MagnaChip (MX) AI Stock Analysis

• Market Cap: $138.48M
• Dividend Yield: N/A
• Average Volume (3M): 295.56K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.24
• Revenue Growth: 3.59%
• EPS Growth: -64.21%
• Country: US
• Employees: 881
• Sector: Technology
• Sector Strength: 78
• Industry: Semiconductors
• EPS (TTM): -0.10
• Shares Outstanding: 36,063,606
• 10 Day Avg. Volume: 183,076
• 30 Day Avg. Volume: 295,560
• PEG Ratio: -0.27
• Price to Book (P/B): 0.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.62
• Enterprise Value/Market Cap: 0.06
• Enterprise Value/Revenue: <0.01
• Enterprise Value/Gross Profit: 0.16
• Enterprise Value/Ebitda: -0.06
• 1Y Price Target: $6.00
• Price Target Upside: 56.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: $4.00 ▲(4.17%Upside)

MagnaChip's stock score reflects significant financial challenges, including declining revenues and negative profitability, partially offset by strategic initiatives and a stable equity position. Technical analysis shows some potential for price stability, though valuation remains a concern due to negative earnings. The earnings call reveals both growth opportunities and significant operational challenges.

Positive Factors

Financial Performance

Magnachip reported a solid quarter with operating expenses much lower than expected.

Growth Prospects

Management is guiding to 5% sequential growth as consumer markets improve and new design wins in industrial sectors.

Negative Factors

Business Strategy

The company will exit the display business, shedding significant operating expenses, but this transition requires effective management to rightsize a legacy business.

Revenue and Margin Targets

Revenue and margin targets are considered aggressive, which may pose challenges in achieving desired growth without rapid adoption of new products.

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 its two main business segments. The Foundry Services Group offers semiconductor manufacturing services to fabless companies, generating income by providing production capacity and expertise in chip fabrication. The Standard Products Group is responsible for designing and selling proprietary semiconductor products, such as display drivers and power management ICs, to original equipment manufacturers (OEMs) and other customers. Key revenue streams include product sales, contract manufacturing services, and technology licensing. Strategic partnerships with leading technology firms and collaborations in research and development also play a significant role in enhancing MagnaChip's market position and revenue potential.

MagnaChip Financial Statement Overview

Summary

MagnaChip faces significant financial hurdles with declining revenues, negative profitability margins, and cash flow challenges. Despite maintaining a strong equity position and low leverage, sustained losses and negative cash flows present risks to long-term viability.

Income Statement

MagnaChip's income statement highlights significant challenges in profitability. The gross profit margin for TTM is approximately 23.19%, indicating some ability to cover production costs, but the net profit margin is negative, reflecting ongoing losses. Revenue has decreased significantly from 2020 to 2025, with a noticeable drop in 2022 and a continued decline into 2025, signaling potential difficulties in market competitiveness or demand. EBIT and EBITDA margins are also negative, pointing to operational inefficiencies and high fixed costs relative to revenue.

Balance Sheet

The balance sheet presents a mixed financial position. The debt-to-equity ratio is low, suggesting manageable levels of debt relative to equity, which is positive for financial stability. However, the return on equity (ROE) is negative due to net losses, indicating poor returns for shareholders. The equity ratio remains strong at around 72%, showing a solid equity base compared to total assets, which provides a cushion against liabilities.

