Magic Software Operating Margin vs. Total Debt
| MGIC Stock | ILA 4,474 103.00 2.25% |
For Magic Software profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Magic Software to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Magic Software Enterprises utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Magic Software's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Magic Software Enterprises over time as well as its relative position and ranking within its peers.
Magic |
Magic Software Enter Total Debt vs. Operating Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Magic Software's current stock value. Our valuation model uses many indicators to compare Magic Software value to that of its competitors to determine the firm's financial worth. Magic Software Enterprises is rated below average in operating margin category among its peers. It is regarded second in total debt category among its peers making up about 195,666,372 of Total Debt per Operating Margin. Comparative valuation analysis is a catch-all model that can be used if you cannot value Magic Software by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Magic Software's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Magic Total Debt vs. Operating Margin
Operating Margin shows how much operating income a company makes on each dollar of sales. It is one of the profitability indicators which helps analysts to understand whether the firm is successful or not making money from everyday operations.
Magic Software |
| = | 0.11 % |
A good Operating Margin is required for a company to be able to pay for its fixed costs or payout its debt, which implies that the higher the margin, the better. This ratio is most effective in evaluating the earning potential of a company over time when comparing it against a firm's competitors.
Total Debt refers to the amount of long term interest-bearing liabilities that a company carries on its balance sheet. That may include bonds sold to the public, notes written to banks or capital leases. Typically, debt can help a company magnify its earnings, but the burden of interest and principal payments will eventually prevent the firm from borrow excessively.
Magic Software |
| = | 22.17 M |
In most industries, total debt may also include the current portion of long-term debt. Since debt terms vary widely from one company to another, simply comparing outstanding debt obligations between different companies may not be adequate. It is usually meant to compare total debt amounts between companies that operate within the same sector.
Magic Total Debt vs Competition
Magic Software Enterprises is regarded second in total debt category among its peers. Total debt of Information Technology Services industry is now estimated at about 1.37 Billion. Magic Software claims roughly 22.17 Million in total debt contributing just under 2% to equities under Information Technology Services industry.
Magic Software Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Magic Software, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Magic Software will eventually generate negative long term returns. The profitability progress is the general direction of Magic Software's change in net profit over the period of time. It can combine multiple indicators of Magic Software, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Magic Software Enterprises Ltd. provides proprietary application development, business process integration, vertical software solutions, and information technologies outsourcing software services in Israel and internationally. Magic Software Enterprises Ltd. was incorporated in 1983 and is headquartered in Or Yehuda, Israel. MAGIC SOFTWARE operates under Information Technology Services classification in Israel and is traded on Tel Aviv Stock Exchange. It employs 3677 people.
Magic Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Magic Software. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Magic Software position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Magic Software's important profitability drivers and their relationship over time.
Use Magic Software in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Magic Software position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Magic Software will appreciate offsetting losses from the drop in the long position's value.Magic Software Pair Trading
Magic Software Enterprises Pair Trading Analysis
The ability to find closely correlated positions to Magic Software could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Magic Software when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Magic Software - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Magic Software Enterprises to buy it.
The correlation of Magic Software is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Magic Software moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Magic Software Enter moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Magic Software can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Magic Software position
In addition to having Magic Software in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Defense Thematic Idea Now
Defense
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Defense theme has 16 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Defense Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Magic Stock
When determining whether Magic Software Enter offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Magic Software's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Magic Software Enterprises Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Magic Software Enterprises Stock:Check out Correlation Analysis. You can also try the Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
To fully project Magic Software's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Magic Software Enter at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Magic Software's income statement, its balance sheet, and the statement of cash flows.