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Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.
As of Jun. 2026, MagnaChip Semiconductor has a Sloan Ratio of -2.98%, indicating the company is in the safe zone and there is no funny business with accruals.
MagnaChip Semiconductor (NYSE:MX) Sloan Ratio % Explanation
A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.
If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.
If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.
If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.
As of Jun. 2026, MagnaChip Semiconductor has a Sloan Ratio of -2.98%, indicating the company is in the safe zone and there is no funny business with accruals.
MagnaChip Semiconductor Sloan Ratio % Related Terms
MagnaChip Semiconductor Sloan Ratio % 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 Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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 Sloan Ratio % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, MagnaChip Semiconductor's Sloan Ratio % distribution charts can be found below:
* The bar in red indicates where MagnaChip Semiconductor's Sloan Ratio % falls into.
Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.
MagnaChip Semiconductor's Sloan Ratio for the fiscal year that ended in Dec. 2025 is calculated as
MagnaChip Semiconductor's Net Income for the trailing twelve months (TTM) ended in Jun. 2026 was -13.09 (Sep. 2025 ) + -8.079 (Dec. 2025 ) + -4.647 (Mar. 2026 ) + -4.815 (Jun. 2026 ) = $-30.6 Mil.
MagnaChip Semiconductor's Cash Flow from Operations for the trailing twelve months (TTM) ended in Jun. 2026 was 0.162 (Sep. 2025 ) + 5.431 (Dec. 2025 ) + 1.556 (Mar. 2026 ) + -4.502 (Jun. 2026 ) = $2.6 Mil.
MagnaChip Semiconductor's Cash Flow from Investing for the trailing twelve months (TTM) ended in Jun. 2026 was -5.319 (Sep. 2025 ) + -11.398 (Dec. 2025 ) + -5.942 (Mar. 2026 ) + -0.946 (Jun. 2026 ) = $-23.6 Mil.
* 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.
MagnaChip Semiconductor (MX) has a Sloan Ratio % of -2.98% as of Jun. 2026. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on MagnaChip Semiconductor and its competitors.
Is MagnaChip Semiconductor's Sloan Ratio % too high?
MagnaChip Semiconductor's current Sloan Ratio % is -2.98%. Overall, MagnaChip Semiconductor has a GF Score™ of 64/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does MagnaChip Semiconductor's Sloan Ratio % compare to VLN and GCTS?
MagnaChip Semiconductor's Sloan Ratio % of -2.98% can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Sloan Ratio % for a Semiconductors company?
A good Sloan Ratio % depends on the Semiconductors industry context. However, Sloan Ratio % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Sloan Ratio % mean?
A high Sloan Ratio % can signal that a stock is expensive relative to its fundamentals. Sloan ratio measures earnings quality based on the amount of accruals. View historical data on MagnaChip Semiconductor and its competitors. MagnaChip Semiconductor's current Sloan Ratio % is -2.98%. 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 Modestly Undervalued. The stock's GF Value™ is $4.14, compared to a current price of $3.67 — trading 11.4% below its estimated fair value. The current Sloan Ratio % is -2.98%. MagnaChip Semiconductor's overall GF Score™ is 64/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Sloan Ratio % calculated?
Sloan Ratio % is calculated from a company's financial statements. For MagnaChip Semiconductor (MX), the current Sloan Ratio % is -2.98% as of Jun. 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 $3.67 is trading 11.4% below its estimated GF Value™ of $4.14.
GuruFocus considers MagnaChip Semiconductor to be Modestly Undervalued.
Key valuation signals for MX:
Sloan Ratio %: -2.98%
GF Value™: $4.14 vs. price of $3.67 (11.4% below fair value)
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.
64GF Score
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