183.3M+0.9%	$181.6M+14.7%	$158.4M+17.0%	$135.3M
Cash & Equivalents	$88.1M0.0%	$88.1M+7.6%	$81.9M-6.0%	$87.1M+11.4%	$78.2M+2.8%	$76.1M+1.0%	$75.3M+21.1%	$62.2M
Inventory	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Accounts Receivable	$117.0M+27.2%	$92.0M-4.9%	$96.7M+7.1%	$90.3M+11.2%	$81.2M-1.1%	$82.1M+32.2%	$62.0M+18.5%	$52.4M
Goodwill	$146.8M+8.2%	$135.7M+15.2%	$117.7M+23.9%	$95.0M-0.9%	$95.9M-2.3%	$98.2M+7.9%	$91.0M+43.7%	$63.3M
Total Liabilities	$226.8M+21.3%	$187.0M+19.3%	$156.8M+32.5%	$118.3M-8.1%	$128.7M-2.7%	$132.3M+10.0%	$120.2M+146.1%	$48.8M
Current Liabilities	$108.3M+27.6%	$84.8M+26.8%	$66.9M+26.4%	$52.9M-9.9%	$58.7M-0.8%	$59.2M+32.6%	$44.7M+57.6%	$28.4M
Long-Term Debt	$32.5M+37.8%	$23.6M+12.1%	$21.1M-18.0%	$25.7M+0.8%	$25.5M-26.3%	$34.6M+1.1%	$34.2M+950.5%	$3.3M
Total Equity	$265.2M+1.8%	$260.4M+5.1%	$247.8M+1.6%	$244.0M+16.0%	$210.3M0.0%	$210.3M+7.2%	$196.2M+2.7%	$191.0M
Retained Earnings	$43.2M+8.9%	$39.7M+40.1%	$28.4M-7.1%	$30.5M+1.8%	$30.0M+16.6%	$25.7M+29.7%	$19.8M+26.4%	$15.7M

MGIC Cash Flow Statement

Metric	FY21	FY20	FY19	FY18	FY17	FY16
Operating Cash Flow	$37.8M-27.7%	$52.3M+13.8%	$45.9M+91.1%	$24.1M-5.7%	$25.5M-8.8%	$28.0M
Capital Expenditures	$1.4M-48.1%	$2.8M+101.0%	$1.4M+59.8%	$863K-38.4%	$1.4M+75.2%	$799K
Free Cash Flow	$36.4M-26.6%	$49.5M+11.1%	$44.6M+92.2%	$23.2M-3.8%	$24.1M-11.2%	$27.2M
Investing Cash Flow	-$16.9M-75.5%	-$9.6M+37.8%	-$15.4M+21.0%	-$19.6M-167.3%	-$7.3M+78.6%	-$34.2M
Financing Cash Flow	-$20.7M+47.7%	-$39.6M-7.2%	-$37.0M-538.9%	$8.4M+143.4%	-$19.4M-195.1%	$20.4M
Dividends Paid	$21.8M+74.2%	$12.5M-16.4%	$15.0M+10.5%	$13.5M+44.7%	$9.4M+20.6%	$7.8M
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A

Metric	Q4'21	Q4'20	Q4'19	Q4'18	Q2'18	Q4'17	Q4'16	Q4'15
Operating Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Capital Expenditures	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Free Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Investing Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Financing Cash Flow	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

MGIC Financial Ratios

Metric	FY21	FY20	FY19	FY18	FY17	FY16
Gross Margin	27.7%-1.8pp	29.5%-1.8pp	31.4%+0.1pp	31.2%-0.9pp	32.1%-1.7pp	33.9%
Operating Margin	10.7%-0.3pp	10.9%+0.6pp	10.3%-0.8pp	11.2%+1.1pp	10.1%-0.4pp	10.5%
Net Margin	6.1%-0.7pp	6.8%+0.6pp	6.2%-0.8pp	7.0%+1.0pp	6.0%-1.1pp	7.0%
Return on Equity	11.1%+1.4pp	9.7%+1.5pp	8.2%+0.0pp	8.2%+0.8pp	7.3%+0.1pp	7.2%
Return on Assets	6.0%+0.3pp	5.6%+0.6pp	5.0%-0.5pp	5.5%+1.0pp	4.5%+0.0pp	4.5%
Current Ratio	2.28-0.2	2.49-0.6	3.07-0.9	3.99+0.9	3.07-0.5	3.54
Debt-to-Equity	0.12+0.0	0.090.0	0.09-0.0	0.11-0.1	0.160.0	0.17
FCF Margin	7.6%-5.8pp	13.3%-0.4pp	13.7%+5.5pp	8.2%-1.2pp	9.3%-4.1pp	13.5%

Metric	Q4'21	Q4'20	Q4'19	Q4'18	Q2'18	Q4'17	Q4'16	Q4'15
Gross Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Operating Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Net Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Equity	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Return on Assets	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A
Current Ratio	2.28-0.2	2.49-0.6	3.07-0.9	3.99+0.9	3.12+0.1	3.07-0.5	3.54-1.2	4.77
Debt-to-Equity	0.12+0.0	0.090.0	0.09-0.0	0.11-0.0	0.12-0.0	0.160.0	0.17+0.2	0.02
FCF Margin	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A

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Frequently Asked Questions

What is Magic Software Enterprises Ltd's annual revenue?

