Magnachip Semiconductor Corporation Common Stock (MX)

FairStock Score: 56/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I am looking at Magnachip as a Graham-and-Buffett-style value candidate, and the first question is business quality. It designs analog and mixed-signal chips, including display drivers, with 711 employees. That is a competitive, cyclical industry, and I see no clear moat in the numbers. Revenue has shrunk: $230.1 million in FY2023, $196.4 million in FY2024, and $178.9 million in FY2025. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $44.7 million and net loss was $4.8 million, or $0.13 per diluted share. The company lost money in each of the last four years; FairStock assigns no Peter Lynch category for that reason. Financial health is weak: trailing free cash flow is negative $20.7 million, a negative 20.0% FCF yield, with a Piotroski F-Score of 3/9 and Altman Z-Score of 1.91. Debt to equity is modest at 0.19, so solvency is not immediately threatened by leverage. Valuation is the interesting part. At the 2026-10-13 close of $2.84, P/B is 0.46, meaning the market values the equity at less than half its book value. But P/E is -3.26, ROE is -12.76%, and ROCE is -6.52%; the book value can shrink if losses continue. Annual net loss narrowed to $29.7 million in FY2025 from $54.3 million in FY2024, which is an improvement, but revenue is still falling and Q2 2026 remained unprofitable. A low price-to-book ratio is not a margin of safety if the asset base is wasting. I would need evidence of stable revenue, positive free cash flow, and durable profitability before calling this a sound value.

In plain English: Magnachip makes special chips used in screens, electronics, cars, and connected devices. The business is shrinking and losing money, and cash is going out the door. The stock looks cheap compared with the value of its assets on the books, but that cheapness may not be a true bargain because the company is still unprofitable.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer