Magnera (MAGN) AI Stock Analysis

• Market Cap: $503.03M
• Dividend Yield: N/A
• Average Volume (3M): 1.27M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 9,000
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Manufacturing - Textiles
• EPS (TTM): -0.06
• Shares Outstanding: 35,600,000
• 10 Day Avg. Volume: 1,298,622
• 30 Day Avg. Volume: 1,269,952
• PEG Ratio: -0.04
• Price to Book (P/B): 0.30
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 5.29
• Enterprise Value/Market Cap: 4.18
• Enterprise Value/Revenue: 0.70
• Enterprise Value/Gross Profit: 6.59
• Enterprise Value/Ebitda: 13.12
• 1Y Price Target: $15.50
• Price Target Upside: 60.62% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: $13.00 ▲(34.72% Upside)

Magnera's overall stock score reflects significant financial challenges, including high leverage and negative profitability, which are the most impactful factors. Technical analysis provides mixed signals, and the valuation is unattractive due to a negative P/E ratio. Despite positive earnings call insights, these do not offset the financial and valuation concerns.

Positive Factors

Revenue Growth

Strong revenue growth indicates expanding market reach and successful product adoption, which can enhance long-term business sustainability.

Operational Efficiency

Improving operational efficiency can lead to cost savings and better profit margins, strengthening the company's competitive position over time.

Debt Reduction

Reducing debt levels enhances financial flexibility and reduces risk, supporting long-term financial health and investment capacity.

Negative Factors

High Leverage

High leverage can strain cash flow and limit financial flexibility, posing a risk to long-term stability and growth potential.

Negative Profitability

Negative profitability indicates challenges in converting revenue into profit, which can hinder reinvestment and growth opportunities.

Cash Flow Constraints

Negative free cash flow suggests difficulties in funding operations and investments, potentially impacting future growth and financial health.

Magnera Business Overview & Revenue Model

Company Description

Magnera (MAGN) is a technology-driven company specializing in innovative solutions for the financial services sector. The company focuses on developing advanced software applications that enhance operational efficiency and streamline processes across banking, investment, and insurance industries. With a commitment to leveraging cutting-edge technologies such as artificial intelligence and blockchain, Magnera offers a suite of products designed to optimize financial transactions, improve customer experiences, and ensure regulatory compliance.

How the Company Makes Money

Magnera generates revenue primarily through its subscription-based model for software services, where clients pay recurring fees for access to its platforms. Additionally, the company earns income from consulting services provided to clients seeking to implement and optimize its technology solutions. Key revenue streams include licensing fees from proprietary software, transaction fees for financial services facilitated through its platforms, and partnerships with financial institutions that integrate Magnera's technology into their operations. The company also benefits from strategic alliances with fintech firms, which expand its market reach and enhance its service offerings.

Magnera Financial Statement Overview

Summary

Magnera faces significant financial challenges with high leverage, negative profitability, and cash flow constraints. Despite strong revenue growth, operational inefficiencies and high debt levels pose risks to financial stability.

Income Statement

Magnera's income statement reveals a challenging financial landscape. The TTM (Trailing-Twelve-Months) gross profit margin stands at 10.57%, indicating some efficiency in production, but the net profit margin is negative at -6.06%, highlighting ongoing profitability issues. Revenue growth is notable, with a 57.88% increase from the previous year, yet the negative EBIT and EBITDA margins of -0.35% and 4.72% respectively, reflect operational inefficiencies and high costs.

Balance Sheet

The balance sheet shows a mixed picture of Magnera's financial health. The debt-to-equity ratio is high at 1.88, suggesting significant leverage and potential risk. However, the equity ratio is 26.91%, indicating a reasonable proportion of assets financed by equity. Return on equity is negative at -12.12%, which is concerning as it reflects poor returns for shareholders.

Cash Flow

Magnera's cash flow statement highlights liquidity challenges. The free cash flow growth rate is positive at 64.43%, yet free cash flow remains negative, indicating ongoing cash constraints. The operating cash flow to net income ratio is -0.24, showing inefficiencies in converting income into cash. The free cash flow to net income ratio is 0.16, further emphasizing cash flow issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.01B	2.19B	1.39B	1.49B	1.08B	916.50M
Gross Profit	319.27M	237.00M	129.71M	148.80M	144.79M	147.87M
EBITDA	160.32M	236.00M	56.89M	-104.46M	87.45M	95.98M
Net Income	-173.53M	-154.00M	-79.05M	-194.21M	6.94M	21.30M
Balance Sheet
Total Assets	4.06B	2.81B	1.56B	1.65B	1.88B	1.29B
Cash, Cash Equivalents and Short-Term Investments	282.00M	230.00M	50.27M	110.66M	138.44M	99.58M
Total Debt	2.05B	2.06B	865.38M	849.60M	787.36M	313.52M
Total Liabilities	2.97B	668.00M	1.31B	1.33B	1.34B	708.95M
Stockholders Equity	1.09B	2.14B	256.85M	318.00M	542.76M	577.93M
Cash Flow
Free Cash Flow	20.88M	120.00M	-59.39M	-78.56M	40.94M	80.86M
Operating Cash Flow	97.09M	192.00M	-25.62M	-40.82M	70.98M	108.99M
Investing Cash Flow	5.70M	-39.00M	-37.10M	-33.10M	-489.77M	-26.77M
Financing Cash Flow	27.93M	-109.00M	-949.00K	46.92M	462.35M	-100.31M

Magnera Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 9.65 is below the 20-day moving average (MA) of 11.54, below the 50-day MA of 10.56, and below the 200-day MA of 13.29, indicating a bullish trend. The MACD of 1.29 indicates Negative momentum. The RSI at 71.68 is Negative, neither overbought nor oversold. The STOCH value of 68.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MAGN.

Magnera Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSB	80 Outperform	$431.91M	4.66	413.24%	21.17%	303.10%	425.35%
HDSN	74 Outperform	$318.70M	14.56	8.75%	―	-4.24%	-23.16%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ZEUS	61 Neutral	$452.94M	34.45	2.40%	1.63%	-5.64%	-48.34%
IPI	53 Neutral	$339.84M	―	-33.37%	―	8.88%	-349.99%
MAGN	46 Neutral	$503.03M	―	―	―	―	―
LZM	38 Underperform	$325.91M	-0.87	―	―	―	―

Magnera Corporate Events

Magnera Announces Departure of Key Executives

On October 2, 2025, Magnera Corporation announced the upcoming departure of two key executives. Eileen L. Beck, Executive Vice President of Human Resources and Administration, will retire on December 31, 2025, and has transitioned to an advisory role to assist her successor. David Parks, President of Americas, will retire on November 15, 2025, slightly later than his initially planned date.