Magnolia Oil & Gas Corporation Fundamental Analysis (NYSE: MGY)
Magnolia Oil & Gas Corporation Fundamental Analysis (NYSE: MGY)
Magnolia Oil & Gas Corporation (NYSE: MGY) shows strong financial fundamentals with a PE ratio of 11.43, profit margin of 28.77%, and ROE of 21.10%. The company generates $1.9B in annual revenue with weak year-over-year growth of -0.31%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 61.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MGY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentMGY demonstrates superior asset utilization.
Valuation Score
ExcellentMGY trades at attractive valuation levels.
Growth Score
WeakMGY faces weak or negative growth trends.
Financial Health Score
ModerateMGY shows balanced financial health with some risks.
Profitability Score
ExcellentMGY achieves industry-leading margins.
Key Financial Metrics
Is MGY Expensive or Cheap?
P/E Ratio
MGY trades at 11.43 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MGY's PEG of 0.56 indicates potential undervaluation.
Price to Book
The market values Magnolia Oil & Gas Corporation at 2.26 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.01 times EBITDA. This is generally considered low.
How Well Does MGY Make Money?
Net Profit Margin
For every $100 in sales, Magnolia Oil & Gas Corporation keeps $28.77 as profit after all expenses.
Operating Margin
Core operations generate 38.03 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $21.10 in profit for every $100 of shareholder equity.
ROA
Magnolia Oil & Gas Corporation generates $13.56 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Magnolia Oil & Gas Corporation generates strong operating cash flow of $1.33B, reflecting robust business health.
Free Cash Flow
Magnolia Oil & Gas Corporation generates strong free cash flow of $674.93M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.85 in free cash annually.
FCF Yield
MGY converts 8.48% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
11.43
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.56
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.26
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.21
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.18
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.96
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.21
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.20
vs 25 benchmark
How MGY Stacks Against Its Sector Peers
| Metric | MGY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 11.43 | 21.78 | Better (Cheaper) |
| ROE | 21.10% | 1231.00% | Weak |
| Net Margin | 28.77% | 1251.00% | Weak |
| Debt/Equity | 0.18 | 2.78 | Strong (Low Leverage) |
| Current Ratio | 0.96 | 5.46 | Weak Liquidity |
| ROA | 13.56% | 4417.00% | Weak |
MGY outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Magnolia Oil & Gas Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
117.13%
Industry Style: Cyclical, Value, Commodity
High GrowthEPS CAGR
124.12%
Industry Style: Cyclical, Value, Commodity
High GrowthFCF CAGR
153.84%
Industry Style: Cyclical, Value, Commodity
High Growth