📊 MX Key Takeaways
Is MAGNACHIP SEMICONDUCTOR Corp (MX) a Good Investment?
MagnaChip is experiencing severe operational deterioration with declining revenue (-8.9% YoY), persistent operating losses, and essentially zero operating cash flow generation despite holding $94.6M in cash reserves. The company cannot cover interest expenses from operations (negative 0.4x coverage), is destroying shareholder value (negative ROE of -2.0%), and will likely deplete its cash cushion without a significant operational turnaround.
Fundamentals are weak: revenue is declining and margins are deeply negative, producing operating losses and negative free cash flow. Liquidity is strong with net cash and low leverage providing runway, but there is no clear evidence yet of margin recovery. Until gross margin and operating cash flow inflect sustainably positive, risk outweighs fundamentals.
MAGNACHIP SEMICONDUCTOR Corp Key Strengths (MX)
- Strong liquidity position with 2.37x current ratio and 1.91x quick ratio
- Substantial cash reserves of $94.6M providing near-term runway
- Conservative leverage at 0.18x debt-to-equity ratio with manageable debt load
- Strong liquidity and net cash (cash exceeds debt)
- Low leverage (0.18x D/E) supports solvency
- YoY improvement in diluted EPS suggests some loss moderation
MX Stock Risks: MAGNACHIP SEMICONDUCTOR Corp Investment Risks
- Persistent operating losses (-$7.2M) with negative operating margin of -15.5%
- Declining revenue trend (-8.9% YoY) indicating loss of competitive position
- Zero operating cash flow generation despite $94.6M cash balance suggests operational model is fundamentally broken
- Negative interest coverage ratio (-0.4x) means unable to cover debt service from operations
- Negative returns on equity (-2.0%) and assets (-1.4%) destroying shareholder value
- Cash burn rate unsustainable without profitability turnaround
- Persistent operating losses (−20% operating margin; −16.6% net)
- Negative free cash flow and OCF imply ongoing cash burn
- Revenue contraction (−8.9% YoY) and weak interest coverage (−2.2x)
Key Metrics to Watch
- Operating cash flow conversion from negative to positive
- Revenue stabilization and path to growth
- Operating margin improvement toward breakeven then profitability
- Interest coverage ratio return to positive territory
- Gross margin trend
- Operating cash flow
MAGNACHIP SEMICONDUCTOR Corp (MX) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.37x current ratio provides a solid financial cushion.
MX Profit Margin, ROE & Profitability Analysis
MX vs Technology Sector: How MAGNACHIP SEMICONDUCTOR Corp Compares
How MAGNACHIP SEMICONDUCTOR Corp compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is MAGNACHIP SEMICONDUCTOR Corp Stock Overvalued? MX Valuation Analysis 2026
Based on fundamental analysis, MAGNACHIP SEMICONDUCTOR Corp has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
MAGNACHIP SEMICONDUCTOR Corp Balance Sheet: MX Debt, Cash & Liquidity
MX Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: MAGNACHIP SEMICONDUCTOR Corp's revenue has declined by 62% over the 5-year period, indicating business contraction. The most recent EPS of $-1.44 indicates the company is currently unprofitable.
MX Revenue Growth, EPS Growth & YoY Performance
MX Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $44.7M | -$4.6M | $-0.13 |
| Q3 2025 | $45.9M | -$9.6M | $-0.26 |
| Q2 2025 | $46.4M | $323.0K | $0.01 |
| Q1 2025 | $43.4M | -$8.9M | $-0.24 |
| Q3 2024 | $61.2M | -$5.2M | $-0.13 |
| Q2 2024 | $53.2M | -$3.9M | $-0.09 |
| Q1 2024 | $49.1M | -$15.4M | $-0.40 |
| Q3 2023 | $61.2M | -$5.2M | $-0.13 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
MAGNACHIP SEMICONDUCTOR Corp Dividends, Buybacks & Capital Allocation
MX SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for MAGNACHIP SEMICONDUCTOR Corp (CIK: 0001325702)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MX
What is the AI rating for MX?
MAGNACHIP SEMICONDUCTOR Corp (MX) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MX's key strengths?
Claude: Strong liquidity position with 2.37x current ratio and 1.91x quick ratio. Substantial cash reserves of $94.6M providing near-term runway. ChatGPT: Strong liquidity and net cash (cash exceeds debt). Low leverage (0.18x D/E) supports solvency.
What are the risks of investing in MX?
Claude: Persistent operating losses (-$7.2M) with negative operating margin of -15.5%. Declining revenue trend (-8.9% YoY) indicating loss of competitive position. ChatGPT: Persistent operating losses (−20% operating margin; −16.6% net). Negative free cash flow and OCF imply ongoing cash burn.
What is MX's revenue and growth?
MAGNACHIP SEMICONDUCTOR Corp reported revenue of $46.2M.
Does MX pay dividends?
MAGNACHIP SEMICONDUCTOR Corp pays dividends, with $130.7M distributed to shareholders in the trailing twelve months.
Where can I find MX SEC filings?
Official SEC filings for MAGNACHIP SEMICONDUCTOR Corp (CIK: 0001325702) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MX's EPS?
MAGNACHIP SEMICONDUCTOR Corp has a diluted EPS of $-0.13.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is MX's fundamental grade?
Based on our AI fundamental analysis in May 2026, MAGNACHIP SEMICONDUCTOR Corp has a C grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is MX stock overvalued or undervalued?
Valuation metrics for MX: ROE of -2.0% (sector avg: 22%), net margin of -10.1% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is MX's AI grade for 2026?
Our dual AI analysis gives MAGNACHIP SEMICONDUCTOR Corp a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MX's free cash flow?
MAGNACHIP SEMICONDUCTOR Corp's operating cash flow is $1.6K, with capital expenditures of $3.9K. FCF margin is 0.0%.
How does MX compare to other Technology stocks?
Vs Technology sector averages: Net margin -10.1% (avg: 18%), ROE -2.0% (avg: 22%), current ratio 2.37 (avg: 2.5).