Magyar Bancorp (MGYR) AI Stock Analysis

• Market Cap: $108.50M
• Dividend Yield: 1.7%
• Average Volume (3M): 3.05K
• Price to Earnings (P/E): 10.8
• Beta (1Y): 0.31
• 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: 1.27
• 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 ▲(12.33% 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.

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

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	31.53M	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	23.58M	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: Negative
• Last Price: 16.47
• 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 16.47 is below the 20-day moving average (MA) of 16.89, below the 50-day MA of 17.10, and above the 200-day MA of 15.72, indicating a neutral trend. The MACD of -0.06 indicates Positive momentum. The RSI at 39.25 is Neutral, neither overbought nor oversold. The STOCH value of 26.76 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	69 Neutral	$108.50M	10.78	8.51%	1.70%	12.08%	29.55%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
SFBC	63 Neutral	$112.39M	11.05	6.52%	1.69%	2.85%	73.57%
RVSB	61 Neutral	$116.05M	25.00	2.90%	1.44%	8.77%	369.81%
UNB	56 Neutral	$105.77M	11.11	―	6.25%	14.58%	7.73%
SRBK	56 Neutral	$117.69M	39.72	1.57%	1.01%	9.43%	166.36%
BSBK	45 Neutral	$112.26M	225.92	0.35%	―	-15.09%	―