MagnaChip Semiconductor (MX)
NYSE:MX
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MagnaChip
(NYSE:MX)
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Rating:47Neutral
Price Target:
$5.50
▲(70.81% Upside)
Action:Reiterated
Date:06/18/26
The score is held back primarily by weak profitability and negative free cash flow, despite a relatively low-leverage balance sheet. Technicals are mixed with better longer-term trend but weak near-term momentum. The latest earnings call adds modest support via improving Q2 margin guidance and cost/product initiatives, but near-term pricing and utilization headwinds remain.
Positive Factors
Supportive balance sheet with modest leverage
Modest leverage and a sizable equity base provide a durable financial buffer against ongoing losses and cash burn. This improves the company’s ability to extend maturities, fund R&D or product investments, and access capital opportunistically without immediate solvency pressure, lengthening runway.
Negative Factors
Material negative operating and free cash flow
Persistent negative operating and free cash flow forces reliance on external financing or equity raises to fund operations and capex. Over several quarters this can dilute shareholders, strain liquidity, and limit strategic optionality if product ramp timing slips or working capital pressure intensifies.
Read all positive and negative factors
Positive Factors
Negative Factors
Supportive balance sheet with modest leverage
Modest leverage and a sizable equity base provide a durable financial buffer against ongoing losses and cash burn. This improves the company’s ability to extend maturities, fund R&D or product investments, and access capital opportunistically without immediate solvency pressure, lengthening runway.
Read all positive factors
MagnaChip Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales by region to reveal where the company earns most of its revenue and how dependent it is on particular markets. Highlights exposure to regional demand cycles, trade or regulatory risk, and where growth opportunities or concentration risks lie.
Breaks down sales by region to reveal where the company earns most of its revenue and how dependent it is on particular markets. Highlights exposure to regional demand cycles, trade or regulatory risk, and where growth opportunities or concentration risks lie.
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The Fly
The FlyMagnaChip (MX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$200.42M
Dividend YieldN/A
Average Volume (3M)3.68M
Price to Earnings (P/E)―
Beta (1Y)2.11
Revenue Growth-20.64%
EPS Growth44.67%
CountryUS
Employees881
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.70
Shares Outstanding36,440,853
10 Day Avg. Volume3,395,612
30 Day Avg. Volume3,676,109
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.37
Price to Sales (P/S)0.51
P/FCF Ratio-1.70
Enterprise Value/Market Cap0.71
Enterprise Value/Revenue0.79
Enterprise Value/Gross Profit5.08
Enterprise Value/Ebitda-6.96
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.83
Revenue Forecast (FY)$188.50M
MagnaChip Business Overview & Revenue Model
Company Description
Magnachip Semiconductor Corporation, along with its subsidiaries, specializes in the development, production, and distribution of analog and mixed-signal semiconductor solutions. These sophisticated platforms serve vital functions across telecommu...
How the Company Makes Money
MagnaChip makes money primarily by selling semiconductor chips to electronics manufacturers and original design manufacturers (ODMs/OEMs). Its revenue is largely generated from two main product lines: (1) Display solutions—selling display driver I...
MagnaChip Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: management highlighted sequential recovery in revenue, gross margin improvement vs Q4, disciplined cost reductions, a strong acceleration in R&D and an ambitious product roadmap (55 new generation products targeted for 2026) that should drive longer‑term margin and revenue improvement. Offsetting these positives are meaningful year‑over‑year margin and profitability declines, ongoing ASP pressure (particularly in China), idle factory capacity, a decline in cash versus the prior quarter, and near‑term headwinds from a planned substation upgrade that will depress utilization and margins later in the year. Near‑term trends are mixed but the company conveyed a credible multi‑quarter path to improvement driven by new products and expense discipline.Positive Updates
Revenue Growth — Q1 2026
Total consolidated revenue of $46.2M in Q1 2026, up 3.3% year‑over‑year and up 13.9% sequentially compared to Q4 2025.
Negative Updates
Year‑over‑Year Gross Margin Decline
Consolidated gross margin declined to 15.6% in Q1 2026 from 20.9% in Q1 2025, primarily due to unfavorable product mix and ASP erosion, particularly in China.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth — Q1 2026
Total consolidated revenue of $46.2M in Q1 2026, up 3.3% year‑over‑year and up 13.9% sequentially compared to Q4 2025.
