MagnaChip (MX) AI Stock Analysis

• Market Cap: $83.48M
• Dividend Yield: N/A
• Average Volume (3M): 399.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.80
• Revenue Growth: -7.79%
• EPS Growth: 10.04%
• Country: US
• Employees: 881
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): -0.01
• Shares Outstanding: 35,981,823
• 10 Day Avg. Volume: 542,804
• 30 Day Avg. Volume: 399,691
• PEG Ratio: -0.05
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.66
• P/FCF Ratio: -8.56
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 1.06
• Enterprise Value/Ebitda: -2.45
• 1Y Price Target: $4.00
• Price Target Upside: 72.41% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.33
• Revenue Forecast (FY): $185.80M

• Rating: 44 Neutral
• Price Target: $2.50 ▲(7.76% Upside)

MagnaChip's overall stock score is primarily impacted by significant financial challenges and bearish technical indicators. The negative P/E ratio and lack of dividend yield further weigh on the valuation. While the earnings call noted some positive developments, the immediate outlook remains challenging with expected revenue and margin declines.

Positive Factors

Communications Segment Growth

The robust growth in the Communications segment indicates strong demand and effective market positioning, potentially offsetting other declining areas and contributing to long-term revenue stability.

New Product Releases

The introduction of new-generation products suggests innovation and adaptation to market needs, which can enhance competitive positioning and drive future revenue growth.

Strategic Licensing Agreement

This agreement opens opportunities in industrial, AI, and renewable markets, potentially diversifying revenue streams and strengthening long-term growth prospects.

Negative Factors

Revenue Decline

The decline in revenue reflects ongoing competitive pressures and market challenges, which could hinder long-term financial performance if not addressed.

Gross Profit Margin Decline

A declining gross profit margin indicates reduced pricing power and operational inefficiencies, potentially impacting profitability and cash flow sustainability.

Challenges with Legacy Products

Pressure on legacy products suggests a need for product innovation and market adaptation to maintain competitiveness and market share.

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 to various industries, particularly in consumer electronics and automotive sectors. Key revenue streams include the sale of display driver ICs, which are critical for televisions and mobile devices, as well as power management ICs used in a variety of electronic applications. The company also benefits from partnerships with major technology firms and OEMs, which help to secure long-term contracts and consistent demand for its products. Additionally, MagnaChip's focus on innovation and development of new technologies allows it to maintain a competitive edge, further enhancing its earnings potential.

MagnaChip Financial Statement Overview

Summary

MagnaChip faces significant financial challenges, with declining revenues and profitability issues. The balance sheet is stable with low leverage, but negative return on equity and cash flow difficulties pose risks. Operational inefficiencies and cash flow management need improvement.

Income Statement

MagnaChip's income statement shows declining revenue with a negative growth rate of -9.25% TTM. The company is experiencing negative net profit margins, indicating ongoing losses. The gross profit margin remains relatively stable, but the EBIT and EBITDA margins are negative, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a low debt-to-equity ratio, suggesting limited leverage, which is a positive aspect. However, the return on equity is negative, indicating that the company is not generating returns for shareholders. The equity ratio is healthy, showing a strong equity base relative to total assets.

Cash Flow

Cash flow analysis indicates negative operating cash flow and free cash flow, with a declining free cash flow growth rate. The operating cash flow to net income ratio is negative, highlighting cash flow challenges. The free cash flow to net income ratio is positive, suggesting some efficiency in converting net income to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	201.33M	231.74M	230.05M	337.66M	474.23M	507.06M
Gross Profit	43.50M	51.91M	51.64M	101.26M	153.54M	128.32M
EBITDA	-18.83M	-44.51M	-30.05M	13.28M	89.58M	45.46M
Net Income	-37.92M	-54.31M	-36.62M	-8.04M	56.71M	344.96M
Balance Sheet
Total Assets	359.61M	379.32M	420.49M	516.64M	583.65M	571.69M
Cash, Cash Equivalents and Short-Term Investments	108.00M	138.61M	158.09M	225.48M	279.55M	279.94M
Total Debt	41.38M	30.43M	4.81M	5.49M	4.28M	88.11M
Total Liabilities	104.26M	102.52M	75.89M	88.49M	130.89M	226.09M
Stockholders Equity	255.35M	276.80M	344.60M	428.15M	452.76M	345.60M
Cash Flow
Free Cash Flow	-45.20M	-17.73M	-10.23M	-18.62M	54.92M	-29.37M
Operating Cash Flow	-17.80M	-6.13M	-3.01M	5.17M	87.74M	7.47M
Investing Cash Flow	10.59M	-11.67M	-7.66M	-24.93M	-31.44M	318.48M
Financing Cash Flow	2.34M	16.56M	-52.34M	-12.74M	-35.54M	-222.28M

MagnaChip Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.32
• 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 MX, the sentiment is Negative. The current price of 2.32 is below the 20-day moving average (MA) of 2.67, below the 50-day MA of 2.96, and below the 200-day MA of 3.49, indicating a bearish trend. The MACD of -0.21 indicates Positive momentum. The RSI at 30.47 is Neutral, neither overbought nor oversold. The STOCH value of 34.03 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 *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ICG	59 Neutral	$64.60M	22.96	8.63%	―	6.18%	95.91%
QUIK	55 Neutral	$124.84M	-15.97	-39.72%	―	-28.05%	-488.63%
GSIT	54 Neutral	$268.05M	-20.16	-32.47%	―	22.00%	28.06%
ASYS	48 Neutral	$103.35M	―	-47.86%	―	-20.20%	-58.57%
MX	44 Neutral	$83.48M	―	-8.46%	―	-7.79%	10.04%
NA	42 Neutral	$96.64M	-4.58	-21.44%	―	―	―

MagnaChip Corporate Events

MagnaChip Semiconductor Faces Challenges Amid Growth and Innovation

The recent earnings call for MagnaChip Semiconductor painted a mixed picture, with the company grappling with significant challenges such as declining revenue and gross profit margins. These issues are largely attributed to competitive pressures and an aging product portfolio. Despite these hurdles, there were positive developments, including robust growth in the Communications segment and a slew of new product releases. However, the immediate outlook remains daunting, with further revenue and margin declines anticipated in the upcoming quarter.

Magnachip Semiconductor Q3 2025 Earnings Overview

Magnachip Semiconductor Corporation is a South Korean company specializing in the design and manufacture of analog and mixed-signal power semiconductor solutions for various applications, including industrial, automotive, communication, consumer, and computing sectors. With a robust portfolio of approximately 1,000 registered patents, the company has a significant presence in the global semiconductor market.

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.