Cash Flow

Cash flow analysis reveals constraints with negative operating cash flow in TTM, reflecting cash burn from operations. Free cash flow has been consistently negative, highlighting the need for external financing or operational improvements. The operating cash flow to net income ratio is negative, indicating insufficient cash generation to cover net losses. The free cash flow to net income ratio further underscores cash flow challenges, suggesting reliance on financing activities.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
227.92M	231.74M	230.05M	337.66M	474.23M	507.06M
	Gross Profit
52.84M	51.91M	51.64M	101.26M	153.54M	128.32M
	EBIT
-44.13M	-53.03M	-57.64M	1.30M	53.68M	27.02M
	EBITDA
-37.49M	-44.51M	-30.05M	13.28M	89.58M	40.16M
	Net Income Common Stockholders
-47.77M	-54.31M	-36.62M	-8.04M	56.71M	57.06M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
290.19M	138.61M	158.09M	225.48M	279.55M	279.94M
	Total Assets
551.41M	379.32M	420.49M	516.64M	583.65M	571.69M
	Total Debt
4.59M	30.43M	4.81M	5.49M	4.28M	88.11M
	Net Debt
-285.60M	-108.18M	-153.28M	-219.99M	-275.27M	-191.83M
	Total Liabilities
131.06M	102.52M	75.89M	88.49M	130.89M	226.09M
	Stockholders Equity
420.35M	276.80M	344.60M	428.15M	452.76M	345.60M
Cash Flow		Free Cash Flow
-18.07M	-17.73M	-10.23M	-18.62M	54.92M	-29.37M
	Operating Cash Flow
-6.75M	-6.13M	-3.01M	5.17M	87.74M	7.47M
	Investing Cash Flow
-10.36M	-11.67M	-7.66M	-24.93M	-31.44M	318.48M
	Financing Cash Flow
-10.14M	16.56M	-52.34M	-12.74M	-35.54M	-222.28M

MagnaChip Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.84
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 3.84 is above the 20-day moving average (MA) of 3.82, above the 50-day MA of 3.38, and below the 200-day MA of 4.06, indicating a neutral trend. The MACD of 0.10 indicates Positive momentum. The RSI at 56.49 is Neutral, neither overbought nor oversold. The STOCH value of 75.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MX.

MagnaChip Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INTT	67 Neutral	$85.33M	25.19	-0.10%	―	5.19%	-101.31%
MRAM	66 Neutral	$137.05M	176.22	-0.31%	―	-22.48%	-102.37%
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
MX	54 Neutral	$138.48M	―	-14.88%	―	3.59%	-64.21%
QUIK	54 Neutral	$89.95M	―	-24.87%	―	-20.12%	-660.05%
GSIT	52 Neutral	$81.67M	―	-33.15%	―	-5.73%	47.83%
ATOM	48 Neutral	$177.78M	―	-90.30%	―	-78.70%	13.98%

MagnaChip Corporate Events

Magnachip Announces Departure of Chief Compliance Officer

On May 21, 2025, Magnachip Semiconductor Corporation announced the upcoming departure of Theodore S. Kim, its Chief Compliance Officer, General Counsel, and Secretary, effective October 22, 2025. The separation is amicable and not due to any disagreements, with the company expressing gratitude for Mr. Kim’s 11 years of service, during which he significantly contributed to enhancing legal, compliance, and risk management functions.

The most recent analyst rating on (MX) stock is a Buy with a $8.00 price target. To see the full list of analyst forecasts on MagnaChip stock, see the MX Stock Forecast page.

MagnaChip Executives Agree to Salary Reductions

On April 28, 2025, MagnaChip announced adjustments to the compensation of its top executives. CEO Young-Joon Kim agreed to a 20% salary reduction, while CFO Shin Young Park’s salary was reduced by 10%, both effective April 1, 2025. These reductions will remain until the company’s operating income is positive for two consecutive fiscal quarters. Additionally, Park’s amended service agreement includes a salary increase and provisions for severance in the event of a change in control.

Magnachip Announces Shutdown of Display Business

On April 8, 2025, Magnachip announced the shutdown of its Display business by the end of the second quarter of 2025, following a thorough review and unsuccessful attempts to sell the business. This strategic move aims to focus on the more profitable Power discrete and Power IC segments, with an expected reduction in annualized operating expenditures by 30% to 35%. The company is targeting a $300 million annual revenue run-rate with a 30% gross profit margin within three years, enhancing shareholder value.