Magyar Bancorp (MGYR) AI Stock Analysis

• Market Cap: $114.14M
• Dividend Yield: 1.81%
• Average Volume (3M): 3.05K
• Price to Earnings (P/E): 10.3
• Beta (1Y): 0.21
• Revenue Growth: 12.08%
• EPS Growth: 27.88%
• Country: US
• Employees: 91
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.50
• Shares Outstanding: 6,477,991
• 10 Day Avg. Volume: 1,765
• 30 Day Avg. Volume: 3,047
• PEG Ratio: 0.40
• Price to Book (P/B): 0.91
• Price to Sales (P/S): 1.84
• P/FCF Ratio: 10.97
• Enterprise Value/Market Cap: 1.37
• Enterprise Value/Revenue: 2.67
• Enterprise Value/Gross Profit: 4.43
• Enterprise Value/Ebitda: 10.59
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $19.50 ▲(11.11% Upside)

MGYR scores well primarily on improving financial performance (higher profits and stronger cash flow in 2025) and attractive valuation (low P/E with a dividend). Technicals are supportive but not strongly trending, while the latest corporate update adds a positive catalyst with better credit quality and continued shareholder returns.

Positive Factors

Rising quarterly profitability

A 50% YoY jump in quarterly net income signals durable improvement in core profitability driven by higher net interest income and lower provisions. Sustained earnings expansion strengthens internal capital generation, enabling ongoing dividends, modest buybacks, and reinvestment in lending capacity over the medium term.

Improving net interest margin and asset growth

A wider net interest margin combined with asset growth reflects a healthier lending/funding mix and successful loan deployment. Structurally higher NIM and scale growth support recurring net interest income, improving the franchise's ability to generate cash and absorb pressure on funding costs over the next several quarters.

Strong cash generation relative to earnings

Free cash flow running close to net income indicates earnings quality and real cash conversion. Reliable cash generation underpins sustainable shareholder returns and internal funding for loan growth, reducing reliance on external financing and bolstering medium-term financial flexibility if trends persist.

Negative Factors

Rising leverage

An uptick in leverage in a short period reduces the capital cushion and increases sensitivity to funding and credit shocks. Higher debt-to-equity can constrain management's ability to expand lending or sustain buybacks/dividends during stress and raises regulatory and market scrutiny of capital adequacy.

Volatile revenue and margin history

Historical swings in revenue and margins weaken predictability of future earnings and complicate capital planning. Persistent volatility increases provisioning uncertainty and makes it harder to rely on recurring cash flows for long-term commitments, raising execution risk for strategic initiatives.

Uneven free cash flow and low coverage

Inconsistent free cash flow and low coverage metrics limit the firm's buffer against shocks and reduce margin for error when loan losses rise. This can force reliance on wholesale funding or curtailment of dividends/repurchases in downturns, constraining strategic flexibility over the medium term.

Magyar Bancorp Business Overview & Revenue Model

Company Description

Magyar Bancorp, Inc. operates as the holding company for Magyar Bank that provides various consumer and commercial banking services to individuals, businesses, and nonprofit organizations in New Jersey, the United States. It accepts various deposit accounts, including demand, savings, NOW, money market, and retirement accounts, as well as certificates of deposit. The company also provides residential mortgage loans, multi-family and commercial real estate mortgage loans, home equity loans and lines of credit, commercial business loans, and construction loans, as well as small business administration loans. In addition, it offers non-deposit investment products and financial planning services, including insurance products, fixed and variable annuities, and retirement planning for individual and commercial customers; and buys, sells, and holds investment securities. The company has seven branch offices located in New Brunswick, North Brunswick, South Brunswick, Branchburg, Bridgewater, and Edison, New Jersey. Magyar Bancorp, Inc. was founded in 1922 and is headquartered in New Brunswick, New Jersey.

How the Company Makes Money

Magyar Bancorp generates revenue primarily through interest income from loans and mortgages, as well as fees from various banking services. The key revenue streams include interest earned on commercial and consumer loans, interest on mortgage loans, and fees associated with account maintenance, overdrafts, and transaction services. The bank also benefits from non-interest income through investment services and other ancillary services offered to its customers. Additionally, the company's performance is influenced by the local economic environment, interest rate changes, and its ability to manage loan defaults, which all play a crucial role in its overall profitability.

Magyar Bancorp Financial Statement Overview

Summary

Recent results are solid: 2025 revenue and net income improved year over year and cash flow rebounded with free cash flow closely tracking net income. Offsetting factors are historically volatile growth/margins, an increase in leverage (debt-to-equity up to ~0.41), and uneven year-to-year cash-flow trends/coverage.

