Magic Software Enterprises Ltd (RMTHF) stock analysis
RMTHFOTCServices-Prepackaged SoftwareFiscal year ends December 31
Financials through fiscal 2024, year ended Dec 31, 2024Last filing: 20-F on May 15, 2025
$33.08+0.26 (+0.79%)
Close on Oct 19, 2026Market cap –P/E 44.1Yield –
Margins
Share of revenue, fiscal years 2010 to 2024
Gross margin
28.6%
Operating margin
–
Net margin
6.7%
Growth rates
Compound annual growth to fiscal 2024
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +3.3% | +4.8% | – | +12.9% | |
| Gross profit | +3.2% | +5.9% | +9.1% | +9.3% | |
| Net income | -0.4% | +7.4% | +12.7% | +9.0% | |
| EPS, diluted | 0.0% | +7.1% | +23.6% | +7.6% | |
| Free cash flow | +8.8% | +20.2% | +10.5% | +15.6% |
Returns and balance sheet
10 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2015 | FY2019 | FY2024 | Trend |
|---|---|---|---|---|
| Return on equity | 8.6% | 8.2% | 13.6% | |
| Return on assets | 7.0% | 5.3% | 6.9% | |
| Current ratio | 4.77 | 3.07 | 1.62 | |
| Debt to equity | 0.02 | 0.14 | 0.42 | |
| Net debt to EBITDA | -1.88× | -1.01× | – | |
| Capex to revenue | 0.6% | – | 0.3% | |
| Diluted shares | 44M | 49M | 49M |
Where the cash went
Fiscal 2020 to 2024, five years combined
Magic Software Enterprises generated $296.41M from operations and spent $46.03M on capital expenditure, dividends and share buybacks. 26% of that went back into the business.
Generated
$296.41M
Used
$46.03M
Capital expenditure$11.75M26%Dividends$34.28M74%Share buybacks$00%
DuPont analysis
Return on equity split into margin, efficiency and leverage
Net margin6.7%
×Asset turnover1.04×
×Equity multiplier1.96×
=Return on equity, FY202413.6%
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2024 | 6.7% | 1.04× | 1.96× | 13.6% |
| FY2023 | 6.9% | 1.04× | 1.94× | 14.0% |
| FY2022 | 7.1% | 1.14× | 1.88× | 15.3% |
| FY2021 | 6.2% | 1.03× | 1.77× | 11.3% |
| FY2018 | 7.0% | 0.81× | 1.55× | 8.8% |
| FY2017 | 6.0% | 0.78× | 1.62× | 7.6% |
| FY2016 | 7.0% | 0.73× | 1.44× | 7.3% |
| FY2015 | 9.2% | 0.76× | 1.23× | 8.6% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2024 against fiscal 2023
4of 9 tests passed in fiscal 2024. Scores of 7 to 9 are usually read as strong.
- ProfitableNet income above zero$36.88M
- Cash generatingOperating cash flow above zero$74.83M
- Return on assets improvedROA up on the prior year7.3% → 7.1%
- Earnings backed by cashOperating cash flow above net income$74.83M vs $36.88M
- Less leverageLong-term debt to assets fell10.0% → 6.7%
- Better liquidityCurrent ratio rose1.81 → 1.62
- No dilutionShare count did not rise49M → 49M
- Gross margin improvedGross margin up on the prior year28.59% → 28.56%
- More efficientAsset turnover rose1.06 → 1.06
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