Magnera (MAGN) AI Stock Analysis

• Market Cap: $444.29M
• Dividend Yield: N/A
• Average Volume (3M): 659.14K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• Revenue Growth: -9.02%
• EPS Growth: 36.86%
• Country: US
• Employees: 9,000
• Sector: Basic Materials
• Sector Strength: 64
• Industry: Manufacturing - Textiles
• EPS (TTM): -0.51
• Shares Outstanding: 35,600,000
• 10 Day Avg. Volume: 428,364
• 30 Day Avg. Volume: 659,140
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 5.04
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 7.01
• Enterprise Value/Ebitda: 13.97
• 1Y Price Target: $14.00
• Price Target Upside: 5.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: $13.50 ▲(1.50% Upside)

Magnera's overall stock score reflects significant financial challenges, including high leverage and negative profitability, which weigh heavily on its prospects. However, the company's proactive strategic initiatives and confirmed financial guidance provide some optimism. Technical indicators are neutral, and valuation metrics are weak, further impacting the score.

Positive Factors

Financial Strategy

Improved volume and pricing, coupled with enhanced synergies, could lead to higher cash generation and reduced leverage.

Management Strategy

Management remains very optimistic in its synergy targets and medium to long-term vision.

Operational Efficiency

MAGN's global manufacturing footprint is a competitive advantage, enabling it to cater to a global customer base and largely source or produce locally.

Negative Factors

Financial Guidance

Given the macro challenges, management has adjusted full-year FY2025 guidance lower.

Macroeconomic Impact

The current macro backdrop has impacted year one realization of synergies.

Trade Issues

Trade disputes and the resulting hit to consumption, customer ordering patterns, and competitive behavior have impacted near-term volumes and some input costs.

Magnera Business Overview & Revenue Model

Company Description

Magnera (MAGN) operates in the technology sector, specializing in advanced digital solutions and innovative software applications tailored for various industries, including healthcare, finance, and logistics. The company is focused on enhancing operational efficiency and customer engagement through its core products, which include cloud-based platforms, data analytics tools, and mobile applications designed to streamline processes and improve decision-making.

How the Company Makes Money

Magnera generates revenue through a multi-faceted business model, primarily based on subscription fees from its software services, which provide clients with ongoing access to its platforms and updates. Additionally, the company earns income from licensing its technology to third-party developers and enterprises, as well as offering consulting services aimed at implementing and optimizing its solutions for clients. Significant partnerships with industry leaders in healthcare and finance bolster its revenue streams, allowing for co-development of tailored solutions and expanding market reach. Furthermore, Magnera may also benefit from strategic collaborations that enhance its product offerings and increase customer acquisition, thus contributing to its overall earnings.

Magnera Financial Statement Overview

Summary

Magnera faces significant financial challenges characterized by high leverage, negative profitability, and cash flow constraints. While revenue growth is strong, 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	50.00M	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: 13.30
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 13.3 is above the 20-day moving average (MA) of 12.76, above the 50-day MA of 12.91, and below the 200-day MA of 16.38, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 54.41 is Neutral, neither overbought nor oversold. The STOCH value of 33.10 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
ODC	82 Outperform	$790.63M	16.91	20.93%	1.09%	9.92%	17.12%
ASIX	67 Neutral	$546.55M	7.17	9.85%	3.06%	1.31%	796.76%
MTUS	56 Neutral	$666.71M	30.62	-3.13%	―	-18.93%	-141.88%
MAGN	52 Neutral	$444.29M	―	-30.78%	―	-9.02%	36.86%
GSM	50 Neutral	$780.10M	27.86	-12.38%	1.24%	-8.59%	-256.43%
Sector *	43 Neutral	C$945.77M	-8.95	0.05%	2.62%	22.54%	-44.12%
TMC	42 Neutral	$1.92B	―	-364.03%	―	―	-9.91%

Magnera Corporate Events

Magnera Announces Departure of Key Officers

On August 11, 2025, Magnera Corporation announced the upcoming departure of two key officers. David Parks, President of Americas, will retire effective November 11, 2025, and Achim Schalk, President of EMEIA/APAC, will leave to pursue other opportunities effective November 30, 2025.