MagnaChip (MX) AI Stock Analysis

• Market Cap: $148.22M
• Dividend Yield: N/A
• Average Volume (3M): 149.24K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.30
• Revenue Growth: 3.59%
• EPS Growth: -64.21%
• Country: US
• Employees: 881
• Sector: Technology
• Sector Strength: 87
• Industry: Semiconductors
• EPS (TTM): -0.10
• Shares Outstanding: 36,063,606
• 10 Day Avg. Volume: 125,288
• 30 Day Avg. Volume: 149,242
• 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: 45.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 54 Neutral
• Price Target: $4.00 ▼(-2.68%Downside)

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 coming in much lower than expected.

Market Expansion

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

Negative Factors

Business Transition

The company will exit the Display business by 2Q25, and while this is seen as an opportunity, the transition could bring uncertainties.

Revenue and Margin Targets

Revenue and margin targets are considered aggressive, posing a risk if new TAM-expanding products are not quickly adopted.

MagnaChip Business Overview & Revenue Model

Company Description

MagnaChip Semiconductor Corporation (MX) is a South Korea-based company specializing in the design and manufacture of analog and mixed-signal semiconductor products. The company operates primarily in two segments: the Foundry Services Group and the Standard Products Group. MagnaChip provides a wide array of products, including display drivers, power management integrated circuits (PMICs), and sensors, catering to various sectors such as consumer electronics, communications, and industrial applications.

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
EBITDA	-37.49M	-44.51M	-30.05M	13.28M	89.58M	40.16M
Net Income	-47.77M	-54.31M	-36.62M	-8.04M	56.71M	57.06M
Balance Sheet
Total Assets	551.41M	379.32M	420.49M	516.64M	583.65M	571.69M
Cash, Cash Equivalents and Short-Term Investments	290.19M	138.61M	158.09M	225.48M	279.55M	279.94M
Total Debt	4.59M	30.43M	4.81M	5.49M	4.28M	88.11M
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: 4.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 4.11 is above the 20-day moving average (MA) of 3.91, above the 50-day MA of 3.66, and above the 200-day MA of 4.02, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 62.25 is Neutral, neither overbought nor oversold. The STOCH value of 78.57 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	72 Outperform	$89.20M	25.19	-0.10%	―	5.19%	-101.31%
MRAM	71 Outperform	$153.68M	176.22	-0.31%	―	-22.48%	-102.37%
Sector *	69 Neutral	¥228.59B	14.33	7.64%	2.71%	9.13%	8.49%
QUIK	56 Neutral	$98.18M	―	-24.87%	―	-20.12%	-660.05%
MX	54 Neutral	$148.22M	―	-14.88%	―	3.59%	-64.21%
GSIT	53 Neutral	$98.67M	―	-33.15%	―	-5.73%	47.83%
ATOM	48 Neutral	$155.67M	―	-90.30%	―	-78.70%	13.98%

MagnaChip Corporate Events

MagnaChip Concludes 2025 Annual Stockholders Meeting

MagnaChip held its 2025 Annual Meeting of Stockholders on June 23, 2025, where 79.21% of the outstanding shares were represented. During the meeting, stockholders elected five directors, approved executive compensation, and ratified the appointment of Ernst & Young Han Young as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (MX) stock is a Buy with a $7.00 price target. To see the full list of analyst forecasts on MagnaChip stock, see the MX Stock Forecast page.

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.