Any investors would pay particular attention to the profitability of a company before considering taking a position. Here we’ll take a quick look at shares of MagnaChip Semiconductor Corporation (NYSE:MX) and the company’s ability to generate profit. The firm currently has a Return on Equity -66.90% which is derived from comparing 12-months net income to shareholder equity. So even though the company is generating profits, where can the stock go from here? Sell-side analysts covering the shares are projecting a one year price target of $10.00 on the stock. When comparing this to a recent price of $7.35, the potential upside should be noted. Taking analyst recommendations into consideration results in a Buy/Sell consensus recommendation of 2.50. This is according to all of the analysts polled by First Call.
What makes a stock profitable? Let’s look at a few factors.
Rising EPS (Earnings Per Share)
Businesses must be able to have competitive advantages and must produce value to consumers in the form of desirable goods and services. When a business has a strong brand, they can afford to raise prices and also have a differentiated product that is more desirable compared to their competition. A business that is able to grow earnings per share can afford to pay a rising dividend. MagnaChip Semiconductor Corporation (NYSE:MX)’s trailing 12-months EPS is 1.22.
MagnaChip Semiconductor Corporation (NYSE:MX)’s performance this year to date is 18.55%. The stock has performed 15.75% over the last seven days, 16.67% over the last thirty, and -11.12% over the last three months. Over the last six months, MagnaChip Semiconductor Corporation’s stock has been 28.95% and 90.91% for the year.
RSI and Recommendations
MagnaChip Semiconductor Corporation’s RSI is 70.74. Based on the stock’s volatility for the week, which is a statistical measure of the dispersion of returns for a given stock and represents average daily high/low percentage range of 6.00% and month of 4.35%.
There are a number of sell-side analysts who have recently weighed in on the firm. As stated earlier, the consensus target price is $10.00 with a mean recommendation of 2.50 (1-5 scale).
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