Magnera (MAGN)
NYSE:MAGN
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Magnera
(NYSE:MAGN)
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Rating:62Neutral
Price Target:
$11.50
▲(6.38% Upside)
Action:Reiterated
Date:05/10/26
Overall score reflects solid technical momentum and improved cash generation (positive TTM free cash flow), supported by reiterated guidance and ongoing debt reduction. These positives are balanced by a weak income statement profile (sharp revenue decline and continued net losses) and near-term cost inflation/headwind risk noted on the earnings call.
Positive Factors
Free cash flow generation
Sustained positive operating and free cash flow is a durable strength that funds operations, capital investment, and debt repayment without relying on external financing. This cash conversion supports strategic flexibility and resilience through industry cycles, enabling continued deleveraging and project funding.
Negative Factors
Sharp revenue decline
An ~85% TTM revenue contraction is a deep structural headwind that erodes scale economics, bargaining power, and fixed-cost absorption. Even with improving cash flow, sustained top-line weakness threatens long-term profitability and may require permanent cost base restructuring or divestitures to restore margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Free cash flow generation
Sustained positive operating and free cash flow is a durable strength that funds operations, capital investment, and debt repayment without relying on external financing. This cash conversion supports strategic flexibility and resilience through industry cycles, enabling continued deleveraging and project funding.
Read all positive factors
Magnera (MAGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$436.40M
Dividend YieldN/A
Average Volume (3M)454.53K
Price to Earnings (P/E)―
Beta (1Y)1.32
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees9,000
SectorConsumer Defensive
Sector Strength42
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)-3.08
Shares Outstanding35,800,000
10 Day Avg. Volume478,294
30 Day Avg. Volume454,531
Financial Highlights & Ratios
PEG Ratio-1.55
Price to Book (P/B)0.37
Price to Sales (P/S)0.12
P/FCF Ratio10.88
Enterprise Value/Market Cap4.78
Enterprise Value/Revenue0.64
Enterprise Value/Gross Profit6.41
Enterprise Value/Ebitda8.76
Forecast
1Y Price Target
$12.00Price Target Upside11.01% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)0.77
Revenue Forecast (FY)$3.35B
Magnera Business Overview & Revenue Model
Company Description
Magnera Corp. offers a broad spectrum of products, encompassing components for absorbent hygiene items, protective clothing, various wipes, specialized building and construction materials, and offerings tailored for the food and beverage industry....
How the Company Makes Money
null...
Magnera Earnings Call Summary
Earnings Call Date:May 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call highlighted several meaningful positives — strong free cash flow, significant debt reduction, ample liquidity (~$600M), Project CORE synergy progress, improved contract coverage (~85%), and a 19% YoY EBITDA improvement in the Rest of World segment — which demonstrate operational resilience and disciplined capital allocation. Offsetting these are material near-term challenges: weather-related shutdowns (~$5M EBITDA impact), sustained raw material and logistics inflation (inputs ~70% of COGS), regional softness in Europe (volumes down ~4%), Americas EBITDA down $6M, and uncertain working capital/cash impacts with expected Q3 headwinds. Management reiterated guidance and communicated plans (monthly pass-throughs, customer collaboration, cost controls) to mitigate the pressures and expects recovery in Q4.Positive Updates
Adjusted EBITDA In Line with Expectations
Adjusted EBITDA of $90 million for the quarter was in line with management expectations after adjusting for weather-related impacts; EBITDA remained essentially flat as synergy gains from Project CORE offset external headwinds.
Negative Updates
Weather-Related Operational Disruptions
Back-to-back winter storms (Fern and Hernando) temporarily shut 13 and 7 manufacturing sites respectively, caused lost production and shipping delays; estimated EBITDA impact for the quarter was about $5 million ($4–6 million previously disclosed).
Read all updates
Q2-2026 Updates
Positive
Negative
Adjusted EBITDA In Line with Expectations
Adjusted EBITDA of $90 million for the quarter was in line with management expectations after adjusting for weather-related impacts; EBITDA remained essentially flat as synergy gains from Project CORE offset external headwinds.