Magic Software Enterprises Ltd (MGIC) reported $480.3M in total revenue for fiscal year 2021. This represents a 29.4% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Magic Software Enterprises Ltd's revenue growing?

Magic Software Enterprises Ltd (MGIC) revenue grew by 29.4% year-over-year, from $371.2M to $480.3M in fiscal year 2021.

Is Magic Software Enterprises Ltd profitable?

Yes, Magic Software Enterprises Ltd (MGIC) reported a net income of $29.3M in fiscal year 2021, with a net profit margin of 6.1%.

What is Magic Software Enterprises Ltd's EBITDA?

Magic Software Enterprises Ltd (MGIC) had EBITDA of $66.1M in fiscal year 2021, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Magic Software Enterprises Ltd have?

As of fiscal year 2021, Magic Software Enterprises Ltd (MGIC) had $88.1M in cash and equivalents against $32.5M in long-term debt.

What is Magic Software Enterprises Ltd's gross margin?

Magic Software Enterprises Ltd (MGIC) had a gross margin of 27.7% in fiscal year 2021, indicating the percentage of revenue retained after direct costs of goods sold.

What is Magic Software Enterprises Ltd's operating margin?

Magic Software Enterprises Ltd (MGIC) had an operating margin of 10.7% in fiscal year 2021, reflecting the profitability of core business operations before interest and taxes.

What is Magic Software Enterprises Ltd's net profit margin?

Magic Software Enterprises Ltd (MGIC) had a net profit margin of 6.1% in fiscal year 2021, representing the share of revenue converted into profit after all expenses.

What is Magic Software Enterprises Ltd's return on equity (ROE)?

Magic Software Enterprises Ltd (MGIC) has a return on equity of 11.1% for fiscal year 2021, measuring how efficiently the company generates profit from shareholder equity.

What is Magic Software Enterprises Ltd's free cash flow?

Magic Software Enterprises Ltd (MGIC) generated $36.4M in free cash flow during fiscal year 2021. This represents a -26.6% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Magic Software Enterprises Ltd's operating cash flow?

Magic Software Enterprises Ltd (MGIC) generated $37.8M in operating cash flow during fiscal year 2021, representing cash generated from core business activities.

What are Magic Software Enterprises Ltd's total assets?

Magic Software Enterprises Ltd (MGIC) had $492.0M in total assets as of fiscal year 2021, including both current and long-term assets.

What are Magic Software Enterprises Ltd's capital expenditures?

Magic Software Enterprises Ltd (MGIC) invested $1.4M in capital expenditures during fiscal year 2021, funding long-term assets and infrastructure.

How much does Magic Software Enterprises Ltd spend on research and development?

Magic Software Enterprises Ltd (MGIC) invested $9.0M in research and development during fiscal year 2021.

How many shares does Magic Software Enterprises Ltd have outstanding?

Magic Software Enterprises Ltd (MGIC) had 49M shares outstanding as of fiscal year 2021.

What is Magic Software Enterprises Ltd's current ratio?

Magic Software Enterprises Ltd (MGIC) had a current ratio of 2.28 as of fiscal year 2021, which is generally considered healthy.

What is Magic Software Enterprises Ltd's debt-to-equity ratio?

Magic Software Enterprises Ltd (MGIC) had a debt-to-equity ratio of 0.12 as of fiscal year 2021, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Magic Software Enterprises Ltd's return on assets (ROA)?

Magic Software Enterprises Ltd (MGIC) had a return on assets of 6.0% for fiscal year 2021, measuring how efficiently the company uses its assets to generate profit.

What is Magic Software Enterprises Ltd's Altman Z-Score?

Magic Software Enterprises Ltd (MGIC) has an Altman Z-Score of 4.04, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Magic Software Enterprises Ltd's Piotroski F-Score?

Magic Software Enterprises Ltd (MGIC) has a Piotroski F-Score of 5 out of 9, indicating neutral financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Magic Software Enterprises Ltd's earnings high quality?

Magic Software Enterprises Ltd (MGIC) has an earnings quality ratio of 1.29x, considered cash-backed (high quality). This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can Magic Software Enterprises Ltd cover its interest payments?

Magic Software Enterprises Ltd (MGIC) has an interest coverage ratio of 60.7x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is Magic Software Enterprises Ltd?

Magic Software Enterprises Ltd (MGIC) scores 58 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.