One-glance verdict
Undervalued
$22.00 our estimate vs market $3.20
85% below our estimate, below the bear case
Fundamentals snapshot
Magnachip Semiconductor Corporation
MX · NYQ · Technology · Semiconductors
Current price
$3.20
52-week range
$2.18 - $9.86
Market cap
$116.83M
Balance sheet
Healthy
-18.71x Concerning
Net cash $44.78M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
2 Risks
1 rewards · 2 risks
- Reward Free cash flow was positive in 3/10 years.
- Risk Operating margin compressed from -0.6% to -20.3% over 3 years.
- Risk Return on equity was -12.8% last year — the company lost money on shareholders' equity.
What this company does
Magnachip Semiconductor Corporation
Magnachip Semiconductor makes essential computer chips (called semiconductors) that control the picture on screens and manage the power for everyday electronics like smartphones, TVs, and car displays. The company primarily earns money by selling these crucial components in large volumes to the big manufacturers that build the final gadgets we buy. Because its chips are a necessary ingredient in so many popular products, Magnachip's financial health is often tied to the overall consumer demand for new electronics.
How the company got here
Magnachip's story begins as the semiconductor division of the Korean electronics giant LG, which was later merged into Hyundai Electronics. [23] In 2004, this non-memory chip business was spun off from its parent company (by then called Hynix) to become Magnachip Semiconductor. [23] After facing financial struggles and a bankruptcy filing in 2009, the company re-emerged and was listed on the New York Stock Exchange in 2011. [23] A major turning point came in 2025 when the company decided to shut down its business of making chips for displays to focus entirely on power-related semiconductors. [1, 4, 15]
What it actually does
Magnachip designs and makes specialized electronic components called analog and mixed-signal semiconductors. [8, 22] Think of these as the tiny traffic cops and power managers inside the electronic gadgets you use every day, from smartphones and AI servers to electric vehicles and smart refrigerators. [6, 10] These chips control the flow of electricity and manage power, which helps devices run more efficiently, have longer battery life, and perform better without overheating. [8, 25]
Power Analog Solutions
This is the company's largest business line, making up the majority of its sales. [19] It produces components called discrete semiconductors, which are like individual, single-purpose electronic switches. A key product is the MOSFET (a type of tiny transistor that switches or amplifies electronic signals), which is crucial for managing power in devices like AI servers, electric vehicle chargers, and industrial equipment. [6, 10] Companies that build these larger products pay Magnachip for these essential power-regulating components.
Power ICs
This is a smaller but important part of the company's business. [19] Unlike the single-purpose components from the Power Analog Solutions segment, Power ICs (Integrated Circuits) are more complex chips that combine several power management jobs into one package. [13] For example, a PMIC (Power Management Integrated Circuit) can act as a complete power control center for the screen on a laptop or tablet. [13] Device manufacturers buy these integrated chips to handle multiple power tasks with a single, efficient component.
What management is betting on now
The company's main strategy is to become a specialist focused entirely on the power semiconductor business. [11, 15] To do this, they are rapidly launching dozens of new and more competitive power products designed for high-growth areas like AI servers, electric vehicles, and industrial automation. [10, 11, 18] Management is also forming strategic partnerships, such as a recent collaboration with Navitas Semiconductor to develop advanced silicon carbide chips, which are in high demand for energy and automotive applications. [7, 24, 28] The goal is for these new products and partnerships to drive sales and make the company more profitable. [15]
Price history
How the share price has moved
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Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$-15.51M
FY2024 Q4
$4.43M
FY2025 Q1
$-4.88M
FY2025 Q2
$-37.01M
FY2025 Q3
$-7.49M
FY2025 Q4
$-4.82M
FY2026 Q1
$-2.36K
FY2026 Q2
$-5.83K
Revenue
$44.70M
Net income
$-4.82M
Diluted EPS
-0.13
Operating cash flow
$-4.50K
Free cash flow
$-5.83K
Fetching…
Sources
Revenue
$46.21M
Net income
$-4.65M
Diluted EPS
-0.13
Operating cash flow
$1.56K
Free cash flow
$-2.36K
Fetching…
Sources
Revenue
$40.57M
Net income
$-8.08M
Diluted EPS
-0.23
Operating cash flow
$5.43M
Free cash flow
$-4.82M
Fetching…
Sources
Revenue
$45.95M
Net income
$-13.09M
Diluted EPS
-0.36
Operating cash flow
$162.00K
Free cash flow
$-7.49M
Fetching…
Sources
Revenue
$47.62M
Net income
$323.00K
Diluted EPS
0.01
Operating cash flow
$-25.13M
Free cash flow
$-37.01M
Fetching…
Sources
Revenue
$44.72M
Net income
$-8.88M
Diluted EPS
-0.24
Operating cash flow
$-4.67M
Free cash flow
$-4.88M
Fetching…
Sources
Revenue
$63.04M
Net income
$-16.28M
Diluted EPS
-0.44
Operating cash flow
$11.86M
Free cash flow
$4.43M
Fetching…
Sources
Revenue
$66.46M
Net income
$-9.62M
Diluted EPS
-0.26
Operating cash flow
$-12.90M
Free cash flow
$-15.51M
Fetching…
Sources
Is it cheap or expensive?
Fair value $22.00 vs current price $3.20
Our most-likely fair value is $22.00 a share — about 587.5% above today's price of $3.20, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $44.8M - more cash than debt. Interest coverage -18.7x.
Net debt
$-44.78M
Interest coverage
-18.71x
Magnachip Semiconductor Corporation's profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 3 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
MX
BASELINE
Magnachip Semiconductor Corporation
Total debt $43.16M Interest coverage -18.71x This is the baseline the peer rows are being compared against.
Total debt $27.98M Interest coverage -55.74x Neither company has much profit cushion over interest right now.
Total debt $89.00M Interest coverage 13.12x This peer still has a real interest-payment cushion, while MX does not.
Total debt $593.70M Interest coverage 12.64x This peer still has a real interest-payment cushion, while MX does not.
Total debt $876.80M Interest coverage -2.44x Neither company has much profit cushion over interest right now.
Total debt $450.00K Interest coverage -152.81x Neither company has much profit cushion over interest right now.
What you should know
The case for and against MX
1 Reward
2 Risks
Rewards
-
Free cash flow was positive in 3/10 years.
Risks
-
Operating margin compressed from -0.6% to -20.3% over 3 years.
-
Return on equity was -12.8% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
—
P/B
0.52x
P/S
0.66x
EV/EBITDA
-2.95x
PEG ratio
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Profitability
How much profit each dollar creates
Gross margin
15.9%
Operating margin
-20.3%
Net margin
-17.3%
ROE
-12.8%
ROA
-6.5%
Health
Liquidity and balance-sheet strength
Debt / equity
0.19x
Current ratio
2.43x
Quick ratio
1.71x
Total debt
$43.16M
Total cash
$87.94M
Growth
How the business has been compounding
Revenue TTM
$177.43M
Revenue 5Y CAGR
-21.6%
EPS TTM
-0.87
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$5.59M
Free CF TTM
$-54.20M
FCF margin
-30.5%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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