Magal Security Systems Ltd.
Find Ratings Reports
0.11 |
2.30%
MAGAL SECURITY SYSTEMS's gross profit margin for the third quarter of its fiscal year 2020 has decreased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. MAGAL SECURITY SYSTEMS is extremely liquid. Currently, the Quick Ratio is 3.01 which clearly shows the ability to cover any short-term cash needs. MAGS managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 2.61% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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| Income Statement | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Net Sales ($mil) | 18.25 | 22.19 |
| EBITDA ($mil) | 1.34 | 3.06 |
| EBIT ($mil) | 0.85 | 2.52 |
| Net Income ($mil) | 0.62 | 1.3 |
| Balance Sheet | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Cash & Equiv. ($mil) | 53.91 | 54.55 |
| Total Assets ($mil) | 122.82 | 123.38 |
| Total Debt ($mil) | 3.26 | 4.32 |
| Equity ($mil) | 87.71 | 85.48 |
| Profitability | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Gross Profit Margin | 44.45 | 47.52 |
| EBITDA Margin | 7.33 | 13.8 |
| Operating Margin | 4.66 | 11.37 |
| Sales Turnover | 0.62 | 0.72 |
| Return on Assets | 2.43 | 0.33 |
| Return on Equity | 3.41 | 0.48 |
| Debt | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Current Ratio | 3.77 | 3.23 |
| Debt/Capital | 0.04 | 0.05 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q3 FY20 | Q3 FY19 |
|---|---|---|
| Shares outstanding (mil) | 23.15 | 23.15 |
| Div / share | 0.0 | 0.0 |
| EPS | 0.01 | 0.06 |
| Book value / share | 3.79 | 3.69 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 109822.0 | 19317.0 |
BUY. MAGAL SECURITY SYSTEMS's P/E ratio indicates a discount compared to an average of 62.79 for the Computer and Electronic Product Manufacturing subsector and a significant premium compared to the S&P 500 average of 39.85. For additional comparison, its price-to-book ratio of 1.35 indicates a significant discount versus the S&P 500 average of 4.14 and a significant discount versus the subsector average of 6.19. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, MAGAL SECURITY SYSTEMS proves to trade at a discount to investment alternatives.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MAGS 56.67 | Peers 143.32 | MAGS NA | Peers 26.07 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. MAGS is trading at a significant discount to its peers. |
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures. Ratio not available. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| MAGS NA | Peers 28.93 | MAGS NA | Peers 1.20 | |||||||||||||||||||||
|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential. Ratio not available. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. Ratio not available. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| MAGS 1.35 | Peers 6.19 | MAGS 350.00 | Peers 11.20 | |||||||||||||||||||||
|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. MAGS is trading at a significant discount to its peers. |
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. MAGS is expected to have an earnings growth rate that significantly exceeds its peers. |
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| Price/Sales |
|
Sales Growth |
|
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| MAGS 1.56 | Peers 7.71 | MAGS -14.99 | Peers 1.41 | |||||||||||||||||||||
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Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. MAGS is trading at a significant discount to its subsector on this measurement. |
Lower. A sales growth rate that trails the subsector implies that a company is losing market share. MAGS significantly trails its peers on the basis of sales growth. |
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