Magnolia Oil & Gas Corp, listed on the NYSE:MGY, is a key player in the oil and gas exploration and production sector in the United States. The company focuses on developing and producing oil and natural gas resources. It operates primarily in the Eagle Ford Shale and Austin Chalk formations in South Texas, which are known for their rich hydrocarbon deposits.
On February 18, 2025, MGY reported earnings per share (EPS) of $0.449, slightly below the estimated $0.46. MGY's revenue for the quarter was approximately $326.6 million, just under the estimated $327.4 million. The revenue marked a 1.2% increase compared to the same period the previous year. However, it fell short of expectations by a minor surprise of -0.01%, as noted by Zacks. Despite this, the company has exceeded consensus revenue estimates twice in the last four quarters.
Financial metrics such as the price-to-earnings (P/E) ratio, price-to-sales ratio, and enterprise value to sales ratio are crucial for investors. MGY's P/E ratio is approximately 12.44, indicating how much investors are willing to pay per dollar of earnings. The price-to-sales ratio stands at about 3.47, while the enterprise value to sales ratio is around 3.27. These figures help investors assess the company's valuation relative to its sales and earnings.
MGY's current ratio is approximately 0.90, which is below 1, indicating potential liquidity concerns. The current ratio measures a company's ability to pay short-term obligations with its short-term assets. A ratio below 1 suggests that the company may face challenges in meeting its short-term liabilities. Despite this, MGY's earnings yield is about 8.04%, which can be attractive to investors seeking income from their investments.
