Magnite (MGNI) AI Stock Analysis

• Market Cap: $2.36B
• Dividend Yield: N/A
• Average Volume (3M): 2.46M
• Price to Earnings (P/E): 43.6
• Beta (1Y): 1.83
• Revenue Growth: 6.27%
• EPS Growth: 226.16%
• Country: US
• Employees: 905
• Sector: Communication Services
• Sector Strength: 97
• Industry: Advertising Agencies
• EPS (TTM): 0.20
• Shares Outstanding: 143,647,870
• 10 Day Avg. Volume: 2,886,896
• 30 Day Avg. Volume: 2,461,815
• PEG Ratio: -0.86
• Price to Book (P/B): 2.91
• Price to Sales (P/S): 3.35
• P/FCF Ratio: 11.06
• Enterprise Value/Market Cap: 1.48
• Enterprise Value/Revenue: 4.95
• Enterprise Value/Gross Profit: 7.95
• Enterprise Value/Ebitda: 23.09
• 1Y Price Target: $27.50
• Price Target Upside: 67.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11
• EPS Forecast (FY): 0.91
• Revenue Forecast (FY): $668.61M

• Rating: 68 Neutral
• Price Target: $16.00 ▼(-2.68% Downside)

Magnite's strong financial performance and positive earnings call outlook are offset by technical indicators suggesting bearish momentum and a high P/E ratio indicating overvaluation. The legal proceedings against Google add an element of risk.

Positive Factors

Strategic Partnerships

Expanding partnerships with industry leaders enhance Magnite's market reach and competitive positioning, fostering sustainable revenue growth.

AI and Technology Integration

AI integration and tech enhancements improve operational efficiency and product offerings, strengthening Magnite's competitive edge in ad tech.

Live Scheduler Introduction

The Live Scheduler product expands Magnite's service offerings, providing new revenue opportunities by capitalizing on live event advertising.

Negative Factors

Legal Uncertainty

Legal proceedings against Google could lead to operational disruptions and impact Magnite's strategic partnerships and market dynamics.

Macroeconomic Pressures

Macroeconomic challenges in key sectors may dampen advertising spend, affecting Magnite's revenue growth and market performance.

CapEx Increase

Increased CapEx for data centers could strain cash flow and reduce financial flexibility, impacting short-term profitability and investment capacity.

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 transaction fees and commissions from the programmatic advertising campaigns run on its platform. The company charges publishers a percentage of the ad revenue generated from ads sold through its platform, which includes both direct and programmatic sales. Additionally, Magnite offers various value-added services such as analytics and reporting, which can also contribute to its revenue. Significant partnerships with major publishers and advertisers further enhance its revenue potential, as they leverage Magnite's technology to maximize their advertising yield and reach. The company's business model is supported by the growing shift towards programmatic advertising, which continues to gain traction in the digital marketing landscape.

Magnite Financial Statement Overview

Summary

Magnite has demonstrated strong revenue and profit growth, with improved margins and cash flow generation. The balance sheet shows moderate leverage, but historical fluctuations in profitability and cash flow pose potential risks. Overall, the company is on a positive trajectory.

Income Statement

Magnite has shown consistent revenue growth, with a TTM revenue growth rate of 2.55%. The gross profit margin has improved to 62.33% in the TTM, indicating strong cost management. Net profit margin has increased to 6.30%, reflecting improved profitability. However, past periods showed volatility with negative net margins, which poses a risk.

Balance Sheet

The company's debt-to-equity ratio is 0.81, which is reasonable but indicates a moderate level of leverage. Return on equity has improved to 5.74% in the TTM, showing better utilization of equity. The equity ratio is stable, suggesting a balanced capital structure. However, historical fluctuations in equity and debt levels could pose risks.

Cash Flow

Magnite's free cash flow has grown significantly by 89.2% in the TTM, demonstrating strong cash generation capabilities. The operating cash flow to net income ratio is 0.13, indicating efficient cash conversion. The free cash flow to net income ratio is 0.75, showing a healthy cash position. Past cash flow volatility remains a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	702.57M	668.17M	619.71M	577.07M	468.41M	221.63M
Gross Profit	437.67M	409.33M	209.80M	269.90M	266.75M	143.88M
EBITDA	150.66M	112.03M	115.64M	109.72M	71.75M	12.57M
Net Income	57.97M	22.79M	-159.18M	-130.32M	65.00K	-53.43M
Balance Sheet
Total Assets	2.92B	2.85B	2.69B	2.71B	2.71B	938.96M
Cash, Cash Equivalents and Short-Term Investments	482.13M	483.22M	326.22M	326.25M	230.40M	117.68M
Total Debt	625.22M	608.81M	606.65M	813.86M	809.25M	42.09M
Total Liabilities	2.11B	2.09B	1.99B	1.92B	1.83B	557.35M
Stockholders Equity	807.95M	768.22M	701.68M	791.30M	880.76M	381.61M
Cash Flow
Free Cash Flow	164.51M	202.39M	187.60M	148.15M	97.46M	-26.36M
Operating Cash Flow	222.41M	235.20M	214.37M	192.55M	126.59M	-12.06M
Investing Cash Flow	-70.57M	-47.50M	-37.38M	-65.15M	-691.00M	32.64M
Financing Cash Flow	-56.50M	-28.90M	-177.84M	-30.17M	678.05M	7.35M

Magnite Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.44
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 16.44 is above the 20-day moving average (MA) of 15.43, above the 50-day MA of 16.19, and below the 200-day MA of 17.96, indicating a neutral trend. The MACD of 0.20 indicates Negative momentum. The RSI at 57.61 is Neutral, neither overbought nor oversold. The STOCH value of 69.49 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	$1.72B	37.03	4.48%	―	15.51%	39.60%
CRTO	77 Outperform	$1.02B	6.60	15.37%	―	0.32%	69.78%
ZD	69 Neutral	$1.41B	14.41	6.26%	―	5.70%	97.88%
MGNI	68 Neutral	$2.36B	43.61	7.56%	―	6.27%	226.16%
STGW	65 Neutral	$1.31B	66.49	3.80%	―	6.76%	1841.46%
Sector *	60 Neutral	$48.67B	4.58	-11.27%	4.14%	2.83%	-41.78%
CCO	57 Neutral	$1.01B	-11.93	―	―	-29.67%	30.13%

Magnite Corporate Events

Magnite Files Lawsuit Against Google for Antitrust Violations

On September 16, 2025, Magnite filed a lawsuit against Google in the U.S. District Court for the Eastern District of Virginia. The lawsuit seeks financial damages and other remedies following a court ruling in April 2025 that found Google engaged in anticompetitive practices in the ad tech markets. Magnite claims that Google’s dominance has hindered industry growth and innovation, impacting publishers, advertisers, and independent companies like Magnite. The lawsuit highlights Google’s exclusionary tactics that favored its own services, depriving competitors of fair opportunities.