MAGELLAN AEROSPACE CORP (MAL.CA) Stock Fundamental Analysis
TSX:MAL - Toronto Stock Exchange - CA5589122004 - Common Stock - Currency: CAD
MAL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 11 industry peers in the Aerospace & Defense industry. MAL is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. MAL has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year MAL was profitable.
MAL had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: MAL reported negative net income in multiple years.
Of the past 5 years MAL 4 years had a positive operating cash flow.
1.2 Ratios
MAL's Return On Assets of 3.39% is amongst the best of the industry. MAL outperforms 81.82% of its industry peers.
The Return On Equity of MAL (4.90%) is better than 81.82% of its industry peers.
MAL's Return On Invested Capital of 3.68% is on the low side compared to the rest of the industry. MAL is outperformed by 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 4.9% | ||
| ROIC | 3.68% |
ROA(3y)0.62%
ROA(5y)0.41%
ROE(3y)0.91%
ROE(5y)0.6%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
MAL has a Profit Margin of 4.13%. This is amongst the best in the industry. MAL outperforms 81.82% of its industry peers.
MAL's Profit Margin has declined in the last couple of years.
MAL has a worse Operating Margin (6.01%) than 63.64% of its industry peers.
MAL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 12.17%, MAL is doing worse than 81.82% of the companies in the same industry.
MAL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.01% | ||
| PM (TTM) | 4.13% | ||
| GM | 12.17% |
OM growth 3YN/A
OM growth 5Y-10.81%
PM growth 3YN/A
PM growth 5Y-10.7%
GM growth 3Y24.13%
GM growth 5Y-5.82%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MAL is destroying value.
Compared to 1 year ago, MAL has about the same amount of shares outstanding.
The number of shares outstanding for MAL has been reduced compared to 5 years ago.
MAL has a better debt/assets ratio than last year.
2.2 Solvency
MAL has an Altman-Z score of 3.68. This indicates that MAL is financially healthy and has little risk of bankruptcy at the moment.
MAL's Altman-Z score of 3.68 is amongst the best of the industry. MAL outperforms 100.00% of its industry peers.
MAL has a debt to FCF ratio of 1.37. This is a very positive value and a sign of high solvency as it would only need 1.37 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 1.37, MAL belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
A Debt/Equity ratio of 0.08 indicates that MAL is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.08, MAL belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 3.68 |
ROIC/WACC0.4
WACC9.12%
2.3 Liquidity
MAL has a Current Ratio of 2.61. This indicates that MAL is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.61, MAL belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
MAL has a Quick Ratio of 1.46. This is a normal value and indicates that MAL is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.46, MAL belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
MAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 250.00%, which is quite impressive.
MAL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -11.62% yearly.
The Revenue has grown by 8.59% in the past year. This is quite good.
Measured over the past years, MAL shows a decrease in Revenue. The Revenue has been decreasing by -1.50% on average per year.
EPS 1Y (TTM)250%
EPS 3YN/A
EPS 5Y-11.62%
EPS Q2Q%72.73%
Revenue 1Y (TTM)8.59%
Revenue growth 3Y11.04%
Revenue growth 5Y-1.5%
Sales Q2Q%10.91%
3.2 Future
Based on estimates for the next years, MAL will show a very strong growth in Earnings Per Share. The EPS will grow by 57.87% on average per year.
The Revenue is expected to grow by 10.13% on average over the next years. This is quite good.
EPS Next Y48.24%
EPS Next 2Y57.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year8.05%
Revenue Next 2Y10.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.14 indicates a quite expensive valuation of MAL.
Compared to the rest of the industry, the Price/Earnings ratio of MAL is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.52. MAL is around the same levels.
Based on the Price/Forward Earnings ratio of 11.84, the valuation of MAL can be described as reasonable.
72.73% of the companies in the same industry are more expensive than MAL, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 35.58. MAL is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.14 | ||
| Fwd PE | 11.84 |
4.2 Price Multiples
MAL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MAL is cheaper than 72.73% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MAL is valued a bit cheaper than 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.82 | ||
| EV/EBITDA | 10 |
4.3 Compensation for Growth
MAL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
MAL's earnings are expected to grow with 57.87% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.54
PEG (5Y)N/A
EPS Next 2Y57.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.10%, MAL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.56, MAL pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.10, MAL pays less dividend than the S&P500 average, which is at 2.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
5.2 History
The dividend of MAL decreases each year by -24.44%.
