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Magyar Bancorp (MGYR)
:MGYR
US Market

Magyar Bancorp (MGYR) AI Stock Analysis

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Magyar Bancorp

(NASDAQ:MGYR)

Rating:68Neutral
Price Target:
$17.50
▲(10.97%Upside)
Magyar Bancorp's strong financial performance, as shown by its revenue growth and efficient operations, is the most significant factor in its stock score. The stock's overbought technical indicators slightly offset the positive earnings and valuation outlook, suggesting potential caution. The valuation is fair, offering reasonable value with a modest dividend yield. No additional influence from earnings call or corporate events data.

Magyar Bancorp (MGYR) vs. SPDR S&P 500 ETF (SPY)

Magyar Bancorp Business Overview & Revenue Model

Company DescriptionMagyar Bancorp, Inc. is a bank holding company based in New Brunswick, New Jersey. Through its subsidiary, Magyar Bank, it serves the financial needs of individuals and small to medium-sized businesses primarily in Central New Jersey. The company provides a range of financial products and services, including retail and commercial banking, mortgage lending, and deposit products.
How the Company Makes MoneyMagyar Bancorp generates revenue through its core banking operations. The company earns interest income from loans it provides to individuals and businesses, such as residential and commercial mortgages, home equity loans, and lines of credit. Additionally, it collects interest on investment securities. Non-interest income is derived from service charges on deposit accounts, fees from loan originations, and other financial services. The bank also benefits from strategic partnerships with financial service providers, which can offer additional fee-based revenue streams.

Magyar Bancorp Financial Statement Overview

Summary
Magyar Bancorp exhibits strong revenue growth, a healthy profit margin, and robust balance sheet indicators such as low debt-to-equity ratio and solid equity ratio. Cash flow generation is effective, though there is room for improvement in cash flow growth.
Income Statement
75
Positive
Magyar Bancorp exhibits a strong revenue growth trajectory, with total revenue increasing from $31.5M to $54.9M in TTM. Gross Profit Margin stands at 40.1%, supported by consistent profit generation. Net Profit Margin at 16.4% reflects healthy profitability. There is a notable improvement in EBIT and EBITDA margins at 36.0% and 9.3% respectively, indicating efficient cost management and operational efficiency.
Balance Sheet
70
Positive
The balance sheet shows robust financial health with a Debt-to-Equity Ratio of 0.30, suggesting low financial leverage and prudent debt management. The Equity Ratio is 11.2%, indicating a solid capital base. Return on Equity (ROE) is strong at 7.9%, demonstrating effective use of shareholder equity to generate profit.
Cash Flow
68
Positive
Magyar Bancorp's cash flow statement indicates stable operations with a Free Cash Flow to Net Income Ratio of 0.77, reflecting good cash generation relative to net income. Operating Cash Flow to Net Income Ratio is 0.87, suggesting effective conversion of income into cash. Free Cash Flow growth is moderate, pointing towards stable but not aggressive liquidity enhancement.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
54.86M31.50M30.42M32.22M29.00M22.82M
Gross Profit
21.98M31.53M30.42M29.43M29.00M23.13M
EBIT
19.75M11.04M10.74M13.84M8.72M5.84M
EBITDA
5.08M11.99M11.58M11.17M8.72M4.27M
Net Income Common Stockholders
9.00M7.78M7.71M7.92M6.12M2.19M
Balance SheetCash, Cash Equivalents and Short-Term Investments
93.19M41.21M82.66M40.16M88.13M76.29M
Total Assets
1.02B951.92M907.29M798.54M657.76M754.00M
Total Debt
33.92M28.57M29.52M20.37M23.36M67.41M
Net Debt
-39.02M2.97M-43.02M-10.57M-51.84M5.68M
Total Liabilities
907.57M841.37M802.50M700.04M560.12M697.15M
Stockholders Equity
114.29M110.55M104.79M98.50M97.64M56.85M
Cash FlowFree Cash Flow
6.89M5.51M8.18M10.81M8.84M667.00K
Operating Cash Flow
7.83M6.32M8.48M11.20M9.26M814.00K
Investing Cash Flow
-69.07M-90.29M-66.05M-69.74M-8.20M-79.96M
Financing Cash Flow
84.19M37.04M99.17M14.28M12.41M119.40M

Magyar Bancorp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price15.77
Price Trends
50DMA
14.59
Positive
100DMA
14.48
Positive
200DMA
13.71
Positive
Market Momentum
MACD
0.37
Positive
RSI
68.34
Neutral
STOCH
56.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGYR, the sentiment is Positive. The current price of 15.77 is above the 20-day moving average (MA) of 15.55, above the 50-day MA of 14.59, and above the 200-day MA of 13.71, indicating a bullish trend. The MACD of 0.37 indicates Positive momentum. The RSI at 68.34 is Neutral, neither overbought nor oversold. The STOCH value of 56.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MGYR.

Magyar Bancorp Risk Analysis

Magyar Bancorp disclosed 17 risk factors in its most recent earnings report. Magyar Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Magyar Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
$101.37M15.865.09%3.66%5.62%-5.99%
68
Neutral
$102.05M11.088.11%1.52%20.91%20.30%
64
Neutral
$12.85B9.817.79%78.20%12.23%-7.93%
54
Neutral
$94.43M31.552.30%2.60%11.12%53.85%
53
Neutral
$82.42M-10.46%3.26%10.31%-557.61%
41
Neutral
$94.71M-0.73%-9.96%-23.54%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MGYR
Magyar Bancorp
15.90
5.24
49.16%
PBHC
Pathfinder Bancorp
15.26
2.94
23.86%
PROV
Provident Financial Holdings
15.35
3.30
27.39%
FNWB
First Northwest Bancorp
8.71
-0.89
-9.27%
BSBK
Bogota Financial
7.20
0.48
7.14%

Magyar Bancorp Corporate Events

Stock Buyback
Magyar Bancorp Announces New Stock Repurchase Program
Neutral
May 22, 2025

On May 22, 2025, Magyar Bancorp announced the completion of its stock repurchase program authorized in December 2022, having repurchased 337,146 shares at an average price of $12.23. The Board of Directors has authorized a new stock repurchase program to buy back up to 5% of its outstanding shares, or 323,547 shares, with timing dependent on market conditions and company liquidity needs. This move aims to manage capital effectively and support corporate purposes, potentially impacting shareholder value and market perception.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.