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MagnaChip
(NYSE:MX)
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Rating:46Neutral
Price Target:
$3.50
▲(8.70% Upside)
Action:Reiterated
Date:07/01/26
The score is held down primarily by weak financial performance (ongoing losses and materially negative free cash flow) despite a relatively supportive balance sheet. Technicals are also a headwind with the stock trading below key short-term moving averages. Offsetting factors include a cautiously constructive earnings outlook on gross margin sequential improvement and leadership/product-roadmap catalysts, but near-term pricing pressure, utilization constraints, and potential dilution keep the overall profile below average.
Positive Factors
Supportive balance sheet
Modest leverage and a multi-hundred-million dollar equity base provide a tangible solvency buffer over the next several quarters, limiting immediate bankruptcy risk and giving management optionality to fund R&D and restructuring while executing the turnaround without acute refinancing pressure.
Negative Factors
Negative cash generation
Sustained negative operating and free cash flow erodes liquidity and increases reliance on the balance sheet or external financing. Over a multi-quarter horizon this limits investment flexibility, raises dilution or debt risk, and constrains the runway for product commercialization and margin recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
Supportive balance sheet
Modest leverage and a multi-hundred-million dollar equity base provide a tangible solvency buffer over the next several quarters, limiting immediate bankruptcy risk and giving management optionality to fund R&D and restructuring while executing the turnaround without acute refinancing pressure.
Read all positive factors
MagnaChip Key Performance Indicators (KPIs)
Any
Revenue by Geography
Tracks sales distribution by country or region to reveal concentration and regional trends that affect MagnaChip's top line. Important for judging the impact of currency swings, supply-chain dynamics, and local demand shifts in major electronics and auto markets.
Tracks sales distribution by country or region to reveal concentration and regional trends that affect MagnaChip's top line. Important for judging the impact of currency swings, supply-chain dynamics, and local demand shifts in major electronics and auto markets.
Data provided by:
The Fly
The FlyMagnaChip (MX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$134.32M
Dividend YieldN/A
Average Volume (3M)3.37M
Price to Earnings (P/E)―
Beta (1Y)2.15
Revenue Growth-20.64%
EPS Growth44.67%
CountryUS
Employees737
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.70
Shares Outstanding36,499,302
10 Day Avg. Volume1,188,250
30 Day Avg. Volume3,371,474
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 Cap1.06
Enterprise Value/Revenue0.79
Enterprise Value/Gross Profit5.08
Enterprise Value/Ebitda-6.96
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
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, computing, industrial, and auto...
How the Company Makes Money
MagnaChip makes money primarily by selling semiconductor chips to electronics manufacturers and original design manufacturers (ODMs/OEMs). Its revenue is largely generated from two main product lines: (1) Display solutions—selling display driver I...
MagnaChip Earnings Call Summary
Earnings Call Date:Apr 28, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jul 29, 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 | -20.40M | -17.52M | -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 | -51.83M | -54.20M | -17.73M | -10.23M | -18.62M | 54.92M |
| Operating Cash Flow | -17.98M | -24.21M | -6.13M | -3.01M | 5.17M | 87.74M |
| Investing Cash Flow | -29.98M | -24.43M | -11.67M | -7.66M | -24.93M | -31.44M |
| Financing Cash Flow | 13.16M | 12.02M | 16.56M | -52.34M | -12.74M | -35.54M |
MagnaChip Technical Analysis
Neutral
3.22
Price Trends
5.26
Negative
4.14
Positive
3.50
Positive
Market Momentum
-0.50
Positive
40.98
Neutral
17.26
Positive
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 3.22 is below the 20-day moving average (MA) of 5.02, below the 50-day MA of 5.26, and below the 200-day MA of 3.50, indicating a neutral trend. The MACD of -0.50 indicates Positive momentum. The RSI at 40.98 is Neutral, neither overbought nor oversold. The STOCH value of 17.26 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $309.29M | 109.50 | 3.70% | ― | -13.20% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $285.58M | -17.99 | -59.94% | ― | -21.32% | -113.45% | |
48 Neutral | $250.52M | -16.52 | -21.96% | ― | 22.44% | 1.58% | |
48 Neutral | $54.76M | -3.31 | -4.92% | ― | -21.88% | -203.29% | |
46 Neutral | $134.32M | -6.03 | -10.13% | ― | -20.64% | 44.67% | |
46 Neutral | $44.11M | 2.15 | -16.83% | ― | -33.13% | ― |
* Technology Sector Average
MX
MagnaChip
4.23
0.15
3.68%
ASYS
Amtech Systems
18.67
13.80
283.37%
GSIT
GSI Technology
6.77
2.23
49.12%
QUIK
QuickLogic
16.19
9.48
141.28%
NA
Nano Labs Ltd. Sponsored ADR Class A
1.81
-5.98
-76.73%
ICG
Intchains Group Ltd. ADR
0.80
-1.93
-70.77%
MagnaChip Corporate Events
Business Operations and StrategyExecutive/Board Changes
MagnaChip Names Veteran Chae Lee as New CEO
Positive
Jun 30, 2026
Magnachip announced on June 29, 2026, that it has appointed veteran semiconductor executive Chae Lee as Chief Executive Officer, effective July 1, 2026, with the expectation that he will also join the Board of Directors. Lee succeeds Camillo Marti...
Business Operations and StrategyPrivate Placements and Financing
Magnachip Establishes ATM Program to Support Growth
Positive
Jun 17, 2026
On June 17, 2026, Magnachip Semiconductor Corporation entered into an at-the-market issuance sales agreement with B. Riley Securities, Inc., allowing the company to offer and sell up to $50 million of its common stock through or to the sales agent...
Executive/Board ChangesShareholder Meetings
Magnachip Stockholders Approve Directors and Expanded Equity Plan
Positive
Jun 17, 2026
Magnachip Semiconductor Corporation held its 2026 Annual Meeting of Stockholders on June 11, 2026, with 67.18% of its 36,219,100 outstanding shares represented in person or by proxy. Stockholders elected four directors—Camillo Martino, Gilbe...
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.