Magnite, Inc.
Magnite, Inc. Fundamental Analysis
Magnite, Inc. (MGNI) shows weak financial fundamentals with a PE ratio of 30.00, profit margin of 8.25%, and ROE of 7.51%. The company generates $0.7B in annual revenue with moderate year-over-year growth of 7.82%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 40.5/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MGNI's fundamental strength across five key dimensions:
Efficiency Score
WeakMGNI struggles to generate sufficient returns from assets.
Valuation Score
ModerateMGNI shows balanced valuation metrics.
Growth Score
ModerateMGNI shows steady but slowing expansion.
Financial Health Score
ExcellentMGNI maintains a strong and stable balance sheet.
Profitability Score
WeakMGNI struggles to sustain strong margins.
Key Financial Metrics
Is MGNI Expensive or Cheap?
P/E Ratio
MGNI trades at 30.00 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, MGNI's PEG of 0.93 indicates potential undervaluation.
Price to Book
The market values Magnite, Inc. at 2.15 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 10.64 times EBITDA. This signals the market has high growth expectations.
How Well Does MGNI Make Money?
Net Profit Margin
For every $100 in sales, Magnite, Inc. keeps $8.25 as profit after all expenses.
Operating Margin
Core operations generate 12.22 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.51 in profit for every $100 of shareholder equity.
ROA
Magnite, Inc. generates $1.98 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Magnite, Inc. generates strong operating cash flow of $223.40M, reflecting robust business health.
Free Cash Flow
Magnite, Inc. generates strong free cash flow of $165.25M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.15 in free cash annually.
FCF Yield
MGNI converts 9.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.00
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.93
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.15
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.49
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.77
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.007
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How MGNI Stacks Against Its Sector Peers
| Metric | MGNI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.00 | 21.66 | Worse (Expensive) |
| ROE | 7.51% | 1190.00% | Weak |
| Net Margin | 8.25% | -55754.00% (disorted) | Weak |
| Debt/Equity | 0.77 | 1.32 | Strong (Low Leverage) |
| Current Ratio | 1.01 | 1.59 | Neutral |
| ROA | 1.98% | -202359.00% (disorted) | Weak |
MGNI outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Magnite, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
59.90%
Industry Style: Growth, Technology, Streaming
High GrowthEPS CAGR
133.48%
Industry Style: Growth, Technology, Streaming
High GrowthFCF CAGR
175.28%
Industry Style: Growth, Technology, Streaming
High Growth