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what it is
Magnachip makes power and display chips that go into screens, TVs, appliances, cars, and industrial gear.
how it gets paid
Last year Magnachip Semi made $232M in revenue. Power Analog Solutions was the main engine at $96M, or 41% of sales.
what just happened
Latest quarterly results showed just 20.0% gross margin, which is too thin for a company already posting losses.
At a glance
C++ balance sheet — some cracks in the foundation
15/100 earnings predictability — expect surprises
12.5% return on capital — nothing to write home about
-$0.81 fy2025 eps est
$232M fy2024 rev est
xvary composite: 40/100 — below average
What they do
Magnachip makes power and display chips that go into screens, TVs, appliances, cars, and industrial gear.
This is a niche supplier, not a scale monster. Your edge here is design-in stickiness: once a chip is qualified inside a display or power system, swapping it out is slow and expensive. Magnachip also launched 55 new-generation products in 2025, up from 4 in 2024, which tells you management is trying to outwork its size problem with speed.
How they make money
$232M
annual revenue
Power Analog Solutions
$96M
Display Solutions
$76M
OLED Display Driver ICs
$34M
Power Management ICs and Regulators
$26M
The products that matter
power management chips
Power Analog Solutions
$41.55M in the latest quarter
This generated $41.55M in the latest quarter and is now effectively the core of the company after the display exit. If this segment does not stabilize, there is no second engine waiting behind it.
core
new product launches
Power product pipeline
55 launches in 2025
The company launched 55 new power products in 2025. That's the bet. You need those launches to turn into revenue fast enough to offset a business that just posted a 17% decline.
turnaround lever
Key numbers
22.9%
operating margin
Operating margin → what is left after running the business → so what: Magnachip is losing money before interest and taxes even show up.
$232M
annual revenue
Revenue → total sales → so what: this is a very small semiconductor company trying to fund a turnaround on a limited base.
$40M
long-term debt
Long-term debt → money owed later → so what: debt is 28% of capital, which matters more when earnings are negative.
-$1.44
trailing eps
EPS → profit per share → so what: each share lost $1.44 over the last year, which explains why valuation screens look weird here.
Financial health
C++
strength
- balance sheet grade C++ — below average — limited financial resources
- risk rank 3 — safer than 50% of stocks
- price stability 20 / 100
- long-term debt $40M (28% of capital)
C++ — below average. watch for debt servicing and cash burn.
Total return vs. market
Return history isn't available for MX right now.
source: institutional data · return history unavailable
What just happened
missed estimates
Latest quarterly results showed just 20.0% gross margin, which is too thin for a company already posting losses.
Revenue was reported at $138 million in the provided EDGAR summary, with EPS of -$0.60. That clashes with more recent company-reported quarterly revenue of $40.6 million in March 2026, so the clean read is simple: margins are weak and profitability is still not here.
$138M
revenue
$0.60
eps
20.0%
gross margin
the number that mattered
Gross margin at 20.0% matters most because margin → money left after making the product → so what: there is not enough cushion yet to cover the rest of the business.
source: company earnings report, 2026
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What could go wrong
the #1 risk is the power-semi pivot failing to replace a lost display business.
med
The new products do not scale
MX launched 55 new power products in 2025, but the company still reported just $40.6M of quarterly revenue and a 17% decline from a year ago.
If those launches do not translate into orders, the pivot stays a slide deck and revenue keeps shrinking.
med
Margins stay stuck around 20%
Gross margin was about 20.0%. In semis, that is not much buffer. One bad pricing cycle or cost miss can eat what little profit structure is left.
Thin margin plus expected losses of -$0.81 per share is how a transition story turns into a financing story.
med
Leadership turnover slows execution
YJ Kim stepped down in early 2026 and Camillo Martino is interim CEO. That is happening while the company is narrowing its business and trying to ramp new products.
Interim leadership can delay product, capital, and customer decisions right when speed matters most.
med
Strategic optionality is thinner than bulls want
The prior Wise Road Capital transaction was blocked by CFIUS. That history matters because it reminds you not every theoretical exit path is actually available.
A $102M company with $40M of debt and limited strategic flexibility does not get many bad quarters for free.
A failed pivot would hit nearly all of a business now centered on power semiconductors, with $40.6M of quarterly revenue, roughly 20% gross margin, and 55 recent product launches carrying the burden.
source: institutional data · regulatory filings · risk analysis
Pay attention to
metric
Revenue stabilization
The first number that matters is simple: does quarterly revenue stop falling from the current $40.6M run-rate after the 17% drop from a year ago.
trend
Gross margin above survival mode
Around 20% gross margin is thin. You want to see improvement, because a power-chip reset with commodity-like margins is not much of a reset.
risk
Interim CEO turns into a real plan
Camillo Martino is interim CEO after YJ Kim stepped down. Watch for hard operating priorities, not generic turnaround language.
calendar
Next earnings and Q1 2026 guide
The next print needs to show whether the 55 new product launches are turning into revenue and whether management can hold the line on margin.
Analyst rankings
earnings predictability
15 / 100
A 15 / 100 score means quarterly numbers can swing hard. In human-speak: analysts do not trust this business to deliver smooth results.
price stability
20 / 100
This stock has a 20 / 100 stability score. Plain English: you should expect movement, not calm.
risk rank
3
Risk rank 3 says safer than about half the market. The catch is that operating risk here feels higher than that label suggests because the business model is mid-pivot.
source: institutional data
Institutional activity
institutional ownership data for MX is being compiled.
source: institutional data
Price targets
3-5 year target range
n/a
n/a
$3
current price
n/a
target midpoint · n/a from current
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