How to buy Magellan Financial shares | A$55.74

Magellan Financial Group Limited is an asset management business based in Australia. Magellan Financial shares (MFG) are listed on the Australian Securities Exchange (ASX) and all prices are listed in Australian Dollars. Its last market close was $55.74 – a decrease of 2.09% over the previous week. Magellan Financial has a trailing 12-month revenue of around $694.8 million.

How to buy shares in Magellan Financial

1. Compare share trading platforms. To buy shares listed in Australia, you'll need to sign up to a broker with access to the Australian Securities Exchange (ASX). Our table below can help you choose.
2. Open and fund your brokerage account. Complete an application with your personal and financial details, like your ID and tax file number. Fund your account with a bank transfer, PayPal or debit card.
3. Search for Magellan Financial. Find the share by name or ticker symbol: MFG. Research its history to confirm it's a solid investment against your financial goals.
4. Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Magellan Financial reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying at consistent intervals and amounts.
5. Decide on how many to buy. At today's price of $55.74, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs.
6. Check in on your investment. Congratulations, you own a part of Magellan Financial. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights on directors and management that can affect your stock.

How has coronavirus impacted Magellan Financial's share price?

Since the stock market crash in March caused by coronavirus, Magellan Financial's share price has had significant negative movement.

Its last market close was $55.74, which is 23.01% down on its pre-crash value of $72.4 and 85.18% up on the lowest point reached during the March crash when the shares fell as low as $30.1.

If you had bought $1,000 worth of Magellan Financial shares at the start of February 2020, those shares would have been worth $467.09 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $846.69.

Magellan Financial share price

Use our graph to track the performance of MFG stocks over time.

Magellan Financial shares at a glance

• Key figures

Information last updated 2020-09-20.

Latest market close	AUDA$55.74
52-week range	AUDA$30.1 - AUDA$74.91
50-day moving average	AUDA$60.6677
200-day moving average	AUDA$54.9424
Target price	AUDA$28.95
PE ratio	26.4086
Dividend yield	AUDA$2.15 (3.77%)
Earnings per share (TTM)	AUDA$2.183

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The value of your investments can fall as well as rise and you may get back less than you invested. Past performance is no indication of future results.

Is it a good time to buy Magellan Financial stock?

The technical analysis gauge below displays real-time ratings for the timeframes you select. This is not a recommendation, however. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.

Technical Analysis of Magellan Financial Group Limited by TradingView

Magellan Financial price performance over time

Historical closes compared with the last close of A$55.74

1 week (2020-09-14)	-1.88%
1 month (2020-08-24)	-10.99%
3 months (2020-06-20)	N/A
6 months (2020-03-23)	81.27%

1 year (2019-09-20)	6.17%
2 years (2018-09-21)	99.86%
3 years (2017-09-21)	141.30%
5 years (2015-09-21)	200.97%

Is Magellan Financial under- or over-valued?

Valuing Magellan Financial stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Magellan Financial's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.

Magellan Financial's P/E ratio

Magellan Financial's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 26x. In other words, Magellan Financial shares trade at around 26x recent earnings.

That's relatively low compared to, say, the P/E ratio for the ASX over the 12 months to December 2019 (32.14). The low P/E ratio could mean that investors are pessimistic about the outlook for the shares or simply that they're under-valued.

Magellan Financial's EBITDA

Magellan Financial's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $576.4 million (£0.0 million).

The EBITDA is a measure of a Magellan Financial's overall financial performance and is widely used to measure a its profitability.

Magellan Financial financials

Revenue TTM	$694.8 million
Operating margin TTM	82.26%
Gross profit TTM	$620.9 million
Return on assets TTM	37.13%
Return on equity TTM	44.52%
Profit margin	57.03%
Book value	5.738
Market capitalisation	$10.4 billion

TTM: trailing 12 months

Magellan Financial share dividends

Dividend payout ratio: 93.59% of net profits

Recently Magellan Financial has paid out, on average, around 93.59% of net profits as dividends. That has enabled analysts to estimate a "forward annual dividend yield" of 3.77% of the current stock value. This means that over a year, based on recent payouts (which are sadly no guarantee of future payouts), Magellan Financial shareholders could enjoy a 3.77% return on their shares, in the form of dividend payments. In Magellan Financial's case, that would currently equate to about A$2.15 per share.

Magellan Financial's payout ratio would broadly be considered high, and as such this stock could appeal to those looking to generate an income. Bear in mind however that companies should normally also look to re-invest a decent amount of net profits to ensure future growth.

The latest dividend was paid out to all shareholders who bought their shares by 16 August 2020 (the "ex-dividend date").

Have Magellan Financial's shares ever split?

Magellan Financial's shares were split on 10 April 2007.

Magellan Financial share price volatility

Over the last 12 months, Magellan Financial's shares have ranged in value from as little as $30.1 up to $74.91. A popular way to gauge a stock's volatility is its "beta".

Beta is a measure of a share's volatility in relation to the market. The market (AU average) beta is 1, while Magellan Financial's is 1.3518. This would suggest that Magellan Financial's shares are more volatile than the average for this exchange and represent, relatively-speaking, a higher risk (but potentially also market-beating returns).

Magellan Financial overview

Magellan Financial Group Limited is a publicly owned investment manager. It invests in global equities and global listed infrastructure markets across the globe. Magellan Financial Group Limited founded in 2004 and is based in Sydney, Australia.

Frequently asked questions

• What percentage of Magellan Financial is owned by insiders or institutions?

  Currently 31.181% of Magellan Financial shares are held by insiders and 15.828% by institutions.

• When does the fiscal year end for Magellan Financial?

  Magellan Financial's fiscal year ends in June.

• Where is Magellan Financial based?

  Magellan Financial's address is: MLC Centre, Sydney, NSW, Australia, 2000

• What is Magellan Financial's ISIN number?

  Magellan Financial's international securities identification number is: AU000000MFG4