Magnera (MAGN) AI Stock Analysis

• Market Cap: $397.41M
• Dividend Yield: N/A
• Average Volume (3M): 454.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.12
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 9,000
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Manufacturing - Textiles
• EPS (TTM): >-0.01
• Shares Outstanding: 35,900,000
• 10 Day Avg. Volume: 478,294
• 30 Day Avg. Volume: 454,531
• PEG Ratio: -1.55
• Price to Book (P/B): 0.37
• Price to Sales (P/S): 0.12
• P/FCF Ratio: 10.88
• Enterprise Value/Market Cap: 5.35
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 6.44
• Enterprise Value/Ebitda: 7.23
• 1Y Price Target: $17.50
• Price Target Upside: 58.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.01
• Revenue Forecast (FY): $3.27B

• Rating: 46 Neutral
• Price Target: $11.00 ▼(-0.63% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held back primarily by weak financial quality (recurring net losses, compressed margins, and elevated leverage) and bearish technicals (price below key moving averages with negative MACD). Offsetting factors include improving, positive cash generation and a more constructive outlook from reaffirmed FY2026 adjusted EBITDA growth guidance and planned debt reduction, while valuation is difficult to assess given negative earnings and no dividend yield data.

Positive Factors

Revenue scale & growth

A multi-year revenue increase to $3.2B provides durable scale benefits: better fixed-cost absorption, stronger commercial reach and diversification across end markets. This larger top line makes operational improvement and margin recovery more achievable over the medium term, supporting sustainable EBITDA expansion.

Positive cash generation and liquidity

Consistent positive operating cash flow and sizable available liquidity give Magnera durable financial flexibility to fund integration, invest in higher‑margin innovation and execute debt paydowns. Positive FCF despite net losses lowers refinancing risk and supports prioritized deleveraging and capital allocation plans.

Clear deleveraging plan & synergy program

A concrete plan combining targeted synergies (Project CORE), product innovation and explicit debt repayment creates a structural path to improved credit metrics. If executed, these initiatives should sustainably reduce interest burden and increase free cash flow available for reinvestment and further deleveraging.

Negative Factors

Persistent net losses & margin compression

Repeated bottom‑line losses and a structurally compressed gross margin constrain equity accumulation and make earnings recovery more challenging. Persistent negative net income limits internal capital for R&D and capex, increasing reliance on cost actions and external financing to restore sustainable profitability.

Elevated leverage and modest coverage

High absolute debt relative to equity and modest operating cash flow raise refinancing and interest coverage risks, limiting strategic flexibility. Even with planned repayments, elevated leverage increases vulnerability to cyclical demand shocks and slows ability to invest in growth without further deleveraging.

Regional structural headwinds & regulatory risk

Sustained market softness in Europe and import-driven weakness in South America create structural revenue and margin pressure in key regions. Competitive import dynamics and potential antidumping actions add regulatory uncertainty that can depress volumes, force pricing/margin concessions and complicate medium‑term recovery.

Magnera Business Overview & Revenue Model

Company Description

Magnera Corp. engages in a wide range of products, including components for absorbent hygiene products, protective apparel, wipes, specialty building and construction products, and products serving the food and beverage industry. The company was founded on November 4, 2024 and is headquartered in Charlotte, NC.

How the Company Makes Money

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Magnera Financial Statement Overview

Summary

Revenue growth has been strong, but profitability is weak with net losses in four of the last five years and margin compression (2025 net margin ~-5%, gross margin ~9%). Leverage remains elevated (2025 debt-to-equity ~1.9), increasing financial risk. Cash flow has improved with positive operating cash flow (~$103M) and free cash flow (~$36M) in 2025, but coverage versus debt is modest and FCF fell from 2024.

Income Statement

Revenue scaled sharply from $0.92B (2020) to $3.20B (2025), including a strong step-up in 2024, but profitability has deteriorated. Net income is negative in four of the last five annual periods (2022–2025), with 2025 net margin at roughly -5% and gross margin down to ~9% versus ~16% in 2020. EBITDA margin remains positive in 2025 (~6%), suggesting the core business generates operating earnings before non-cash/other items, but the persistent bottom-line losses and margin compression weigh heavily on quality of earnings.

Balance Sheet

Leverage is elevated: 2025 total debt is ~$2.02B against equity of ~$1.06B (debt-to-equity ~1.9), and return on equity is negative due to losses. The balance sheet improved versus the very high leverage profile seen in 2022–2023, but it is weaker than 2024 (when equity was higher and leverage was lower). Overall, the company has meaningful financial risk and limited profitability-driven equity build at present.

