MAGIC SOFTWARE ENTERPRISES LTD
RMTHFdata completeness 100%16 fiscal years on fileMAGIC SOFTWARE ENTERPRISES LTD earns about 19% on invested capital, far above its ~9% cost of capital, with a roughly flat share count — a real edge showing up in the numbers. The estimate methods put fair value between $7.78 and $56.44 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.
| Figure | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 |
|---|---|---|---|---|---|
| Revenue | — | $480.3M1 | $566.8M2 | $535.1M2 | $552.5M2 |
| Net income | $25.2M3 | $29.3M3 | $40.5M4 | $37M4 | $36.9M4 |
| Operating cash flow | $52.3M5 | $37.8M5 | $56.6M6 | $69M6 | $74.8M6 |
| Capital expenditure | $2.77M7 | $1.44M7 | $4.38M8 | $1.62M8 | $1.54M8 |
| Free cash flow (derived) | $49.5M5 | $36.4M5 | $52.2M6 | $67.4M6 | $73.3M6 |
| Total debt | $58.8M9 | $69.7M9 | — | $81.2M10 | $59.3M10 |
| Cash & equivalents | $88.1M11 | $88.1M11 | $83.1M12 | $105.9M12 | $112.8M12 |
| Diluted shares | 49.0M | 49.1M | 49.1M | 49.1M | 49.1M |
Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).
10 shares is a claim on $56.45 of net worth that earned you $7.51 and generated $14.93 of cash last year, against $12.08 of debt.
It earned about 19% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.
seeing a moat in the numbers →Share count is roughly flat over 5 years — little dilution, little buyback. Total debt has held roughly steady.
reading capital allocation →Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.
The 3 estimate methods that apply put fair value between $7.78 and $56.44 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.
assumptions (10)
- riskFreeRate4.7%
- equityRiskPremium5.0%
- beta100.0%
- equityWeight85.0%
- costOfDebtSpread1.5%
- taxRate21.0%
- terminalGrowth2.5%
- projectionYears10
- fcfGrowth14.8%
- fcfBase$67.4M
assumptions (10)
- riskFreeRate4.7%
- equityRiskPremium5.0%
- beta100.0%
- equityWeight85.0%
- costOfDebtSpread1.5%
- taxRate21.0%
- terminalGrowth2.5%
- projectionYears5
- fcfGrowth14.8%
- fcfBase$67.4M
assumptions (8)
- riskFreeRate4.7%
- equityRiskPremium5.0%
- beta100.0%
- equityWeight85.0%
- costOfDebtSpread1.5%
- taxRate21.0%
- normalizedEarnings$36.9M
- growthAssumed0.0%
assumptions (1)
- grahamMultiplier2250.0%
Different models answer different questions — which to trust when →
| Bear | 0.0% | $20.69 |
| Base | 14.8% | $37.53 |
| Bull | 19.8% | $45.43 |
Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.
Default growth 14.8%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.
- 20-F · period ending 2021-12-31 · accession 0001213900-24-042337 (Revenue)
- 20-F · period ending 2022-12-31 · accession 0001213900-25-043459 (Revenue)
- 20-F · period ending 2020-12-31 · accession 0001213900-22-025866 (NetIncomeLoss)
- 20-F · period ending 2022-12-31 · accession 0001213900-25-043459 (ProfitLossAttributableToOwnersOfParent)
- 20-F · period ending 2020-12-31 · accession 0001213900-22-025866 (NetCashProvidedByUsedInOperatingActivities)
- 20-F · period ending 2022-12-31 · accession 0001213900-25-043459 (CashFlowsFromUsedInOperatingActivities)
- 20-F · period ending 2020-12-31 · accession 0001213900-22-025866 (PaymentsToAcquirePropertyPlantAndEquipment)
- 20-F · period ending 2022-12-31 · accession 0001213900-25-043459 (PurchaseOfPropertyPlantAndEquipmentClassifiedAsInvestingActivities)
- 20-F · period ending 2020-12-31 · accession 0001213900-22-025866 (LongTermDebtNoncurrent)
- 20-F · period ending 2023-12-31 · accession 0001213900-25-043459 (Borrowings)
- 20-F · period ending 2020-12-31 · accession 0001213900-22-025866 (CashAndCashEquivalentsAtCarryingValue)
- 20-F · period ending 2022-12-31 · accession 0001213900-25-043459 (CashAndCashEquivalents)