Magnite (MGNI) AI Stock Analysis

• Market Cap: $3.11B
• Dividend Yield: N/A
• Average Volume (3M): 2.85M
• Price to Earnings (P/E): 77.7
• Beta (1Y): 1.83
• Revenue Growth: 5.52%
• EPS Growth: N/A
• Country: US
• Employees: 905
• Sector: Communication Services
• Sector Strength: 86
• Industry: Advertising Agencies
• EPS (TTM): 0.20
• Shares Outstanding: 142,399,300
• 10 Day Avg. Volume: 3,237,657
• 30 Day Avg. Volume: 2,845,081
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.21
• Enterprise Value/Revenue: 5.50
• Enterprise Value/Gross Profit: 8.83
• Enterprise Value/Ebitda: 27.49
• 1Y Price Target: $28.15
• Price Target Upside: 25.00% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 12

• Rating: 74 Outperform
• Price Target: $27.00 ▲(19.89% Upside)

Magnite's overall stock score is driven by strong earnings performance and positive technical indicators, reflecting robust growth and market positioning. However, the high P/E ratio suggests overvaluation, which tempers the overall score. The company's financial performance is solid, but improvements in cash flow management are necessary to sustain long-term growth.

Positive Factors

Earnings

MGNI reported strong 2Q25 results with net revenues and adjusted EBITDA significantly above estimates.

Partnerships

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

Negative Factors

Financial Performance

Concerns include higher capital expenditure spending which could impact MGNI's financial performance.

Legal Challenges

Suing Google is seen as a potential distraction from MGNI's strong performance.

Magnite Business Overview & Revenue Model

Company Description

Magnite (MGNI) is a leading independent sell-side advertising platform that specializes in programmatic advertising and digital media solutions. The company operates primarily in the ad tech sector, providing tools and services that enable publishers to monetize their digital inventory across various channels, including display, video, and audio. Magnite's core offerings include a comprehensive supply-side platform (SSP) that helps publishers maximize revenue from their advertising space through automated transactions with advertisers and agencies.

How the Company Makes Money

Magnite generates revenue primarily through its supply-side platform, where it charges publishers a percentage of the advertising revenue generated through its system. This model, known as a revenue share, allows Magnite to earn a portion of the earnings from each ad transaction facilitated on its platform. Additionally, the company also benefits from fees associated with programmatic advertising solutions, including data management and analytics services. Key revenue streams include direct partnerships with publishers and demand-side platforms (DSPs), which enable Magnite to facilitate ad sales and optimize inventory in real-time. Significant partnerships with major publishers and advertisers enhance its market position, driving increased transaction volumes and revenue growth. The company also explores opportunities in emerging digital advertising formats and technologies, contributing to its long-term profitability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	685.07M	668.17M	619.71M	577.07M	468.41M	221.63M
Gross Profit	426.99M	409.33M	209.80M	269.90M	266.75M	143.88M
EBITDA	137.13M	112.03M	115.64M	109.72M	71.40M	12.57M
Net Income	43.13M	22.79M	-159.18M	-130.32M	65.00K	-53.43M
Balance Sheet
Total Assets	2.93B	2.85B	2.69B	2.71B	2.71B	938.96M
Cash, Cash Equivalents and Short-Term Investments	426.00M	483.22M	326.22M	326.25M	230.40M	117.68M
Total Debt	619.21M	608.81M	606.65M	813.86M	809.25M	42.09M
Total Liabilities	2.16B	2.09B	1.99B	1.92B	1.83B	557.35M
Stockholders Equity	768.47M	768.22M	701.68M	791.30M	880.76M	381.61M
Cash Flow
Free Cash Flow	169.37M	202.39M	176.98M	148.15M	97.46M	-34.02M
Operating Cash Flow	227.13M	235.20M	214.37M	192.55M	126.59M	-12.06M
Investing Cash Flow	-58.20M	-47.50M	-37.38M	-65.15M	-691.00M	32.64M
Financing Cash Flow	-70.64M	-28.90M	-177.84M	-30.17M	678.05M	7.35M

Magnite Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 22.52
• 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 Neutral. The current price of 22.52 is below the 20-day moving average (MA) of 22.71, above the 50-day MA of 22.20, and above the 200-day MA of 16.92, indicating a neutral trend. The MACD of 0.11 indicates Positive momentum. The RSI at 49.73 is Neutral, neither overbought nor oversold. The STOCH value of 32.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MGNI.

Magnite Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IAS	78 Outperform	$1.49B	25.99	5.52%	―	14.39%	1946.11%
ZD	74 Outperform	$1.53B	24.70	3.56%	―	5.94%	-8.89%
CRTO	74 Outperform	$1.35B	10.11	12.79%	―	-0.40%	36.44%
MGNI	74 Outperform	$3.11B	77.69	5.82%	―	5.52%	―
STGW	73 Outperform	$1.48B	492.79	-0.32%	―	9.56%	―
QNST	64 Neutral	$846.88M	192.98	2.04%	―	78.27%	―
Sector *	56 Neutral	HK$68.37B	0.28	-4.91%	5.02%	-0.86%	-12.88%

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.