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Magnera (MAGN)
NYSE:MAGN
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Magnera
(NYSE:MAGN)
Rating:53Neutral
Price Target:
$12.50
▼(-11.47%Downside)
Positive Factors
Market Position
Magnera is positioned as the largest global player in nonwoven specialty materials, benefiting from its scale and technology breadth.
Risk/Reward Profile
An attractive risk/reward profile is seen for MAGN as value is unlocked through synergy realization, recovery in key end markets, and benefits from greater scale as a combined entity.
Synergy Benefits
The company is laser-focused on cultivating merger synergies and balance sheet deleveraging, which is expected to unlock value.
Negative Factors
Guidance Adjustment
Given the macro challenges, management has adjusted full-year FY2025 guidance lower.
Leverage Concerns
The next 6-12 months could be challenging due to high leverage and reliance on consumer sentiment.
Market Volatility
There is anticipated volatility due to end markets remaining choppy and MAGN settling in as a public company.
Magnera (MAGN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$506.23M
Dividend YieldN/A
Average Volume (3M)718.81K
Price to Earnings (P/E)―
Beta (1Y)1.08
Revenue Growth-9.02%
EPS Growth36.86%
CountryUS
Employees9,000
SectorBasic Materials
Sector Strength68
IndustryManufacturing - Textiles
Share Statistics
EPS (TTM)-1.15
Shares Outstanding35,600,000
10 Day Avg. Volume624,043
30 Day Avg. Volume718,809
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)0.39
Price to Sales (P/S)0.00
P/FCF Ratio-1.59
Enterprise Value/Market Cap1.71
Enterprise Value/Revenue0.13
Enterprise Value/Gross Profit3.73
Enterprise Value/Ebitda2.90
Forecast
1Y Price Target
$18.50Price Target Upside31.02% Upside
Rating ConsensusHold
Number of Analyst Covering2
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 Moneynull
Magnera Earnings Call Summary
Earnings Call Date:May 07, 2025
(Q2-2025)
| % Change Since: -6.92%|
Next Earnings Date:Nov 04, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed view. Highlights included product innovation, progress on synergy realization, and financial stability. However, these were balanced by lowlights such as energy cost challenges in Europe, inconsistent order patterns, and revised EBITDA guidance due to market uncertainties.Q2-2025 Updates
Positive Updates
Innovative Product Launches
Magnera launched new products such as the TYPAR Clear Acrylic Flashing solution, which was awarded the Most Innovative Building Material at the 2025 International Builders Show. The company also introduced KamiSoft and UltraSoft products for premium incontinence applications with twice the softness of standard offerings.
Synergy Realization Progress
The company remains committed to achieving $55 million in net synergies over three years, with significant progress reported in procurement and operational efficiencies.
Financial Stability and Liquidity
The company reported $570 million in available liquidity, a 14% improvement from the previous quarter. Magnera is focusing on strengthening its balance sheet and preserving liquidity.
Positive Free Cash Flow and Cost Reduction
Despite macro uncertainties, Magnera reaffirmed its post-merger adjusted free cash flow guidance of $75 million to $95 million, driven by an intense focus on CapEx and working capital initiatives.
Negative Updates
Energy Inflation in Europe
Significant headwinds were faced due to energy inflation, with natural gas and electricity costs being higher than the prior quarter, impacting adjusted EBITDA.
Inconsistent Order Patterns
The company experienced inconsistent order patterns from customers due to market uncertainty, with many adopting a wait-and-see approach.
Challenges in South America and Europe
The Rest of World division, including Europe and South America, saw softer volumes and increased competitive pressures, particularly from Asia imports.
Revised Fiscal 2025 EBITDA Guidance
The company revised its fiscal 2025 adjusted EBITDA guidance to $360 million to $380 million from previous expectations, due to macro uncertainties and potential downstream impacts from global supply chain reshuffling.