Read all positive updates
Company Guidance
Management reiterated that its full‑year guidance remains unchanged after incorporating the March inflation shock and expects some Q3 headwinds followed by a recovery in Q4; analysts on the call recapped an EBITDA target of roughly $3.8–$4.1 and free cash flow guidance of $90–$110 million. For context, Q2 sales were $796 million with adjusted EBITDA of $90 million and quarter free cash flow of $73 million (LTM adjusted free cash flow $128 million, a >40% yield vs. quarter‑end market cap), the company repaid $36 million of debt in the quarter ($63 million YTD) and closed with ~ $600 million of available liquidity, Rest‑of‑World adjusted EBITDA was $32 million (up 19%), winter storms cost about $4–$6 million (~$5 million) with recovery expected in H2, roughly 70% of COGS are resin/pulp/energy, ~85% of revenue is on contract passthroughs ( <10% spot), inventory turns ~60 days (some lines ~14 days), and management reiterated its longer‑term sustainability targets (scope 1/2 emissions −42%, scope 3 −25%, water −10%, zero waste to landfill at 75% of sites/34 locations by 2035).Magnera Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
56
Neutral
Cash Flow
66
Positive
| Breakdown | TTM | Sep 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.27B | 3.20B | 2.19B | 1.39B | 1.49B | 1.08B |
| Gross Profit | 325.00M | 287.00M | 237.00M | 129.71M | 148.80M | 144.79M |
| EBITDA | 238.00M | 190.00M | 236.00M | 56.89M | -104.46M | 87.45M |
| Net Income | -110.00M | -159.00M | -154.00M | -79.05M | -194.21M | 6.94M |
Balance Sheet | ||||||
| Total Assets | 3.90B | 3.99B | 2.81B | 1.56B | 1.65B | 1.88B |
| Cash, Cash Equivalents and Short-Term Investments | 303.00M | 305.00M | 230.00M | 50.27M | 110.66M | 138.44M |
| Total Debt | 1.96B | 2.02B | 2.06B | 865.38M | 849.60M | 787.36M |
| Total Liabilities | 2.86B | 2.92B | 668.00M | 1.31B | 1.33B | 1.34B |
| Stockholders Equity | 1.04B | 1.06B | 2.14B | 256.85M | 318.00M | 542.76M |
Cash Flow | ||||||
| Free Cash Flow | 128.00M | 36.00M | 120.00M | -59.39M | -78.56M | 40.94M |
| Operating Cash Flow | 185.00M | 103.00M | 192.00M | -25.62M | -40.82M | 70.98M |
| Investing Cash Flow | -57.00M | -8.00M | -39.00M | -37.10M | -33.10M | -489.77M |
| Financing Cash Flow | -116.00M | -21.00M | -109.00M | -949.00K | 46.92M | 462.35M |
Magnera Technical Analysis
Positive
10.81
Price Trends
10.95
Positive
11.44
Positive
11.71
Positive
Market Momentum
0.42
Negative
60.68
Neutral
56.47
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAGN, the sentiment is Positive. The current price of 10.81 is below the 20-day moving average (MA) of 11.59, below the 50-day MA of 10.95, and below the 200-day MA of 11.71, indicating a bullish trend. The MACD of 0.42 indicates Negative momentum. The RSI at 60.68 is Neutral, neither overbought nor oversold. The STOCH value of 56.47 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MAGN.
Magnera Risk Analysis
Magnera disclosed 17 risk factors in its most recent earnings report. Magnera reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Magnera Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $463.31M | 32.38 | 2.85% | ― | 9.55% | ― | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $436.40M | -3.98 | -10.30% | ― | ― | ― | |
58 Neutral | $325.11M | 28.71 | 66.13% | 19.32% | -84.51% | -87.88% | |
57 Neutral | $247.36M | 17.48 | 5.69% | ― | 10.66% | -16.55% | |
45 Neutral | $436.03M | -29.82 | -16.32% | ― | ― | ― |
* Consumer Defensive Sector Average
MAGN
Magnera
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-0.25
-2.01%
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Magnera Corporate Events
Executive/Board ChangesShareholder Meetings
Magnera Shareholders Back Board, Auditor and Pay Practices
Positive
Mar 12, 2026
At its 2026 Annual Meeting of Shareholders, held following the January 14, 2026 proxy filing, Magnera’s shareholders elected nine directors to serve until the 2027 annual meeting, with all nominees receiving sufficient support despite one di...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.