Stock analysis · Bull Rankings model

MGNI analysis

Magnite, Inc.Advertising Agencies. Scored on the same transparent model behind the daily rankings.

MGNI
Magnite, Inc. · Advertising Agencies
FCF$47mC-
Rev+7.1%B
D/E0.47B+
P/E17.1xB
PEG0.09A
72Score
$17.92$2.6B
1Y Target$22.40Analyst consensus · 15 analysts
5Y Target$28.28Compound horizon
10Y Target$36.27Long-dated conviction
FCF$47mTTM
C-
FCF $47m — barely positive; fragile cash position
Rev+7.1%TTM YoY
B
Revenue +7.1% — at or above S&P median
D/E0.47
B+
D/E 0.47 — below the Communication Services debt median (≈40th pctile)
P/E17.1x
B
P/E 17.1 — near the Communication Services median (≈60th pctile)
PEG0.09
A
PEG 0.09 — exceptional; paying well under fair value for growth

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 72
Quality0.58
Growth0.80
Value0.80
Entry · Margin of safety
52-week rangeMid-range
33% off the 12-month high
vs DCF fair value424% aboveest. fair value ~$3
What the price assumes: free cash flow compounding at ~56% a year for the next decade — vs the ~12% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability16% · C+gross profit ÷ total assets (Novy-Marx)
ROIC6.6% · C+return on invested capital — not score-weighted
Why now
Magnite’s omni‑channel sell‑side platform is poised to capture the booming CTV inventory market, driving a compounding revenue stream that already shows 7.1% YoY growth and a healthy 22% profit margin. The business converts that growth into cash, delivering $47 m of free cash flow and a stellar PE of 17.1x, while our Bull Rankings model flags Growth as its strongest pillar (score 80) and values the stock at a 56% annual FCF growth assumption—far above the 7% revenue pace, indicating upside if the market re‑prices that optimism. The thesis rests on sustained CTV monetization expanding the cash‑flow base.
Moat
Magnite’s platform locks publishers and buyers into a single marketplace for CTV, apps, and web inventory, creating high switching costs because advertisers rely on its unified data and real‑time bidding infrastructure. This network effect, combined with a 17.3% ROE generated from pricing power on premium inventory, shields the business from new entrants who must rebuild both supply and demand sides.
Risk
The stock trades at a lofty beta of 2.25 and a PE that already embeds a 56% FCF growth rate—far beyond the realistic 7.1% revenue expansion, making the valuation fragile if growth stalls. A modest 0.47 debt‑to‑equity ratio adds leverage risk, and the price sits near its 52‑week low of $10.82, suggesting the market may already be pricing in a slowdown. A sustained miss on quarterly revenue growth would confirm the bear case and force the stock back toward its low‑end range.
Horizon
1-3 yr $22.40 (15-analyst consensus) — multiple re-rating thesis requires a catalyst. 5 yr $28.28 at ~10% CAGR — dividend + buyback compounding. 10 yr $36.27 if the moat survives secular pressure.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Trend
+0.5 over 26 daily scores
From 71.5 (Jun 22) → 72.0 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
111
Position size
$1,989
4.0% of portfolio
Stop price
$13.44
25% below $17.92
$ at risk if stopped
$497.28
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Magnite, Inc. (MGNI): score, valuation & FAQ

Magnite, Inc. (MGNI) is a Advertising Agencies company that scores 72 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are PEG (A) and D/E (B+), while FCF (C-) rate weaker. On valuation, MGNI sits about 424% above our discounted-cash-flow fair value — the current price implies roughly 56% annual free-cash-flow growth over the next decade.

Is MGNI a good stock to buy?

Bull Rankings scores MGNI 72 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by PEG (A) and D/E (B+). A score is a quantitative screen of Magnite, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does MGNI score 72 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). MGNI earns its highest marks on PEG (A) and D/E (B+), and is held back by FCF (C-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is MGNI overvalued or undervalued?

Based on $17.92, MGNI sits about 424% above our discounted-cash-flow fair value — the current price implies roughly 56% annual free-cash-flow growth over the next decade. It trades at a 17.1x× P/E (graded B). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in MGNI?

The stock trades at a lofty beta of 2.25 and a PE that already embeds a 56% FCF growth rate—far beyond the realistic 7.1% revenue expansion, making the valuation fragile if growth stalls. A modest 0.47 debt‑to‑equity ratio adds leverage risk, and the price sits near its 52‑week low of $10.82, suggesting the market may already be pricing in a slowdown. A sustained miss on quarterly revenue growth would confirm the bear case and force the stock back toward its low‑end range.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

More Communication Services stocks by score

All Communication Services rankings →

Analyze another ticker →