Magnite (MGNI) AI Stock Analysis

• Market Cap: $2.41B
• Dividend Yield: N/A
• Average Volume (3M): 2.16M
• Price to Earnings (P/E): 86.2
• Beta (1Y): 1.84
• Revenue Growth: 5.59%
• EPS Growth: N/A
• Country: US
• Employees: 905
• Sector: Communication Services
• Sector Strength: 82
• Industry: Advertising Agencies
• EPS (TTM): 0.12
• Shares Outstanding: 141,110,570
• 10 Day Avg. Volume: 1,941,858
• 30 Day Avg. Volume: 2,158,185
• PEG Ratio: -0.41
• Price to Book (P/B): 1.82
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.21
• Enterprise Value/Market Cap: 0.15
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 0.87
• Enterprise Value/Ebitda: 0.83
• 1Y Price Target: $19.25
• Price Target Upside: 3.61% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 78 Outperform
• Price Target: $20.00 ▲(7.64%Upside)

Magnite's strong earnings performance and technical indicators contribute significantly to its favorable stock score. However, high valuation metrics and macroeconomic uncertainties pose potential risks. Strong corporate governance and strategic opportunities partially mitigate these risks.

Positive Factors

Market Expansion

Magnite is seeing a broadening of the addressable market by being invited into ad platforms that were previously viewed to be walled gardens.

Partnerships and Collaborations

MGNI's growing traction with Amazon & NBC not only testifies to its status as the go-to sell-side platform for CTV.

Strategic Deals

The recent deal with Amazon could lead to further opening of Amazon inventory to the programmatic industry.

Negative Factors

Inventory Limitations

Deal with Fire TV covers a small percentage of inventory but could be a stepping stone toward a larger unlock.

Legal Risks

Checks with legal experts suggest a meaningful civil judgement for MGNI is likely if DOJ wins the Google ad-tech case.

Revenue Challenges

Managed service CTV revenues are down to 3-5% of total CTV revenues and on their way to 0%, with very high take rates.

Magnite Business Overview & Revenue Model

Company Description

Magnite, Inc. operates an independent sell-side advertising platform in the United States and internationally. The company's platform offers applications and services for sellers of digital advertising inventory or publishers that own and operate CTV channels, applications, websites, and other digital media properties, to manage and monetize their inventory; and provides applications and services for buyers, including advertisers, agencies, agency trading desks, and demand side platforms to buy digital advertising inventory. It markets its technology solutions to buyers and sellers through a sales teams that operate from various locations. The company was formerly known as The Rubicon Project, Inc. and changed name to Magnite, Inc. in July 2020. Magnite, Inc. was incorporated in 2007 and is headquartered in New York, New York.

How the Company Makes Money

Magnite generates revenue primarily through fees and commissions associated with facilitating the buying and selling of digital advertising inventory on its platform. The company's key revenue streams include take rates from transactions executed on its marketplace, which involve matching publishers' ad inventory with advertisers. Additionally, Magnite benefits from partnerships with major media companies and advertisers, which enhance its platform's reach and capabilities. The company also focuses on optimizing its technology to improve ad performance and efficiency, attracting more publishers and advertisers to its ecosystem.

Magnite Financial Statement Overview

Summary

Magnite demonstrates strong revenue growth and improving profitability metrics, with robust cash flow generation. However, modest net profit margins and a moderate level of leverage indicate room for improvement in cost management and equity base enhancement.

Income Statement

Magnite demonstrates strong revenue growth, with Total Revenue increasing from $221.6M in 2020 to $674.6M TTM (Trailing-Twelve-Months). The company has improved its profitability metrics, transitioning from negative EBIT to a positive EBIT margin of 9.4% TTM. Gross Profit Margin is robust at 61.7% TTM. However, the Net Profit Margin remains modest at 4.6% TTM, indicating room for improvement in cost management.

Balance Sheet

Magnite has a Debt-to-Equity Ratio of 0.83, which indicates a moderate level of leverage. The Equity Ratio stands at 27.7%, suggesting a stable capital structure. Return on Equity (ROE) has turned positive at 4.2% TTM, reflecting improved profitability. While the balance sheet shows signs of strengthening, the company should continue to focus on increasing its equity base to further enhance financial stability.

