📊 MAGN Key Takeaways
Is Magnera Corp (MAGN) a Good Investment?
Magnera Corp exhibits severe fundamental deterioration masked by top-line revenue growth. Despite 46.5% YoY revenue increase, the company is unprofitable with negative net income of -34.0M, negative free cash flow of -13.0M, and critically weak interest coverage of 0.8x indicating potential debt service distress. The combination of collapsing profitability margins, negative returns on equity and assets, and negative operating cash flow suggests the revenue growth is not translating to value creation.
Magnera shows strong top-line growth, but the quality of that growth is weak because profitability remains thin to negative and cash generation is barely positive before capital spending. The balance sheet still has workable liquidity, but high leverage and sub-1x interest coverage create meaningful financial risk if margins do not improve quickly.
Why Buy Magnera Corp Stock? MAGN Key Strengths
- Strong revenue growth of 46.5% YoY demonstrates market demand or successful sales expansion
- Solid liquidity position with current ratio of 2.46x and quick ratio of 1.60x indicating short-term solvency
- Adequate cash reserves of 264.0M providing near-term operational cushion
- Revenue grew 46.5% year over year, indicating strong demand or acquisition-driven scale expansion
- Liquidity is solid with a 2.46x current ratio, 1.60x quick ratio, and $264.00M of cash
- Gross profit remains positive at $106.78M, providing a base for potential operating leverage if costs improve
MAGN Stock Risks: Magnera Corp Investment Risks
- Critical interest coverage ratio of 0.8x indicates insufficient operating income to service debt obligations and high default risk
- Persistent negative profitability with -4.3% net margin and negative ROE/ROA of -3.3%/-0.9% showing value destruction
- Negative free cash flow of -13.0M despite positive operating cash flow of 2.0M indicates capital expenditures exceed cash generation capacity
- Extremely high leverage with debt-to-equity ratio of 1.86x and 1.9B in long-term debt creates financial fragility
- Declining net loss improvement trajectory with diluted EPS deteriorating despite modest 7.6% improvement, suggesting fundamental problems
- Net income is still negative and net margin is -4.3%, showing the business is not yet generating sustainable earnings
- Interest coverage is only 0.8x, which suggests operating income is insufficient to comfortably service debt
- Free cash flow is negative at -$13.00M and operating cash flow is only $2.00M, limiting financial flexibility
Key Metrics to Watch
- Interest coverage ratio trend - critical indicator of debt sustainability
- Operating cash flow and free cash flow conversion - essential to validate whether revenue growth translates to cash generation
- Gross margin stability - monitor if 13.5% margin holds amid revenue expansion
- Long-term debt levels and refinancing needs - assess covenant compliance and refinancing risk
- Return on equity trajectory - must return to positive territory for fundamental viability
- Operating margin and interest coverage
- Operating cash flow and free cash flow
Magnera Corp (MAGN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.46x current ratio provides a solid financial cushion.
MAGN Profit Margin, ROE & Profitability Analysis
MAGN vs Materials Sector: How Magnera Corp Compares
How Magnera Corp compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Magnera Corp Stock Overvalued? MAGN Valuation Analysis 2026
Based on fundamental analysis, Magnera Corp shows some fundamental concerns relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Magnera Corp Balance Sheet: MAGN Debt, Cash & Liquidity
MAGN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Magnera Corp's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $1.19 reflects profitable operations.
MAGN Revenue Growth, EPS Growth & YoY Performance
MAGN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $702.0M | -$34.0M | $-0.95 |
| Q1 2018 | $390.7M | $5.7M | $0.13 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Magnera Corp Dividends, Buybacks & Capital Allocation
MAGN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Magnera Corp (CIK: 0000041719)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MAGN
What is the AI rating for MAGN?
Magnera Corp (MAGN) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 88% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MAGN's key strengths?
Claude: Strong revenue growth of 46.5% YoY demonstrates market demand or successful sales expansion. Solid liquidity position with current ratio of 2.46x and quick ratio of 1.60x indicating short-term solvency. ChatGPT: Revenue grew 46.5% year over year, indicating strong demand or acquisition-driven scale expansion. Liquidity is solid with a 2.46x current ratio, 1.60x quick ratio, and $264.00M of cash.
What are the risks of investing in MAGN?
Claude: Critical interest coverage ratio of 0.8x indicates insufficient operating income to service debt obligations and high default risk. Persistent negative profitability with -4.3% net margin and negative ROE/ROA of -3.3%/-0.9% showing value destruction. ChatGPT: Net income is still negative and net margin is -4.3%, showing the business is not yet generating sustainable earnings. Interest coverage is only 0.8x, which suggests operating income is insufficient to comfortably service debt.
What is MAGN's revenue and growth?
Magnera Corp reported revenue of $792.0M.
Does MAGN pay dividends?
Magnera Corp does not currently pay dividends.
Where can I find MAGN SEC filings?
Official SEC filings for Magnera Corp (CIK: 0000041719) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MAGN's EPS?
Magnera Corp has a diluted EPS of $-0.95.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MAGN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Magnera Corp has a SELL rating with 88% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MAGN stock overvalued or undervalued?
Valuation metrics for MAGN: ROE of -3.3% (sector avg: 14%), net margin of -4.3% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy MAGN stock in 2026?
Our dual AI analysis gives Magnera Corp a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MAGN's free cash flow?
Magnera Corp's operating cash flow is $2.0M, with capital expenditures of $15.0M. FCF margin is -1.6%.
How does MAGN compare to other Materials stocks?
Vs Materials sector averages: Net margin -4.3% (avg: 10%), ROE -3.3% (avg: 14%), current ratio 2.46 (avg: 1.6).
Is Magnera Corp carrying too much debt?
MAGN has a debt-to-equity ratio of 1.86x, which is above the Materials sector average of 0.6x. However, the current ratio of 2.46 suggests adequate short-term liquidity.