Magic Software Enterprises Overview
Magic Software Enterprises provides enterprise-grade application development, business process integration software, smart manufacturing solutions, and a broad range of software for IT services. The company's software solutions are used by thousands of businesses of all sizes to develop, deploy, and integrate on-premises, mobile, and cloud-based applications quickly and cost effectively. Its Industry 4.0 solution combines shop-floor-to-top-floor software technologies with integration, customization, and manufacturing expertise to improve business results. Its IT services include planning, management, and consulting for large-scale infrastructures; application development; and technology implementation projects for telecommunications companies, municipalities, cyber-security organizations, and more. The company's products are scalable and platform agnostic, enabling its customers to build solutions using high-level language rather than computer code and to benefit from platform upgrades and cross-platform functionality without rewriting their applications. Its technology also supports the development of mobile and cloud-based applications.
Cumulative Funding Raised Over Time ($)
$35.0MMay 2018
$66.5MNov 2016
Latest News
Magic will become wholly owned by Matrix in a triangular reverse merger. The combined company is expected to have a market cap of NIS 7.7 billion.
Israel’s Matrix to snap up Magic Software in $2.1 billion IT services merger deal
Israeli IT giants to unite under Formula Systems, pending shareholder approval.
growth-positive
Is Now An Opportune Moment To Examine Magic Software Enterprises Ltd. (NASDAQ:MGIC)?
Magic Software Enterprises Ltd. has seen significant share price movement in recent months, with highs of $14.06 and lows of $11.38. The companys current trading price of $11.81 is considered undervalued, providing an opportunity for investors. The companys price-to-earnings ratio is well below the industry average, indicating it is trading at a cheaper price relative to its peers. The companys share price is volatile, which could provide more opportunities to buy. The companys profit is expected to grow by 11% in the upcoming year, indicating a positive short-term outlook.
Investment
growth-negative
There's A Lot To Like About Magic Software Enterprises' (NASDAQ:MGIC) Upcoming US$0.33 Dividend
Magic Software Enterprises Ltd. is about to trade ex-dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. The companys upcoming dividend is US$0.33 a share. Magic Software Enterprises paid out 72% of its earnings to investors last year. It distributed 39% of its free cash flow as dividends. The dividend is covered by both profit and cash flow. Magic Software Enterprises has grown its earnings rapidly, up 20% a year for the past five years. The company has lifted its dividend by approximately 13% a year on average. Overall, the companys dividend payments are considered attractive and sustainable.
Public Trading
| Sector | Business Software |
Funding
| Total funding | Undisclosed |
| Last funding | $35M |
| Stage | Public |
| Rounds | 4 |
| Investors | 1 |
Team Members
9
Employees: 201-500
Web & Social Links
| Website | www.magicsoftware.com |
| Careers | Careers page |
Locations
HaPlada St 5, Or Yehuda, Israel
East Irvine, Irvine, CA, USA
Bracknell, UK
92100 Boulogne-Billancourt, France
Veenendaal, Netherlands
85737 Ismaning, Germany
Budapest, Hungary
Pune, Maharashtra, India
Tokyo, Japan
Photos & Videos
2 item(s)
Magic Software Enterprises Business
Business models
B2B, B2G
Product stage
Released
Employees
201-500
Sector
Business SoftwareIT, R&D & Data SolutionsProduct Development ToolsSoftware Development ToolsIndustrial TechnologiesOperational Optimization SolutionsTarget Customer
Healthcare & Life SciencesEnterprise & Professional ServicesService ProvidersSMBs & SMEsEnterprisesIndustrial ManufacturingManufacturing FacilitiesCommerce & RetailCore Technology