Cash Flow

Cash flow metrics are strong, with Operating Cash Flow to Net Income Ratio at 9.6x TTM, highlighting efficient cash generation relative to net income. Free Cash Flow has grown significantly, with a robust Free Cash Flow to Net Income Ratio of 7.9x TTM. This indicates healthy cash flow generation that supports further growth and investment opportunities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
196.31M	668.17M	619.71M	577.07M	468.41M	221.63M
	Gross Profit
152.88M	409.33M	209.80M	269.90M	266.75M	143.88M
	EBIT
-23.54M	51.09M	-155.01M	-100.00M	-6.20M	-16.91M
	EBITDA
3.19M	51.09M	115.64M	109.72M	71.40M	12.57M
	Net Income Common Stockholders
-18.55M	22.79M	-159.18M	-130.32M	65.00K	-53.43M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
468.55M	483.22M	326.22M	326.25M	230.40M	117.68M
	Total Assets
1.21B	2.85B	2.69B	2.71B	2.71B	938.96M
	Total Debt
428.51M	608.81M	606.65M	813.86M	809.25M	42.09M
	Net Debt
-40.04M	125.59M	280.43M	487.61M	578.85M	-75.58M
	Total Liabilities
872.36M	2.09B	1.99B	1.92B	1.83B	557.35M
	Stockholders Equity
342.36M	768.22M	701.68M	791.30M	880.76M	381.61M
Cash Flow		Free Cash Flow
4.46M	202.39M	176.98M	148.15M	97.46M	-34.02M
	Operating Cash Flow
22.58M	235.20M	214.37M	192.55M	126.59M	-12.06M
	Investing Cash Flow
-57.69M	-47.50M	-37.38M	-65.15M	-691.00M	32.64M
	Financing Cash Flow
11.26M	-28.90M	-177.84M	-30.17M	678.05M	7.35M

Magnite Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGNI, the sentiment is Positive. The current price of 18.58 is above the 20-day moving average (MA) of 16.70, above the 50-day MA of 13.98, and above the 200-day MA of 14.67, indicating a bullish trend. The MACD of 0.98 indicates Positive momentum. The RSI at 72.39 is Negative, neither overbought nor oversold. The STOCH value of 77.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MGNI.

Magnite Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGNI	78 Outperform	$2.41B	86.23	4.30%	―	5.59%	―
IAS	77 Outperform	$1.34B	28.70	4.80%	―	13.84%	1494.51%
ZD	72 Outperform	$1.32B	19.63	4.12%	―	3.24%	36.80%
CRTO	71 Outperform	$1.28B	9.75	13.46%	―	-1.18%	100.33%
STGW	70 Outperform	$1.17B	858.82	0.19%	―	9.86%	―
QNST	62 Neutral	$859.97M	―	-0.29%	―	88.81%	99.16%
Sector *	61 Neutral	$14.74B	5.90	-4.02%	6.40%	2.72%	-31.67%

Magnite Corporate Events

Magnite Stockholders Approve Key Proposals at Annual Meeting

At the 2025 annual meeting of stockholders held on June 5, 2025, Magnite‘s stockholders voted on three proposals. The election of three Class II directors, the ratification of Deloitte & Touche LLP as the independent accounting firm, and the approval of executive compensation were all passed, indicating continued support for the company’s leadership and financial strategies.

The most recent analyst rating on (MGNI) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Magnite stock, see the MGNI Stock Forecast page.

Magnite Reduces Loan Interest Rate by 75 Basis Points

On March 18, 2025, Magnite, Inc. announced the successful repricing of its $363 million senior secured term loan facility, reducing the interest rate by 75 basis points to Term SOFR + 3.00%. This adjustment, which follows a previous refinancing in February 2024, results in annual interest savings of over $2.7 million, with no changes to the loan’s maturity or other terms, enhancing Magnite’s financial efficiency.