Momentum Stock Watch: MagnaChip Semiconductor Corporation (MX)

Company Profile:

MagnaChip Semiconductor Corporation is a designer and manufacturer of analog and mixed-signal semiconductor products for consumer, computing, communication, industrial, automotive and Internet of Things (IoT) applications. The Company provides technology platforms for analog, mixed signal, power, high voltage, non-volatile memory and Radio Frequency (RF) applications. The Company has two segments: Foundry Services Group and Standard Products Group. The Company’s Foundry Services Group provides analog and mixed-signal foundry services to semiconductor companies and Integrated Device Manufacturers (IDMs) that serve consumer, computing, communication, industrial, automotive and IoT applications. The Company manufactures wafers-based on its customers’ product designs. The Company’s Standard Products Group includes its Display Solutions and Power Solutions business lines.

Recent News:

The company will hold a conference call Wednesday, May 3, 2017 at 5 p.m. EDT to discuss the Company’s first quarter 2017 financial results.

The company reported revenue for the fourth quarter of 2016 was $180.5 million, a decline of 6.2% compared to $192.3 million for the third quarter of 2016, and up 18.4% as compared to $152.4 million for the fourth quarter of 2015. Revenue for the 2016 full year was $688.0 million, an increase of 8.6% from $633.7 million in 2015.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

MX’s strengths can be seen in its better profitability compared with its peers. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI stands at 51.21 with positive bias. We rate MagnaChip Semiconductor Corporation (MX) a STRONG BUY.