Magnachip Story

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MX -- USA Stock  

USD 26.01  0.86  3.42%

The next fiscal quarter end is expected on the 31st of March 2021. The stock experiences an active upward rally. Magnachip Semiconductor PPandE Turnover is fairly stable at the moment as compared to the past year. Magnachip Semiconductor reported PPandE Turnover of 3.63 in 2020. Receivables Turnover is likely to rise to 6.83 in 2021, whereas Average Assets are likely to drop slightly above 578.4 M in 2021. Although many aggressive traders are getting into technology space, Magnachip Semiconductor Corp may or may not be your first choice. We will check if the company can maintain a respectable level of debt while minimizing operating losses.
Published over three weeks ago
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Is Magnachip Semiconductor (NYSE:MX) outlook still optimistic based on the current debt level?
The company reports 88.33 M of total liabilities with total debt to equity ratio (D/E) of 0.26, which may suggest the firm is not taking enough advantage from financial leverage.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Magnachip Semiconductor has an asset utilization ratio of 106.95 percent. This suggests that the company is making $1.07 for each dollar of assets. An increasing asset utilization means that Magnachip Semiconductor Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Magnachip Semiconductor financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Magnachip Semiconductor, including all of Magnachip Semiconductor's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Magnachip Semiconductor assets, the company is considered highly leveraged. Understanding the composition and structure of overall Magnachip Semiconductor debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it.
Please read more on our technical analysis page.

Understanding Magnachip Total Debt

Magnachip Semiconductor liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Magnachip Semiconductor has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Magnachip Semiconductor balance sheet include debt obligations and money owed to different Magnachip Semiconductor vendors, workers, and loan providers. Below is the chart of Magnachip main long-term debt accounts currently reported on its balance sheet.
You can use Magnachip Semiconductor Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is Magnachip Semiconductor's Liquidity

Magnachip Semiconductor financial leverage refers to using borrowed capital as a funding source to finance Magnachip Semiconductor Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Magnachip Semiconductor financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Magnachip Semiconductor's total debt and its cash.

Payment of 1391 shares by Park Shin Young of Magnachip Semiconductor subject to Rule 16b-3

Legal trades by Magnachip Semiconductor insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Magnachip insider trading alert for payment of common stock by Park Shin Young, the corporate stakeholder, on 16th of March 2021. This event was filed by Magnachip Semiconductor C with SEC on 2021-03-16. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Details

Magnachip Semiconductor generated the yearly revenue of 507.06 M. Reported Net Income was 57.06 M with gross profit of 128.32 M.

Asset Breakdown

182.6 M
Assets Non Current
Tax Assets
411.5 M
Current Assets
Total Assets540.65 Million
Current Assets411.52 Million
Assets Non Current182.57 Million
Goodwill2.8 Million
Tax Assets48.06 Million

Our take on today Magnachip Semiconductor rise

The coefficient of variation is down to 414.2 as of today. Magnachip Semiconductor Corp shows above-average downside volatility for the selected time horizon. We advise investors to inspect Magnachip Semiconductor Corp further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Magnachip Semiconductor future alpha. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Magnachip Semiconductor's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Magnachip Semiconductor's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

While some other entities under the semiconductors industry are still a bit expensive, Magnachip Semiconductor may offer a potential longer-term growth to investors. With an optimistic outlook on your 30 days horizon, it may be a good time to pick up new shares of Magnachip or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Magnachip Semiconductor.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Achuva Shats do not own shares of Magnachip Semiconductor Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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