MagnaChip SemiconductorMX -8.65%63 Gross Margin % is 15.57% as of Mar. 2026, which is 35% below its 10-year median of 23.78. GuruFocus rates MX with a GF Score™ of 63/100 and a GF Value™ of $4.40 (Fairly Valued). The stock has 3 warning signs investors should review. Among 1,009 Semiconductors companies, MagnaChip Semiconductor ranks worse than 75.12% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
MagnaChip Semiconductor had a gross margin of 15.57% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
MagnaChip Semiconductor Gross Margin % Related Terms
MagnaChip Semiconductor Gross Margin % Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Semiconductors subindustry, MagnaChip Semiconductor's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
MagnaChip Semiconductor Gross Margin % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, MagnaChip Semiconductor's Gross Margin % distribution charts can be found below:
* The bar in red indicates where MagnaChip Semiconductor's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
MagnaChip Semiconductor (MX) has a Gross Margin % of 15.57% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on MagnaChip Semiconductor and its competitors. This is 35% below median its historical median of 23.78. Over the past decade, MagnaChip Semiconductor's Gross Margin % has ranged from 16.21 to 32.38. According to the industry distribution chart, MagnaChip Semiconductor ranks #758 out of 1009 companies in the Semiconductors industry, placing it in the top 75.1%.
Is MagnaChip Semiconductor's Gross Margin % too high?
MagnaChip Semiconductor's current Gross Margin % of 15.57% is 35% below median its 10-year median of 23.78. Over the past 10 years, this metric has ranged from a low of 16.21 to a high of 32.38. The Semiconductors industry median Gross Margin % is 29.61. MagnaChip Semiconductor's value of 15.57% is 47.4% below this industry median. Based on the distribution chart, MagnaChip Semiconductor ranks #758 out of 1009 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, MagnaChip Semiconductor has a GF Score™ of 63/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does MagnaChip Semiconductor's Gross Margin % compare to GCTS and VLN?
According to the Semiconductors industry distribution chart, MagnaChip Semiconductor ranks #758 out of 1009 companies for Gross Margin %. This places MagnaChip Semiconductor in the lower half of its industry. The industry median Gross Margin % is 29.61. MagnaChip Semiconductor's value of 15.57% is 47.4% below this benchmark. Historically, MagnaChip Semiconductor's own Gross Margin % has ranged from 16.21 to 32.38 over the past decade. While the company's 10-year median is 23.78 vs. the industry median of 29.61, MagnaChip Semiconductor has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Semiconductors company?
The median Gross Margin % among Semiconductors companies is 29.61, based on 1,009 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MagnaChip Semiconductor's current Gross Margin % of 15.57% is 47.4% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on MagnaChip Semiconductor and its competitors. For the Semiconductors industry, the median Gross Margin % is 29.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MagnaChip Semiconductor's current Gross Margin % is 15.57%, which is 35% below median its own 10-year median of 23.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MagnaChip Semiconductor stock overvalued right now?
Based on GuruFocus' analysis, MagnaChip Semiconductor (MX) is currently considered Fairly Valued. The stock's GF Value™ is $4.40, compared to a current price of $4.12 — trading 6.4% below its estimated fair value. The current Gross Margin % is 15.57%, which is 35% below median its 10-year median of 23.78 and 47.4% below the Semiconductors industry median of 29.61. MagnaChip Semiconductor's overall GF Score™ is 63/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For MagnaChip Semiconductor (MX), the current Gross Margin % is 15.57% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is MagnaChip Semiconductor (MX) Overvalued in 2026?
Based on GuruFocus' analysis, MagnaChip Semiconductor stock appears to be undervalued.
The current stock price of $4.12 is trading 6.4% below its estimated GF Value™ of $4.40.
GuruFocus considers MagnaChip Semiconductor to be Fairly Valued.
Key valuation signals for MX:
Gross Margin %: 15.57% (35% below median its 10-year median of 23.78)
GF Value™: $4.40 vs. price of $4.12 (6.4% below fair value)
Industry Position: 47.4% below the Semiconductors median (#758 of 1009)
No single metric tells the full story. See the MX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MagnaChip Semiconductor Corp designs and manufactures analog and mixed-signal semiconductor platform solutions for communications, Internet of Things applications, consumer, industrial and automotive applications. The company's product portfolio consists of large display solutions, mobile display solutions, sensor solutions, LED solutions, mobile solutions, and power conversions. The Company operates within a single operating segment, Power Solutions business. The company operates in Korea, Asia Pacific (other than Korea), United States and Europe.
63GF Score
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