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Magnite Inc MGNI

Morningstar Rating
$9.33 −0.17 (1.79%)
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Company Report

Magnite Strong Q4 Overshadowed by Weak Guidance; $15.50 FVE; Shares Becoming Attractive Again

Magnite, formerly The Rubicon Project, has successfully transitioned from an online digital ad exchange platform to one of the leading complete independent sell-side platforms in the programmatic digital ad market. The firm continues to focus on the connected TV, or CTV, market which we estimate will grow around 21% per year in the U.S. through 2027. With publishers such as Disney, Fox, and fuboTV expanding CTV inventory, we think Magnite’s revenue growth can outpace the market.

Price vs Fair Value

MGNI is trading at a 40% discount.
Price
$9.33
Fair Value
$19.80
Uncertainty
Very High
1-Star Price
$48.44
5-Star Price
$9.61
Economic Moat
Cyqn
Capital Allocation
Cjrxpvmt

Bulls Say, Bears Say

Bulls

With acquisitions and continuing growth in not only CTV but also mobile, Magnite’s network effect will strengthen, allowing it to grab a large portion of the CTV advertising market share.

Bears

If necessary, Google will create significant pricing pressure on Magnite and other supply-side platforms.

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News

Trading Information

Previous Close Price
$9.50
Day Range
$9.279.60
52-Week Range
$6.2815.73
Bid/Ask
$9.00 / $10.08
Market Cap
$1.29 Bil
Volume/Avg
822,578 / 949,815

Key Statistics

Price/Earnings (Normalized)
17.57
Price/Sales
2.09
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield

Company Profile

Magnite is one of the largest supply-side platform providers, or SSP, in online advertising. The firm was previously named The Rubicon Project (an online ad exchange) and became Magnite after merging with Telaria (an SSP focused mainly on streaming video providers) in 2020. The firm also purchased another of the leading SSPs within the CTV market, SpotX, in 2021 for $1.2 billion, cementing its long-term focus on grabbing market share in this area. The firm generates nearly 45% of its revenue from the programmatic sale of CTV ad inventory, 35% from mobile online sites and apps, and the remaining from websites accessed via computer.
Sector
Communication Services
Industry
Advertising Agencies
Stock Style Box
Small Core
Total Number of Employees
947

Competitors

Valuation

Metric
MGNI
AMZN
GOOGL
Price/Earnings (Normalized)
17.5760.1924.78
Price/Book Value
1.988.796.42
Price/Sales
2.093.126.04
Price/Cash Flow
9.5718.5917.58
Price/Earnings
MGNI
AMZN
GOOGL

Financial Strength

Metric
MGNI
AMZN
GOOGL
Quick Ratio
1.100.701.94
Current Ratio
1.120.982.10
Interest Coverage
−6.137.45266.75
Quick Ratio
MGNI
AMZN
GOOGL

Profitability

Metric
MGNI
AMZN
GOOGL
Return on Assets (Normalized)
2.85%9.11%24.48%
Return on Equity (Normalized)
9.89%26.76%35.00%
Return on Invested Capital (Normalized)
6.98%14.52%30.54%
Return on Assets
MGNI
AMZN
GOOGL
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