MAGELLAN AEROSPACE CORP (MAL.CA) Stock Fundamental Analysis
TSX:MAL - Toronto Stock Exchange - CA5589122004 - Common Stock - Currency: CAD
We assign a fundamental rating of 5 out of 10 to MAL. MAL was compared to 11 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
In the past year MAL was profitable.
MAL had a positive operating cash flow in the past year.
In multiple years MAL reported negative net income over the last 5 years.
Of the past 5 years MAL 4 years had a positive operating cash flow.
1.2 Ratios
MAL has a better Return On Assets (3.10%) than 100.00% of its industry peers.
MAL's Return On Equity of 4.44% is amongst the best of the industry. MAL outperforms 90.91% of its industry peers.
With a Return On Invested Capital value of 3.16%, MAL is not doing good in the industry: 63.64% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 4.44% | ||
| ROIC | 3.16% |
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
With a Profit Margin value of 3.77%, MAL perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
In the last couple of years the Profit Margin of MAL has declined.
MAL has a worse Operating Margin (5.25%) than 63.64% of its industry peers.
In the last couple of years the Operating Margin of MAL has declined.
MAL has a Gross Margin of 11.45%. This is amonst the worse of the industry: MAL underperforms 81.82% of its industry peers.
In the last couple of years the Gross Margin of MAL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.25% | ||
| PM (TTM) | 3.77% | ||
| GM | 11.45% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MAL is destroying value.
MAL has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for MAL has been reduced compared to 5 years ago.
Compared to 1 year ago, MAL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.34 indicates that MAL is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 3.34, MAL belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
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.
MAL has a better Debt to FCF ratio (1.37) than 90.91% of its industry peers.
A Debt/Equity ratio of 0.09 indicates that MAL is not too dependend on debt financing.
MAL's Debt to Equity ratio of 0.09 is amongst the best of the industry. MAL outperforms 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 3.34 |
ROIC/WACC0.39
WACC8.16%
2.3 Liquidity
A Current Ratio of 2.71 indicates that MAL has no problem at all paying its short term obligations.
MAL has a better Current ratio (2.71) than 100.00% of its industry peers.
MAL has a Quick Ratio of 1.51. This is a normal value and indicates that MAL is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of MAL (1.51) is better than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.51 |
3. Growth
3.1 Past
MAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 287.50%, 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.
MAL shows a small growth in Revenue. In the last year, the Revenue has grown by 7.13%.
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)287.5%
EPS 3YN/A
EPS 5Y-11.62%
EPS Q2Q%6143.48%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y11.04%
Revenue growth 5Y-1.5%
Sales Q2Q%7.66%
3.2 Future
The Earnings Per Share is expected to grow by 57.87% 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 10.13% yearly.
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
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
With a Price/Earnings ratio of 22.42, MAL is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as MAL.
MAL's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.22.
Based on the Price/Forward Earnings ratio of 15.12, the valuation of MAL can be described as correct.
The rest of the industry has a similar Price/Forward Earnings ratio as MAL.
The average S&P500 Price/Forward Earnings ratio is at 20.86. MAL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 15.12 |
4.2 Price Multiples
MAL's Enterprise Value to EBITDA is on the same level as the industry average.
63.64% of the companies in the same industry are more expensive than MAL, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.57 | ||
| EV/EBITDA | 8.48 |
4.3 Compensation for Growth
The 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)0.46
PEG (5Y)N/A
EPS Next 2Y57.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.72%, MAL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 8.37, MAL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.72, MAL pays less dividend than the S&P500 average, which is at 2.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
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
MAL pays out 16.10% of its income as dividend. This is a sustainable payout ratio.
DP16.1%
EPS Next 2Y57.87%
EPS Next 3YN/A
TSX:MAL (5/2/2025, 7:00:00 PM)
13.9
+0.1 (+0.72%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners2.93%
Inst Owner ChangeN/A
Ins Owners79.3%
Ins Owner ChangeN/A
Market Cap794.25M
Analysts83.33
Price Target15.81 (13.74%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.72% |
Yearly Dividend0.1
Dividend Growth(5Y)-24.44%
DP16.1%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)26.54%
Min EPS beat(2)-38.12%
Max EPS beat(2)91.19%
EPS beat(4)1
Avg EPS beat(4)2.37%
Min EPS beat(4)-38.12%
Max EPS beat(4)91.19%
EPS beat(8)2
Avg EPS beat(8)-2.23%
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)1
Avg Revenue beat(2)-1.34%
Min Revenue beat(2)-8.37%
Max Revenue beat(2)5.68%
Revenue beat(4)1
Avg Revenue beat(4)-2.19%
Min Revenue beat(4)-8.37%
Max Revenue beat(4)5.68%
Revenue beat(8)3
Avg Revenue beat(8)-0.17%
Revenue beat(12)4
Avg Revenue beat(12)-0.7%
Revenue beat(16)4
Avg Revenue beat(16)-2.32%
PT rev (1m)3.33%
PT rev (3m)3.33%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)9.64%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.87%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.42 | ||
| Fwd PE | 15.12 | ||
| P/S | 0.84 | ||
| P/FCF | 12.57 | ||
| P/OCF | 8 | ||
| P/B | 0.99 | ||
| P/tB | 1.07 | ||
| EV/EBITDA | 8.48 |
EPS(TTM)0.62
EY4.46%
EPS(NY)0.92
Fwd EY6.61%
FCF(TTM)1.11
FCFY7.96%
OCF(TTM)1.74
OCFY12.5%
SpS16.49
BVpS13.99
TBVpS12.94
PEG (NY)0.46
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.1% | ||
| ROE | 4.44% | ||
| ROCE | 5.45% | ||
| ROIC | 3.16% | ||
| ROICexc | 3.36% | ||
| ROICexgc | 3.61% | ||
| OM | 5.25% | ||
| PM (TTM) | 3.77% | ||
| GM | 11.45% | ||
| FCFM | 6.71% |
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 | 0.09 | ||
| Debt/FCF | 1.37 | ||
| Debt/EBITDA | 0.8 | ||
| Cap/Depr | 80.72% | ||
| Cap/Sales | 3.83% | ||
| Interest Coverage | 28.05 | ||
| Cash Conversion | 105.38% | ||
| Profit Quality | 178.07% | ||
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.51 | ||
| Altman-Z | 3.34 |
F-Score6
WACC8.16%
ROIC/WACC0.39
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)287.5%
EPS 3YN/A
EPS 5Y-11.62%
EPS Q2Q%6143.48%
EPS Next Y48.24%
EPS Next 2Y57.87%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)7.13%
Revenue growth 3Y11.04%
Revenue growth 5Y-1.5%
Sales Q2Q%7.66%
Revenue Next Year8.05%
Revenue Next 2Y10.13%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y58.79%
EBIT growth 3YN/A
EBIT growth 5Y-12.15%
EBIT Next Year176.15%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y273.29%
FCF growth 3YN/A
FCF growth 5Y3.82%
OCF growth 1Y673.91%
OCF growth 3Y99.39%
OCF growth 5Y-0.96%