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What do the Fundamentals Predict for Magnolia Oil & Gas Corp (MGY) Stock?

Friday, March 22, 2024 01:54 PM | InvestorsObserver Analysts

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What do the Fundamentals Predict for Magnolia Oil & Gas Corp (MGY) Stock?

Magnolia Oil & Gas Corp (MGY) receives a strong valuation ranking of 67 from InvestorsObserver data analysis. The proprietary ranking system focuses on the underlying health of a company through analysis of its stock price, earnings, and growth rate. MGY has a better value than 67% of stocks based on these valuation analytics. Investors primarily focused on buy-and-hold strategies will find the valuation ranking relevant to their goals when making investment decisions.

Valuation Rank - 67
MGY gets a 67 Valuation Rank today. Find out what this means to you and get the rest of the rankings on MGY!

Metrics Analysis

MGY has a trailing twelve month Price to Earnings (PE) ratio of 13.2 which places it around the histroical average of roughly 15. MGY is currently trading at a average value due to investors paying around what the stock is worth in relation to its earnings. MGY's trailing-12-month earnings per share (EPS) of 2.05 does justify its share price in the market. Trailing PE ratios do not factor in the company's projected growth rate, thus, some firms will have high PE ratios caused by high growth recruiting more investors even if the underlying company has produced low earnings so far.
MGY's 12-month-forward PE to Growth (PEG) ratio of 1.57 is considered a poor value as the market is overvaluing MGY in relation to the company's projected earnings growth due. MGY's PEG comes from its forward price to earnings ratio being divided by its growth rate. A PEG ratio of 1 represents a perfect correlation between earnings growth and share price. Due to their incorporation of more fundamentals of a company's overall health and focusing on the future rather than the past, PEG ratios are one of the most used valuation metrics by analysts today.

Summary

MGY' has a weak valuation at its current share price on account of a overvalued PEG ratio due to strong growth. MGY's PE and PEG are worse than the market average leading to a below average valuation score. Click Here to get the full Report on Magnolia Oil & Gas Corp (MGY) stock.

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