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Magnachip Semiconductor Corp. (MX)
NYSE:MX
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MagnaChip
(NYSE:MX)
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Rating:46Neutral
Price Target:
$2.50
▼(-9.42% Downside)
MagnaChip's overall stock score reflects significant financial and operational challenges, with declining revenues and profitability issues being the most impactful factors. Technical indicators suggest a bearish trend, and valuation metrics are unattractive due to ongoing losses. While there are some positive developments, the immediate outlook remains challenging.
Positive Factors
Communications Segment Growth
The strong growth in the Communications segment indicates a successful market penetration and product adoption, which can drive future revenue stability and expansion.
New Product Releases
The introduction of new-generation products enhances the company's competitive edge and diversifies its product portfolio, potentially leading to increased market share and revenue growth.
Strategic Licensing Agreement
The strategic agreement with Hyundai Mobis opens opportunities in industrial, AI, and renewable markets, potentially boosting long-term revenue and market presence.
Negative Factors
Revenue Decline
The consistent revenue decline highlights challenges in maintaining market share and pricing power, which could affect long-term financial stability.
Gross Profit Margin Decline
Declining gross profit margins indicate potential issues with cost management and competitive pricing, which could impact profitability and cash flow.
Challenges with Legacy Products
The pressure on legacy products suggests difficulties in adapting to market changes, which may hinder growth and necessitate strategic pivots.
MagnaChip (MX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$102.55M
Dividend YieldN/A
Average Volume (3M)283.55K
Price to Earnings (P/E)―
Beta (1Y)1.87
Revenue Growth-7.79%
EPS Growth10.04%
CountryUS
Employees881
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.01
Shares Outstanding35,981,823
10 Day Avg. Volume215,550
30 Day Avg. Volume283,545
Financial Highlights & Ratios
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 Cap0.45
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit1.06
Enterprise Value/Ebitda-2.45
Forecast
1Y Price Target
$4.00Price Target Upside44.93% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
MagnaChip Business Overview & Revenue Model
Company DescriptionMagnachip 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 MoneyMagnaChip 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 Earnings Call Summary
Earnings Call Date:Nov 03, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Negative
The call highlighted significant challenges, including declining revenue and gross profit margins, primarily due to competitive pressures and an aging product portfolio. Despite these challenges, there were notable positive developments, such as growth in the Communications segment and new product releases. However, the immediate outlook remains challenging, with further revenue and margin declines expected in Q4.Q3-2025 Updates
Positive Updates
Communications Segment Growth
Significant strength in the Communications segment with revenue increasing 34% sequentially quarter-on-quarter and 95% year-over-year.
New Product Releases
Released 30 new-generation products in the first 9 months of 2025 compared to 2 in 2024. Expecting to launch at least another 20 new-generation products in Q4 2025, totaling at least 50 new products in 2025, compared to only 4 in 2024.
Strategic Licensing Agreement
Signed a strategic licensing agreement with Hyundai Mobis for IGBT technology, with expectations to expand into industrial, AI, and renewable markets.
Negative Updates
Revenue Decline
Q3 revenue was $45.9 million, down 13.3% year-over-year and down 3.5% sequentially. This decline was primarily due to competitive pricing pressure, especially in China.
Gross Profit Margin Decline
Q3 gross profit margin was 18.6%, down from 22% year-over-year and 20.4% sequentially, primarily due to unfavorable product mix and lower fab utilization.
Challenges with Legacy Products
Significant competitive pressure in China's industrial markets and global consumer TV sector, with an aging product portfolio affecting performance.
Expected Q4 Challenges
Q4 revenue expected to decline sequentially by 11.9% and year-over-year by 17.1%. Gross profit margin expected to drop to 8% to 10% due to a $2.5 million incentive program and lower fab utilization.
Company Guidance
During the call, Magnachip Semiconductor Corporation provided guidance for the fourth quarter of 2025, forecasting consolidated revenue from continuing operations to range between $38.5 million and $42.5 million, which represents an 11.9% sequential decline and a 17.1% year-over-year decrease at the midpoint. The company also projected a consolidated gross profit margin from continuing operations of 8% to 10%, impacted by a one-time $2.5 million incentive program designed to reduce inventory levels, which is expected to negatively affect the gross margin by 600 basis points. For the full year 2025, revenue from continuing operations is anticipated to decrease by 3.8% year-over-year, with a gross profit margin between 17% and 18%. Additionally, the company is implementing cost-saving measures, including a workforce reduction that is expected to yield approximately $2.5 million in annualized OpEx savings. Looking ahead to 2026, Magnachip expects gross margins to remain challenged due to ongoing pricing pressures, but anticipates improvement as new-generation products ramp up.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
Positive
2.76
Price Trends
2.66
Positive
2.87
Negative
3.21
Negative
Market Momentum
0.02
Negative
52.32
Neutral
76.02
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 2.76 is above the 20-day moving average (MA) of 2.71, above the 50-day MA of 2.66, and below the 200-day MA of 3.21, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 52.32 is Neutral, neither overbought nor oversold. The STOCH value of 76.02 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 47 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 |
|---|---|---|---|---|---|---|---|
66 Neutral | $192.38M | -6.15 | -44.68% | ― | -21.59% | -254.69% | |
65 Neutral | $109.88M | 8.49 | 8.63% | ― | 6.18% | 95.91% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $272.07M | -17.70 | -32.47% | ― | 22.00% | 28.06% | |
49 Neutral | $125.96M | -12.97 | -39.72% | ― | -28.05% | -488.63% | |
46 Neutral | $102.55M | -2.66 | -8.46% | ― | -7.79% | 10.04% | |
37 Underperform | $78.49M | -3.71 | -21.44% | ― | ― | ― |
* Technology Sector Average
MX
MagnaChip
2.76
-1.22
-30.65%
ASYS
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13.05
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143.02%
GSIT
GSI Technology
7.69
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159.80%
QUIK
QuickLogic
7.45
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-15.82%
NA
Nano Labs Ltd. Sponsored ADR Class A
3.32
-3.96
-54.40%
ICG
Intchains Group Ltd. ADR
1.79
-2.77
-60.75%
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.