MagnaChip (MX) AI Stock Analysis

• Market Cap: $109.21M
• Dividend Yield: N/A
• Average Volume (3M): 242.88K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.59
• Revenue Growth: 4.09%
• EPS Growth: 9.30%
• Country: US
• Employees: 881
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.08
• Shares Outstanding: 35,924,034
• 10 Day Avg. Volume: 260,293
• 30 Day Avg. Volume: 242,884
• 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: 0.67
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 1.45
• Enterprise Value/Ebitda: -4.57
• 1Y Price Target: $5.25
• Price Target Upside: 72.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 48 Neutral
• Price Target: $3.00 ▼(-1.32% Downside)

MagnaChip's overall stock score is primarily impacted by its weak financial performance and poor valuation metrics. The technical analysis indicates a bearish trend, while the earnings call provides mixed signals with some growth but significant challenges. The absence of corporate events does not affect the score.

Positive Factors

Revenue Growth

Consistent year-over-year revenue growth indicates a strong market presence and demand for MagnaChip's products, supporting long-term business stability.

Strategic Product Focus

Focusing on new generation products positions MagnaChip to capture emerging market trends and technological advancements, enhancing competitive advantage.

Design Wins

Increasing design wins reflect strong customer engagement and potential for future revenue growth, reinforcing the company's market position.

Negative Factors

Gross Profit Margin Decline

Declining gross profit margins suggest pricing pressures and operational inefficiencies, which could impact long-term profitability and financial health.

Operating Loss

Persistent operating losses highlight challenges in achieving cost efficiency and profitability, potentially affecting the company's financial sustainability.

Negative Cash Flow

Negative cash flows indicate liquidity constraints and challenges in generating cash from operations, which may limit investment and growth opportunities.

MagnaChip Business Overview & Revenue Model

Company Description

Magnachip Semiconductor Corporation, together with its subsidiaries, designs, manufactures, and supplies analog and mixed-signal semiconductor platform solutions for communications, the Internet of Things, consumer, industrial, and automotive applications. It provides display solutions, including source and gate drivers, and timing controllers that cover a range of flat panel displays used in mobile communications, automotive, entertainment devices, notebook PCs, monitors and liquid crystal displays, and micro light-emitting diode (LED) televisions. The company also offers metal oxide semiconductor field-effect transistors, insulated-gate bipolar transistors, AC-DC converters, DC-DC converters, LED drivers, regulators, and power management integrated circuits for a range of devices comprising televisions, smartphones, mobile phones, wearable devices, desktop PCs, notebooks, tablet PCs, and other consumer electronics, as well as for power suppliers, e-bike, photovoltaic inverter, LED lighting, motor drive, and home appliances; and organic light-emitting diode display driver integrated circuits for OLED TVs. It serves consumer, computing, and industrial electronics original equipment manufacturers, original design manufacturers, and electronics manufacturing services companies, as well as subsystem designers in Korea, the Asia Pacific, the United States, Europe, and internationally. The company sells its products through a direct sales force, as well as through a network of agents and distributors. Magnachip Semiconductor Corporation was incorporated in 2004 and is based in Luxembourg, Luxembourg.

How the Company Makes Money

MagnaChip generates revenue through the sale of its semiconductor products, which are sold to original equipment manufacturers (OEMs) and electronics manufacturers. The company has a diversified revenue model, with key revenue streams coming from its display driver ICs, which are used in smartphones, televisions, and other display devices. Additionally, MagnaChip earns revenue from power management ICs and other semiconductor solutions. The company engages in strategic partnerships and collaborations with leading technology firms to expand its market reach and enhance its product offerings. Factors contributing to its earnings include the growing demand for high-resolution displays, advancements in power management technologies, and the increasing adoption of semiconductors in various industries.

MagnaChip Financial Statement Overview

Summary

MagnaChip is facing financial challenges, particularly in profitability and cash flow generation. The income statement and cash flow issues indicate operational inefficiencies and liquidity concerns, despite a stable balance sheet with low debt.

Income Statement

MagnaChip's recent financial performance shows a struggling revenue base with negative net income and declining gross profit margins. The TTM (Trailing-Twelve-Months) data reveals a negative EBIT and EBITDA, indicating operational inefficiencies. However, the revenue growth from 2023 to the TTM period is slightly positive, which could suggest some potential for recovery.

