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MARKETS / BALCAO / Technology / Software / RMTHF
BALCAO · SERVICES-PREPACKAGED SOFTWARE · MID CAP

Magic Software Enterprises Ltd. RMTHF

13 fiscal years on record · USD · FY2021 reported · SEC filings only
$29.3M
▲ 16.5% YoY
$36.4M
▼ 26.6% YoY

Slide the table for earlier years · "·" marks a figure not available in our data for that year.

In brief

What this company does

Magic Software Enterprises, together with its subsidiaries, provides software services and Information Technology outsourcing software services, proprietary application development and business process integration platforms, selected packaged vertical software solutions, and cloud-based services for end to end digital transformation. It has approximately 3,787 employees who serve its clients at any given time. As part of its software services and IT outsourcing services, it offers professional services to hundreds of customers mainly in Israel and North America, spanning infrastructure design and delivery, application development, technology consulting planning and implementation services, integration projects, project management, software testing and quality assurance, engineering consulting, support services, cloud, cyber, digital, data and DevOps. Its sales force is based in regional offices in the United States, Japan, Germany, United Kingdom, Netherlands, France, Hungary, South Africa, India and Israel. Its subsidiary TGG provides permanent and temporary staffing services in sectors including Information Technology, Accounting & Finance, Digital Media, Marketing, Human Resources, and Financial Services. Magic Software Enterprises Ltd. was organized and registered in Israel on February 10, 1983 and began operations in 1986. Its Ordinary Shares have been listed on the NASDAQ Global Stock Market since its initial public offering in the United States on August 16, 1991.

Written from the business description in Magic Software Enterprises Ltd's annual report to the U.S. Securities and Exchange Commission, filed 15 May 2025. Every sentence was checked against that document before publication.

Growth

·
Revenue, FY2021 · full 13-year series below
Revenue $M Net income $M
FY2018 · Revenue 284.4 · Net income 19.9
100M200M
20092012201520182021
Compound annual growth
+17.3%
+14.4%
+13.8%
+15.7%
+6.9%
+11.9%
+6.4%
+17.2%
+22.9%
3 yrs
5 yrs
10 yrs
15 yrs

Revenue compounded at +14.4% a year over the five years to FY2018.

Compound annual rates per period — left blank where that exact year isn't on file, the series crosses a loss, or (per-share rows) a split falls inside the window.

Profitability

·
Operating margin Net margin
FY2018 · Operating 11.1% · Net 8.7%
5%10%
200920152021
ROE
FY2021 · ROE 11.2%
5%10%15%
200920152021
Three returns, three denominators.
Gross margin·
Operating margin·
Net margin·
EBITDAUSD 53.0M

Each USD of equity produced 11 cents of profit this year.

Cash & shareholders

USD 21.8M
returned in FY2021 · dividends + net buybacks
Free cash flow $M
FY2021 · FCF 36.4
20M40M
200920152021
Net buybacks $M Dividends $M
FY2021 · Dividends 21.8 · Net buybacks ·
10M20M
2010201220142016201820202021
Dividends paidUSD 21.8M
Net buybacks·
Share of profit74.3%
Consecutive raises·

USD 21.8M in dividends — 74% of the year's profit went back to shareholders.

Total assetsUSD 492.0M
EquityUSD 265.2M
CashUSD 88.1M
Current ratio2.28×

Equity funds 54% of total assets.

The 13-year record

13 fiscal years
Every figure from documents filed with the SEC · USD

EPS, diluted, dividend per share and shares outstanding are shown without shading, and a vertical line marks the year the share count changed — the series crosses a large, unexplained change in share count, so the years on either side are not on a comparable scale.

row low → row highnegative—not applicable◌not available in our data
RMTHF, 13-year financial record
Metric 2021202020192018201720162015201420132012201120102009
Revenue $B◌◌◌0.30.30.20.20.20.10.10.10.10.1
Operating income $B0.10.00.00.00.00.00.00.00.00.00.00.00.0
EBITDA $B0.10.00.00.00.00.00.00.00.00.00.00.0◌
Income tax $B0.00.00.00.00.00.00.00.00.00.0−0.0−0.00.0
Net income $B0.00.00.00.00.00.00.00.00.00.00.00.00.0
Free cash flow $B0.00.00.00.00.00.00.00.00.00.00.00.00.0
EPS, diluted $◌0.490.260.390.350.270.360.360.430.440.410.290.19
Dividend / sh $◌◌◌◌◌◌◌◌◌◌◌◌◌
Payout %745074686155485649230170—
ROE %11.29.98.28.87.67.38.69.912.914.515.512.810.0
Shares out B0.050.050.050.050.040.040.040.040.040.040.0435.91◌

Slide the table for earlier years. "—" not applicable · "◌" not available in our data.

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Provenance

Company facts, as filed

How we verify · 3 failures · 3 divergences in 60 reconciliationsAUDITED

Reconciled in 8 of the 13 fiscal years we could check. 3 of those reconciliations are divergences — the figures exist but don't fit the formula this check expects; that isn't the same as an error. Six checks were skipped: the balance sheet is not tagged before 2010. Three checks were skipped: the share count is not tagged before 2010. Two checks were skipped: revenue is not tagged before 2009.

EPS recomputationBalance-sheet identityGross profitBalance-sheet liquidityCurrency consistency3 failures3 divergent
ActivityServices-Prepackaged Software
Listed onOTC market
Incorporated inoutside the United States — SEC code L3
Fiscal year endsDecember 31
Data on record since2008

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