Magnolia Oil & Gas Corporation Class A Common Stock (MGY)

FairStock Score: 53/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for understandable businesses, conservative balance sheets, and a price that leaves room for error. Magnolia fits the first two reasonably well. It owns South Texas oil and gas assets, and with only 262 employees it runs a focused operation. In fiscal Q2 2026, the quarter ended 2026-06-30, it reported revenue of $478.8M and net income of $181.8M, a 37.96% margin. That was much stronger than fiscal Q2 2025, the quarter ended 2025-06-30, when revenue was $319.0M and net income was $78.1M. The balance sheet is a Graham comfort: debt-to-equity 0.19, Altman Z-Score 4.60, and Piotroski F-Score 9/9. FairStock calculations show ROE 20.85%, ROCE 11.79%, FCF yield 9.2%, and EV/EBITDA 5.97. But this is a cyclical commodity producer; the Lynch category is cyclical Oil & Gas E&P because earnings follow the economic cycle. Filed annual figures show net income falling from $388.3M in FY2023, the year ended 2023-12-31, to $366.0M in FY2024, the year ended 2024-12-31, to $325.3M in FY2025, the year ended 2025-12-31, while revenue stayed near $1.3B. The 2026 quarters are encouraging, yet one quarter does not make a trend. At the 2026-10-13 close of $25.11, FairStock's P/E is 10.97, P/B is 2.13, and the Graham Number is $24.54, leaving a -2.32% margin of safety. The 2.62% dividend and low beta of 0.70 are pleasant, but I would want a wider discount for volatile oil and gas prices.

In plain English: Magnolia is a small Texas oil and gas producer working in the Eagle Ford Shale and Austin Chalk. The business is profitable and carries little debt, but its results rise and fall with energy prices, and yearly profits have slipped from earlier levels. At the recent price, the stock looks roughly fair rather than clearly cheap or expensive based on the numbers given.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer