Magyar Bancorp, Inc. (MGYR) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Magyar Bancorp, Inc. (MGYR) Financial Services Profile

Magyar Bancorp, Inc., through Magyar Bank, delivers consumer and commercial banking solutions in New Jersey, focusing on deposit accounts, diverse loan products, and financial planning services. With a community-centric approach and a history dating back to 1922, Magyar Bank serves individuals, businesses, and non-profit organizations across seven branch locations.

What Is the Investment Thesis for MGYR?

With a P/E ratio of 10.44 and a profit margin of 18.3%, the company demonstrates financial stability and profitability. The dividend yield of 2.04% offers an income stream for investors. Growth catalysts include expanding its commercial lending operations and enhancing its digital banking platform to attract a younger demographic. Potential risks involve increased competition from larger regional banks and the impact of fluctuating interest rates on its net interest margin. The company's beta of 0.24 suggests lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

MGYR Key Highlights

Market capitalization of $128M, reflecting its position as a smaller regional bank.

• P/E ratio of 10.44, indicating a potentially undervalued stock compared to its earnings.
• Profit margin of 18.3%, showcasing efficient operations and profitability.
• Gross margin of 61.1%, highlighting the bank's ability to generate revenue from its services.
• Dividend yield of 2.04%, providing a steady income stream for investors.

Who Are MGYR's Competitors?

MGYR is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are MGYR's Key Strengths?

Strong local market presence in New Jersey.

• Diversified loan portfolio.
• Experienced management team.
• Community-focused banking approach.

What Are MGYR's Weaknesses?

Limited geographic reach compared to larger regional banks.

• Dependence on traditional banking services.
• Smaller asset base compared to competitors.
• Limited brand recognition outside of New Jersey.

What Could Drive MGYR Stock Higher?

Expansion of digital banking services to attract younger customers.

• Increased focus on commercial lending to drive revenue growth.
• Strategic acquisitions of smaller community banks to expand market share.

What Are the Key Risks for MGYR?

Financial-distress signal — its Altman Z-Score of -0.64 sits in the distress zone (elevated bankruptcy risk).

• Increased competition from larger regional and national banks.
• Impact of fluctuating interest rates on net interest margin.
• Regulatory changes affecting the banking industry.
• Economic downturn in the New Jersey market.

What Are the Growth Opportunities for MGYR?

• Expansion of Commercial Lending: Magyar Bancorp can capitalize on the growing demand for commercial loans in the New Jersey market. By targeting small and medium-sized businesses (SMBs) with tailored loan products and streamlined application processes, Magyar Bank can increase its loan portfolio and revenue. The SMB lending market in New Jersey is estimated at $5 billion annually, offering significant growth potential. Timeline: Ongoing.
• Digital Banking Platform Enhancement: Investing in a robust and user-friendly digital banking platform is crucial for attracting and retaining customers, particularly younger demographics. Magyar Bank can enhance its online and mobile banking services by offering features such as mobile check deposit, online bill pay, and personalized financial management tools. The digital banking market is projected to grow by 15% annually, reaching $10 billion by 2028. Timeline: Ongoing.
• Strategic Branch Expansion: While digital banking is important, maintaining a physical presence in key markets remains valuable for building customer relationships and providing personalized service. Magyar Bank can strategically expand its branch network in underserved areas of New Jersey, focusing on locations with high population density and strong economic growth. Each new branch is projected to generate $5 million in deposits within three years. Timeline: Upcoming: 2027-2028.
• Cross-Selling Financial Services: Magyar Bank can increase revenue by cross-selling its range of financial services to existing customers. By offering bundled products and personalized financial planning advice, the bank can deepen customer relationships and increase customer lifetime value. The cross-selling opportunity is estimated at $2 million in additional revenue per year. Timeline: Ongoing.
• Acquisition Opportunities: Magyar Bancorp can explore strategic acquisition opportunities to expand its market share and geographic reach. By acquiring smaller community banks or credit unions in New Jersey, Magyar Bank can increase its asset base and customer base. The acquisition market for community banks is active, with several potential targets available. Timeline: Potential: 2027-2029.

What Are MGYR's Competitive Advantages?

• Established presence in the New Jersey market.
• Strong customer relationships built on community banking principles.
• Diversified portfolio of financial services.
• Experienced management team with local market knowledge.

