Magnite Inc. Common Stock (MGNI)

FairStock Score: 70/100 — STEADY

Key Financials

Strengths

• Generates $120 million in annual free cash flow (6.7% yield on market cap)
• Strong Piotroski F-Score of 9/9 indicating robust financial health across profitability, leverage, and efficiency metrics
• Solid return on equity of 17.1% above cost of capital
• Healthy net profit margin of 17.2% showing consistent profitability
• FairStock composite score of 70/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Altman Z-Score of 0.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

Magnite Inc. Common Stock is a micro-cap communication services company valued at $1.8 billion. The business generates $714 million in annual revenue with a 17.2% net margin and $120 million in free cash flow. From a quality standpoint, Magnite shows near-perfect Piotroski F-Score of 9/9 indicating exceptional financial health and distressed Altman Z-Score of 0.4 warrants caution. On valuation, the stock is attractively valued at 13.2x earnings, with trades above its Graham Number with a negative 7% margin. Growth dynamics show revenue growing at 5.9% and profit growth of 238.0%. Our composite FairStock Score of 70/100 reflects above-average fundamentals overall. This combination of reasonable valuation, solid returns, and conservative leverage makes it worth a closer look for value-oriented portfolios.

Bull Case

The market underappreciates Magnite's consistent 17% ROE at just 13x earnings—a re-rating toward sector peers could unlock 30-50% upside. With $120 million in annual free cash flow (6.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the communication services space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer