Fact based stock research
Magnite (NasdaqGS:MGNI)
US55955D1000
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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
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Magnite stock research in summary
ANALYSIS: With an Obermatt Combined Rank of 49 (worse than 51% compared with investment alternatives), Magnite (Advertising, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Magnite are low in value (priced high) with a consolidated Value Rank of 29 (worse than 71% of alternatives). But they show above-average growth (Growth Rank of 71) and are safely financed (Safety Rank of 65, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 49, is a hold recommendation based on Magnite's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Magnite exhibits low value (Obermatt Value Rank of 29), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 71). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 65) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
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Review the performance ranks of the individual metrics that form each investment strategy.
Research History: Magnite
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 39 |
|
63 |
|
44 |
|
29 |
|
| GROWTH | ||||||||
| GROWTH | 100 |
|
59 |
|
59 |
|
71 |
|
| SAFETY | ||||||||
| SAFETY | 1 |
|
72 |
|
52 |
|
65 |
|
| SENTIMENT | ||||||||
| SENTIMENT | n/a |
|
29 |
|
58 |
|
new |
|
| 360° VIEW | ||||||||
| 360° VIEW | n/a |
|
67 |
|
54 |
|
new |
|
Combined financial peformance in Detail
ANALYSIS: With an Obermatt Combined Rank of 49 (worse than 51% compared with investment alternatives), Magnite (Advertising, USA) shares have somewhat below-average financial characteristics compared with similar stocks. Shares of Magnite are low in value (priced high) with a consolidated Value Rank of 29 (worse than 71% of alternatives). But they show above-average growth (Growth Rank of 71) and are safely financed (Safety Rank of 65, which means below-average debt burdens). ...read more
RECOMMENDATION: A Combined Rank of 49, is a hold recommendation based on Magnite's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Magnite exhibits low value (Obermatt Value Rank of 29), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 71). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 65) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more
| RESEARCH HISTORY | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 39 |
|
63 |
|
44 |
|
29 |
|
| GROWTH | ||||||||
| GROWTH | 100 |
|
59 |
|
59 |
|
71 |
|
| SAFETY | ||||||||
| SAFETY | 1 |
|
72 |
|
52 |
|
65 |
|
| COMBINED | ||||||||
| COMBINED | 42 |
|
84 |
|
59 |
|
49 |
|
Value Metrics in Detail
ANALYSIS: With an Obermatt Value Rank of 29 (worse than 71% compared with alternatives), Magnite shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with half of the indicators below and half above average for Magnite. Price-to-Profit (also referred to as price-earnings, P/E) is 63 which means that the stock price compared with what market professionals expect for future profits is lower than for 63% of comparable companies, indicating a good value concerning Magnite's profit levels. The same is valid for Price-to-Book Capital (also referred to as market-to-book ratio) with a Price-to-Book Rank of 51, which means that the stock price is lower as regards to invested capital than for 51% of comparable investments. On the other hand, Price-to-Sales is less favorable than for 54% of alternatives (only 46% of peers have an even less favorable ratio). The same is valid for dividend yield, which is lower than for 99% of comparable companies, making the stock more expensive compared with the company's expected dividend payouts. ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 29, is a hold recommendation based on Magnite's stock price compared with the company's operational size and dividend yields. This is a puzzling picture, because it means that profits are high while dividends are low. Since the stock price is low compared with invested capital but high concerning expected revenues, the company has more invested capital than peers for generating the same amount of revenue. Since profits are higher, it could be a "cash cow" situation (using the classic Boston Consulting Group or BCG matrix naming convention) where the company is on a downward trend, still living from the profits of past products. As the company pays low dividends, it may harbor the opinion that a turnaround is possible, and it rather invests the cash than distribute it to shareholders through dividends, thus sealing the company's fate early. Any investment optimism should only be a buy trigger once thorough research is completed. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is especially important in this case, as the financial indicators are inconclusive. ...read more
