Magnera (MAGN) AI Stock Analysis

• Market Cap: $444.80M
• Dividend Yield: N/A
• Average Volume (3M): 454.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.10
• 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: 4.89
• Enterprise Value/Revenue: 0.66
• Enterprise Value/Gross Profit: 6.59
• Enterprise Value/Ebitda: 7.39
• 1Y Price Target: $17.50
• Price Target Upside: 41.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.01
• Revenue Forecast (FY): $3.27B

• Rating: 52 Neutral
• Price Target: $14.50 ▲(17.03% Upside)
• Action: Reiterated Date: 02/12/26
• Date: Action: Reiterated 02/12/26

The score is held back primarily by weak financial quality—persistent net losses, margin compression, and elevated leverage—despite improved recent cash generation. Technicals are moderately supportive with the stock trading above key moving averages and positive momentum indicators. Earnings call messaging adds a modest positive tilt via reiterated EBITDA growth guidance and concrete synergy/CORE and debt-reduction plans, while valuation remains constrained by negative earnings and no stated dividend yield.

Positive Factors

Multi-year revenue scale

Sustained top-line expansion to $3.2B by 2025 indicates durable market traction and scale. For a subscription-and-licensing-led business, this scale supports recurring revenue stability, broader customer relationships, and the ability to fund R&D, commercial expansion, and product development over multiple years.

Improving cash generation & liquidity

Positive operating cash flow (~$103M in 2025) and recent positive FCF provide real financial flexibility despite accounting losses. Material liquidity (~$550M) plus an explicit deleveraging plan give the company runway to invest in growth, service debt, and execute cost programs over the next 2–6 months.

Cost & portfolio efficiency programs

Defined transformation (Project CORE) and targeted synergies create structural margin tailwinds if executed. Realized savings and portfolio optimization can sustainably lift adjusted EBITDA margins, improve cash conversion, and reduce reliance on top-line recovery to restore profitability over the medium term.

Negative Factors

Persistent net losses & margin pressure

Recurring bottom-line losses and falling gross margins signal structural profitability challenges. Even with positive EBITDA (~6%), persistent net losses erode equity, constrain reinvestment, and require sustained margin recovery or continued non‑operating support to achieve durable shareholder returns.

Elevated leverage

High absolute debt and ~1.9x debt/equity elevate refinancing and interest risk, reducing strategic flexibility. Interest and debt service absorb operating cash, making the company sensitive to slower cash generation or margin setbacks until targeted deleveraging materially lowers leverage.

Regional demand & trade/regulatory headwinds

Sustained softness in Europe and competitive import pressure in South America create structural revenue volatility in key markets. Trade inquiries and regulatory uncertainty can force pricing, cost or supply-chain changes, undermining margin recovery and complicating stable multi-region growth execution.

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

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

Strong multi-year revenue growth is outweighed by weak profitability (net losses in 4 of the last 5 years, 2025 net margin ~-5%) and compressed margins (gross margin ~9% in 2025 vs ~16% in 2020). Cash flow has improved with positive operating cash flow (~$103M) and free cash flow (~$36M) in 2025, but leverage remains elevated (debt-to-equity ~1.9), limiting financial flexibility.

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: 12.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 12.39 is below the 20-day moving average (MA) of 13.56, below the 50-day MA of 14.01, and below the 200-day MA of 12.49, indicating a bearish trend. The MACD of -0.45 indicates Positive momentum. The RSI at 36.31 is Neutral, neither overbought nor oversold. The STOCH value of 29.70 is Neutral, 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
IPI	71 Outperform	$535.33M	32.26	-33.37%	―	8.88%	-349.99%
MSB	69 Neutral	$398.98M	40.46	29.57%	19.32%	-78.78%	-81.27%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
HDSN	58 Neutral	$273.07M	17.68	8.75%	―	-4.24%	-23.16%
MAGN	52 Neutral	$444.80M	-3.94	-12.41%	―	―	―
LZM	44 Neutral	$385.41M	13.38	―	―	―	―

Magnera Corporate Events

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.