MGNIMagnite, Inc.
Is the business good?
A genuinely good business: earnings fully cash-backed (3.1×) and margins widening.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is worsening vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
Margin-driven, fat margins on slower asset turns. ROE 14% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is MGNI?
Magnite, Inc. earns 9.6% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
Return on invested capital · cost of capital 9.0% · 0.60 points above what the capital costs: growth creates value
- Operating margin
- 16%
Operating margin · Advertising Agencies median 5.7% · 12 months to Q2 2026
- Cash conversion
- 3.07×
Cash conversion · 3.48× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −0.73%
Share count, year on year · flat: no meaningful dilution
| Year | Operating margin |
|---|---|
| FY2020 | −24% |
| FY2021 | −17% |
| FY2022 | −20% |
| FY2023 | −25% |
| FY2024 | 7.6% |
| FY2025 | 14% |
Details›
- Gross margin12 months to Q2 2026
- 65%
- Operating margin12 months to Q2 2026
- 16%
- Net margin12 months to Q2 2026
- 22%
- Free cash flow margin
- 29%
- R&D as % of revenue
- 12%
- Revenue, trailing twelve months
- $742M
- Free cash flow, trailing twelve months
- $216M
- Net income, trailing twelve months
- $167M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 9.6%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Advertising Agencies
Ranks #9 of 11 by RyuScore