Magnolia Oil & Gas MGY
United StatesEnergy · Oil & Gas E&PUSD
33.24 USD (+36.6%)
17 analysts
Trading 2120.30 €Open account ↗
Lightyear0.90 €Open account ↗
N260.90 €Open account ↗
XTB1.00 €★ featured · affiliateOpen account ↗Trading 2120.30 €Open account ↗Lightyear0.90 €Open account ↗XTB1.00 €★ featured · affiliateOpen account ↗200.00 € order · cheapest cheapest available in your country iCompare all 22 brokers →What does it do?
Magnolia Oil & Gas Corporation is an independent exploration and production (E&P) company focused on developing oil and gas assets in the Eagle Ford basin in Texas, with a low-cost, high capital-efficiency business model.
Key points
from its scores- ✓Very solid balance sheet8.6
- ✓High-quality business7.4
- ✓Attractive valuation7.2
- !Weak share-price trend5.8
AI analysis
bottom line, main risk, context and newsThe strength of the balance sheet and profitability are undeniable, but the cyclical peak and the potential reversal of the geopolitical oil premium limit the appeal at current levels.
Magnolia shows very solid fundamentals: almost no net debt (ND/EBITDA of 0.11), operating margins of 50.69%, and an ROIC of 20.5%. However, explosive earnings growth (136.6%) and record margins suggest the company is at the peak of the commodity cycle, warranting caution about the sustainability of these levels.
The main risk is the normalization of oil prices: a drop in crude, whether due to an agreement in the Strait of Hormuz or a global slowdown, would drastically compress margins and growth, which are currently at cycle highs.
Context and risks
The Strait of Hormuz has been functionally blocked since February 2026, with a new escalation on August 31. As a US oil and gas producer, Magnolia does not depend on that route for its production, but the geopolitical risk premium in crude is a factor that could reverse sharply if an agreement is reached, compressing realized prices and, with them, the company's margins and cash flow.
Is Magnolia Oil & Gas stock cheap or expensive?
at the analysis dateOn P/E and EV / EBITDA, it trades 30% below the Energy median on average.
| Multiple | Company | Sector | Difference |
|---|---|---|---|
| P/E | 10.7 | 15.7 | −32% |
| EV / EBITDA | 5.7 | 8.0 | −29% |
| Price / book | 2.1 | 2.2 | −8% |
| Price / sales | 4.5 | 1.9 | +136% |
Sector: median of the 102 Energy companies analysed. In bold, the multiples used for the comparison.
Valuation score: 7.2 out of 10 (median for Energy: 5.9).
Average analyst target: 33.24 USD, +36.6% versus the price.
A discount may reflect more risk or slower growth than its sector: Financial health 8.6 (sector 6.8), Growth 7.1 (sector 7.2).
Classic formulas with standard assumptions (10.0% growth, 8-9% discount rate). Indicative only: they change a lot with the assumptions and are not a recommendation.
Work out its fair value yourself →How much would you have made investing every month? →
Comparing it with its sector does not say whether it is a good buy: this is not investment advice.
Score by category
0 to 10 · hover overtap each one to see what it measuresKey metrics
at the analysis date · compared with the Energy medianValuation
- P/E
- 10.7
- Forward P/E
- 8.1
- EV / EBITDA
- 5.7
- Price / book
- 2.1
- Price / sales
- 4.5
- PEG
- 0.23
- Market cap
- 6.7B USD
- Enterprise value
- 5.9B USD
Profitability
- ROE
- 20.9%
- ROA
- 11.8%
- ROIC (approx.)
- 20.5%
- Gross margin
- 82.2%
- Operating margin
- 50.7%
- Net margin
- 28.8%
- Free cash flow
- 332.5M USD
- FCF yield
- 5.0%
- Cash conversion
- 32%
Solvency
- Total debt
- 413.1M USD
- Net debt
- 117.2M USD
- Cash
- 295.9M USD
- EBITDA
- 1.0B USD
- Net debt / EBITDA
- 0.11
- Debt / equity
- 19.24
- Current ratio
- 1.58
- Quick ratio
- 1.57
Growth
- Revenue growth
- +50.1%
- Earnings growth
- +136.6%
- EPS (TTM)
- 2.28 USD
- EPS (forward)
- 2.99 USD
Dividend
- Dividend yield
- 2.7%
- Payout
- 27.6%
Risk and market
- Beta
- 0.79
- Analyst consensus
- Buy (17)
- Target price
- 33.24 USD
- 52-week range
- 21.07 – 32.76
Recent news
All MGY news →Compare it with its sector
All 102 in Energy →Frequently asked questions about Magnolia Oil & Gas
Is Magnolia Oil & Gas stock cheap or expensive?
On P/E and EV / EBITDA, it trades 30% below the Energy median on average. Valuation score: 7.2 out of 10 (median for Energy: 5.9). Average analyst target: 33.24 USD, +36.6% versus the price. This is not investment advice.
What score does Magnolia Oil & Gas get on MeridIAn Screener?
It scores 7.2 out of 10, rank 140 of 2,130 (better than 93% of the companies analysed). Its strongest category is Financial health (8.6) and its weakest, Momentum (5.8). Analysis of 08/10/2026.
What is Magnolia Oil & Gas's P/E ratio?
Its P/E is 10.7: the share price equals 10.7 times earnings per share over the last 12 months. The Energy median is 15.7. Based on the earnings analysts expect, the forward P/E is 8.1.
How much is Magnolia Oil & Gas worth on the stock market?
Its market capitalisation is 6.7B USD and its enterprise value, debt included, is 5.9B USD.
How much debt does Magnolia Oil & Gas have?
Its net debt (debt minus cash) is 117.2M USD. That is 0.11 times its EBITDA; the Energy median is 1.23.
Does Magnolia Oil & Gas pay a dividend?
Yes: its dividend yield is 2.71% and it pays out 28% of its earnings.
How has Magnolia Oil & Gas stock performed over the last year?
It has risen 10.3% over the last year, excluding dividends. Over the last 52 weeks it has traded between 21.07 and 32.76 USD. Past performance does not guarantee future results.
What do analysts think of Magnolia Oil & Gas?
17 analysts cover it; their average recommendation is “Buy” and their average target is 33.24 USD (+36.6% versus the price). It is an estimate, not market data.