| VALUE METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| PRICE VS. REVENUES (P/S) | ||||||||
| PRICE VS. REVENUES (P/S) | 48 |
|
51 |
|
48 |
|
46 |
|
| PRICE VS. PROFITS (P/E) | ||||||||
| PRICE VS. PROFITS (P/E) | 38 |
|
63 |
|
64 |
|
63 |
|
| PRICE VS. CAPITAL (Market-to-Book) | ||||||||
| PRICE VS. CAPITAL (Market-to-Book) | 57 |
|
86 |
|
76 |
|
51 |
|
| DIVIDEND YIELD | ||||||||
| DIVIDEND YIELD | 1 |
|
1 |
|
1 |
|
1 |
|
| CONSOLIDATED RANK: VALUE | ||||||||
| CONSOLIDATED RANK: VALUE | 39 |
|
63 |
|
44 |
|
29 |
|
Growth Metrics in Detail
ANALYSIS: With an Obermatt Growth Rank of 71 (better than 71% compared with alternatives), Magnite shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Magnite. Sales Growth has a rank of 59 which means that currently, professionals expect the company to grow more than 59% of its competitors. Both Profit Growth, with a rank of 65, and Stock Returns, with a rank of 81, are also above average. But Capital Growth only has a rank of 31, which means that, currently, professionals expect the company to grow its invested capital less than 69% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 71, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more
| GROWTH METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 97 |
|
77 |
|
53 |
|
59 |
|
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 100 |
|
100 |
|
23 |
|
65 |
|
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | n/a |
|
18 |
|
95 |
|
31 |
|
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 96 |
|
17 |
|
29 |
|
81 |
|
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 100 |
|
59 |
|
59 |
|
71 |
|
Safety Metrics in Detail
ANALYSIS: With an Obermatt Safety Rank of 65 (better than 65% compared with alternatives), the company Magnite has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Magnite is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above-average for Magnite. Refinancing is at 59, meaning the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 59% of its competitors. Liquidity is also good at 65, meaning the company generates more profit to service its debt than 65% of its competitors. This indicates that the company is safer when it comes to debt service. However, Leverage is rather large at 45, which means the company has an above-average debt-to-equity ratio. It has more debt than 55% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 65 (better than 65% compared with alternatives), Magnite has a financing structure that is safer than that of its competitors. This is not bad if things go well. The higher debt level means better returns to shareholders if things go well. Many top-performing companies operate with higher debt levels, and Magnite could be in that group. But if you expect the environment to turn rougher, the higher leverage could become a problem. The same is valid if you expect interest rates to rise. That could squeeze shareholder returns, which so far have benefitted from better conditions. In the long-term, investors may have a debt challenge with Magnite and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more
| SAFETY METRICS | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 6 |
|
100 |
|
42 |
|
45 |
|
| REFINANCING | ||||||||
| REFINANCING | 29 |
|
57 |
|
61 |
|
59 |
|
| LIQUIDITY | ||||||||
| LIQUIDITY | 37 |
|
20 |
|
38 |
|
65 |
|
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 1 |
|
72 |
|
52 |
|
65 |
|
Sentiment Metrics in Detail
| SENTIMENT | 2021 | 2022 | 2023 | 2024 | ||||
|---|---|---|---|---|---|---|---|---|
| ANALYST OPINIONS | ||||||||
| ANALYST OPINIONS | n/a |
|
58 |
|
81 |
|
new |
|
| OPINIONS CHANGE | ||||||||
| OPINIONS CHANGE | n/a |
|
50 |
|
50 |
|
new |
|
| PRO HOLDINGS | ||||||||
| PRO HOLDINGS | n/a |
|
21 |
|
42 |
|
new |
|
| MARKET PULSE | ||||||||
| MARKET PULSE | n/a |
|
32 |
|
38 |
|
new |
|
| CONSOLIDATED RANK: SENTIMENT | ||||||||
| CONSOLIDATED RANK: SENTIMENT | n/a |
|
29 |
|
58 |
|
new |
|
Free stock analysis by the purely fact based Obermatt Method for Magnite from November 14, 2024.
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