Magnachip Semiconductor Corporation (MX) AI Stock Analysis

Magnachip Semiconductor Corporation designs, manufactures, and supplies analog and mixed-signal semiconductor platform solutions for communications, IoT, consumer electronics, industrial sectors, and automotive industries. Its product portfolio features advanced display solutions like source and gate drivers, timing controllers, and OLED display driver ICs used in mobile devices, flat panel displays, automotive displays, notebook PCs, monitors, and televisions. The company also produces power semiconductor products, including MOSFETs, IGBTs, AC-DC converters, DC-DC converters, LED drivers, regulators, and power management ICs. These power components serve applications such as smartphones, PCs, power suppliers, e-bikes, photovoltaic inverters, LED lighting, and home appliances.

Magnachip has faced multi-year operational headwinds, posting a 5-year revenue CAGR of -18.7% from FY2020 to FY2025. Annual revenue decreased from $474.2M in FY2021 to $179.9M in FY2025, falling 22.4% in FY2025 alone. Gross margin compressed from 32.4% in FY2021 to 18.0% in FY2025. Operating margin also eroded, turning from 17.6% in FY2021 to -16.7% in FY2025. Net income deteriorated from $56.7M in FY2021 to -$29.7M in FY2025. For the trailing twelve months ended June 30, 2026, revenue stood at $177.4M with an operating margin of -20.3% and net margin of -17.3%. In the quarter ended June 30, 2026, quarterly revenue fell 6.1% year-over-year while quarterly earnings declined 94.6%.

As of June 30, 2026, Magnachip held $87.9M in cash and short-term investments against $43.0M in total debt, resulting in net cash of $45.0M. The company maintains a current ratio of 2.43 and a debt-to-equity ratio of 0.19 on shareholders' equity of $226.5M. In FY2025, free cash flow was -$54.2M based on operating cash flow of -$24.2M and capital expenditures of $30.0M. Capital allocation in FY2025 included $4.4M dedicated to share buybacks, contributing to a 5-year share count change of -23.6%.

At a share price of $2.56, Magnachip has a market capitalization of $190.9M and an enterprise value of $72.6M. Its forward P/E ratio is 30.4x, trading at a premium to the 18.8x median of its US-listed Technology peers. The company's price-to-sales ratio of 1.1x and price-to-book ratio of 0.5x both sit below the peer medians, while its EV/EBITDA is 20.2x compared to the peer median of 16.6x. Over the past year, MX shares fell 17.2% while the S&P 500 (SPY) gained 16.8%. Over five years, the stock dropped 85.4% against an 83.0% gain for SPY.

One analyst covers next fiscal year projections for Magnachip. The mean price target is $4.00, representing a 56.2% premium over the last close of $2.56. For the current fiscal year ending December 31, 2026, the EPS estimate is -$0.83, reflecting an estimated EPS growth of -277.3%. For the next fiscal year, analysts project EPS of -$0.82 and revenue of $200.5M, representing 6.4% top-line growth. Magnachip has beaten EPS estimates in each of the last 4 quarters. The next earnings date is November 4, 2026.

This page is an AI-written research summary of Magnachip Semiconductor Corporation (MX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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