Read all positive updates
Company Guidance
For Q2 2026 Magnachip guided consolidated revenue of $44.5 million to $48.5 million (midpoint ≈ $46.5M), roughly flat sequentially versus Q1 2026 revenue of $46.2M and down ~2.3% year‑over‑year at the midpoint versus Q2 2025’s $47.6M; consolidated gross profit margin is expected to be 17%–19% (up from Q1’s 15.6% but below Q2 2025’s 20.4%). Management noted Q1’s seasonality was affected by a prior $2.7M one‑time sales incentive, expects higher factory utilization in Q2 to build inventory for a planned Gumi substation upgrade that will reduce utilization and margins in Q3 and further in Q4, and reiterated operational metrics including Q1 cash of $94.6M, total borrowings of $42.3M (including a $15.9M equipment loan and $26.4M of term debt reclassified to short‑term due to a March 2027 maturity that management expects to extend), targeted annual OpEx savings of ~$2.5M beginning Q4 2025, and a product roadmap calling for 55 new‑generation product launches in 2026 with new‑gen products to represent ~10% of revenue in Q4 2026 (up from 2% for full‑year 2025).MagnaChip Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 179.09M | 179.90M | 231.74M | 230.05M | 337.66M | 474.23M |
| Gross Profit | 27.97M | 32.44M | 51.91M | 51.64M | 101.26M | 153.54M |
| EBITDA | -20.40M | -17.52M | -44.51M | -30.05M | 13.28M | 89.58M |
| Net Income | -25.49M | -29.72M | -54.31M | -36.62M | -8.04M | 56.71M |
Balance Sheet | ||||||
| Total Assets | 335.46M | 351.53M | 379.32M | 420.49M | 516.64M | 583.65M |
| Cash, Cash Equivalents and Short-Term Investments | 94.55M | 103.76M | 138.61M | 158.09M | 225.48M | 279.55M |
| Total Debt | 44.14M | 46.72M | 30.43M | 4.81M | 5.49M | 4.28M |
| Total Liabilities | 102.66M | 103.28M | 102.52M | 75.89M | 88.49M | 130.89M |
| Stockholders Equity | 232.80M | 248.25M | 276.80M | 344.60M | 428.15M | 452.76M |
Cash Flow | ||||||
| Free Cash Flow | -51.88M | -54.20M | -17.73M | -10.23M | -18.62M | 54.92M |
| Operating Cash Flow | -18.00M | -24.21M | -6.13M | -3.01M | 5.17M | 87.74M |
| Investing Cash Flow | -30.09M | -24.43M | -11.67M | -7.66M | -24.93M | -31.44M |
| Financing Cash Flow | 13.22M | 12.02M | 16.56M | -52.34M | -12.74M | -35.54M |
MagnaChip Technical Analysis
Neutral
3.22
Price Trends
4.97
Positive
3.90
Positive
3.39
Positive
Market Momentum
0.24
Positive
44.30
Neutral
1.47
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MX, the sentiment is Neutral. The current price of 3.22 is below the 20-day moving average (MA) of 6.67, below the 50-day MA of 4.97, and below the 200-day MA of 3.39, indicating a neutral trend. The MACD of 0.24 indicates Positive momentum. The RSI at 44.30 is Neutral, neither overbought nor oversold. The STOCH value of 1.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MX.
MagnaChip Risk Analysis
MagnaChip disclosed 49 risk factors in its most recent earnings report. MagnaChip reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MagnaChip Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $379.93M | 154.71 | 3.70% | ― | -13.20% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $376.89M | -24.53 | -59.94% | ― | -21.32% | -113.45% | |
48 Neutral | $288.76M | -20.06 | -21.96% | ― | 22.44% | 1.58% | |
47 Neutral | $200.42M | -7.54 | -10.13% | ― | -20.64% | 44.67% | |
46 Neutral | $46.89M | -6.17 | -16.83% | ― | -33.13% | ― | |
46 Neutral | $44.33M | -2.98 | -4.92% | ― | -21.88% | -203.29% |
* Technology Sector Average
MX
MagnaChip
5.28
1.49
39.31%
ASYS
Amtech Systems
21.39
17.31
424.14%
GSIT
GSI Technology
7.32
4.24
137.66%
QUIK
QuickLogic
20.86
14.96
253.56%
NA
Nano Labs Ltd. Sponsored ADR Class A
1.95
-10.22
-83.98%
ICG
Intchains Group Ltd. ADR
0.73
-0.46
-38.57%
MagnaChip Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Magnachip Establishes ATM Program to Support Growth
Positive
Jun 17, 2026
On June 17, 2026, Magnachip Semiconductor Corporation entered into an at-the-market issuance sales agreement with B. Riley Securities, Inc., allowing the company to offer and sell up to $50 million of its common stock through or to the sales agent...
Executive/Board ChangesShareholder Meetings
Magnachip Stockholders Approve Directors and Expanded Equity Plan
Positive
Jun 17, 2026
Magnachip Semiconductor Corporation held its 2026 Annual Meeting of Stockholders on June 11, 2026, with 67.18% of its 36,219,100 outstanding shares represented in person or by proxy. Stockholders elected four directors—Camillo Martino, Gilbe...
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.