Platforms & InterfacesWebSoftwareTags (15)
software-applicationscloud-baseditmobile-applicationsenterprise-solutionsbpmdefensefinancial-institutionshealthcare-providersbanksmanufacturing-facilitiesreal-timemanufacturingretailersindustry-4.0Geographic Markets
JapanGlobalNetherlandsUnited StatesMagic Software Enterprises Financials
Undisclosed
Total funding
Undisclosed
Capital raised
$35M
Last funding
Public
Funding stage
4
Total rounds
1
Investors
Cumulative Funding Raised Over Time ($)
$35.0MMay 2018
$66.5MNov 2016
Private Equity Funding
Debt Financing
May 2018
$35M
Debt Financing
Nov 2016
$31.5M
Israeli Financial Institution
Public Offering / Exit
MNAEvent
Mar 2025
Undisclosed
POEvent
Feb 2000
Undisclosed
MNAEvent
Jan 1998
Undisclosed
POEvent
Jan 1991
Undisclosed
Mergers & Acquisitions
MNAEvent
Aug 2022
$25M
MNAEvent
Jun 2020
Undisclosed
MNAEvent
Jun 2020
Undisclosed
MNAEvent
May 2019
$20M
MNAEvent
Jun 2016
$21M
MNAEvent
Jul 2003
$750K
Magic Software Enterprises Lifecycle
Cumulative Funding Raised Over Time
$35.0MMay 2018
$66.5MNov 2016
All Events
Debt Financing
May 2018
$35M
Debt Financing
Nov 2016
$31.5M
Israeli Financial Institution
MNAEvent
Mar 2025
Undisclosed
POEvent
Feb 2000
Undisclosed
MNAEvent
Jan 1998
Undisclosed
POEvent
Jan 1991
Undisclosed
MNAEvent
Aug 2022
$25M
MNAEvent
Jun 2020
Undisclosed
MNAEvent
Jun 2020
Undisclosed
MNAEvent
May 2019
$20M
MNAEvent
Jun 2016
$21M
MNAEvent
Jul 2003
$750K
Magic Software Enterprises News
44 articlesMagic will become wholly owned by Matrix in a triangular reverse merger. The combined company is expected to have a market cap of NIS 7.7 billion.
Israel’s Matrix to snap up Magic Software in $2.1 billion IT services merger deal
Israeli IT giants to unite under Formula Systems, pending shareholder approval.
growth-positive
Is Now An Opportune Moment To Examine Magic Software Enterprises Ltd. (NASDAQ:MGIC)?
Magic Software Enterprises Ltd. has seen significant share price movement in recent months, with highs of $14.06 and lows of $11.38. The companys current trading price of $11.81 is considered undervalued, providing an opportunity for investors. The companys price-to-earnings ratio is well below the industry average, indicating it is trading at a cheaper price relative to its peers. The companys share price is volatile, which could provide more opportunities to buy. The companys profit is expected to grow by 11% in the upcoming year, indicating a positive short-term outlook.
Investment
growth-negative
There's A Lot To Like About Magic Software Enterprises' (NASDAQ:MGIC) Upcoming US$0.33 Dividend
Magic Software Enterprises Ltd. is about to trade ex-dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. The companys upcoming dividend is US$0.33 a share. Magic Software Enterprises paid out 72% of its earnings to investors last year. It distributed 39% of its free cash flow as dividends. The dividend is covered by both profit and cash flow. Magic Software Enterprises has grown its earnings rapidly, up 20% a year for the past five years. The company has lifted its dividend by approximately 13% a year on average. Overall, the companys dividend payments are considered attractive and sustainable.
Public Trading
growth-positive
Magic Software Enterprises (NASDAQ:MGIC) Is Paying Out A Larger Dividend Than Last Year
The board of Magic Software Enterprises Ltd. has announced a 13% increase in its dividend payment. The dividend yield is now 4.9%. The companys earnings and cash flows support the sustainability of the dividend. Earnings per share is forecasted to rise by 8.4% over the next year. Magic Software Enterprises has a history of dividend growth, but also a history of dividend cuts. However, the company has been growing its earnings per share at a rate of 17% per year over the past five years. Overall, Magic Software Enterprises is considered a strong dividend stock with a good opportunity for investors.
