MAGELLAN AEROSPACE CORP (MAL.CA) Stock Fundamental Analysis
TSX:MAL - Toronto Stock Exchange - CA5589122004 - Common Stock - Currency: CAD
Taking everything into account, MAL scores 6 out of 10 in our fundamental rating. MAL was compared to 11 industry peers in the Aerospace & Defense industry. While MAL has a great health rating, its profitability is only average at the moment. MAL has a decent growth rate and is not valued too expensively.
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.
MAL's Return On Equity of 4.90% is amongst the best of the industry. MAL outperforms 81.82% of its industry peers.
MAL has a worse Return On Invested Capital (3.68%) than 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.
In the last couple of years the Profit Margin of MAL has declined.
MAL has a worse Operating Margin (6.01%) than 63.64% of its industry peers.
In the last couple of years the Operating Margin of MAL has declined.
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.
In the last couple of years the Gross Margin of MAL has declined.
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MAL is destroying value.
The number of shares outstanding for MAL remains at a similar level compared to 1 year ago.
MAL has less shares outstanding than it did 5 years ago.
MAL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.68 indicates that MAL is not in any danger for bankruptcy at the moment.
MAL has a better Altman-Z score (3.68) than 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.
The Debt to FCF ratio of MAL (1.37) is better than 90.91% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that MAL is not too dependend on debt financing.
The Debt to Equity ratio of MAL (0.08) is better than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 3.68 |
ROIC/WACC0.4
WACC9.11%
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.
The Current ratio of MAL (2.61) is better than 90.91% of its industry peers.
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
The Earnings Per Share has grown by an impressive 250.00% over the past year.
Measured over the past years, MAL shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -11.62% on average per year.
MAL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.59%.
The Revenue has been decreasing by -1.50% on average over the past years.
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
The Earnings Per Share is expected to grow by 57.87% on average over the next years. This is a very strong growth
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
MAL is valuated quite expensively with a Price/Earnings ratio of 25.64.
Compared to the rest of the industry, the Price/Earnings ratio of MAL is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.41, MAL is valued at the same level.
The Price/Forward Earnings ratio is 11.62, which indicates a very decent valuation of MAL.
72.73% of the companies in the same industry are more expensive than MAL, based on the Price/Forward Earnings ratio.
MAL is valuated cheaply when we compare the Price/Forward Earnings ratio to 35.19, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.64 | ||
| Fwd PE | 11.62 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MAL is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
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 | 17.48 | ||
| EV/EBITDA | 10 |
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)0.53
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.
Compared to an average S&P500 Dividend Yield of 2.35, MAL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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
MAL pays out 14.28% of its income as dividend. This is a sustainable payout ratio.
DP14.28%
EPS Next 2Y57.87%
EPS Next 3YN/A
TSX:MAL (7/11/2025, 7:00:00 PM)
17.95
-0.28 (-1.54%)
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 Cap1.03B
Analysts47.5
Price Target18.51 (3.12%)
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 | 25.64 | ||
| Fwd PE | 11.62 | ||
| P/S | 1.06 | ||
| P/FCF | 17.48 | ||
| P/OCF | 10.16 | ||
| P/B | 1.26 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 10 |
EPS(TTM)0.7
EY3.9%
EPS(NY)1.55
Fwd EY8.61%
FCF(TTM)1.03
FCFY5.72%
OCF(TTM)1.77
OCFY9.84%
SpS16.94
BVpS14.28
TBVpS13.22
PEG (NY)0.53
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
WACC9.11%
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%