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MagnaChip
(NYSE:MX)
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Rating:45Neutral
Price Target:
$2.50
▼(-23.55% Downside)
Action:Reiterated
Date:10/15/26
The score is held down primarily by weak financial performance (sharp revenue decline, ongoing losses, and negative free cash flow) and bearish technicals (below major moving averages with negative MACD). The earnings call adds some offset through credible strategic initiatives (SiC partnership and product roadmap), but guidance and profitability trends remain unfavorable, and valuation support is limited due to a negative P/E and no dividend yield provided.
Positive Factors
Modest leverage
Modest leverage and sizable equity provide financial flexibility while the company funds its transition. A debt-to-equity ratio near 0.19 reduces balance-sheet pressure relative to a highly leveraged structure, although operating losses still constrain that flexibility.
Negative Factors
Sharp revenue contraction
The steep TTM revenue decline and continued losses indicate that the current business base is not yet generating stable operating leverage. Shrinking sales reduce the ability to absorb fixed costs, fund development internally, and convert strategic initiatives into durable earnings.
Read all positive and negative factors
Positive Factors
Negative Factors
Modest leverage
Modest leverage and sizable equity provide financial flexibility while the company funds its transition. A debt-to-equity ratio near 0.19 reduces balance-sheet pressure relative to a highly leveraged structure, although operating losses still constrain that flexibility.
Read all positive factors
MagnaChip Key Performance Indicators (KPIs)
Any
Revenue by Geography
Tracks sales distribution by country or region to reveal concentration and regional trends that affect MagnaChip's top line. Important for judging the impact of currency swings, supply-chain dynamics, and local demand shifts in major electronics and auto markets.
Tracks sales distribution by country or region to reveal concentration and regional trends that affect MagnaChip's top line. Important for judging the impact of currency swings, supply-chain dynamics, and local demand shifts in major electronics and auto markets.
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The Fly
The FlyMagnaChip (MX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$98.15M
Dividend YieldN/A
Average Volume (3M)1.39M
Price to Earnings (P/E)―
Beta (1Y)2.60
Revenue Growth-18.29%
EPS Growth8.69%
CountryUS
Employees711
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.84
Shares Outstanding38,041,317
10 Day Avg. Volume834,195
30 Day Avg. Volume1,393,443
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 Cap1.30
Enterprise Value/Revenue0.72
Enterprise Value/Gross Profit4.46
Enterprise Value/Ebitda-3.60
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, together with its subsidiaries, designs, manufactures, and supplies analog and mixed-signal semiconductor platform solutions for communications, the Internet of Things, consumer, computing, industrial, and auto...
How the Company Makes Money
MagnaChip makes money by selling semiconductor products to electronics and component manufacturers, recognizing revenue primarily from product shipments under customer purchase orders. Its key revenue streams are: (1) Display solutions: revenue fr...
MagnaChip Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call balanced near-term financial weakness with strategic, long-term initiatives. Financials showed declining revenue (down 6.1% YoY and 3.3% sequentially), wider adjusted operating losses ($7.0M) and negative EBITDA (negative $4.2M), and guidance points to further sequential declines. Offsetting these headwinds are important positive developments: new CEO leadership, a strategic Navitas partnership to accelerate entry into high-voltage SiC markets, continued R&D investment (R&D up to $7.9M) with a roadmap of 55 new-generation products in 2026, early traction for higher-margin new products, and added financial flexibility via a $50M ATM program. Overall, the company is in transition — current results are weak but management has clear strategic initiatives that could improve longer-term prospects.Positive Updates
New Leadership and Strategic Focus
Appointment of Chae Lee as CEO with deep power semiconductor experience; management is focused on repositioning Magnachip as a pure-play power semiconductor company and accelerating differentiated product strategy.
Negative Updates
Year-Over-Year and Sequential Revenue Declines
Revenue declined 6.1% year-over-year and 3.3% sequentially (Q2 2026 $44.7M vs Q2 2025 $47.6M and Q1 2026 $46.2M), driven by weaker demand for legacy products and seasonal softness in Communications.
Read all updates
Q2-2026 Updates
Positive
Negative
New Leadership and Strategic Focus
Appointment of Chae Lee as CEO with deep power semiconductor experience; management is focused on repositioning Magnachip as a pure-play power semiconductor company and accelerating differentiated product strategy.
