📊 MGY Key Takeaways
Is Magnolia Oil & Gas Corp (MGY) a Good Investment?
Magnolia Oil & Gas demonstrates exceptional financial health with 27.8% net margins, fortress balance sheet (0.19x debt/equity), and exceptional 55.1% FCF margin generating $197.6M in annual free cash flow. However, flat revenue (-0.3% YoY), low ROE of 4.9%, and minimal capital returns growth indicate a mature, cash-generative business with limited upside momentum.
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 profitability: 27.8% net margin and 35.6% operating margin indicate strong operational efficiency
- Fortress balance sheet: Only $34.3M total liabilities against $2.9B assets with 0.19x debt/equity ratio and 17.2x interest coverage
- Outstanding cash generation: $197.6M operating cash flow with 55.1% FCF margin shows efficient conversion of earnings to cash
- Financial stability: Growing net income (+1.4% YoY) despite flat revenue demonstrates margin expansion and operational improvement
- 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
- No revenue growth: -0.3% YoY decline with flat-to-declining top-line trajectory raises sustainability concerns
- Low capital returns: 4.9% ROE and 3.4% ROA suggest inefficient deployment of the substantial equity base and asset base
- Commodity price volatility: As crude petroleum & natural gas producer, earnings highly sensitive to commodity price cycles not captured in current data
- Modest liquidity buffer: 1.10x current ratio provides adequate but not exceptional short-term coverage
- 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 exposure hedging strategies
- Return on equity improvement initiatives and capital allocation decisions
- Operating margin sustainability and cost structure trends
- Free cash flow conversion rates and capital expenditure plans
- 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 55.1% 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 has mixed fundamental signals 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 |
|---|---|---|---|
| Q1 2026 | $350.3M | $99.8M | N/A |
| 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 |
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 |
|---|---|---|---|
| May 12, 2026 | 4 | xslF345X06/form4-05122026_080544.xml | View → |
| May 12, 2026 | 4 | xslF345X06/form4-05122026_080517.xml | View → |
| May 12, 2026 | 4 | xslF345X06/form4-05122026_080528.xml | View → |
| May 12, 2026 | 4 | xslF345X06/form4-05122026_080526.xml | View → |
| May 12, 2026 | 4 | xslF345X06/form4-05122026_080524.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 (HOLD) and ChatGPT (BUY) with 78% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MGY's key strengths?
Claude: Exceptional profitability: 27.8% net margin and 35.6% operating margin indicate strong operational efficiency. Fortress balance sheet: Only $34.3M total liabilities against $2.9B assets with 0.19x debt/equity ratio and 17.2x interest coverage. 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: No revenue growth: -0.3% YoY decline with flat-to-declining top-line trajectory raises sustainability concerns. Low capital returns: 4.9% ROE and 3.4% ROA suggest inefficient deployment of the substantial equity base and asset base. 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 $358.5M.
Does MGY pay dividends?
Magnolia Oil & Gas Corp pays dividends, with $30.5M 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 May 2026, Magnolia Oil & Gas Corp has a BUY rating with 78% 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 4.9% (sector avg: 14%), net margin of 27.8% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
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 $197.6M, with capital expenditures of N/A. FCF margin is 55.1%.
How does MGY compare to other Energy stocks?
Vs Energy sector averages: Net margin 27.8% (avg: 12%), ROE 4.9% (avg: 14%), current ratio 1.10 (avg: 1.3).