Cash Flow

Cash generation is positive in the most recent two years: 2025 operating cash flow is ~$103M and free cash flow is ~$36M (down from ~$120M in 2024). Earlier periods (2022–2023) showed negative operating and free cash flow, indicating a less stable cash profile through the cycle. A key positive is that free cash flow is positive despite reported net losses in 2024–2025, but coverage is modest (2025 operating cash flow is relatively small versus debt), limiting flexibility.

Breakdown	Sep 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.20B	2.19B	1.39B	1.49B	1.08B
Gross Profit	287.00M	237.00M	129.71M	148.80M	144.79M
EBITDA	190.00M	236.00M	56.89M	-104.46M	87.45M
Net Income	-159.00M	-154.00M	-79.05M	-194.21M	6.94M
Balance Sheet
Total Assets	3.99B	2.81B	1.56B	1.65B	1.88B
Cash, Cash Equivalents and Short-Term Investments	305.00M	230.00M	50.27M	110.66M	138.44M
Total Debt	2.02B	2.06B	865.38M	849.60M	787.36M
Total Liabilities	2.92B	668.00M	1.31B	1.33B	1.34B
Stockholders Equity	1.06B	2.14B	256.85M	318.00M	542.76M
Cash Flow
Free Cash Flow	36.00M	120.00M	-59.39M	-78.56M	40.94M
Operating Cash Flow	103.00M	192.00M	-25.62M	-40.82M	70.98M
Investing Cash Flow	-8.00M	-39.00M	-37.10M	-33.10M	-489.77M
Financing Cash Flow	-21.00M	-109.00M	-949.00K	46.92M	462.35M

Magnera Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAGN, the sentiment is Negative. The current price of 11.07 is below the 20-day moving average (MA) of 12.75, below the 50-day MA of 13.67, and below the 200-day MA of 12.47, indicating a bearish trend. The MACD of -0.69 indicates Positive momentum. The RSI at 25.73 is Positive, neither overbought nor oversold. The STOCH value of 17.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MAGN.

Magnera Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MSB	69 Neutral	$419.71M	40.46	29.57%	19.32%	-78.78%	-81.27%
IPI	65 Neutral	$654.79M	32.26	-33.37%	―	8.88%	-349.99%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HDSN	58 Neutral	$249.42M	17.68	6.59%	―	-4.24%	-23.16%
MAGN	46 Neutral	$397.41M	-3.94	-12.41%	―	―	―
LZM	44 Neutral	$367.81M	13.38	―	―	―	―

Magnera Corporate Events

Magnera Shareholders Back Board, Auditor and Pay Practices

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 director drawing notably higher opposition. Shareholders also ratified Ernst & Young LLP as the independent auditor for the fiscal year ending September 26, 2026, and approved on an advisory basis the company’s fiscal year 2025 executive compensation program, signaling overall investor support for the firm’s governance, oversight, and pay practices.

These voting outcomes indicate continuity in Magnera’s board leadership and external audit relationship, reducing near‑term uncertainty around corporate oversight. The strong backing for the Say‑on‑Pay proposal suggests that most shareholders are comfortable with how management is being incentivized, which may reinforce the company’s current strategic direction and executive compensation structure.

The most recent analyst rating on (MAGN) stock is a Hold with a $11.50 price target. To see the full list of analyst forecasts on Magnera stock, see the MAGN Stock Forecast page.

Magnera Appoints Erin Maile as Chief Accounting Officer

On January 29, 2026, Magnera Corporation’s board appointed Erin Maile, 34, as Executive Vice President and Chief Accounting Officer effective February 2, 2026, elevating her from her prior role as Vice President, Finance, Corporate Controller, which she has held since November 4, 2024, following earlier senior accounting and reporting roles at Berry Global. The company detailed a compensation package designed to align Maile with shareholder interests, including a $275,000 base salary, eligibility for annual short-term and long-term incentive awards, share ownership requirements, and participation in an executive severance plan with double-trigger change-in-control protections and equity vesting, underscoring Magnera’s emphasis on competitive, governance-conscious executive pay structures with clear protections in the event of leadership changes or corporate transactions.

The most recent analyst rating on (MAGN) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on Magnera stock, see the MAGN Stock Forecast page.