Investment
growth-positive
Magic Software Reports Second Quarter 2023 Financial Results
Magic Software Enterprises Ltd. reported its financial results for Q2 2023, showing a 0.4% increase in revenues to a record-breaking $137.6 million. Operating income also increased by 3.2% to $15.4 million. However, the company is lowering its 2023 annual revenue guidance range from $585 - $593 million to $570 - $580 million due to exchange rate headwinds and a slowdown in IT spending. The companys board of directors declared a semi-annual cash dividend of 32.7 cents per share, amounting to approximately $16.1 million.
Customers
growth-positive
Could The Market Be Wrong About Magic Software Enterprises Ltd. (NASDAQ:MGIC) Given Its Attractive Financial Prospects?
The article discusses Magic Software Enterprises return on equity (ROE) and its implications for earnings growth. The companys strong financials suggest potential long-term value increase. Magic Software Enterprises has a ROE of 17%, higher than the industry average of 11%. The company has also achieved a net income growth rate of 19% over the past five years, similar to the industry average. The article examines whether the expected earnings growth is already reflected in the stock price. Magic Software Enterprises has a high payout ratio but has still managed to grow its earnings. However, industry analyst forecasts indicate a slowdown in earnings growth. The article concludes by encouraging readers to consider the companys fundamentals and analyst forecasts. The date of the event described in the article is not provided.
Customers
Growth-Positive
Magic Software Enterprises Ltd. (NASDAQ:MGIC) most popular amongst public companies who own 46% of the shares, institutions hold 28%
Magic Software Enterprises Ltd. is significantly owned by public companies, with a 46% stake, and institutional investors, who own 28% of the company. The largest shareholder is Formula Systems (1985) Ltd., which owns 46% of the shares. The second and third largest shareholders hold about 7.0% and 5.3% of the stock respectively. Insider ownership is less than 1% of the company. The general public holds a 26% stake in the company.
Investment
growth-positive
There's Been No Shortage Of Growth Recently For Magic Software Enterprises' (NASDAQ:MGIC) Returns On Capital
Magic Software Enterprises is showing promising signs of growth, with a trend of increasing return on capital employed (ROCE) and an expanding base of capital employed. Over the last five years, the companys ROCE has risen to 17%, indicating that it is effectively making more money per dollar of capital used. The amount of capital has also increased by 24%, suggesting plenty of opportunities for internal investment. The companys stock has rewarded shareholders with a 77% return over the last five years. However, there has been a noticeable increase in the companys current liabilities, which is worth monitoring.
CustomersInvestment
growth-negative
Why These 7 Stocks Are the Best Ways to Play Tech Right Now
The article discusses the overvaluation of tech stocks, particularly Nvidia, which has seen a 207% increase in shares this year. It suggests that investors may want to consider high-return tech stocks that have not seen the same level of success. The article then lists seven tech stocks that may be worth considering: TD Synnex, LSI Industries, DHI Group, Tower Semiconductor, Magic Software, Concentrix, and KVH Industries. These companies have seen varying degrees of success, with some seeing a decrease in share value. However, the article suggests that these companies may be worth investing in due to their relevance and potential for growth.
Investment
growth-negative
Cathie Wood is Selling These 12 Stocks in 2023
Cathie Woods ARK Investment Management has sold or reduced positions in 12 stocks in 2023, resulting in losses for the firm. The stock market collapse in 2022 and the Federal Reserves rate-hike policies negatively impacted growth investors like Wood. The net portfolio worth of ARK Innovation ETF fell from $13 billion in March 2022 to $7.4 billion in March 2023. Despite the losses, ARK remains optimistic about the future and believes that innovative companies will perform well during tumultuous times. However, ARK has seen investor outflows in 2023, leading to discounts on fees for some funds. The article lists the 12 stocks that Wood sold or reduced positions in, including Organovo Holdings, Magic Software Enterprises, and Niu Technologies.
Investment
growth-neutral
Estimating The Fair Value Of Magic Software Enterprises Ltd. (NASDAQ:MGIC)
The article discusses the estimation of the intrinsic value of Magic Software Enterprises Ltd. using the Discounted Cash Flow (DCF) model. The analysis estimates the companys future cash flows and discounts them to their present value. The article concludes that, based on the DCF model, Magic Software Enterprises appears to be trading close to its estimated fair value. However, it emphasizes that the DCF model is not a perfect valuation tool and should be used in conjunction with other analysis. The article also provides a SWOT analysis of the company and suggests further examination of risks and future earnings.
