MGYMagnolia Oil & Gas Corporation
Is the business good?
The checks split: earnings fully cash-backed (2.3×), but margins compressing.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Negative operating leverage, costs are rising faster than sales, squeezing margins as it grows.
Margin-driven, fat margins on slower asset turns. ROE 17% = 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 MGY?
Magnolia Oil & Gas Corporation earns 20% 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% · 11 points above what the capital costs: growth creates value
- Operating margin
- 38%
Operating margin · Oil & Gas E&P median 25% · 12 months to Q2 2026
- Cash conversion
- 2.29×
Cash conversion · 2.17× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −1.0%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | −356% |
| FY2021 | 56% |
| FY2022 | 63% |
| FY2023 | 44% |
| FY2024 | 39% |
| FY2025 | 33% |
Details›
- Operating margin12 months to Q2 2026
- 38%
- Net margin12 months to Q2 2026
- 29%
- Revenue, trailing twelve months
- $1.48B
- Net income, trailing twelve months
- $426M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 20%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.