Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Magnolia Oil & Gas Corporation (MGY)

Company Dividend Discount ModelIndustry: Oil & Gas Exploration & ProductionSector: Energy

Valuation Snapshot

Stable Growth$12.83 - $18.45$15.57
Multi-Stage$20.81 - $22.84$21.81
Blended Fair Value$18.69
Current Price$23.87
Upside-21.71%
DecisionDon't Buy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR202420232022202120202019201820172016
DPS0.00%0.00%0.520.470.400.080.000.000.000.000.000.00
YoY Growth--10.83%17.13%432.15%0.00%0.00%0.00%0.00%0.00%0.00%0.00%
Dividend Yield--2.06%1.79%1.83%0.32%0.00%0.00%0.00%0.00%0.00%0.00%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)342.10
(-) Cash Dividends Paid (M)110.44
(=) Cash Retained (M)231.66
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)68.4242.7625.66
Cash Retained (M)231.66231.66231.66
(-) Cash Required (M)-68.42-42.76-25.66
(=) Excess Retained (M)163.24188.90206.00
(/) Shares Outstanding (M)187.65187.65187.65
(=) Excess Retained per Share0.871.011.10
LTM Dividend per Share0.590.590.59
(+) Excess Retained per Share0.871.011.10
(=) Adjusted Dividend1.461.601.69
WACC / Discount Rate9.14%9.14%9.14%
Growth Rate-2.00%-1.00%0.00%
Fair Value$12.83$15.57$18.45
Upside / Downside-46.26%-34.77%-22.72%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)342.10338.68335.29331.94328.62325.33335.09
Payout Ratio32.28%43.83%55.37%66.91%78.46%90.00%92.50%
Projected Dividends (M)110.44148.43185.65222.11257.82292.80309.96

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate9.14%9.14%9.14%
Growth Rate-2.00%-1.00%0.00%
Year 1 PV (M)134.62135.99137.37
Year 2 PV (M)152.72155.85159.01
Year 3 PV (M)165.71170.84176.07
Year 4 PV (M)174.47181.70189.15
Year 5 PV (M)179.70189.06198.80
PV of Terminal Value (M)3,097.133,258.413,426.33
Equity Value (M)3,904.364,091.854,286.74
Shares Outstanding (M)187.65187.65187.65
Fair Value$20.81$21.81$22.84
Upside / Downside-12.83%-8.65%-4.30%

High-Yield Dividend Screener

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