Investment
growth-positive
Magic Software Reports First Quarter 2023 Financial Results
Magic Software Enterprises Ltd. has reported its financial results for Q1 2023, revealing a 3% increase in revenues to a record-breaking $142.4 million, compared to $138.7 million in the same period of the previous year. Operating income for the first quarter of 2023 decreased by 4.8% to $15.3 million, compared to $16.1 million in the same period of the previous year. Net income attributable to Magic Software’s shareholders for the first quarter of 2023 increased by 4.0% to $10.1 million. The company is reiterating its 2023 annual revenue guidance of between $585 million and $593 million.
Customers
growth-negative
7 Stocks to Buy for Their Massive Upside Potential
The article discusses seven stocks with significant upside potential that investors may consider buying. The stocks mentioned are Fathom Holdings (FTHM), Magic Software (MGIC), Rush Street Interactive (RSI), The Lovesac Company (LOVE), OmniAb (OABI), VAALCO Energy (EGY), and Prenetics Global (PRE). The article highlights the growth potential and financial performance of each company. However, it also mentions the risks associated with investing in these stocks. The impact of the article on Berkshire Hathaway is growth-negative, as the stocks mentioned are not part of the companys holdings. The article was published on an unspecified date.
Investment
7 Stocks to Buy to Bag Big-Time Returns in Q2
3 Stocks That Are Long Overdue to Take Off
Growth-Negative
At US$12.91, Is It Time To Put Magic Software Enterprises Ltd. (NASDAQ:MGIC) On Your Watch List?
Magic Software Enterprises Ltd. has seen significant share price movement in recent months, rising to highs of US$17.49 and falling to lows of US$12.91. However, based on a discounted cash flow valuation, the company appears to be overvalued by 31% at the moment. The stock is currently priced at US$12.91 on the market compared to an intrinsic value of $9.83. Despite this, the companys earnings over the next few years are expected to increase by 31%, indicating a highly optimistic future.
None
growth-positive
Magic Software Enterprises Ltd. (NASDAQ:MGIC) Q4 2022 Earnings Call Transcript
Magic Software Enterprises Ltd. reported its Q4 2022 and full year financial results, with record-breaking revenues exceeding $500 million for the first time and double-digit growth across all key financial indices. The companys Q4 revenues increased by 10.6% year-over-year to approximately $147.1 million, exceeding market expectations. The growth was mainly driven by the companys North American operations. The company also reported a strong pipeline and continued strategic focus on top-line growth. The company expects to see continued growth in 2023.
CustomersInvestmentManagement ChangesExpand
Magic Software Reports Fourth Quarter and Full Year 2022 Financial Results with Record-Breaking Full Year 2022 Results Recorded Across All Key Financial Indices (Revenues, Gross Profit, Operating Income and Net Income)
Declining Stock and Decent Financials: Is The Market Wrong About Magic Software Enterprises Ltd. (NASDAQ:MGIC)?
Magic Software Enterprises Ltd.'s (NASDAQ:MGIC) top owners are public companies with 46% stake, while 27% is held by institutions
There's Been No Shortage Of Growth Recently For Magic Software Enterprises' (NASDAQ:MGIC) Returns On Capital
Are Investors Undervaluing Magic Software Enterprises (MGIC) Right Now?
Those who invested in Magic Software Enterprises (NASDAQ:MGIC) five years ago are up 113%
Is DecisionPoint Systems (DPSI) Stock Undervalued Right Now?
Magic Software Enterprises Third Quarter 2022 Earnings: Revenues Beat Expectations, EPS In Line
Magic Software Reports Third Quarter 2022 Financial Results with Record Breaking Revenues of $144 Million, Reflecting a 19% Year-Over-Year Growth. Net income reached a record-breaking $11.5 Million, Reflecting 53% Year-Over-Year Growth
Magic Software (MGIC) Q3 Earnings and Revenues Top Estimates
Is There Now An Opportunity In Magic Software Enterprises Ltd. (NASDAQ:MGIC)?
