Magnite (MGNI) AI Stock Analysis

• Market Cap: $3.34B
• Dividend Yield: N/A
• Average Volume (3M): 2.78M
• Price to Earnings (P/E): 118.3
• Beta (1Y): 1.92
• Revenue Growth: 5.59%
• EPS Growth: N/A
• Country: US
• Employees: 905
• Sector: Communication Services
• Sector Strength: 81
• Industry: Advertising Agencies
• EPS (TTM): 0.12
• Shares Outstanding: 141,110,570
• 10 Day Avg. Volume: 4,002,218
• 30 Day Avg. Volume: 2,777,169
• 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: 0.11
• Enterprise Value/Revenue: 0.14
• Enterprise Value/Gross Profit: 0.87
• Enterprise Value/Ebitda: 0.83
• 1Y Price Target: $22.54
• Price Target Upside: -3.88% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 71 Outperform
• Price Target: $27.00 ▲(15.14%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

Growth Opportunities

MGNI-sold programmatic primarily monetizes CTV ad units coming from vMVPDs, OEMs, and multi-publisher bundles, offering diverse monetization channels.

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.

Market Position

MGNI is positioned as the exclusive SSP in the Netflix ecosystem, allowing it to capitalize on the influx of live content.

Partnerships

Magnite has struck an agreement with TF1 to bolster programmatic demand, which enhances its monetization potential with Netflix.

Negative Factors

Legal Challenges

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

Revenue Dependency

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. (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 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
EBITDA	3.19M	51.09M	115.64M	109.72M	71.40M	12.57M
Net Income	-18.55M	22.79M	-159.18M	-130.32M	65.00K	-53.43M
Balance Sheet
Total Assets	1.21B	2.85B	2.69B	2.71B	2.71B	938.96M
Cash, Cash Equivalents and Short-Term Investments	468.55M	483.22M	326.22M	326.25M	230.40M	117.68M
Total Debt	428.51M	608.81M	606.65M	813.86M	809.25M	42.09M
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: 23.45
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 23.45 is above the 20-day moving average (MA) of 21.04, above the 50-day MA of 17.59, and above the 200-day MA of 15.35, indicating a bullish trend. The MACD of 2.00 indicates Negative momentum. The RSI at 72.85 is Negative, neither overbought nor oversold. The STOCH value of 65.31 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
IAS	74 Outperform	$1.36B	29.23	4.80%	―	13.84%	1494.51%
MGNI	71 Outperform	$3.34B	118.26	4.30%	―	5.59%	―
ZD	71 Outperform	$1.40B	20.78	4.12%	―	3.24%	36.80%
CRTO	70 Outperform	$1.33B	10.10	13.46%	―	-1.18%	100.33%
STGW	63 Neutral	$1.23B	915.69	0.19%	―	9.86%	―
QNST	63 Neutral	$922.05M	―	-0.29%	―	88.81%	99.16%
Sector *	62 Neutral	$40.76B	-1.15	-12.05%	3.90%	2.03%	-69.70%

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.