MagnaChip (MX) AI Stock Analysis

• Market Cap: $107.95M
• Dividend Yield: N/A
• Average Volume (3M): 280.62K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.91
• 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: 323,076
• 30 Day Avg. Volume: 280,616
• 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: 0.35
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 0.87
• Enterprise Value/Ebitda: -2.00
• 1Y Price Target: $4.00
• Price Target Upside: 35.59% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $3.00 ▲(1.69% Upside)

The score is held back primarily by weak financial performance (declining revenue, ongoing losses, and negative cash flow) and cautious near-term guidance pointing to further revenue and margin deterioration. Technical signals are moderately supportive in the short term (price above key moving averages with positive MACD), but valuation remains unattractive due to losses and no dividend support, while corporate governance updates provide only a modest positive.

Positive Factors

Product roadmap acceleration

A rapid increase in new-generation product releases materially improves the company’s long-term competitiveness by addressing an aging portfolio. A deeper, modern product pipeline supports future revenue recovery, higher ASPs and incremental margin expansion as new products ramp into OEM designs over multiple quarters.

Strategic licensing expands addressable markets

The IGBT licensing deal opens durable, higher-value end markets (automotive, industrial, renewable and AI power). Licensing strengthens IP monetization, creates collaboration pathways with large OEMs, and supports diversification away from legacy consumer segments—reducing single-market dependence over the medium term.

Conservative balance sheet (low leverage)

Low leverage and a healthy equity base provide financial flexibility to fund R&D, product development and inventory adjustments without excessive refinancing risk. This structural balance-sheet strength helps the company survive cyclical demand and invest in strategic transitions over the next several quarters.

Negative Factors

Persistent revenue decline

A multiyear revenue downtrend erodes scale benefits and limits fixed-cost absorption, making margin recovery harder. Continued top-line contraction reduces pricing leverage with customers, constrains reinvestment in next-gen products, and raises the risk that recovered volumes may lag the company’s cost base.

Negative operating and free cash flow

Sustained negative operating and free cash flow restricts the firm’s ability to self-fund R&D, product ramps and working capital needs. Even with low debt, ongoing cash burn forces reliance on external funding or asset monetization, increasing execution risk during the multi-quarter product transition.

Pricing pressure and aging product mix

An aging product portfolio facing aggressive pricing pressure compresses gross margins and lowers fab utilization. Until the new-generation products materially displace legacy SKUs at scale, the company faces structural margin headwinds and customer-share vulnerability that can persist across several reporting periods.

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

Weak fundamentals driven by declining revenue (down 9.25% TTM), negative profitability (negative net margin and negative EBIT/EBITDA margins), and negative operating/free cash flow. The balance sheet is a partial offset with low leverage and a healthy equity ratio, but negative ROE underscores ongoing value destruction.

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: Neutral
• Last Price: 2.95
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 2.95 is above the 20-day moving average (MA) of 2.90, above the 50-day MA of 2.75, and below the 200-day MA of 3.19, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 53.84 is Neutral, neither overbought nor oversold. The STOCH value of 34.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MX.

MagnaChip Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ICG	65 Neutral	$120.74M	9.16	8.63%	―	6.18%	95.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ASYS	57 Neutral	$263.14M	-8.20	-44.68%	―	-21.59%	-254.69%
GSIT	52 Neutral	$276.65M	-17.35	-32.47%	―	22.00%	28.06%
MX	50 Neutral	$107.95M	―	-8.46%	―	-7.79%	10.04%
QUIK	50 Neutral	$138.43M	-13.93	-39.72%	―	-28.05%	-488.63%
NA	37 Underperform	$86.51M	-3.91	-21.44%	―	―	―

MagnaChip Corporate Events

MagnaChip strengthens board with new independent director

On January 14, 2026, Magnachip Semiconductor Corporation appointed investor and semiconductor industry veteran Cristiano Amoruso as an independent director to its board, with the move announced publicly on January 20, 2026. Amoruso, co-founder and chief investment officer of Byreforge LLC and a current director at Navitas Semiconductor, joins all three key board committees and will receive standard independent director equity and cash compensation, reinforcing Magnachip’s governance structure as it pursues growth as a pure-play power semiconductors company; the board highlighted his track record in operational turnarounds and value creation, while the company noted that no related-party transactions or selection arrangements were involved in his appointment.

The most recent analyst rating on (MX) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on MagnaChip stock, see the MX Stock Forecast page.

Magnachip Announces Retirement of Longtime Board Member Ilbok Lee

On January 13, 2026, Magnachip Semiconductor Corporation announced that longtime board member Ilbok Lee would retire and resign from its Board of Directors, effective at the company’s next scheduled board meeting on January 14, 2026, citing personal reasons and no disagreements with the company’s operations, policies or practices. Lee, who joined the board in August 2011 and served in key roles including Chair of the Nominating and Corporate Governance Committee and member of the Audit, Risk and Strategic Review Committees, was praised by Chairman Camillo Martino for his strategic, operational and governance contributions, with the company highlighting his deep technical insight and lasting impact on Magnachip’s oversight and direction.

The most recent analyst rating on (MX) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on MagnaChip stock, see the MX Stock Forecast page.