Income Statement

Profitability has improved meaningfully in the most recent year (2025 annual): revenue rose to ~$58.4M from ~$52.1M in 2024, and net income increased to ~$9.8M from ~$7.8M, with margins also strengthening. However, growth and margin history looks volatile across the period (including unusually high/erratic margin figures in some earlier years), which reduces confidence in the consistency of the earnings profile.

Balance Sheet

The balance sheet shows a generally moderate leverage profile with debt-to-equity at ~0.41 in 2025 (up from ~0.26 in 2024), and equity rising to ~$118.8M alongside asset growth to ~$997.7M. Returns on equity are steady in the high-single-digits (~8.2% in 2025), but the uptick in leverage over the last year is a key watch item, especially given the historical swing from much higher leverage in 2020.

Cash Flow

Cash generation improved in 2025, with operating cash flow at ~$10.4M and free cash flow at ~$9.8M, and free cash flow running close to net income (free cash flow to net income ~0.94), which supports earnings quality. That said, free cash flow growth has been uneven year-to-year (down in 2023 and 2024 before rebounding sharply in 2025), and the provided cash flow coverage figures are very low in 2023–2025, suggesting less cushion on a coverage basis versus earlier years.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	58.42M	58.42M	52.12M	40.74M	32.22M	31.62M
Gross Profit	35.21M	35.21M	31.44M	30.03M	29.43M	27.05M
EBITDA	14.75M	14.75M	11.99M	11.58M	12.01M	9.56M
Net Income	9.76M	9.76M	7.78M	7.71M	7.92M	6.12M
Balance Sheet
Total Assets	997.66M	997.66M	951.92M	907.29M	798.54M	773.99M
Cash, Cash Equivalents and Short-Term Investments	22.98M	22.98M	41.21M	82.66M	40.16M	88.13M
Total Debt	49.05M	52.39M	28.57M	33.90M	20.37M	23.36M
Total Liabilities	878.82M	878.82M	841.37M	802.50M	700.04M	676.35M
Stockholders Equity	118.84M	118.84M	110.55M	104.79M	98.50M	97.64M
Cash Flow
Free Cash Flow	9.81M	9.81M	5.51M	8.18M	10.81M	8.84M
Operating Cash Flow	10.39M	10.39M	6.32M	8.48M	11.20M	9.26M
Investing Cash Flow	-64.25M	-64.25M	-90.29M	-66.05M	-69.74M	-8.20M
Financing Cash Flow	35.35M	35.35M	37.04M	99.17M	14.28M	12.41M

Magyar Bancorp Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.55
• 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 MGYR, the sentiment is Neutral. The current price of 17.55 is below the 20-day moving average (MA) of 17.66, above the 50-day MA of 17.32, and above the 200-day MA of 16.53, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 51.33 is Neutral, neither overbought nor oversold. The STOCH value of 68.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MGYR.

Magyar Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNB	74 Outperform	$114.06M	10.24	15.11%	6.08%	14.52%	27.90%
MGYR	72 Outperform	$114.14M	10.26	8.51%	1.81%	12.08%	27.88%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SRBK	67 Neutral	$129.32M	45.90	1.57%	0.88%	9.43%	166.36%
SFBC	64 Neutral	$112.65M	15.85	6.52%	1.75%	2.85%	73.41%
RVSB	61 Neutral	$107.28M	22.30	2.90%	1.51%	8.77%	369.81%
BSBK	48 Neutral	$109.59M	221.20	0.35%	―	-15.09%	―

Magyar Bancorp Corporate Events

Magyar Bancorp Reports Strong Quarterly Earnings and Dividend

For the quarter ended December 31, 2025, Magyar Bancorp reported a 50% year-on-year increase in net income to $3.1 million, with basic earnings per share rising to $0.51 from $0.34, driven by higher net interest income, lower provisions for credit losses, and reduced operating expenses. The company expanded total assets to $1.045 billion, grew loans and deposits—particularly in commercial real estate and certificates of deposit—improved its net interest margin to 3.59% amid Federal Reserve rate cuts, sharply reduced non-performing assets, and reinforced shareholder returns by declaring a quarterly cash dividend of $0.10 per share payable on February 26, 2026 to stockholders of record on February 12, 2026, while also increasing book value per share and modestly repurchasing stock.

The most recent analyst rating on (MGYR) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on Magyar Bancorp stock, see the MGYR Stock Forecast page.