MAGELLAN AEROSPACE CORP (MAL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MAL - CA5589122004 - Common Stock
23.2 CAD
+0.03 (+0.13%)
We assign a fundamental rating of 6 out of 10 to MAL. MAL was compared to 13 industry peers in the Aerospace & Defense industry. No worries on liquidiy or solvency for MAL as it has an excellent financial health rating, but there are worries on the profitability. MAL is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
- MAL had positive earnings in the past year.
- MAL had a positive operating cash flow in the past year.
- In multiple years MAL reported negative net income over the last 5 years.
- MAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- With a decent Return On Assets value of 3.77%, MAL is doing good in the industry, outperforming 76.92% of the companies in the same industry.
- MAL has a Return On Equity of 5.44%. This is in the better half of the industry: MAL outperforms 69.23% of its industry peers.
- MAL has a worse Return On Invested Capital (4.17%) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 5.44% | ||
| ROIC | 4.17% |
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 4.44%. This is in the better half of the industry: MAL outperforms 69.23% of its industry peers.
- In the last couple of years the Profit Margin of MAL has declined.
- MAL's Operating Margin of 6.72% is on the low side compared to the rest of the industry. MAL is outperformed by 69.23% of its industry peers.
- MAL's Operating Margin has declined in the last couple of years.
- MAL's Gross Margin of 13.11% is on the low side compared to the rest of the industry. MAL is outperformed by 84.62% of its industry peers.
- In the last couple of years the Gross Margin of MAL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.72% | ||
| PM (TTM) | 4.44% | ||
| GM | 13.11% |
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.
- MAL has about the same amout of shares outstanding than it did 1 year ago.
- MAL has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for MAL has been reduced compared to a year ago.
2.2 Solvency
- MAL has an Altman-Z score of 4.26. This indicates that MAL is financially healthy and has little risk of bankruptcy at the moment.
- MAL's Altman-Z score of 4.26 is amongst the best of the industry. MAL outperforms 100.00% of its industry peers.
- The Debt to FCF ratio of MAL is 1.69, which is an excellent value as it means it would take MAL, only 1.69 years of fcf income to pay off all of its debts.
- MAL has a better Debt to FCF ratio (1.69) than 92.31% of its industry peers.
- A Debt/Equity ratio of 0.10 indicates that MAL is not too dependend on debt financing.
- MAL's Debt to Equity ratio of 0.10 is amongst the best of the industry. MAL outperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 4.26 |
ROIC/WACC0.48
WACC8.72%
2.3 Liquidity
- MAL has a Current Ratio of 2.66. This indicates that MAL is financially healthy and has no problem in meeting its short term obligations.
- The Current ratio of MAL (2.66) is better than 100.00% of its industry peers.
- MAL has a Quick Ratio of 1.55. This is a normal value and indicates that MAL is financially healthy and should not expect problems in meeting its short term obligations.
- MAL has a Quick ratio of 1.55. This is amongst the best in the industry. MAL outperforms 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 129.41% over the past year.
- The earnings per share for MAL have been decreasing by -11.62% on average. This is quite bad
- MAL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.84%.
- 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)129.41%
EPS 3YN/A
EPS 5Y-11.62%
EPS Q2Q%120%
Revenue 1Y (TTM)8.84%
Revenue growth 3Y11.04%
Revenue growth 5Y-1.5%
Sales Q2Q%14.39%
3.2 Future
- The Earnings Per Share is expected to grow by 38.76% on average over the next years. This is a very strong growth
- MAL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.07% yearly.
EPS Next Y29.51%
EPS Next 2Y42.41%
EPS Next 3Y38.76%
EPS Next 5YN/A
Revenue Next Year10.91%
Revenue Next 2Y9.02%
Revenue Next 3Y9.07%
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 29.74 indicates a quite expensive valuation of MAL.
- MAL's Price/Earnings ratio is a bit cheaper when compared to the industry. MAL is cheaper than 61.54% of the companies in the same industry.
- Compared to an average S&P500 Price/Earnings ratio of 27.21, MAL is valued at the same level.
- The Price/Forward Earnings ratio is 18.45, which indicates a rather expensive current valuation of MAL.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of MAL indicates a somewhat cheap valuation: MAL is cheaper than 61.54% of the companies listed in the same industry.
- When comparing the Price/Forward Earnings ratio of MAL to the average of the S&P500 Index (24.26), we can say MAL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.74 | ||
| Fwd PE | 18.45 |
4.2 Price Multiples
- MAL's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. MAL is cheaper than 61.54% of the companies in the same industry.
- MAL's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.98 | ||
| EV/EBITDA | 11.6 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- MAL's earnings are expected to grow with 38.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.01
PEG (5Y)N/A
EPS Next 2Y42.41%
EPS Next 3Y38.76%
5. Dividend
5.1 Amount
- MAL has a yearly dividend return of 0.89%, which is pretty low.
- MAL's Dividend Yield is a higher than the industry average which is at 2.22.
- With a Dividend Yield of 0.89, MAL pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.89% |
5.2 History
- The dividend of MAL decreases each year by -24.44%.
- MAL has been paying a dividend for at least 10 years, so it has a reliable track record.
- The dividend of MAL decreased recently.
Dividend Growth(5Y)-24.44%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- 19.15% of the earnings are spent on dividend by MAL. This is a low number and sustainable payout ratio.
DP19.15%
EPS Next 2Y42.41%
EPS Next 3Y38.76%
MAGELLAN AEROSPACE CORP / MAL.CA FAQ
What is the fundamental rating for MAL stock?
ChartMill assigns a fundamental rating of 6 / 10 to MAL.CA.
What is the valuation status for MAL stock?
ChartMill assigns a valuation rating of 4 / 10 to MAGELLAN AEROSPACE CORP (MAL.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for MAGELLAN AEROSPACE CORP?
MAGELLAN AEROSPACE CORP (MAL.CA) has a profitability rating of 3 / 10.
What are the PE and PB ratios of MAGELLAN AEROSPACE CORP (MAL.CA) stock?
The Price/Earnings (PE) ratio for MAGELLAN AEROSPACE CORP (MAL.CA) is 29.74 and the Price/Book (PB) ratio is 1.61.
What is the expected EPS growth for MAGELLAN AEROSPACE CORP (MAL.CA) stock?
The Earnings per Share (EPS) of MAGELLAN AEROSPACE CORP (MAL.CA) is expected to grow by 29.51% in the next year.