What Does MGYR Do?

Magyar Bancorp, Inc., established in 1922, functions as the holding company for Magyar Bank, a community-oriented financial institution based in New Brunswick, New Jersey. Magyar Bank provides a comprehensive suite of banking services tailored to individuals, businesses, and nonprofit organizations. The bank's deposit products include a variety of accounts such as demand, savings, NOW, money market, and retirement accounts, alongside certificates of deposit. Magyar Bank also offers a diverse range of lending options, including residential mortgage loans, multi-family and commercial real estate mortgage loans, home equity loans and lines of credit, commercial business loans, construction loans, and Small Business Administration (SBA) loans. In addition to traditional banking services, Magyar Bank extends its offerings to include non-deposit investment products and financial planning services. These encompass insurance products, fixed and variable annuities, and retirement planning solutions designed for both individual and commercial clients. The bank also engages in the buying, selling, and holding of investment securities. Magyar Bank operates through seven branch offices strategically located in New Brunswick, North Brunswick, South Brunswick, Branchburg, Bridgewater, and Edison, New Jersey. These branches serve as hubs for delivering personalized financial services and fostering strong customer relationships within the local communities.

What Products and Services Does MGYR Offer?

• Provides consumer and commercial banking services.
• Offers various deposit accounts, including savings, checking, and money market accounts.
• Provides residential and commercial mortgage loans.
• Offers home equity loans and lines of credit.
• Provides commercial business loans and construction loans.
• Offers Small Business Administration (SBA) loans.
• Provides non-deposit investment products and financial planning services.
• Buys, sells, and holds investment securities.

How Does MGYR Make Money?

• Generates revenue from interest earned on loans.
• Earns fees from deposit accounts and other banking services.
• Generates revenue from the sale of investment products and financial planning services.
• Profits from buying, selling, and holding investment securities.

What Industry Does MGYR Operate In?

Magyar Bancorp, Inc. operates within the competitive regional banking sector, characterized by increasing consolidation and technological disruption. The industry is seeing a shift towards digital banking solutions and personalized customer experiences. Magyar Bank competes with larger national and regional banks, as well as credit unions and fintech companies. The regional banking market is influenced by interest rate fluctuations, regulatory changes, and local economic conditions. Magyar Bank's focus on community banking and local market knowledge provides a competitive advantage in building customer relationships.

Who Are MGYR's Key Customers?

• Individuals seeking personal banking services.
• Small and medium-sized businesses requiring commercial banking solutions.
• Nonprofit organizations needing financial services.
• Real estate investors seeking mortgage financing.

Magyar Bancorp, Inc. (MGYR) Valuation Context

Valued at $128M, MGYR is classified as a micro-cap stock. Relative to its peer group, MGYR's quantitative score of 84/100 is roughly in line with the peer average of 91/100.

MGYR Revenue & Earnings Trend

In Q3 FY2026, MGYR generated $16.1M in top-line revenue, marking a sequential increase of 1.6%. The company recorded net income of $3.1M, with diluted EPS of $0.49. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this micro-cap Financial Services company. Across the four most recent quarters, MGYR averaged $0.47 in diluted EPS.

Company Profile

Magyar Bancorp, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in New Brunswick, US. The company is led by CEO John S. Fitzgerald. MGYR has traded publicly since 2006.

Return on equity for Magyar Bancorp, Inc. stands at 9.3%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 1.0%, showing how much profit it generates from its asset base. MGYR trades at a trailing price-to-earnings ratio of 10.44, below the Financial Services sector average of ~17.50x. Its free cash flow yield is 10.2%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.09 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 10.1%, the inverse of the P/E and a quick read on earnings relative to price.

Magyar Bancorp, Inc.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of -0.64 places it in the distress zone, a signal of elevated financial risk.

Over the past six months, Magyar Bancorp, Inc. insiders filed 5 SEC Form 4 transactions — 0 sales and 5 purchases. On net that is roughly 4K shares acquired (about $82K) — insiders putting money in tends to read as conviction.

MGYR Financials

MGYR Latest News

MGYR Analyst Consensus

MGYR MoonshotScore

What Investors Ask About Magyar Bancorp, Inc. (MGYR) — Financial Services

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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