Magnite (MGNI) AI Stock Analysis

• Market Cap: $3.17B
• Dividend Yield: N/A
• Average Volume (3M): 3.10M
• Price to Earnings (P/E): 115.0
• Beta (1Y): 1.88
• Revenue Growth: 5.59%
• EPS Growth: N/A
• Country: US
• Employees: 905
• Sector: Communication Services
• Sector Strength: 75
• Industry: Advertising Agencies
• EPS (TTM): 0.12
• Shares Outstanding: 141,110,570
• 10 Day Avg. Volume: 2,577,635
• 30 Day Avg. Volume: 3,104,323
• PEG Ratio: 2.89
• Price to Book (P/B): 4.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.72
• Enterprise Value/Market Cap: 1.11
• Enterprise Value/Revenue: 1.32
• Enterprise Value/Gross Profit: 8.44
• Enterprise Value/Ebitda: 7.99
• 1Y Price Target: $25.50
• Price Target Upside: 10.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 71 Outperform
• Price Target: $27.00 ▲(17.34%Upside)

Magnite's strong financial performance and growth in key segments like CTV and DV+ are the most significant positives. While technical indicators show bullish momentum, they are offset by high valuation risks and potential macroeconomic challenges. The latest earnings call presents strategic opportunities, particularly in the wake of the Google antitrust ruling.

Positive Factors

Ad Market Performance

The ad market performance has been favorable relative to when Magnite last reported, leading to a modest price target increase.

Market Position

Magnite has announced deals with major companies like Pinterest, Redfin, Amazon, and others, strengthening its market position.

Partnerships and Demand

Magnite remains the SSP of choice as Netflix continues their programmatic push, enhancing demand and country coverage.

Negative Factors

Antitrust Uncertainties

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

Inventory Limitations

The deal with Fire TV, although covering a small percentage of inventory, could be a stepping stone toward a larger unlock.

Short Interest

The shareholder base has improved markedly despite high ongoing short interest, suggesting more buyers than sellers.

Magnite Business Overview & Revenue Model

Company Description

Magnite, Inc. (MGNI) is a leading independent sell-side advertising platform that specializes in providing technology solutions for publishers to monetize their content across various channels, including desktop, mobile, audio, and connected television (CTV). The company operates in the digital advertising industry, offering a comprehensive platform that enables publishers to optimize their advertising inventory and reach a wide array of advertisers through programmatic advertising.

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 exhibits solid financial performance with strong revenue growth and improving profitability metrics. The balance sheet shows moderate leverage, and the company generates strong cash flows, providing a solid foundation for future growth. While profitability margins have improved, there remains potential for further 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	668.17M	619.71M	577.07M	468.41M	221.63M
Gross Profit	409.33M	209.80M	269.90M	266.75M	143.88M
EBITDA	51.09M	115.64M	109.72M	71.40M	12.57M
Net Income	22.79M	-159.18M	-130.32M	65.00K	-53.43M
Balance Sheet
Total Assets	2.85B	2.69B	2.71B	2.71B	938.96M
Cash, Cash Equivalents and Short-Term Investments	483.22M	326.22M	326.25M	230.40M	117.68M
Total Debt	608.81M	606.65M	813.86M	809.25M	42.09M
Total Liabilities	2.09B	1.99B	1.92B	1.83B	557.35M
Stockholders Equity	768.22M	701.68M	791.30M	880.76M	381.61M
Cash Flow
Free Cash Flow	202.39M	176.98M	148.15M	97.46M	-34.02M
Operating Cash Flow	235.20M	214.37M	192.55M	126.59M	-12.06M
Investing Cash Flow	-47.50M	-37.38M	-65.15M	-691.00M	32.64M
Financing Cash Flow	-28.90M	-177.84M	-30.17M	678.05M	7.35M

Magnite Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 23.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• 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 23.01 is below the 20-day moving average (MA) of 23.49, above the 50-day MA of 20.38, and above the 200-day MA of 16.15, indicating a neutral trend. The MACD of 0.67 indicates Positive momentum. The RSI at 54.83 is Neutral, neither overbought nor oversold. The STOCH value of 22.39 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
CRTO	73 Outperform	$1.19B	9.37	12.79%	―	-0.40%	36.44%
IAS	73 Outperform	$1.34B	28.63	4.80%	―	13.84%	1494.51%
ZD	72 Outperform	$1.31B	19.45	4.12%	―	3.24%	36.80%
MGNI	71 Outperform	$3.17B	115.03	4.30%	―	5.59%	―
STGW	66 Neutral	$1.53B	516.22	-0.32%	―	9.56%	―
QNST	65 Neutral	$922.62M	―	-0.29%	―	88.81%	99.16%
Sector *	61 Neutral	$42.98B	-1.93	-13.49%	4.03%	2.81%	-64.88%

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.