Magyar Bancorp (MGYR) AI Stock Analysis

• Market Cap: $114.21M
• Dividend Yield: 1.81%
• Average Volume (3M): 3.05K
• Price to Earnings (P/E): 8.6
• Beta (1Y): 0.24
• 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: 1.41
• Enterprise Value/Revenue: 2.69
• Enterprise Value/Gross Profit: 4.41
• Enterprise Value/Ebitda: 10.14
• 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: 75 Outperform
• Price Target: $21.00 ▲(19.66% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is driven primarily by favorable fundamentals (profitability, improving TTM results, and strong cash conversion) and supported by a clear technical uptrend. Valuation is reasonable with a modest P/E and some dividend support, while corporate events add a positive catalyst from strong results and increased shareholder returns; rising leverage and margin normalization remain key watch items.

Positive Factors

Profitability & Cash Conversion

Sustained high TTM margins and near-complete conversion of earnings to free cash flow support durable internal funding for lending, dividends, and buybacks. Reliable cash conversion strengthens capital allocation flexibility and resilience through mid-cycle rate moves or local credit stress.

Loan and Asset Growth

Consistent loan and asset expansion signals franchise traction in core markets and scale benefits for net interest income. Durable loan growth enhances earning asset base, supports higher book value per share, and provides structural revenue expansion if underwriting and asset quality remain disciplined.

Capital Returns & Governance Support

Increasing dividends and repeat buyback authorizations signal management confidence in earnings durability and free cash flow. Combined with shareholder support for board and auditor choices, this indicates governance continuity and disciplined capital allocation that can enhance longer-term shareholder returns.

Negative Factors

Rising Leverage

An upward trend in leverage reduces financial flexibility and raises sensitivity to funding cost shifts. For a regional community bank, higher debt levels can magnify earnings volatility via increased interest expense and constrain capacity to absorb credit losses without diluting equity or cutting returns.

Commercial Real Estate Concentration

Material concentration in CRE lending increases exposure to local property market cycles and rent/occupancy trends. A downturn in regional commercial real estate could deteriorate asset quality and require higher provisions, pressuring capital and limiting the bank's ability to grow or sustain payouts.

Volatile Cash Flow Growth

While FCF conversion is currently strong, multi-year volatility implies earnings and cash are uneven. Irregular cash flow complicates planning for buybacks, dividends, and loan funding, and makes the franchise more vulnerable to episodic funding stress or unexpected increases in provisions or operating costs.

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

Strong TTM profitability (~18% net margin; ~25% EBIT margin), rising revenue and net income versus the prior annual period, and solid cash conversion (FCF ~94% of net income). Offsets include some margin compression versus 2022–2023 and a higher leverage trend (debt-to-equity ~0.41, up versus prior years).

Income Statement

TTM (Trailing-Twelve-Months) revenue is $59.9M with strong profitability (about 18% net margin and ~25% EBIT margin). Revenue growth in TTM is meaningfully higher than the prior annual period, and net income has stepped up versus 2024. Offsetting this, profitability has been below the exceptionally high levels shown in earlier years (notably gross and net margins in 2022–2023), indicating some margin compression over time even as the top line expands.

Balance Sheet

The balance sheet shows moderate leverage with debt-to-equity around 0.41 in TTM, up from lower levels in 2021–2024, which suggests increasing reliance on debt. Equity has grown (to ~$121.7M TTM), and returns on equity have improved to ~9.4% TTM from ~7.0–8.2% in recent annual periods. Strength is improving shareholder returns and a growing equity base; the key watch item is the upward leverage trend.

Cash Flow

Cash generation is solid: TTM operating cash flow is $11.2M and free cash flow is $11.0M, with free cash flow running at ~94% of net income, indicating earnings are largely converting into cash. Free cash flow growth is strong in TTM versus the prior annual period, recovering from declines seen in 2023–2024. The main weakness is volatility in cash flow growth across the multi-year period, implying uneven cash generation year to year.

Breakdown	TTM	Sep 2025	Sep 2024	Sep 2023	Sep 2022	Sep 2021
Income Statement
Total Revenue	59.91M	58.42M	52.12M	40.74M	32.22M	31.62M
Gross Profit	36.54M	35.21M	31.44M	30.03M	29.43M	27.05M
EBITDA	15.89M	14.75M	11.99M	11.58M	12.01M	9.56M
Net Income	10.81M	9.76M	7.78M	7.71M	7.92M	6.12M
Balance Sheet
Total Assets	1.05B	997.66M	951.92M	907.29M	798.54M	773.99M
Cash, Cash Equivalents and Short-Term Investments	29.01M	22.98M	41.21M	82.66M	40.16M	88.13M
Total Debt	49.05M	49.05M	28.57M	33.90M	20.37M	23.36M
Total Liabilities	923.75M	878.82M	841.37M	802.50M	700.04M	676.35M
Stockholders Equity	121.75M	118.84M	110.55M	104.79M	98.50M	97.64M
Cash Flow
Free Cash Flow	10.96M	9.81M	5.51M	8.18M	10.81M	8.84M
Operating Cash Flow	11.16M	10.39M	6.32M	8.48M	11.20M	9.26M
Investing Cash Flow	-61.66M	-64.25M	-90.29M	-66.05M	-69.74M	-8.20M
Financing Cash Flow	26.09M	35.35M	37.04M	99.17M	14.28M	12.41M

