NYSE:MX

Stock Analysis Report

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

Fundamentals

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


Market Performance


7 Day Return

9.2%

MX

3.0%

US Semiconductor

1.8%

US Market


1 Year Return

31.0%

MX

20.6%

US Semiconductor

7.3%

US Market

Return vs Industry: MX exceeded the US Semiconductor industry which returned 20.6% over the past year.

Return vs Market: MX exceeded the US Market which returned 7.3% over the past year.


Shareholder returns

MXIndustryMarket
7 Day9.2%3.0%1.8%
30 Day8.6%-0.02%-0.7%
90 Day14.3%4.7%0.06%
1 Year31.0%31.0%22.9%20.6%9.7%7.3%
3 Year38.1%38.1%82.2%71.5%46.3%36.9%
5 Year11.5%11.5%137.4%112.9%64.5%46.5%

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

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

Undervalued: MX ($11.74) is trading below our estimate of fair value ($72.32)

Significantly Undervalued: MX is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: MX has negative assets, so we can't compare its PB Ratio to the US 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?

128.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: MX's revenue (4.7% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: MX's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if MX'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?

48.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: MX is unprofitable, but has reduced losses over the past 5 years at a rate of 48.3% per year.

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

Earnings vs Industry: MX is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-6.2%).


Return on Equity

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


Return on Assets

ROA vs Industry: MX is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: MX is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is MagnaChip Semiconductor's financial position?


Financial Position Analysis

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

Long Term Liabilities: MX 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: MX has negative shareholder equity, which is a more serious situation than a high debt level.

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


Balance Sheet

Inventory Level: MX has a high level of physical assets or inventory.

Debt Coverage by Assets: MX has negative shareholder equity (liabilities exceed assets) therefore debt is not covered by short term assets.


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 MX has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MX is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 20.9% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage2.2%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if MX'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 MX's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of MagnaChip Semiconductor's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

YJ Kim (54yo)

4.4yrs

Tenure

US$2,945,061

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 ($USD2.95M) is about average for companies of similar size in the US market ($USD1.79M).

Compensation vs Earnings: YJ's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

4.4yrs

Average Tenure

51.5yo

Average Age

Experienced Management: MX's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

63.5yo

Average Age

Experienced Board: MX's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$92,02723 Sep 19
Brigade Capital Management, LP
EntityCompany
Shares8,389
Max PriceUS$10.97
SellUS$57,26517 Sep 19
Brigade Capital Management, LP
EntityCompany
Shares5,111
Max PriceUS$11.22
BuyUS$204,60010 Jan 19
Brigade Capital Management, LP
EntityCompany
Shares30,000
Max PriceUS$6.82
BuyUS$98,40026 Dec 18
Brigade Capital Management, LP
EntityCompany
Shares16,000
Max PriceUS$6.15
BuyUS$3,606,75018 Dec 18
Brigade Capital Management, LP
EntityCompany
Shares515,000
Max PriceUS$7.07

Ownership Breakdown


Management Team

  • YJ Kim (54yo)

    CEO & Director

    • Tenure: 4.4yrs
    • Compensation: US$2.95m
  • Jonathan Kim (44yo)

    CFO, Chief Accounting Officer & Executive VP

    • Tenure: 4.4yrs
    • Compensation: US$852.43k
  • Theodore Kim (49yo)

    Chief Compliance Officer

    • Tenure: 5.9yrs
    • Compensation: US$997.07k
  • Seung-Hoon Lee

    Senior Vice President of Manufacturing Operations

    • Tenure: 0yrs
  • Woung Lee (56yo)

    Executive VP & GM of Standard Products Group

    • Tenure: 3.9yrs
    • Compensation: US$855.93k
  • Bruce Entin

    Head of Investor Relations

    • Tenure: 0yrs
  • Jk Minh

    Chief of Strategic Planning

    • Tenure: 1yrs
  • Chan-Keun Park

    Director of Public Relations

    • Tenure: 0yrs

Board Members

  • Mel Keating (72yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$381.50k
  • Camillo Martino (57yo)

    Independent Director

    • Tenure: 3.2yrs
    • Compensation: US$353.25k
  • Ilbok Lee (74yo)

    Independent Director

    • Tenure: 8.2yrs
    • Compensation: US$311.50k
  • Nader Tavakoli (61yo)

    Non-Executive Chairman

    • Tenure: 0.9yrs
    • Compensation: US$342.38k
  • Gary Tanner (66yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$427.74k
  • YJ Kim (54yo)

    CEO & Director

    • Tenure: 4.4yrs
    • Compensation: US$2.95m

Company Information

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


Key Information

  • Name: MagnaChip Semiconductor Corporation
  • Ticker: MX
  • Exchange: NYSE
  • Founded:
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$403.499m
  • Shares outstanding: 34.37m
  • 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, consum ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:18
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.