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Magyar Bancorp Inc (MGYR)
NASDAQ:MGYR
US Market

Magyar Bancorp (MGYR) AI Stock Analysis

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MG

Magyar Bancorp

(NASDAQ:MGYR)

77Outperform
Magyar Bancorp scores a solid 77, driven by strong financial health and a stable valuation. The company's robust balance sheet and effective equity management highlight its financial resilience, while its attractive valuation metrics suggest potential for stock appreciation. However, variability in cash flow remains a potential risk, and recent technical indicators suggest cautious short-term optimism.

Magyar Bancorp (MGYR) vs. S&P 500 (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
Overall, Magyar Bancorp demonstrates strong financial health with robust profitability metrics and a secure balance sheet devoid of debt. The company exhibits good revenue growth and effective equity management, although cash flow variability could pose operational challenges. Continuous focus on improving cash flow stability will enhance financial resilience.
Income Statement
78
Positive
The company's income statement reveals strong performance with a significant gross profit margin and consistent net profit margin. Revenue growth has been positive, with a notable increase from the previous years. The EBIT margin is healthy, although the negative EBITDA figure in TTM suggests some non-operating expenses impacting the overall earnings.
Balance Sheet
85
Very Positive
The balance sheet is robust, showing no total debt in the latest period, which enhances financial stability. The equity ratio is strong, indicating a solid equity base relative to assets. Return on equity is consistent, reflecting effective management of equity to generate profits.
Cash Flow
72
Positive
Operating cash flow is positive and supports net income, indicating good cash generation from operations. However, the fluctuation in free cash flow growth rate suggests variability in operational efficiency and capital expenditures. The free cash flow to net income ratio is sound, although less consistent over time.
Breakdown
TTMSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income StatementTotal Revenue
48.41M31.50M30.42M231.00K29.00M23.13M
Gross Profit
47.91M31.50M30.42M231.00K29.00M23.13M
EBIT
19.30M81.00K10.74M13.84M8.72M3.11M
EBITDA
-920.00K11.10M11.58M12.01M9.56M4.27M
Net Income Common Stockholders
8.21M7.78M7.71M7.92M6.12M2.19M
Balance SheetCash, Cash Equivalents and Short-Term Investments
6.29M15.62M72.53M12.10M88.13M76.29M
Total Assets
550.85K951.92M907.29M798.54M657.76M754.00M
Total Debt
69.09K28.57M29.52M15.63M23.36M67.41M
Net Debt
-6.22M28.57M-43.02M-15.31M-51.84M5.68M
Total Liabilities
510.59K841.37M802.50M700.04M560.12M697.15M
Stockholders Equity
40.26K110.55M104.79M98.50M97.64M56.85M
Cash FlowFree Cash Flow
5.10M5.51M8.18M10.81M8.84M667.00K
Operating Cash Flow
5.79M6.32M8.48M11.20M9.26M814.00K
Investing Cash Flow
-82.80M-90.29M-66.05M-69.74M-8.20M-79.96M
Financing Cash Flow
84.08M37.04M99.17M14.28M12.41M119.40M

Magyar Bancorp Technical Analysis

Technical Analysis Sentiment
Negative
Last Price13.80
Price Trends
50DMA
14.38
Negative
100DMA
14.17
Negative
200DMA
13.07
Positive
Market Momentum
MACD
-0.13
Positive
RSI
38.94
Neutral
STOCH
12.91
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGYR, the sentiment is Negative. The current price of 13.8 is below the 20-day moving average (MA) of 14.15, below the 50-day MA of 14.38, and above the 200-day MA of 13.07, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 38.94 is Neutral, neither overbought nor oversold. The STOCH value of 12.91 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
$89.42M10.707.53%1.52%23.47%10.77%
75
Outperform
$337.76M9.259.54%2.44%11.26%-8.61%
74
Outperform
$539.40M11.067.39%5.08%6.97%-16.70%
65
Neutral
$76.85M10.1011.23%5.55%7.53%-19.74%
63
Neutral
$12.86B9.179.14%4.78%16.41%-10.11%
58
Neutral
$168.63M8.2812.06%3.22%16.56%40.31%
55
Neutral
$207.54M194.050.66%2.31%2.28%-83.17%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MGYR
Magyar Bancorp
13.80
2.77
25.11%
FFNW
First Financial Northwest
22.49
2.14
10.52%
FUNC
First United
26.05
4.19
19.17%
HBCP
Home Bancorp
42.11
5.97
16.52%
TRST
TrustCo Bank
28.36
2.34
8.99%
UBCP
United Bancorp
12.88
0.03
0.23%

Magyar Bancorp Corporate Events

Stock BuybackDividendsBusiness Operations and StrategyFinancial Disclosures
Magyar Bancorp Reports Strong 2024 Financial Performance
Positive
Feb 20, 2025

Magyar Bancorp, Inc. announced a strong financial performance for 2024, highlighting a 5.5% increase in deposits, 12% loan growth, and a rise in earnings per share to $1.23. The company also reported enhanced shareholder returns through increased dividend payments and an active stock buyback program, while being recognized as a high-performing bank with a 5-star Bauer Financial rating and inclusion in the 2024 KBW Honor Roll. The company’s commitment to growth and enhanced liquidity is underscored by strategic expansions, such as opening a new branch in Martinsville and closing its Bridgewater office.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.