Magic Software Enterprises Ltd. (NASDAQ:MGIC) Stock's Been Sliding But Fundamentals Look Decent: Will The Market Correct The Share Price In The Future?
growth-positive
Magic acquires adtech platform Appush for $25 million | CTech
Israeli software pioneer Magic Software Enterprises is acquiring local startup Appush for $25 million. Appush has developed a platform connecting advertisers with mobile gaming publishers and has annual revenue of around NIS 50 million. The acquisition is expected to have a positive impact on Appushs growth. Appush founders Rotem Gindi and Maor Sason will remain with Magic following the acquisition.
Acquisition
https://www.bakersfield.com/ap/news/magic-software-reports-third-quarter-2021-financial-results-with-record-breaking-revenues-of/article_73237364-3274-53a5-927d-b9aa7f5b0b23.html
growth-positive
Magic Software Reports Second Quarter 2021 Financial Results with Record-Breaking Revenues for The Second Quarter of $119.2 million - a 37.7% Year Over Year Increase
Magic Software Enterprises Ltd. has announced its financial results for Q2 and H1 2021. The companys operating income for Q2 increased by 29% YoY to $12.7 million, while non-GAAP operating income increased by 30% to $15.9 million. Revenues for Q2 increased by 37.7% to $119.2 million compared to $86.5 million in the same period last year. For H1 2021, revenues increased by 31.9% to $226.5 million compared to $171.7 million in the same period last year. The company has also increased its 2021 revenue guidance for the second time to a range of $450 to $460 million.
Customers
growth-positive
Magic Software launches solution to help small and mid-sized factories join Industry 4.0 revolution
Magic Software Enterprises has launched FactoryEye, a new business offering aimed at helping small and mid-sized factories increase productivity and efficiency. FactoryEye is a novel Industry 4.0 solution that collects real-time data from existing machinery and operational systems, transforming it into actionable intelligence. The solution does not require replacing existing equipment or infrastructure and connects all current systems under one platform. Magic Software Enterprises has already carried out successful implementations in Europe and Israel, demonstrating the accuracy and effectiveness of the solution. FactoryEye enters the American market during a time of increased focus on domestic manufacturing due to the Covid-19 crisis. Magic Software Enterprises has received its first project from a U.S.-based company in the industrial sector.
Customers
growth-positive
הקסם של מג'יק: החברה צופה הכנסות של כ-425 מיליון דולר ב-2021
Software company מגיק, which develops solutions for business applications, reported a 14% growth in revenue to $371 million in 2020. The annual operating profit also increased by 21% to $41 million. Despite the negative trend in the market, מגיקs stock price jumped by 6.7% in trading. The companys dual-listing contributed to the surge after the release of its financial reports, which showed a net profit of $37 million, a 32% increase from 2019. The company also attributed a net accounting profit of $25 million to its shareholders, compared to $20 million in 2020.
Investment
growth-positive
Cloud Stocks: Magic Software Acquires To Expand In Europe
Israel-based Magic Software Enterprises is expected to benefit from the high growth forecast in the global low code application development platform market. Magic Software offers smart technology solutions for streamlined development and deployment of core business applications. The company has strategic alliances with global IT leaders and an active partner program. In the latest quarter, Magic Softwares revenues exceeded market estimates. The company also made acquisitions of Netherlands-based companies to expand its presence in Europe. Magic Softwares stock is trading at $12.80 with a market capitalization of $603.6 million.
PartnersAcquisition
growth-positive
Magic Software buys US co PowWow
Magic Software Enterprises Ltd. has acquired US company PowWow Inc. for an estimated price of $15-20 million. PowWow has developed a low-code development platform called SmartUX, which enables organizations to simplify and transfer existing business processes over cross-platform web and mobile apps. The market for low-code development platforms is expected to grow to $21.2 billion by 2022. Magic Software CEO Guy Bernstein sees this acquisition as an important step in Magics strategy and market positioning. Magic Software Enterprises is traded on Nasdaq and the Tel Aviv Stock Exchange with a market cap of $448 million.