Balance Sheet

The company's balance sheet is relatively stable with a high equity ratio, indicating a lower reliance on debt. The debt-to-equity ratio remains low, showcasing a conservative capital structure. However, decreased total assets and stockholders' equity over the years indicate shrinking asset base and equity.

Cash Flow

The cash flow situation is concerning, with negative operating and free cash flows in the TTM period. The free cash flow has deteriorated significantly, suggesting liquidity constraints and challenges in generating cash from operations. The ratios of cash flow to net income are unfavorable, pointing to inefficiencies in cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	221.84M	231.74M	230.05M	337.66M	474.23M	507.06M
Gross Profit	50.42M	51.91M	51.64M	101.26M	153.54M	128.32M
EBITDA	-16.00M	-44.51M	-30.05M	13.28M	89.58M	40.16M
Net Income	-38.24M	-54.31M	-36.62M	-8.04M	56.71M	344.96M
Balance Sheet
Total Assets	370.53M	379.32M	420.49M	516.64M	583.65M	571.69M
Cash, Cash Equivalents and Short-Term Investments	113.33M	138.61M	158.09M	225.48M	279.55M	279.94M
Total Debt	2.95M	30.87M	4.81M	5.49M	4.28M	88.11M
Total Liabilities	100.37M	102.52M	75.89M	88.49M	130.89M	226.09M
Stockholders Equity	270.16M	276.80M	344.60M	428.15M	452.76M	345.60M
Cash Flow
Free Cash Flow	-53.05M	-17.73M	-10.23M	-18.62M	54.92M	-29.37M
Operating Cash Flow	-30.85M	-6.13M	-3.01M	5.17M	87.74M	7.47M
Investing Cash Flow	13.74M	-11.67M	-7.66M	-24.93M	-31.44M	318.48M
Financing Cash Flow	-3.70M	16.56M	-52.34M	-12.74M	-35.54M	-222.28M

MagnaChip Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.04
• 50DMA: Negative
• 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 MX, the sentiment is Negative. The current price of 3.04 is below the 20-day moving average (MA) of 3.10, below the 50-day MA of 3.08, and below the 200-day MA of 3.61, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 45.65 is Neutral, neither overbought nor oversold. The STOCH value of 46.91 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MX.

MagnaChip Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ICG	―	$95.39M	33.91	2.03%	―	63.66%	-17.23%
GSIT	―	$354.95M	-21.43	-36.97%	―	6.14%	1.71%
QUIK	―	$121.56M	-15.55	-28.91%	―	-25.90%	-459.91%
MX	―	$109.21M	-3.27	-7.81%	―	4.09%	9.30%
ASYS	―	$115.94M	-3.63	-47.86%	―	-20.20%	-58.57%
NA	―	$114.79M	-5.44	-21.44%	―	―	―

MagnaChip Corporate Events

Magnachip Appoints Camillo Martino as Interim CEO

On August 11, 2025, Magnachip Semiconductor announced the resignation of Young-Joon Kim as CEO and appointed Camillo Martino as the Interim CEO. Martino, who has been the Chairman of the Board since 2020, will focus on transitioning the company to a pure-play power semiconductor firm, aiming for sustainable profitability and shareholder value. The company plans to cut capital expenditures by over 50% and explore strategic alternatives, including a potential sale, to optimize capital returns. The management changes come as the company faces strategic, operational, and financial challenges, with plans to invest in its Gumi fab to support new-generation power products.

The most recent analyst rating on (MX) stock is a Buy with a $6.00 price target. To see the full list of analyst forecasts on MagnaChip stock, see the MX Stock Forecast page.

MagnaChip Semiconductor’s Earnings Call: Mixed Sentiment Amid Growth

MagnaChip Semiconductor’s recent earnings call presented a mixed sentiment, highlighting both achievements and challenges. The company reported revenue growth and strong design win activity, yet faced significant hurdles such as declining gross margins, pricing pressure in China, and increased operating losses. Despite positive strides in certain segments, the overall environment remains challenging.

MagnaChip Semiconductor Reports Q2 2025 Revenue Growth

MagnaChip Semiconductor Corporation is a designer and manufacturer of analog and mixed-signal power semiconductor solutions, serving various sectors including industrial, automotive, communication, consumer, and computing, with a rich portfolio of patents and extensive engineering expertise.