Read all positive updates
Company Guidance
For Q3 2026 Magnachip guided consolidated revenue from continuing operations of $41.5 million to $45.5 million (midpoint $43.5M), which at the midpoint implies a 2.7% sequential decline and a 5.2% year‑over‑year decline versus Q3 2025 (compared with $44.7M in Q2 2026), and gross profit margin of 17%–19% versus 19.3% in Q2 2026 (and 18.6% in Q3 2025). Management attributed the expected sequential revenue decline to packaging constraints, lower customer volumes in certain custom applications and an unfavorable legacy product mix/ASP pressure, and noted a planned electrical‑substation upgrade that will lower fab utilization in Q3 with a one‑quarter lag that could cause Q4 gross margin to decline slightly. They reiterated product progress (targeting new‑generation products to represent at least 10% of revenue in Q4 2026 versus ~2% for full‑year 2025), and provided balance sheet/context metrics including Q2 cash of $87.9M, total borrowings of $41.5M, Q2 capex of $1.3M, a $50M at‑the‑market program, Q2 adjusted operating loss of $7.0M, adjusted EBITDA of negative $4.2M, and Q2 non‑GAAP diluted loss per share of $0.13 (36.5M weighted average non‑GAAP diluted shares).MagnaChip Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
64
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 177.87M | 179.90M | 231.74M | 230.05M | 337.66M | 474.23M |
| Gross Profit | 28.60M | 32.44M | 51.91M | 51.64M | 101.26M | 153.54M |
| EBITDA | -35.45M | -17.52M | -44.51M | -30.05M | 13.28M | 89.58M |
| Net Income | -30.63M | -29.72M | -54.31M | -36.62M | -8.04M | 56.71M |
Balance Sheet | ||||||
| Total Assets | 324.85M | 351.53M | 379.32M | 420.49M | 516.64M | 583.65M |
| Cash, Cash Equivalents and Short-Term Investments | 87.94M | 103.76M | 138.61M | 158.09M | 225.48M | 279.55M |
| Total Debt | 42.98M | 46.72M | 30.43M | 4.81M | 5.49M | 4.28M |
| Total Liabilities | 98.32M | 103.28M | 102.52M | 75.89M | 88.49M | 130.89M |
| Stockholders Equity | 226.53M | 248.25M | 276.80M | 344.60M | 428.15M | 452.76M |
Cash Flow | ||||||
| Free Cash Flow | -20.63M | -54.20M | -17.73M | -10.23M | -18.62M | 54.92M |
| Operating Cash Flow | 2.65M | -24.21M | -6.13M | -3.01M | 5.17M | 87.74M |
| Investing Cash Flow | -23.61M | -24.43M | -11.67M | -7.66M | -24.93M | -31.44M |
| Financing Cash Flow | 8.96M | 12.02M | 16.56M | -52.34M | -12.74M | -35.54M |
MagnaChip Technical Analysis
Negative
3.27
Price Trends
3.20
Negative
4.02
Negative
3.67
Negative
Market Momentum
-0.18
Positive
32.48
Neutral
6.19
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MX, the sentiment is Negative. The current price of 3.27 is above the 20-day moving average (MA) of 3.19, above the 50-day MA of 3.20, and below the 200-day MA of 3.67, indicating a bearish trend. The MACD of -0.18 indicates Positive momentum. The RSI at 32.48 is Neutral, neither overbought nor oversold. The STOCH value of 6.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $238.46M | 50.86 | 4.95% | ― | -2.35% | ― | |
52 Neutral | $169.07M | -12.26 | -50.90% | ― | -9.42% | -61.14% | |
50 Neutral | $83.78M | -1.17 | -29.77% | ― | -21.88% | -203.29% | |
48 Neutral | $40.50M | -3.23 | 9999.00% | ― | -9.48% | -25.45% | |
46 Neutral | $157.96M | -8.98 | -21.39% | ― | 13.65% | 15.74% | |
45 Neutral | $98.15M | -3.08 | -12.72% | ― | -18.29% | 8.69% |
* Technology Sector Average
MX
MagnaChip
2.59
-0.42
-13.95%
ASYS
Amtech Systems
13.89
6.48
87.45%
GSIT
GSI Technology
4.11
-8.78
-68.11%
QUIK
QuickLogic
9.57
3.43
56.04%
NA
Nano Labs Ltd. Sponsored ADR Class A
1.82
-2.94
-61.76%
ICG
Intchains Group Ltd. ADR
1.38
-0.10
-6.76%
MagnaChip Corporate Events
Business Operations and StrategyPrivate Placements and FinancingRegulatory Filings and Compliance
MagnaChip Announces Strategic Equity Investment by Navitas
Positive
Sep 21, 2026
On September 18, 2026, Magnachip Semiconductor agreed to sell 1,461,988 shares of common stock to Navitas Semiconductor for $3.42 per share, raising $5 million in a privately negotiated, exempt offering under U.S. securities law. Magnachip plans t...
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.