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MagnaChip
(NYSE:MX)
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Rating:46Neutral
Price Target:
$3.00
▼(-14.29% Downside)
Action:Reiterated
Date:07/30/26
MX scores 46 primarily due to weak financial performance (sharp TTM revenue contraction, negative margins, and ongoing negative free cash flow) and bearish technical positioning (price below major moving averages). Earnings-call updates add some longer-term strategic upside (new CEO, SiC partnership, and new-product ramp), but near-term guidance and margin headwinds keep the overall score constrained, while valuation remains hard to assess favorably given losses and no dividend support.
Positive Factors
Balance-sheet strength
Low leverage and a sizable equity base provide durable financial flexibility. With debt-to-equity near 0.19 and meaningful equity, the company can fund R&D, product qualification and near-term operations without immediate refinancing, lowering insolvency risk during a multi-quarter product transition.
Negative Factors
Severe revenue contraction
A multi-year and steep revenue decline materially weakens scale economics and bargaining power with foundries and customers. Shrinking volumes raise per-unit costs, hinder R&D payback, and make it harder to fund product transitions organically, increasing execution risk over the coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet strength
Low leverage and a sizable equity base provide durable financial flexibility. With debt-to-equity near 0.19 and meaningful equity, the company can fund R&D, product qualification and near-term operations without immediate refinancing, lowering insolvency risk during a multi-quarter product transition.
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
$118.99M
Dividend YieldN/A
Average Volume (3M)1.32M
Price to Earnings (P/E)―
Beta (1Y)2.17
Revenue Growth-18.37%
EPS Growth8.69%
CountryUS
Employees711
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)-0.84
Shares Outstanding36,499,302
10 Day Avg. Volume937,216
30 Day Avg. Volume1,316,467
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
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:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Neutral
The call balanced near-term financial weakness with strategic, long-term initiatives. Financials showed declining revenue (down 6.1% YoY and 3.3% sequentially), wider adjusted operating losses ($7.0M) and negative EBITDA (negative $4.2M), and guidance points to further sequential declines. Offsetting these headwinds are important positive developments: new CEO leadership, a strategic Navitas partnership to accelerate entry into high-voltage SiC markets, continued R&D investment (R&D up to $7.9M) with a roadmap of 55 new-generation products in 2026, early traction for higher-margin new products, and added financial flexibility via a $50M ATM program. Overall, the company is in transition — current results are weak but management has clear strategic initiatives that could improve longer-term prospects.Positive Updates
New Leadership and Strategic Focus
Appointment of Chae Lee as CEO with deep power semiconductor experience; management is focused on repositioning Magnachip as a pure-play power semiconductor company and accelerating differentiated product strategy.
Negative Updates
Year-Over-Year and Sequential Revenue Declines
Revenue declined 6.1% year-over-year and 3.3% sequentially (Q2 2026 $44.7M vs Q2 2025 $47.6M and Q1 2026 $46.2M), driven by weaker demand for legacy products and seasonal softness in Communications.
Read all updates
Q2-2026 Updates
Positive
Negative
New Leadership and Strategic Focus
Appointment of Chae Lee as CEO with deep power semiconductor experience; management is focused on repositioning Magnachip as a pure-play power semiconductor company and accelerating differentiated product strategy.
Read all positive updates
Company Guidance
For Q3 2026 Magnachip guided consolidated revenue from continuing operations of $41.5 million to $45.5 million (midpoint $43.5M), which at the midpoint implies a 2.7% sequential decline and a 5.2% year‑over‑year decline versus Q3 2025 (compared with $44.7M in Q2 2026), and gross profit margin of 17%–19% versus 19.3% in Q2 2026 (and 18.6% in Q3 2025). Management attributed the expected sequential revenue decline to packaging constraints, lower customer volumes in certain custom applications and an unfavorable legacy product mix/ASP pressure, and noted a planned electrical‑substation upgrade that will lower fab utilization in Q3 with a one‑quarter lag that could cause Q4 gross margin to decline slightly. They reiterated product progress (targeting new‑generation products to represent at least 10% of revenue in Q4 2026 versus ~2% for full‑year 2025), and provided balance sheet/context metrics including Q2 cash of $87.9M, total borrowings of $41.5M, Q2 capex of $1.3M, a $50M at‑the‑market program, Q2 adjusted operating loss of $7.0M, adjusted EBITDA of negative $4.2M, and Q2 non‑GAAP diluted loss per share of $0.13 (36.5M weighted average non‑GAAP diluted shares).MagnaChip Financial Statement Overview
Summary
Income Statement
22
Negative
Balance Sheet
64
Positive
Cash Flow
34
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 177.87M | 179.90M | 231.74M | 230.05M | 337.66M | 474.23M |
| Gross Profit | 28.60M | 32.44M | 51.91M | 51.64M | 101.26M | 153.54M |
| EBITDA | -34.69M | -17.52M | -44.51M | -30.05M | 13.28M | 89.58M |
| Net Income | -30.63M | -29.72M | -54.31M | -36.62M | -8.04M | 56.71M |
Balance Sheet | ||||||
| Total Assets | 324.85M | 351.53M | 379.32M | 420.49M | 516.64M | 583.65M |
| Cash, Cash Equivalents and Short-Term Investments | 87.94M | 103.76M | 138.61M | 158.09M | 225.48M | 279.55M |
| Total Debt | 42.98M | 46.72M | 30.43M | 4.81M | 5.49M | 4.28M |
| Total Liabilities | 98.32M | 103.28M | 102.52M | 75.89M | 88.49M | 130.89M |
| Stockholders Equity | 226.53M | 248.25M | 276.80M | 344.60M | 428.15M | 452.76M |
Cash Flow | ||||||
| Free Cash Flow | -20.63M | -54.20M | -17.73M | -10.23M | -18.62M | 54.92M |
| Operating Cash Flow | 2.65M | -24.21M | -6.13M | -3.01M | 5.17M | 87.74M |
| Investing Cash Flow | -23.61M | -24.43M | -11.67M | -7.66M | -24.93M | -31.44M |
| Financing Cash Flow | 8.96M | 12.02M | 16.56M | -52.34M | -12.74M | -35.54M |
MagnaChip Technical Analysis
Neutral
3.50
Price Trends
5.02
Negative
4.28
Negative
3.53
Positive
Market Momentum
-0.37
Negative
46.03
Neutral
62.15
Neutral
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 3.5 is below the 20-day moving average (MA) of 3.58, below the 50-day MA of 5.02, and below the 200-day MA of 3.53, indicating a neutral trend. The MACD of -0.37 indicates Negative momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 62.15 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $268.21M | 89.97 | 3.70% | ― | -13.20% | ― | |
49 Neutral | $238.93M | -14.57 | -59.94% | ― | -21.32% | -113.45% | |
47 Neutral | $215.27M | -12.26 | -21.96% | ― | 13.65% | 15.74% | |
46 Neutral | $118.99M | -3.88 | -12.72% | ― | -18.37% | 8.69% | |
46 Neutral | $41.55M | 2.10 | 19.78% | ― | -33.13% | ― | |
45 Neutral | $49.48M | -3.35 | -4.92% | ― | -21.88% | -203.29% |
* Technology Sector Average
MX
MagnaChip
3.67
0.84
29.68%
ASYS
Amtech Systems
17.44
12.93
286.70%
GSIT
GSI Technology
6.83
3.28
92.39%
QUIK
QuickLogic
14.65
8.60
142.15%
NA
Nano Labs Ltd. Sponsored ADR Class A
1.88
-2.78
-59.66%
ICG
Intchains Group Ltd. ADR
0.85
-1.89
-68.98%
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.