Back to top


Zacks Equity Research

MagnaChip Semiconductor


 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at or call 800-767-3771 ext.  9339.

MagnaChip Semiconductor Corp. (MX - Snapshot Report) topped earnings estimates by an impressive 120% in its third quarter, which was also the sixth straight quarter with a positive surprise. Following the report, this provider of analog and mixed-signal semiconductor products enjoyed raised earnings estimate revisions that helped it become a Zacks #1 Rank (Strong Buy). Moreover, MagnaChip has a forward price-to-earnings (P/E) multiple of just 6.2, which makes it attractive for value investors.

MagnaChip Crushes Q3 EPS Estimate

On November 1, MagnaChip reported third quarter earnings of $1.39, soaring past the Zacks Consensus Estimate of 76 cents. Revenue growth of 10.7% was impressive and in line with the Zacks Consensus Estimate of $222.0 million.

The year-over-year upside in revenue was primarily driven by strong performances from Manufacturing Services (up 45% year over year) and Power Solutions (up 28.4%), which fully offset a weak result from Display Solutions (down 24.4%).

Gross margin expanded 450 basis points year-over-year to 34.5%, reflecting a favorable business mix and productivity improvements.

For the fourth quarter, revenue is expected to between $213.0 million and $222.0 million with gross margin of 33.5%– 34.5%.

Earnings Estimates Moving Up

The Zacks Consensus Estimate for 2012 has jumped 20.6% to $2.17 per share over the last 60 days, representing year-over-year growth of 33.6%. The Zacks Consensus Estimate for 2013 advanced 18.9% to $2.33 in the same time, reflecting a year-over-year increase of 7.4%.

Impressive Valuation

In addition to a low P/E, the stock looks attractive with respect to a price-sales (P/S) multiple of just 0.6. A P/E below 15.0 and a P/S ratio less than 1.0 generally suggest a value stock.

Moreover, MagnaChip’s Return on Equity (ROE) of 48.2%, Return on Investment (ROI) of 22.6% and Return on Asset (ROA) of 13.3% are all better than the industry averages.

Seoul, South Korea-based MagnaChip Semiconductor Corp. designs and manufactures analog and mixed-signal semiconductor products. Its customers include consumer electronics original equipment manufacturers (OEMs) such as LG Display, subsystem designers, contract manufacturers, and analog and mixed-signal semiconductor companies. The company primarily sells its products through a direct sales force and a network of agents and distributors all over Korea, Japan, Greater China and Europe. The company has a market cap of $499.84 million and faces significant competition from Analog Devices (ADI).

Want More of Our Best Recommendations?

Zacks' Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Then each week he hand-selects the most compelling trades and serves them up to you in a new program called Zacks Confidential.

Learn More>>

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%