Forensic Analysis · Semiconductors · as of Sep 29, 2026
Magnachip Semiconductor Corp (MX)
A forensic read on Magnachip Semiconductor Corp built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
F · Poor — capital at risk
Forensic grade
Safe
Financial health
6.3
Distress distance
Clean
Earnings quality
4
Forensic signals
-12.0%
ROE
-8.9%
Revenue growth
The financial-health reading above compares this company's equity at BOOK value, not at what the market currently pays for it — this free snapshot doesn't pull live market data. Treat it as a rough read, not the final word.
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence, going concern, valuation). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Magnachip Semiconductor Corp earns an F (Poor — capital at risk) forensic quality grade, and its balance-sheet distress test reads 6.3, placing it in the Safe zone (based on book value, not market value, since this free snapshot doesn't pull live market data — treat this zone as a rough read, not the final word). 4 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
-13.9%
FY2025
Return on invested capital.Return on invested capital is -13.9% in the latest fiscal year, against -21.1% in FY2023, having run between -21.1% and -10.6% across FY2023–FY2025 with no direction held. After-tax operating profit was ($46M) in FY2023 and ($28M) in FY2025, with operating income at -25.1% of revenue in FY2023, -13.2% in FY2024 and -20.0% in FY2025. The capital base behind it went from $216M in FY2023 to $204M in FY2025 (-5%), while the revenue it carried went from $230M to $179M. $22M of the $204M base at FY2025 is construction in progress (11.0%) — paid for, not yet in service, and so in the denominator of this return while it cannot be in the profit above it. FY2024's operating profit carried a $7M asset write-down that alone took about 2.7 points off that year's return; FY2024 sits between the two ends of FY2023–FY2025, so the charge shapes the path between them without moving the change across it.
FCF ($54M)
FY2025
Shareholder returns.Returned $4M to shareholders (buybacks + dividends) in FY2025, but free cash flow was ($54M) after capex — there was no free cash flow to fund the payout from at all, and operating cash flow itself was negative or zero that year too. The entire return is coming from debt or cash reserves, not cash the business itself generated — a harder case than returns merely running ahead of free cash flow, since here there was none to run ahead of.
+13.4%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +13.4% relative to their own average in FY2025 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by PP&E up +23% against revenue -9% and inventory up +12% against -6% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran in line with operating cash by 3% of net operating assets, against an accruals ratio of 13.4%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
Key fundamentals
Latest Revenue$178.9M
Revenue Growth YoY-8.9%
Revenue CAGR (2yr)-11.8%
Net Margin-16.6%
Free Cash Flow-$54.2M
Return on Equity-12.0%
Debt / Equity0.18x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Magnachip Semiconductor Corp's actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Sep 29, 2026. Forensic signals flag probability, not certainty.
80d
FY2024→FY2025
Inventory days.Days inventory outstanding moved from 73 to 80 FY2024→FY2025 (against cost of goods sold; inventory +12% vs -6% in cost of sales). Inventory is building a little faster than sales — watch for markdowns.