Why MagnaChip Is Poised to Keep Popping

Updated
Why MagnaChip Is Poised to Keep Popping

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, consumer gadget chip maker MagnaChip Semiconductor has earned a coveted five-star ranking.

With that in mind, let's take a closer look at MagnaChip and see what CAPS investors are saying about the stock right now.

MagnaChip facts

Headquarters

Seoul, South Korea

Market Cap

$639.1 million

Industry

Semiconductors

Trailing-12-Month Revenue

$847.9 million

Management

Chairman/CEO Sang Park

President/COO Tae Young Hwang

Return on Equity (average, past 3 years)

38.1%

Cash / Debt

$183.0 million / $201.7 million

Competitors

Himax Technologies

Samsung Electronics

Taiwan Semiconductor Manufacturing


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 97% of the 73 members who have rated MagnaChip believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those Fools, All-Star dreamjob, succinctly summed up the MagnaChip bull case for our community:

This small cap has very optimistic growth projections; however, when I shrink these down to single digits the company still looks like it is selling at a bargain. There's manageable debt and high [return on invested capital]/[cash return on invested capital]. Add the recent earnings surprise in the last 90 days and I think we are looking at a winner.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, MagnaChip may not be your top choice.

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The article Why MagnaChip Is Poised to Keep Popping originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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