Macronix International Co Ltd

Macronix's capital structure shows a debt-to-equity ratio of 0.5, indicating a moderate level of leverage. The company's liquidity position is characterized by a current ratio of 2.84, suggesting it has sufficient short-term assets to cover its liabilities. However, the company's cash and equivalents of TWD 6,782.69 million are insufficient to cover its long-term debt of TWD 23,175.69 million, resulting in a negative net cash position.

Profitability metrics reveal a challenging operating environment for Macronix. The company reported a net loss of TWD 286.37 million and an operating loss of TWD 511.85 million in the latest period. Return on equity (ROE) and return on assets (ROA) are negative at -0.62% and -0.36%, respectively, indicating poor capital efficiency and asset utilization compared to industry benchmarks.

Geographically, Macronix's revenue is concentrated in the Asia-Pacific region, with a significant portion derived from China and South Korea. The company's exposure to these markets makes it vulnerable to geopolitical tensions and supply chain disruptions. Segment-wise, the company's primary revenue stream comes from flash memory products, which are highly cyclical and sensitive to macroeconomic conditions.

Looking ahead, Macronix's revenue is expected to remain under pressure due to weak demand in the consumer electronics sector and ongoing industry-wide inventory corrections. The company's capital expenditure of TWD 2,666.82 million reflects ongoing investments in manufacturing capacity, but the negative free cash flow of TWD 75.47 million indicates that these investments are not yet generating positive cash returns.

The risk assessment highlights liquidity as a medium concern, with the company's negative net cash position and negative operating cash flow of TWD 1,189.22 million. While dilution risk is currently low, the company's negative net income and operating cash flow could necessitate future equity raises, which would dilute existing shareholders.

Recent filings and transcripts indicate that Macronix is navigating a challenging market environment, with management emphasizing cost control and product diversification to mitigate the impact of declining flash memory prices. The company has also been exploring new markets, such as automotive and industrial applications, to reduce its reliance on the volatile consumer electronics sector.

Analysts project 42% upside to a mean price target of 198.87, reflecting strong buy recommendations from ten analysts.

Free cash flow improved by 98.4% year-over-year in FY2026, signaling a significant stabilization in cash generation capabilities.

Cash conversion ratio of 4.15 ranks as best-in-class within the semiconductor cohort, indicating superior operational efficiency.

Revenue grew 11.6% year-over-year in FY2026, marking a positive turnaround after years of consistent decline.

Operating income improved by 5.8% year-over-year in FY2026, suggesting early signs of margin recovery efforts.

The company faces high credit risk, posing significant financial stability concerns for investors and lenders.

Net income deteriorated to a loss of 3.3 billion TWD in FY2026, continuing a multi-year trend of profitability erosion.

Long-term debt surged to 24.97 billion TWD in FY2026, increasing leverage and financial burden significantly.

Revenue TWD 10.47B, +70,6% YoY; Operating income +278,6% YoY.

• ▍Revenue TWD 10.47B, +70,6% YoY
• ▍Operating income +278,6% YoY
• ▍Net income +303,4% YoY
• ▍Free cash flow +1 486,0% YoY
• ▍Net margin 17.0%

Revenue TWD 7.73B, +30,7% YoY; Operating income +77,6% YoY.

• ▍Revenue TWD 7.73B, +30,7% YoY
• ▍Operating income +77,6% YoY
• ▍Net income +81,0% YoY
• ▍Free cash flow +169,4% YoY
• ▍Net margin -3.8%

Revenue TWD 8.21B, +5,9% YoY; Operating income −219,8% YoY.

• ▍Revenue TWD 8.21B, +5,9% YoY
• ▍Operating income −219,8% YoY
• ▍Net income −191,2% YoY
• ▍Free cash flow +111,1% YoY
• ▍Net margin -10.5%

Revenue TWD 6.80B, +5,3% YoY; Operating income −110,8% YoY.

• ▍Revenue TWD 6.80B, +5,3% YoY
• ▍Operating income −110,8% YoY
• ▍Net income −345,6% YoY
• ▍Free cash flow −928,0% YoY
• ▍Net margin -18.8%

Revenue TWD 6.14B; Operating income -TWD 1.08B.

• ▍Revenue TWD 6.14B
• ▍Operating income -TWD 1.08B
• ▍Net margin -14.2%

Revenue TWD 5.91B; Operating income -TWD 1.75B.

• ▍Revenue TWD 5.91B
• ▍Operating income -TWD 1.75B
• ▍Net margin -26.2%

Revenue TWD 7.75B; Operating income -TWD 357.8M.

• ▍Revenue TWD 7.75B
• ▍Operating income -TWD 357.8M
• ▍Net margin -3.8%

Revenue TWD 6.46B; Operating income -TWD 511.9M.

• ▍Revenue TWD 6.46B
• ▍Operating income -TWD 511.9M
• ▍Net margin -4.4%

Revenue TWD 28.88B, +11,6% YoY; Operating income +5,8% YoY.

• ▍Revenue TWD 28.88B, +11,6% YoY
• ▍Operating income +5,8% YoY
• ▍Net income −2,9% YoY
• ▍Free cash flow +98,5% YoY
• ▍Net margin -11.5%

Revenue TWD 25.88B, −6,3% YoY; Operating income −63,0% YoY.

• ▍Revenue TWD 25.88B, −6,3% YoY
• ▍Operating income −63,0% YoY
• ▍Net income −89,1% YoY
• ▍Free cash flow +44,6% YoY
• ▍Net margin -12.4%

Revenue TWD 27.62B, −36,5% YoY; Operating income −125,7% YoY.

• ▍Revenue TWD 27.62B, −36,5% YoY
• ▍Operating income −125,7% YoY
• ▍Net income −118,9% YoY
• ▍Free cash flow −4 194,9% YoY
• ▍Net margin -6.2%

Revenue TWD 43.49B, −14,0% YoY; Operating income −15,3% YoY.

• ▍Revenue TWD 43.49B, −14,0% YoY
• ▍Operating income −15,3% YoY
• ▍Net income −25,0% YoY
• ▍Free cash flow −97,8% YoY
• ▍Net margin 20.6%