MagnaChip Semiconductor (MX)
NYSE:MX
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MagnaChip
(NYSE:MX)
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Rating:50Neutral
Price Target:
$4.50
▲(39.75% Upside)
Action:Reiterated
Date:05/02/26
The score is held back primarily by weak financial performance—ongoing losses, compressed margins, and materially negative free cash flow—despite modest leverage. Technicals are a secondary positive with price above key moving averages and positive MACD. Earnings-call messaging is mixed: sequential margin improvement and cost/product initiatives are constructive, but near-term guidance is flat and utilization/margin headwinds plus pricing pressure remain significant. Valuation provides limited support while the company is unprofitable and offers no dividend.
Positive Factors
Supportive Balance Sheet
Modest leverage and a relatively large equity base provide durable solvency cushion against ongoing losses and cash burn. This financial buffer increases the company's runway to fund R&D, product transitions and planned capex without immediate distress, reducing short-to-medium term liquidity risk.
Negative Factors
Negative Cash Generation
Material and persistent negative operating and free cash flow erode liquidity and increase dependency on the balance sheet or external financing. Over a multi-quarter horizon this can force dilution, higher borrowing, or cuts to R&D/capex, constraining the firm's ability to execute its product roadmap and reach sustainable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Supportive Balance Sheet
Modest leverage and a relatively large equity base provide durable solvency cushion against ongoing losses and cash burn. This financial buffer increases the company's runway to fund R&D, product transitions and planned capex without immediate distress, reducing short-to-medium term liquidity risk.
Read all positive factors
MagnaChip Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down sales by region to reveal where the company earns most of its revenue and how dependent it is on particular markets. Highlights exposure to regional demand cycles, trade or regulatory risk, and where growth opportunities or concentration risks lie.
Breaks down sales by region to reveal where the company earns most of its revenue and how dependent it is on particular markets. Highlights exposure to regional demand cycles, trade or regulatory risk, and where growth opportunities or concentration risks lie.
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The Fly
The FlyMagnaChip (MX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$184.39M
Dividend YieldN/A
Average Volume (3M)1.94M
Price to Earnings (P/E)―
Beta (1Y)1.83
Revenue Growth-20.64%
EPS Growth44.67%
CountryUS
Employees881
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.70
Shares Outstanding36,440,853
10 Day Avg. Volume1,584,621
30 Day Avg. Volume1,937,003
Financial Highlights & Ratios
PEG Ratio0.07
Price to Book (P/B)0.37
Price to Sales (P/S)0.51
P/FCF Ratio-1.70
Enterprise Value/Market Cap0.73
Enterprise Value/Revenue0.75
Enterprise Value/Gross Profit4.79
Enterprise Value/Ebitda-5.93
Forecast
1Y Price Target
$4.00Price Target Upside24.22% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.83
Revenue Forecast (FY)$188.50M
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 appl...
How the Company Makes Money
MagnaChip makes money primarily by selling semiconductor products to original equipment manufacturers (OEMs), original design manufacturers (ODMs), and other electronics customers, generating revenue on a per-unit basis from shipped chips. Its key...
MagnaChip Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 30, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: management highlighted sequential recovery in revenue, gross margin improvement vs Q4, disciplined cost reductions, a strong acceleration in R&D and an ambitious product roadmap (55 new generation products targeted for 2026) that should drive longer‑term margin and revenue improvement. Offsetting these positives are meaningful year‑over‑year margin and profitability declines, ongoing ASP pressure (particularly in China), idle factory capacity, a decline in cash versus the prior quarter, and near‑term headwinds from a planned substation upgrade that will depress utilization and margins later in the year. Near‑term trends are mixed but the company conveyed a credible multi‑quarter path to improvement driven by new products and expense discipline.Positive Updates
Revenue Growth — Q1 2026
Total consolidated revenue of $46.2M in Q1 2026, up 3.3% year‑over‑year and up 13.9% sequentially compared to Q4 2025.
Negative Updates
Year‑over‑Year Gross Margin Decline
Consolidated gross margin declined to 15.6% in Q1 2026 from 20.9% in Q1 2025, primarily due to unfavorable product mix and ASP erosion, particularly in China.
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth — Q1 2026
Total consolidated revenue of $46.2M in Q1 2026, up 3.3% year‑over‑year and up 13.9% sequentially compared to Q4 2025.
