📊 MGY Key Takeaways
Is Magnolia Oil & Gas Corp (MGY) a Good Investment?
Magnolia Oil & Gas demonstrates exceptional financial health with industry-leading profitability metrics, generating 67% free cash flow margins and maintaining fortress-like balance sheet strength with minimal leverage (0.20x debt/equity). The company's ability to generate substantial cash flow ($878.6M operating CF) while maintaining high operating margins (33.5%) and robust returns on equity (16.3%) indicates efficient capital allocation and operational excellence.
Magnolia Oil & Gas shows strong underlying fundamentals, with high operating and net margins, solid returns on capital, and very strong cash generation relative to revenue. The balance sheet appears conservative with low leverage and excellent interest coverage, but flat revenue growth and limited capital spending detail suggest the business is strong rather than clearly accelerating.
Why Buy Magnolia Oil & Gas Corp Stock? MGY Key Strengths
- Exceptional FCF generation with 67% FCF margin, providing significant capital allocation flexibility
- Strong balance sheet with 0.20x debt/equity ratio and $266.8M cash position providing financial stability
- High profitability metrics: 33.5% operating margin, 24.8% net margin, and 16.3% ROE demonstrate operational efficiency
- Outstanding interest coverage ratio of 59.2x indicates minimal financial distress risk
- Positive net income growth (+1.4% YoY) despite flat revenue, suggesting margin expansion and cost discipline
- Robust liquidity with 1.54x current ratio and quick ratio, supporting operational continuity
- Strong profitability with 33.5% operating margin and 24.8% net margin
- Excellent cash generation, with operating cash flow of $878.64M and 67.0% free cash flow margin
- Low financial risk supported by 0.20x debt-to-equity, 1.54x current ratio, and 59.2x interest coverage
MGY Stock Risks: Magnolia Oil & Gas Corp Investment Risks
- Revenue decline of 0.3% YoY indicates potential commodity price headwinds or production challenges in the cyclical energy sector
- Heavy dependence on commodity prices (crude oil and natural gas) creates earnings volatility and forecasting uncertainty
- Significant insider activity with 14 Form 4 filings in 90 days warrants monitoring for potential insider knowledge of adverse developments
- Capital expenditure data not disclosed, limiting assessment of growth investment strategy and asset replacement pace
- Absence of gross profit data prevents evaluation of production cost trends and upstream operational efficiency
- Revenue was essentially flat year over year, limiting evidence of near-term growth acceleration
- Commodity-driven earnings can be volatile even when current margins are strong
- Incomplete cash flow and balance sheet detail, including missing capex context, reduces visibility into sustaining free cash flow quality
Key Metrics to Watch
- Revenue growth trajectory and commodity price sensitivity
- Operating cash flow sustainability and free cash flow conversion rate
- Debt/equity ratio and long-term debt trends relative to cash generation
- Capital expenditure levels and reserve replacement ratios
- Net margin trends and cost management effectiveness
- Revenue and production growth versus margin stability
- Operating cash flow and capital spending discipline over the next few filings
Magnolia Oil & Gas Corp (MGY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 67.0% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
MGY Profit Margin, ROE & Profitability Analysis
MGY vs Energy Sector: How Magnolia Oil & Gas Corp Compares
How Magnolia Oil & Gas Corp compares to Energy sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Magnolia Oil & Gas Corp Stock Overvalued? MGY Valuation Analysis 2026
Based on fundamental analysis, Magnolia Oil & Gas Corp appears fundamentally strong relative to the Energy sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Magnolia Oil & Gas Corp Balance Sheet: MGY Debt, Cash & Liquidity
MGY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Magnolia Oil & Gas Corp's revenue has grown significantly by 22% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.25 reflects profitable operations.
MGY Revenue Growth, EPS Growth & YoY Performance
MGY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $324.9M | $75.5M | N/A |
| Q2 2025 | $319.0M | $78.1M | N/A |
| Q1 2025 | $319.4M | $85.1M | N/A |
| Q3 2024 | $315.7M | $99.8M | N/A |
| Q2 2024 | $280.3M | $91.5M | N/A |
| Q1 2024 | $308.4M | $85.1M | N/A |
| Q3 2023 | $315.7M | $102.0M | N/A |
| Q2 2023 | $280.3M | $91.5M | N/A |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Magnolia Oil & Gas Corp Dividends, Buybacks & Capital Allocation
MGY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Magnolia Oil & Gas Corp (CIK: 0001698990)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 31, 2026 | 4 | xslF345X06/form4-03312026_080304.xml | View → |
| Mar 24, 2026 | DEF 14A | mgy-20260508xdef14a.htm | View → |
| Mar 11, 2026 | 4 | xslF345X05/form4-03112026_080321.xml | View → |
| Mar 11, 2026 | 4 | xslF345X05/form4-03112026_080310.xml | View → |
| Mar 11, 2026 | 4 | xslF345X05/form4-03112026_080304.xml | View → |
❓ Frequently Asked Questions about MGY
What is the AI rating for MGY?
Magnolia Oil & Gas Corp (MGY) has a Combined AI Rating of BUY from Claude (STRONG BUY) and ChatGPT (BUY) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MGY's key strengths?
Claude: Exceptional FCF generation with 67% FCF margin, providing significant capital allocation flexibility. Strong balance sheet with 0.20x debt/equity ratio and $266.8M cash position providing financial stability. ChatGPT: Strong profitability with 33.5% operating margin and 24.8% net margin. Excellent cash generation, with operating cash flow of $878.64M and 67.0% free cash flow margin.
What are the risks of investing in MGY?
Claude: Revenue decline of 0.3% YoY indicates potential commodity price headwinds or production challenges in the cyclical energy sector. Heavy dependence on commodity prices (crude oil and natural gas) creates earnings volatility and forecasting uncertainty. ChatGPT: Revenue was essentially flat year over year, limiting evidence of near-term growth acceleration. Commodity-driven earnings can be volatile even when current margins are strong.
What is MGY's revenue and growth?
Magnolia Oil & Gas Corp reported revenue of $1.3B.
Does MGY pay dividends?
Magnolia Oil & Gas Corp pays dividends, with $113.1M distributed to shareholders in the trailing twelve months.
Where can I find MGY SEC filings?
Official SEC filings for Magnolia Oil & Gas Corp (CIK: 0001698990) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MGY's EPS?
Magnolia Oil & Gas Corp has a diluted EPS of $0.24.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MGY a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Magnolia Oil & Gas Corp has a BUY rating with 80% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is MGY stock overvalued or undervalued?
Valuation metrics for MGY: ROE of 16.3% (sector avg: 14%), net margin of 24.8% (sector avg: 12%). Higher ROE suggests strong returns relative to peers.
Should I buy MGY stock in 2026?
Our dual AI analysis gives Magnolia Oil & Gas Corp a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is MGY's free cash flow?
Magnolia Oil & Gas Corp's operating cash flow is $878.6M, with capital expenditures of N/A. FCF margin is 67.0%.
How does MGY compare to other Energy stocks?
Vs Energy sector averages: Net margin 24.8% (avg: 12%), ROE 16.3% (avg: 14%), current ratio 1.54 (avg: 1.3).