Acquisition
growth-positive
Magic Software raises $35m in private placement
Magic Software Enterprises Ltd. is raising $35 million in a financing round to develop new products and make acquisitions. The company is issuing 3.2 million new shares to investment institutions and 1.1 million more shares to its controlling shareholder, Formula Systems Ltd. The investment institutions participating in the offering include Menorah Mivtachim Holdings Ltd., Yelin Lapidot, The Phoenix Holdings Ltd., Clal Insurance Enterprises Holdings Ltd., and Psagot Investment House Ltd. The share price for the offering is $8.20, a 5.2% discount on the previous days price. Magic Softwares market cap is $385 million. The financing round aims to invest in advanced products and consider acquisitions of Israeli companies in technology and services.
Investment
MGIC.O - Magic Software Enterprises Ltd Profile Reuters
growth-positive
Magic reports higher profit
Magic Software Enterprises Ltd. has reported a strong start to 2017, with record revenue and over 10% growth in revenue and profit. The companys revenue was up 36% to $60.8 million, and operating profit rose from $5.3 million in Q1 2015 to $6.3 million in Q1 2017, a 20% increase. Non-GAAP operating profit jumped from $6.7 million in Q1 2016 to $8.4 million in Q1 2017, a 26% rise. Magic is projecting $225-230 million in revenue for 2017, 12-14% more than in 2016.
InvestmentAcquisition
growth-positive
Magic raises $31.5 million in debt
Magic Software Enterprises Ltd. has obtained a NIS 120 million loan from an Israeli financial institution. The loan will be used to support the growth of the companys existing business and for potential acquisitions. The loan is payable in 7 equal annual payments and has a fixed interest rate of 2.60% per year. Magic Software has already spent approximately $21 million this year on the acquisition of Roshtov Software Industries Ltd. This financing will give the company flexibility to further grow their digital transformation business and add value to shareholders.
InvestmentAcquisition
growth-positive
Magic buys 60% of medical records software co Roshtov
Magic Software Enterprises Ltd. is acquiring 60% of Roshtov Software Industries Ltd. for $21 million cash, valuing Roshtov at $35 million. Roshtov developed the Clicks platform, used in the design and management of patient-file oriented software solutions for managed care and large-scale healthcare providers. The acquisition deal will be closed during the third quarter, subject to regulatory approvals, and Magic Software Enterprises has an option to buy 100% of Roshtov. Magic Software Enterprises sees this acquisition as a strategic and significant deal for the company. Roshtovs last published financial statements from before it was delisted in 2011 showed revenue of NIS 25.7 million and a profit of NIS 9.9 million in the first three quarters of that year.
Acquisition
growth-positive
Magic Software acquires Enformia
Magic Software Enterprises has acquired Enformia EIP Technology by converting a previous $750,000 investment into ownership of the companys intellectual property. As a result of the deal, seven out of Enformias 14 employees left the company. Magic Software is a subsidiary of Formula Systems. The acquisition is part of a partnership agreement signed in October 2002, where Magic Software invested $1.5 million in Enformia for further development and support of its EIP software. Enformia had previously raised $7 million from Formula and other private investors. The company operated in France, the UK, and the US, utilizing Magic Softwares sales network.
PartnersInvestmentLayoffs
Magic Software Enterprises Team
Employee Info
| Employees (range) | 201-500 |
| Exact count | 492 |
| Team members | 9 |
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Magic Software Enterprises Internal
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Admin Info
| Confidence | 100/100 |
| Missing | markets |
| BI Verification | Yanina Wainscheinker |
| Registrar ID | 520036740 |
| Crunchbase | magic-software-enterprises |
| Phone | +97235389389 |
| Creator | Raz Zohar |
| Creator email | raz@platterz.ca |
| Last updater | Dana Arnon |
| Updater email | dana.arnon@mail.huji.ac.il |
| Last update | 2023-12-17T00:00:00.000Z |
| Created | 2014-09-22T00:00:00.000Z |
| Claimed | Yes |
| Status detail | Acquired by Formula Group on Jan, 1998 |