Magyar Bancorp (MGYR) AI Stock Analysis

• Market Cap: $109.80M
• Dividend Yield: 1.88%
• Average Volume (3M): 3.05K
• Price to Earnings (P/E): 10.9
• Beta (1Y): 0.25
• Revenue Growth: 12.08%
• EPS Growth: 29.55%
• Country: US
• Employees: 91
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Regional
• EPS (TTM): 0.41
• Shares Outstanding: 6,450,948
• 10 Day Avg. Volume: 1,765
• 30 Day Avg. Volume: 3,047
• PEG Ratio: 4.02
• Price to Book (P/B): 0.71
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 14.19
• Enterprise Value/Market Cap: 1.26
• Enterprise Value/Revenue: 2.38
• Enterprise Value/Gross Profit: 3.88
• Enterprise Value/Ebitda: 9.07
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 69 Neutral
• Price Target: $18.50 ▲(7.81% Upside)

Magyar Bancorp's overall stock score is driven by its strong financial performance, characterized by consistent revenue growth and solid profitability margins. The valuation is attractive with a low P/E ratio and a reasonable dividend yield. However, technical analysis indicates a lack of strong momentum, which slightly offsets the positive financial and valuation aspects.

Positive Factors

Revenue Growth

Consistent revenue growth indicates a strong market position and effective business strategies, supporting long-term financial stability.

Profitability Margins

High profitability margins reflect efficient operations and cost control, enhancing the company's ability to reinvest and grow.

Balance Sheet Health

A low debt-to-equity ratio indicates financial stability and flexibility, reducing risk and supporting sustainable growth.

Negative Factors

Cash Conversion Efficiency

Low cash conversion efficiency may indicate challenges in turning income into cash, potentially impacting liquidity and investment capacity.

Cash Flow Management

Inefficient cash flow management can strain resources, limiting the company's ability to capitalize on growth opportunities.

Employee Base

A small employee base may limit the company's capacity to scale operations and manage increasing business complexity effectively.

Magyar Bancorp Business Overview & Revenue Model

Company Description

Magyar Bancorp (MGYR) is a bank holding company based in the United States, primarily engaged in providing a wide range of banking and financial services through its wholly-owned subsidiary, Magyar Bank. The company operates in the financial sector, focusing on commercial banking, retail banking, and mortgage lending. Its core products include various deposit accounts, personal and business loans, and mortgage services, serving both individual and corporate customers in its local markets.

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

Magyar Bancorp exhibits a strong financial position with consistent revenue growth and solid profitability margins. The balance sheet is stable with low leverage, and cash flow generation is improving. While the company shows strengths in profitability and debt management, there is room for improvement in cash conversion efficiency.

Income Statement

Magyar Bancorp has demonstrated consistent revenue growth, with a TTM revenue growth rate of 3.36%. The gross profit margin is strong at 61.24%, indicating effective cost management. The net profit margin of 16.85% is healthy, reflecting good profitability. EBIT and EBITDA margins are solid at 24.60% and 26.22%, respectively, showing efficient operations. Overall, the income statement reflects a stable and growing financial performance.

Balance Sheet

The company's debt-to-equity ratio is low at 0.31, suggesting a conservative leverage approach. Return on equity is moderate at 8.64%, indicating reasonable profitability relative to equity. The equity ratio is not explicitly calculated, but the balance sheet shows a strong equity position relative to assets. Overall, the balance sheet is stable with manageable debt levels.

Cash Flow

Free cash flow growth is positive at 9.79%, indicating improving cash generation. The operating cash flow to net income ratio is low at 0.01, suggesting potential issues in converting income to cash. However, the free cash flow to net income ratio is strong at 88.81%, reflecting efficient cash management. Overall, cash flow performance is solid but with room for improvement in operating cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	58.02M	52.12M	40.74M	32.22M	31.62M	28.34M
Gross Profit	35.53M	31.44M	30.03M	29.43M	27.05M	21.16M
EBITDA	15.21M	11.99M	11.58M	12.01M	9.56M	3.96M
Net Income	9.78M	7.78M	7.71M	7.92M	6.12M	2.19M
Balance Sheet
Total Assets	987.49M	951.92M	907.29M	798.54M	773.99M	754.00M
Cash, Cash Equivalents and Short-Term Investments	25.01M	41.21M	82.66M	40.16M	88.13M	76.29M
Total Debt	36.05M	28.57M	33.90M	20.37M	23.36M	67.41M
Total Liabilities	871.16M	841.37M	802.50M	700.04M	676.35M	697.15M
Stockholders Equity	116.32M	110.55M	104.79M	98.50M	97.64M	56.85M
Cash Flow
Free Cash Flow	7.46M	5.51M	8.18M	10.81M	8.84M	667.00K
Operating Cash Flow	8.40M	6.32M	8.48M	11.20M	9.26M	814.00K
Investing Cash Flow	-84.37M	-90.29M	-66.05M	-69.74M	-8.20M	-79.96M
Financing Cash Flow	33.98M	37.04M	99.17M	14.28M	12.41M	119.40M

Magyar Bancorp Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MGYR, the sentiment is Positive. The current price of 17.16 is above the 20-day moving average (MA) of 16.91, above the 50-day MA of 16.86, and above the 200-day MA of 16.00, indicating a bullish trend. The MACD of 0.08 indicates Negative momentum. The RSI at 57.02 is Neutral, neither overbought nor oversold. The STOCH value of 77.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MGYR.

Magyar Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UNB	75 Outperform	$106.82M	9.40	15.11%	6.18%	14.52%	27.90%
MGYR	69 Neutral	$109.80M	10.91	8.51%	1.88%	12.08%	29.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SFBC	63 Neutral	$115.22M	17.01	6.52%	1.69%	2.85%	73.41%
RVSB	61 Neutral	$115.37M	24.81	2.90%	1.44%	8.77%	369.81%
SRBK	61 Neutral	$128.70M	44.41	1.57%	0.91%	9.43%	166.36%
BSBK	48 Neutral	$105.89M	214.63	0.35%	―	-15.09%	―