Magyar Bancorp Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.55
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 17.55 is below the 20-day moving average (MA) of 17.68, below the 50-day MA of 17.68, and above the 200-day MA of 16.96, indicating a neutral trend. The MACD of -0.15 indicates Positive momentum. The RSI at 41.92 is Neutral, neither overbought nor oversold. The STOCH value of 29.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MGYR.

Magyar Bancorp Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MGYR	75 Outperform	$114.21M	8.58	9.18%	1.81%	12.08%	27.88%
UNB	74 Outperform	$107.46M	9.78	14.80%	6.08%	14.52%	27.90%
SRBK	68 Neutral	$126.27M	35.78	1.57%	0.88%	9.43%	166.36%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SFBC	64 Neutral	$105.72M	15.59	6.70%	1.75%	2.85%	73.41%
RVSB	57 Neutral	$106.66M	18.92	2.98%	1.51%	8.77%	369.81%
BSBK	48 Neutral	$107.77M	39.11	1.50%	―	-15.09%	―

Magyar Bancorp Corporate Events

Magyar Bancorp Shareholders Back Board, Pay and Auditor

At the 2026 Annual Meeting of Stockholders held on February 11, 2026, Magyar Bancorp shareholders elected Susan Eisenhauer and Maureen Ruane to the board of directors for three-year terms, reinforcing the company’s existing governance structure. Investors also approved on an advisory basis the compensation of named executive officers and ratified RSM US LLP as the independent auditor for the fiscal year ending September 30, 2026, signaling continued support for current management practices and financial oversight.

These voting outcomes suggest stability in Magyar Bancorp’s leadership and audit arrangements, which may reassure stakeholders about continuity in strategic direction and financial reporting. The strong backing for executive pay and the choice of RSM US LLP as auditor underscore shareholder confidence in the company’s governance framework and its approach to managing regulatory and financial reporting obligations.

The most recent analyst rating on (MGYR) stock is a Buy with a $20.50 price target. To see the full list of analyst forecasts on Magyar Bancorp stock, see the MGYR Stock Forecast page.

Magyar Bancorp Highlights Record 2025 Results, Boosts Dividend

At its February 11, 2026 annual shareholders meeting, Magyar Bancorp highlighted record fiscal 2025 earnings of $9.8 million, a 25% increase from 2024, supported by 10% loan growth, expanding net interest margin and strong asset quality with low non-performing assets. Earnings per share rose to $1.56, book value per share climbed to $18.79 by December 31, 2025, and the stock price advanced 40% from September 30, 2024 to September 30, 2025, with shares closing at $18.40 on February 6, 2026, up 84% from the July 15, 2021 second-step IPO price.

The company underscored its strengthened positioning through continued recognition as a 5-star bank by Bauer Financial and inclusion on the 2025 KBW Honor Roll for consistent earnings growth, alongside completion of a second share repurchase program and authorization of a third, plus a 25% dividend increase to $0.10 per quarter in January 2026. Management outlined a 2026 focus on managing interest-rate risk, cybersecurity and cost control, including a planned Edison office relocation for savings, further use of technology to boost branch efficiency, potential branch expansion, and leveraging its community banking model and commercial loan repricing to support net interest margin expansion and enhance shareholder value.

Operational metrics showed total assets rising to $1.045 billion, loans to $876 million and deposits to $859 million by year-end 2025, with deposit mixes shifting while funding costs eased as market rates declined. Loan origination in 2025 totaled $163 million, heavily weighted toward commercial real estate, and the bank’s net interest margin remained above that of a peer group of similarly sized Mid-Atlantic banks, signaling competitive pricing power and disciplined funding costs.

Non-performing assets as a percentage of total assets stayed relatively low through 2025 despite a modest uptick, underscoring resilient credit quality in the New Jersey market. For stakeholders, the combination of strong earnings momentum, disciplined risk and cost management and continued capital returns via buybacks and dividends suggests Magyar is seeking to consolidate its status as a high-performing community bank while cautiously evaluating selective growth opportunities in its core markets.

The most recent analyst rating on (MGYR) stock is a Hold with a $19.50 price target. To see the full list of analyst forecasts on Magyar Bancorp stock, see the MGYR Stock Forecast page.

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.