Read all positive updates
Company Guidance
For Q2 2026 Magnachip guided consolidated revenue of $44.5 million to $48.5 million (midpoint ≈ $46.5M), roughly flat sequentially versus Q1 2026 revenue of $46.2M and down ~2.3% year‑over‑year at the midpoint versus Q2 2025’s $47.6M; consolidated gross profit margin is expected to be 17%–19% (up from Q1’s 15.6% but below Q2 2025’s 20.4%). Management noted Q1’s seasonality was affected by a prior $2.7M one‑time sales incentive, expects higher factory utilization in Q2 to build inventory for a planned Gumi substation upgrade that will reduce utilization and margins in Q3 and further in Q4, and reiterated operational metrics including Q1 cash of $94.6M, total borrowings of $42.3M (including a $15.9M equipment loan and $26.4M of term debt reclassified to short‑term due to a March 2027 maturity that management expects to extend), targeted annual OpEx savings of ~$2.5M beginning Q4 2025, and a product roadmap calling for 55 new‑generation product launches in 2026 with new‑gen products to represent ~10% of revenue in Q4 2026 (up from 2% for full‑year 2025).MagnaChip Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 179.09M | 179.90M | 231.74M | 230.05M | 337.66M | 474.23M |
| Gross Profit | 27.97M | 32.44M | 51.91M | 51.64M | 101.26M | 153.54M |
| EBITDA | -22.59M | -17.02M | -44.51M | -30.05M | 13.28M | 89.58M |
| Net Income | -25.49M | -29.72M | -54.31M | -36.62M | -8.04M | 56.71M |
Balance Sheet | ||||||
| Total Assets | 335.46M | 351.53M | 379.32M | 420.49M | 516.64M | 583.65M |
| Cash, Cash Equivalents and Short-Term Investments | 94.55M | 103.76M | 138.61M | 158.09M | 225.48M | 279.55M |
| Total Debt | 44.14M | 46.72M | 30.43M | 4.81M | 5.49M | 4.28M |
| Total Liabilities | 102.66M | 103.28M | 102.52M | 75.89M | 88.49M | 130.89M |
| Stockholders Equity | 232.80M | 248.25M | 276.80M | 344.60M | 428.15M | 452.76M |
Cash Flow | ||||||
| Free Cash Flow | -51.88M | -54.20M | -17.73M | -10.23M | -18.62M | 54.92M |
| Operating Cash Flow | -18.00M | -24.21M | -6.13M | -3.01M | 5.17M | 87.74M |
| Investing Cash Flow | -30.09M | -24.43M | -11.67M | -7.66M | -24.93M | -31.44M |
| Financing Cash Flow | 13.22M | 12.02M | 16.56M | -52.34M | -12.74M | -35.54M |
MagnaChip Technical Analysis
Positive
3.22
Price Trends
3.47
Positive
3.16
Positive
3.02
Positive
Market Momentum
0.28
Negative
64.12
Neutral
53.67
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 3.22 is below the 20-day moving average (MA) of 4.22, below the 50-day MA of 3.47, and above the 200-day MA of 3.02, indicating a bullish trend. The MACD of 0.28 indicates Negative momentum. The RSI at 64.12 is Neutral, neither overbought nor oversold. The STOCH value of 53.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MX.
MagnaChip Risk Analysis
MagnaChip disclosed 49 risk factors in its most recent earnings report. MagnaChip reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
MagnaChip Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | $293.61M | 36.05 | 3.70% | ― | -13.20% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $372.88M | -17.95 | -59.94% | ― | -21.32% | -113.45% | |
59 Neutral | $330.02M | -12.35 | -21.96% | ― | 22.44% | 1.58% | |
53 Neutral | $61.32M | -0.74 | -4.92% | ― | -21.88% | -203.29% | |
50 Neutral | $184.39M | -5.48 | -10.13% | ― | -20.64% | 44.67% | |
46 Neutral | $60.82M | ― | -16.83% | ― | -33.13% | ― |
* Technology Sector Average
MX
MagnaChip
5.06
1.16
29.74%
ASYS
Amtech Systems
20.25
16.60
454.79%
GSIT
GSI Technology
9.12
5.90
183.23%
QUIK
QuickLogic
20.46
15.12
283.15%
NA
Nano Labs Ltd. Sponsored ADR Class A
2.62
-1.18
-31.05%
ICG
Intchains Group Ltd. ADR
1.01
-1.39
-57.92%
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.