MagnaChip Semiconductor

Semiconductors · Technology

Price

$3.31

+0.03 (+0.91%)

Market Cap

$120.8M

Winston Score

Winston is worried

Weak fundamentals across most pillars.

Data as of Aug 23, 2026 · filings through Jun 30, 2026

How the score breaks down

Quality

Weak

Growth

Weak

Cash Flow

Weak

Stability

Good

Valuation

Data not available

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Share count falling — buybacks

−24.1% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 47.7M (2021) → 36.2M (2025)

Winston Score History

The full picture

Magnachip Semiconductor is a South Korean company that designs and sells chips used in display screens and power management systems. Its main products help control how screens show images on devices like televisions, smartphones, and monitors. The company sells primarily to electronics manufacturers in Asia, especially in South Korea, China, and Taiwan.

Magnachip earns money by selling semiconductor chips directly to device makers, meaning revenue depends on how many units customers order each quarter. The company is relatively small, with a market cap around $300 million, and it competes against larger chipmakers like Samsung and other Asian semiconductor firms that have more resources and scale. Magnachip's thin gross margins and negative operating margin reflect ongoing pressure from competition and weak demand in the display market, and its ability to return to profitability depends heavily on a recovery in consumer electronics spending and its success shifting toward higher-margin power semiconductor products.

Growth Profile

For growth stock investors

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

-2.7% YoY

YoY Growth Rate

Revenue declining

EPS Growth

<−1,000% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$27M/ year

↓ Declining (-47% vs prior year)

15.2% of revenue

In line with sector average (15%)

R&D spend declining — could signal cost-cutting or efficiency

Insider Activity

25.5%ownership

↑ Rising

Insiders increasing their stake — aligned with shareholders

Cash Runway

~4 years

$88M cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

$88M cash & investments at current burn rate

Revenue declining

MagnaChip Semiconductor's revenue is actually shrinking. In a growth stock, that removes the core investment thesis. The low Winston Score here may be warranted — unless there's a turnaround story.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

Every number that matters to educated investors.

Each metric is explained in plain language so you know exactly what you're looking at. Start your free trial now.

Quality

Profit per sale

Gross Margin

19.3%

Thin — 19.3% gross margin

Profit after running costs

Operating Margin

-11.5%

Losing money on operations — -11.5%

Return on the money invested

ROCE

-12.5%

Weak — -12.5% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales growth

Sales YoY

-19.0%

Shrinking sales (-19.0% YoY)

Profit growth

EPS YoY

N/A

Data not available

How steady the profit is

EPS Consistency

4/8 quarters

Earnings inconsistent quarter-to-quarter

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Cash Flow

Profit that turns into cash

Cash Conversion

N/A

Data not available

Spare cash per sale

FCF Margin

-11.6%

Burning cash (-11.6%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

What it owes vs what it owns

Debt / Equity

0.12

Conservative — low debt load (0.12)

Covers its interest

Interest Cover

N/A

Data not available

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Valuation

Price vs profit

P/E Ratio (TTM)

N/M

Negative earnings — P/E not meaningful

Cheaper or dearer next year

P/E vs Forward

N/A

not available

Data not available

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Dividends

Not applicable for this business.

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