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MagnaChip Semiconductor

Executive Summary

MagnaChip Semiconductor Corporation, together with its subsidiaries, designs, manufactures, and sells analog and mixed-signal semiconductor platform solutions for communications, Internet of Things, consumer, industrial, and automotive applications.


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.


Similar Companies

Share Price & News

How has MagnaChip Semiconductor's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SMG's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.6%

SMG

6.6%

DE Semiconductor

2.0%

DE Market


1 Year Return

34.9%

SMG

21.0%

DE Semiconductor

-2.6%

DE Market

Return vs Industry: SMG exceeded the German Semiconductor industry which returned 21% over the past year.

Return vs Market: SMG exceeded the German Market which returned -2.6% over the past year.


Shareholder returns

SMGIndustryMarket
7 Day1.6%6.6%2.0%
30 Day-7.1%27.9%8.4%
90 Day-7.1%-2.2%-7.3%
1 Year34.9%34.9%22.2%21.0%-1.0%-2.6%
3 Year30.1%30.1%4.9%1.2%-6.6%-13.9%
5 Year53.4%53.4%53.3%45.6%1.1%-11.7%

Price Volatility Vs. Market

How volatile is MagnaChip Semiconductor's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is MagnaChip Semiconductor undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SMG (€9.75) is trading below our estimate of fair value (€135.43)

Significantly Below Fair Value: SMG is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: SMG is unprofitable, so we can't compare its PE Ratio to the Semiconductor industry average.

PE vs Market: SMG is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate SMG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SMG has negative assets, so we can't compare its PB Ratio to the DE Semiconductor industry average.


Next Steps

Future Growth

How is MagnaChip Semiconductor forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

118.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SMG is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: SMG is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: SMG is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: SMG's revenue is expected to decline over the next 3 years (-19.1% per year).

High Growth Revenue: SMG's revenue is forecast to decline over the next 3 years (-19.1% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SMG's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has MagnaChip Semiconductor performed over the past 5 years?

44.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SMG is currently unprofitable.

Growing Profit Margin: SMG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SMG is unprofitable, but has reduced losses over the past 5 years at a rate of 44.3% per year.

Accelerating Growth: Unable to compare SMG's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: SMG is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-6.5%).


Return on Equity

High ROE: SMG's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Next Steps

Financial Health

How is MagnaChip Semiconductor's financial position?


Financial Position Analysis

Short Term Liabilities: SMG has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: SMG has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: SMG has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: SMG's has negative shareholder equity, so we do not need to check if its debt has reduced over time.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable SMG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: SMG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 34.9% per year.


Next Steps

Dividend

What is MagnaChip Semiconductor's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate SMG's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate SMG's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if SMG's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if SMG's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of SMG's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

YJ Kim (54yo)

5yrs

Tenure

US$2,162,886

Compensation

Mr. Young-Joon Kim, also known as YJ, has been the Chief Executive Officer of MagnaChip Semiconductor Corporation since May 28, 2015 and was its General Manager of Foundry Services Group. He served as an A ...


CEO Compensation Analysis

Compensation vs Market: YJ's total compensation ($USD2.16M) is above average for companies of similar size in the German market ($USD1.08M).

Compensation vs Earnings: YJ's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Young-Joon Kim
CEO & Director5yrsUS$2.16m0.65% $2.3m
Theodore Kim
Chief Compliance Officer5yrsUS$1.19m0.33% $1.2m
Jonathan Kim
Consultant0.17yrUS$875.82k0.17% $605.5k
Woung Lee
Executive VP & GM of Standard Products Group4.5yrsUS$934.03k0.31% $1.1m
Young-Soo Woo
Chief Financial Officerno datano datano data
Shin Young Park
Chief Accounting Officer0.17yrno datano data
Bruce Entin
Head of Investor Relationsno datano datano data
Chan-Keun Park
Director of Public Relationsno datano datano data
Seung-Hoon Lee
Senior Vice President of Manufacturing Operationsno datano datano data
Jk Minh
Chief of Strategic Planning1.58yrsno datano data

3.0yrs

Average Tenure

54yo

Average Age

Experienced Management: SMG's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Young-Joon Kim
CEO & Director5yrsUS$2.16m0.65% $2.3m
Melvin Keating
Independent Director3.75yrsUS$305.00k0.029% $101.6k
Camillo Martino
Independent Director3.75yrsUS$320.00k0.051% $181.0k
Ilbok Lee
Independent Director8.75yrsUS$285.00k0.045% $158.0k
Nader Tavakoli
Independent Non-Executive Chairman1.5yrsUS$375.00k0.27% $959.2k
Gary Tanner
Independent Director4.75yrsUS$335.00k0.015% $54.4k

4.3yrs

Average Tenure

63.5yo

Average Age

Experienced Board: SMG's board of directors are considered experienced (4.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.5%.


Top Shareholders

Company Information

MagnaChip Semiconductor Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: MagnaChip Semiconductor Corporation
  • Ticker: SMG
  • Exchange: DB
  • Founded:
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$387.471m
  • Listing Market Cap: US$352.715m
  • Shares outstanding: 35.07m
  • Website: https://www.magnachip.com

Number of Employees


Location

  • MagnaChip Semiconductor Corporation
  • 1, Allee Scheffer
  • Luxembourg City
  • 2520
  • Luxembourg

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MXNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2011
SMGDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2011

Biography

MagnaChip Semiconductor Corporation, together with its subsidiaries, designs, manufactures, and sells analog and mixed-signal semiconductor platform solutions for communications, Internet of Things, consumer, industrial, and automotive applications. The company operates through two segments, Foundry Services Group and Standard Products Group. The Foundry Services Group segment provides analog and mixed-signal foundry services for fabless and integrated device manufacturer semiconductor companies to manufacture a range of products, including display drivers, light emitting diode (LED) drivers, audio encoding and decoding devices, microcontrollers, touch screen controllers, RF switches, park distance control sensors for automotive, electronic tag memories, and power management semiconductors. The Standard Products Group segment offers display solutions, including source and gate drivers, and timing controllers that cover a range of flat panel displays used in ultra-high definition, high definition, full high definition, LED, 3D and organic light emitting diodes televisions and displays, notebooks, and mobile communications and entertainment devices. This segment also offers power management semiconductor products, such as metal oxide semiconductor field effect transistors, insulated gate bipolar transistors, DC-DC converters, LED drivers, SSD PMIC products, and switching and linear regulators for televisions, smartphones, mobile phones, desktop PCs, notebooks, tablet PCs, other consumer electronics, and consumer appliances, as well as for industrial applications. It serves consumer, computing, and industrial electronics original equipment manufacturers; original design manufacturers; and electronics manufacturing services companies, as well as subsystem designers. The company sells its products through a direct sales force, as well as through a network of agents and distributors worldwide. MagnaChip Semiconductor Corporation is based in Luxembourg City, Luxembourg. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 04:16
End of Day Share Price2020/05/26 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.