Company Guidance
During the Q2 2025 earnings call, Magnera provided guidance indicating a fiscal 2025 adjusted EBITDA range of $360 million to $380 million, while reaffirming their post-merger adjusted free cash flow guidance of $75 million to $95 million. They emphasized the impact of energy inflation in Europe and raw material cost increases, which they plan to mitigate in the second half through price pass-through mechanisms and productivity improvements. The company remains committed to realizing $55 million in net synergies over three years, with significant progress in procurement and operational optimizations. Despite macroeconomic uncertainties, Magnera continues to focus on innovation and efficiency to drive long-term shareholder value, targeting a reduction in leverage to approximately 3x.Magnera Financial Statement Overview
Summary
Magnera shows revenue growth but struggles with profitability and cash flow. High leverage poses risks despite some financial stability.Income Statement
Magnera shows a declining revenue trend over recent years, with a notable revenue increase in TTM (Trailing-Twelve-Months) to $2.19 billion compared to $1.39 billion in the prior year. However, profitability metrics are concerning, with a negative net profit margin of -6.06% TTM and a negative EBIT margin of -0.35% TTM, indicating operational challenges. The gross profit margin stands at 10.57% TTM, suggesting pressure on production costs.55
Neutral
Balance Sheet
The balance sheet highlights moderate leverage, with a debt-to-equity ratio of 1.88 TTM. This level of debt could pose risks, although the equity ratio of 26.93% TTM suggests some financial stability. The return on equity is negative at -12.12% TTM, reflecting current profitability struggles.60
Neutral
Cash Flow
Cash flow analysis reveals challenges, with a negative free cash flow of -$21.13 million TTM, despite a positive operating cash flow to net income ratio of 0.24 TTM. The free cash flow to net income ratio is -0.16 TTM, highlighting issues in generating cash from operations.50
Neutral
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 2.19B | 1.39B | 1.49B | 1.08B | 916.50M | 927.67M | Gross Profit |
| 231.27M | 129.71M | 148.80M | 144.79M | 147.87M | 147.54M | EBIT |
| -7.74M | 2.71M | -163.95M | 28.61M | 49.16M | 54.63M | EBITDA |
| 103.32M | 56.89M | -104.46M | 87.45M | 95.98M | 26.77M | Net Income Common Stockholders |
| -132.53M | -79.05M | -194.21M | 6.94M | 21.30M | -21.54M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 282.00M | 50.27M | 110.66M | 138.44M | 99.58M | 126.20M | Total Assets |
| 4.06B | 1.56B | 1.65B | 1.88B | 1.29B | 1.28B | Total Debt |
| 2.05B | 865.38M | 849.60M | 787.36M | 313.52M | 359.86M | Net Debt |
| 1.77B | 815.12M | 738.94M | 648.92M | 213.94M | 233.66M | Total Liabilities |
| 2.97B | 1.31B | 1.33B | 1.34B | 708.95M | 727.84M | Stockholders Equity |
| 1.09B | 256.85M | 318.00M | 542.76M | 577.93M | 555.96M |
| Cash Flow | Free Cash Flow | ||||
| -21.13M | -59.39M | -78.56M | 40.94M | 80.86M | 75.07M | Operating Cash Flow |
| 32.09M | -25.62M | -40.82M | 70.98M | 108.99M | 102.83M | Investing Cash Flow |
| 6.70M | -37.10M | -33.10M | -489.77M | -26.77M | -27.11M | Financing Cash Flow |
| 28.93M | -949.00K | 46.92M | 462.35M | -100.31M | -72.77M |
Magnera Technical Analysis
Neutral
14.12
Price Trends
14.02
Positive
16.84
Negative
18.70
Negative
Market Momentum
-0.18
Negative
57.19
Neutral
88.16
Negative
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 14.12 is above the 20-day moving average (MA) of 12.70, above the 50-day MA of 14.02, and below the 200-day MA of 18.70, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 57.19 is Neutral, neither overbought nor oversold. The STOCH value of 88.16 is Negative, 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
Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $791.31M | 16.92 | 20.93% | 1.06% | 9.92% | 17.12% | |
72 Outperform | $659.59M | 7.88 | 11.26% | 2.60% | 6.03% | 5079.05% | |
64 Neutral | $612.70M | 30.62 | -3.00% | ― | -23.34% | -128.05% | |
56 Neutral | $748.37M | 27.86 | -7.29% | 1.40% | -4.98% | -192.96% | |
53 Neutral | $506.23M | ― | -30.78% | ― | -9.02% | 36.86% | |
51 Neutral | $2.04B | -1.15 | -21.24% | 3.95% | 2.91% | -30.44% | |
42 Neutral | $1.57B | ― | -667.42% | ― | ― | -3.49% |
* Basic Materials Sector Average
Performance Comparison
MAGN
Magnera
14.12
-6.81
-32.54%
GSM
Ferroglobe
3.94
-1.36
-25.66%
ODC
Oil-Dri Of America
56.71
23.80
72.32%
MTUS
Metallus
14.33
-6.45
-31.04%
ASIX
AdvanSix
24.81
2.44
10.91%
TMC
TMC the metals company Inc.
4.34
2.86
193.24%
Magnera Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Magnera Announces New Executive Compensation and Incentive Plans
Neutral
Dec 20, 2024
Magnera Corporation announced an employment agreement with its President and CEO, Curtis L. Begle, which includes a $1,000,000 annual base salary, a target annual bonus of 100% of base salary, and long-term incentive grants amounting to $4,600,000. Additionally, the company introduced an Executive Severance Plan and awarded performance share units under the Omnibus Incentive Plan to various executives, with vesting based on performance over a three-year period. These measures are aimed at aligning executive compensation with the company’s strategic goals and ensuring retention and motivation of key leadership.
More about Magnera
YTD Price Performance: -28.83%
Average Trading Volume: 718,768
Technical Sentiment Consensus Rating: Strong Buy
Current Market Cap: $634.4M
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.