MAL has paid a dividend for at least 10 years, which is a reliable track record.
MAL has decreased its dividend recently.
Dividend Growth(5Y)-24.44%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
14.28% of the earnings are spent on dividend by MAL. This is a low number and sustainable payout ratio.
DP14.28%
EPS Next 2Y57.87%
EPS Next 3YN/A
TSX:MAL (7/14/2025, 7:00:00 PM)
18.3
+0.35 (+1.95%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners2.72%
Inst Owner ChangeN/A
Ins Owners79.31%
Ins Owner ChangeN/A
Market Cap1.05B
Analysts47.5
Price Target18.51 (1.15%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend0.1
Dividend Growth(5Y)-24.44%
DP14.28%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)42.63%
Min EPS beat(2)-5.94%
Max EPS beat(2)91.19%
EPS beat(4)1
Avg EPS beat(4)5.71%
Min EPS beat(4)-38.12%
Max EPS beat(4)91.19%
EPS beat(8)1
Avg EPS beat(8)-25.1%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)6.99%
Min Revenue beat(2)5.68%
Max Revenue beat(2)8.31%
Revenue beat(4)2
Avg Revenue beat(4)0.79%
Min Revenue beat(4)-8.37%
Max Revenue beat(4)8.31%
Revenue beat(8)3
Avg Revenue beat(8)-0.56%
Revenue beat(12)5
Avg Revenue beat(12)0.16%
Revenue beat(16)5
Avg Revenue beat(16)-1.38%
PT rev (1m)0%
PT rev (3m)17.1%
EPS NQ rev (1m)21.05%
EPS NQ rev (3m)15%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.14 | ||
| Fwd PE | 11.84 | ||
| P/S | 1.08 | ||
| P/FCF | 17.82 | ||
| P/OCF | 10.36 | ||
| P/B | 1.28 | ||
| P/tB | 1.38 | ||
| EV/EBITDA | 10 |
EPS(TTM)0.7
EY3.83%
EPS(NY)1.55
Fwd EY8.44%
FCF(TTM)1.03
FCFY5.61%
OCF(TTM)1.77
OCFY9.66%
SpS16.94
BVpS14.28
TBVpS13.22
PEG (NY)0.54
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 4.9% | ||
| ROCE | 6.32% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.91% | ||
| ROICexgc | 4.2% | ||
| OM | 6.01% | ||
| PM (TTM) | 4.13% | ||
| GM | 12.17% | ||
| FCFM | 6.06% |
ROA(3y)0.62%
ROA(5y)0.41%
ROE(3y)0.91%
ROE(5y)0.6%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-12.16%
ROICexc growth 3YN/A
ROICexc growth 5Y-11.38%
OM growth 3YN/A
OM growth 5Y-10.81%
PM growth 3YN/A
PM growth 5Y-10.7%
GM growth 3Y24.13%
GM growth 5Y-5.82%
F-Score6
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.37 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 93.53% | ||
| Cap/Sales | 4.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.6% | ||
| Profit Quality | 146.67% | ||
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 3.68 |
F-Score6
WACC9.12%
ROIC/WACC0.4
Cap/Depr(3y)57.13%
Cap/Depr(5y)49.71%
Cap/Sales(3y)3.03%
Cap/Sales(5y)2.99%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)250%
EPS 3YN/A
EPS 5Y-11.62%
EPS Q2Q%72.73%
EPS Next Y48.24%
EPS Next 2Y57.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.59%
Revenue growth 3Y11.04%
Revenue growth 5Y-1.5%
Sales Q2Q%10.91%
Revenue Next Year8.05%
Revenue Next 2Y10.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y70.02%
EBIT growth 3YN/A
EBIT growth 5Y-12.15%
EBIT Next Year189.52%
EBIT Next 3Y62.09%
EBIT Next 5YN/A
FCF growth 1Y234.87%
FCF growth 3YN/A
FCF growth 5Y3.82%
OCF growth 1Y151.03%
OCF growth 3Y99.39%
OCF growth 5Y-0.96%