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Magnera (MAGN)
NYSE:MAGN
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Magnera
(NYSE:MAGN)
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Select Model
Rating:52Neutral
Price Target:
$14.50
▲(2.84% Upside)
The score is held back primarily by weak financial fundamentals (ongoing net losses and higher leverage) and a loss-making valuation profile (negative P/E). These are partially offset by constructive price trends/positive MACD and a relatively upbeat earnings call featuring EBITDA/FCF guidance and synergy-driven improvement, albeit with noted regional and volume pressures.
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 (MAGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$505.49M
Dividend YieldN/A
Average Volume (3M)583.66K
Price to Earnings (P/E)―
Beta (1Y)1.22
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees9,000
SectorConsumer Defensive
Sector Strength42
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)-0.06
Shares Outstanding35,850,147
10 Day Avg. Volume531,808
30 Day Avg. Volume583,664
Financial Highlights & Ratios
PEG Ratio-1.55
Price to Book (P/B)0.37
Price to Sales (P/S)0.12
P/FCF Ratio10.88
Enterprise Value/Market Cap4.16
Enterprise Value/Revenue0.66
Enterprise Value/Gross Profit6.41
Enterprise Value/Ebitda16.82
Forecast
1Y Price Target
$17.00Price Target Upside20.57% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.05
Revenue Forecast (FY)$3.32B
Magnera Business Overview & Revenue Model
Company DescriptionMagnera 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 MoneyMagnera 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 Earnings Call Summary
Earnings Call Date:Nov 20, 2025
(Q4-2025)
| % Change Since: |
Next Earnings Date:Feb 05, 2026
Earnings Call Sentiment Positive
The earnings call reflected strong financial performance, growth in key segments, and successful synergy realization, despite challenges in specific regions such as South America and Europe. The company demonstrated effective operational efficiency and maintained a strong balance sheet, positioning itself well for continued success.Q4-2025 Updates
Positive Updates
Strong Financial Performance
Magnera achieved $839 million in sales and adjusted EBITDA of $90 million for the quarter. For the full year, revenues reached $3.2 billion with adjusted EBITDA standing at $362 million. Free cash flow was $126 million, representing a yield exceeding 30%.
Growth in Consumer Solutions
The consumer solutions segment's portfolio increased from 51% to 53% of total revenue. Sales of infection prevention wipes rose 10% year-over-year.
Project CORE and Synergy Realization
Significant progress was made with Project CORE and synergy realization, contributing to EBITDA growth and future earnings improvement of approximately 9%.
Operational Efficiency
Operational metrics and processes are being standardized, and efficiency initiatives are underway throughout the organization.
Debt Reduction
Magnera reduced its debt leverage to 3.8x and concluded the year with approximately $600 million of available liquidity.
Negative Updates
Revenue Decline in Americas
Revenues in the Americas were down 9% for the quarter due to lower raw material costs and competitive pressures from imports in South America.
Volume Decline
Overall volume growth was negative 3.5% for fiscal 2025, with specific declines in South America and Europe.
Cautious Outlook for Europe
The macroeconomic conditions in Europe remain challenging, with a cautious outlook for fiscal year 2026.
Company Guidance
During the Magnera Fourth Quarter 2025 Earnings Conference Call, several key metrics and guidance for fiscal 2026 were highlighted. The company's fourth-quarter sales reached $839 million with an adjusted EBITDA of $90 million, contributing to a full-year revenue of $3.2 billion and an adjusted EBITDA of $362 million. Free cash flow for the year was $126 million, representing a yield exceeding 30%. Looking forward, Magnera anticipates a 9% earnings improvement in fiscal 2026, driven by synergy realization, Project CORE initiatives, and product mix advancements. The company projects EBITDA growth to approximately $395 million at the midpoint and expects free cash flow between $90 million and $110 million, including $80 million in capital investments. Despite challenging macroeconomic conditions, Magnera plans to maintain operational excellence, strengthen its balance sheet, and pursue strategic investments, thus positioning itself for continued success in the dynamic global market.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.43
Neutral
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.38
Negative
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.46
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.20B | 3.20B | 2.19B | 1.39B | 1.49B | 1.08B |
| Gross Profit | 328.00M | 287.00M | 237.00M | 129.71M | 148.80M | 144.79M |
| EBITDA | 125.00M | 190.00M | 236.00M | 56.89M | -104.46M | 87.45M |
| Net Income | -159.00M | -159.00M | -154.00M | -79.05M | -194.21M | 6.94M |
Balance Sheet | ||||||
| Total Assets | 3.99B | 3.99B | 2.81B | 1.56B | 1.65B | 1.88B |
| Cash, Cash Equivalents and Short-Term Investments | 305.00M | 305.00M | 230.00M | 50.27M | 110.66M | 138.44M |
| Total Debt | 2.02B | 2.02B | 2.06B | 865.38M | 849.60M | 787.36M |
| Total Liabilities | 2.92B | 2.92B | 668.00M | 1.31B | 1.33B | 1.34B |
| Stockholders Equity | 1.06B | 1.06B | 2.14B | 256.85M | 318.00M | 542.76M |
Cash Flow | ||||||
| Free Cash Flow | 36.00M | 36.00M | 120.00M | -59.39M | -78.56M | 40.94M |
| Operating Cash Flow | 103.00M | 103.00M | 192.00M | -25.62M | -40.82M | 70.98M |
| Investing Cash Flow | -8.00M | -8.00M | -39.00M | -37.10M | -33.10M | -489.77M |
| Financing Cash Flow | -21.00M | -21.00M | -109.00M | -949.00K | 46.92M | 462.35M |
Magnera Technical Analysis
Neutral
14.10
Price Trends
13.10
Positive
11.91
Positive
12.66
Positive
Market Momentum
0.31
Positive
47.37
Neutral
54.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAGN, the sentiment is Neutral. The current price of 14.1 is below the 20-day moving average (MA) of 14.78, above the 50-day MA of 13.10, and above the 200-day MA of 12.66, indicating a neutral trend. The MACD of 0.31 indicates Positive momentum. The RSI at 47.37 is Neutral, neither overbought nor oversold. The STOCH value of 54.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MAGN.
Magnera Risk Analysis
Magnera disclosed 20 risk factors in its most recent earnings report. Magnera reported the most risks in the "Macro & Political" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Magnera Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $537.40M | 31.23 | 29.57% | 19.32% | -78.78% | -81.27% | |
72 Outperform | $321.66M | 14.90 | 8.75% | ― | -4.24% | -23.16% | |
63 Neutral | $551.48M | 41.70 | 2.40% | 1.42% | -5.64% | -48.34% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $446.58M | -2.19 | -33.37% | ― | 8.88% | -349.99% | |
52 Neutral | $505.49M | -3.15 | ― | ― | ― | ― | |
44 Neutral | $472.54M | ― | ― | ― | ― | ― |
* Consumer Defensive Sector Average
MAGN
Magnera
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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.