MAGELLAN AEROSPACE CORP (MAL.CA) Stock Fundamental Analysis
TSX:MAL - CA5589122004 - Common Stock
15.55 CAD
+0.08 (+0.52%)
Taking everything into account, MAL scores 6 out of 10 in our fundamental rating. MAL was compared to 12 industry peers in the Aerospace & Defense industry. While MAL has a great health rating, there are worries on its profitability. 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.
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
MAL has a Return On Assets of 3.26%. This is comparable to the rest of the industry: MAL outperforms 41.67% of its industry peers.
With an excellent Return On Equity value of 4.71%, MAL belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
MAL has a Return On Invested Capital (3.97%) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 4.71% | ||
| ROIC | 3.97% |
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 3.89%, MAL perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
MAL's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 6.45%, MAL perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
MAL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 12.77%, MAL is doing worse than 83.33% of the companies in the same industry.
MAL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.45% | ||
| PM (TTM) | 3.89% | ||
| GM | 12.77% |
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
MAL has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for MAL remains at a similar level compared to 1 year ago.
Compared to 5 years ago, MAL has less shares outstanding
MAL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.53 indicates that MAL is not in any danger for bankruptcy at the moment.
The Altman-Z score of MAL (3.53) is better than 100.00% of its industry peers.
MAL has a debt to FCF ratio of 1.28. This is a very positive value and a sign of high solvency as it would only need 1.28 years to pay back of all of its debts.
MAL has a Debt to FCF ratio of 1.28. This is amongst the best in the industry. MAL outperforms 91.67% of its industry peers.
A Debt/Equity ratio of 0.10 indicates that MAL is not too dependend on debt financing.
The Debt to Equity ratio of MAL (0.10) is better than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 3.53 |
ROIC/WACC0.45
WACC8.81%
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.
Looking at the Current ratio, with a value of 2.61, MAL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
MAL has a Quick Ratio of 1.49. 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 better Quick ratio (1.49) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
MAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 120.00%, which is quite impressive.
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.
The Revenue has been growing slightly by 6.58% in the past year.
MAL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.50% yearly.
EPS 1Y (TTM)120%
EPS 3YN/A
EPS 5Y-11.62%
EPS Q2Q%-30.77%
Revenue 1Y (TTM)6.58%
Revenue growth 3Y11.04%
Revenue growth 5Y-1.5%
Sales Q2Q%2.83%
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 42.60% on average per year.
MAL is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.99% yearly.
EPS Next Y45.8%
EPS Next 2Y46.92%
EPS Next 3Y42.6%
EPS Next 5YN/A
Revenue Next Year10.59%
Revenue Next 2Y7.01%
Revenue Next 3Y5.99%
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
Based on the Price/Earnings ratio of 23.56, the valuation of MAL can be described as rather expensive.
MAL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.14, MAL is valued at the same level.
A Price/Forward Earnings ratio of 11.62 indicates a reasonable 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 75.00% 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 (22.80), we can say MAL is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.56 | ||
| Fwd PE | 11.62 |
4.2 Price Multiples
75.00% of the companies in the same industry are more expensive than MAL, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MAL indicates a somewhat cheap valuation: MAL is cheaper than 66.67% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 12.35 | ||
| EV/EBITDA | 7.98 |
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.
A more expensive valuation may be justified as MAL's earnings are expected to grow with 42.60% in the coming years.
PEG (NY)0.51
PEG (5Y)N/A
EPS Next 2Y46.92%
EPS Next 3Y42.6%
5. Dividend
5.1 Amount
MAL has a Yearly Dividend Yield of 1.30%.
MAL's Dividend Yield is a higher than the industry average which is at 7.29.
With a Dividend Yield of 1.30, MAL pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
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.
MAL has decreased its dividend recently.
Dividend Growth(5Y)-24.44%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
18.83% of the earnings are spent on dividend by MAL. This is a low number and sustainable payout ratio.
DP18.83%
EPS Next 2Y46.92%
EPS Next 3Y42.6%
TSX:MAL (8/27/2025, 7:00:00 PM)
15.55
+0.08 (+0.52%)
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 Cap888.53M
Analysts47.5
Price Target19.02 (22.32%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.3% |
Yearly Dividend0.1
Dividend Growth(5Y)-24.44%
DP18.83%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-33.6%
Min EPS beat(2)-61.26%
Max EPS beat(2)-5.94%
EPS beat(4)1
Avg EPS beat(4)-3.53%
Min EPS beat(4)-61.26%
Max EPS beat(4)91.19%
EPS beat(8)1
Avg EPS beat(8)-23.97%
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)0.76%
Min Revenue beat(2)-6.78%
Max Revenue beat(2)8.31%
Revenue beat(4)2
Avg Revenue beat(4)-0.29%
Min Revenue beat(4)-8.37%
Max Revenue beat(4)8.31%
Revenue beat(8)3
Avg Revenue beat(8)-0.99%
Revenue beat(12)5
Avg Revenue beat(12)-0.38%
Revenue beat(16)5
Avg Revenue beat(16)-1.16%
PT rev (1m)2.75%
PT rev (3m)20.32%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-1.65%
EPS NY rev (3m)-1.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)2.35%
Revenue NY rev (3m)2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.56 | ||
| Fwd PE | 11.62 | ||
| P/S | 0.91 | ||
| P/FCF | 12.35 | ||
| P/OCF | 7.92 | ||
| P/B | 1.1 | ||
| P/tB | 1.19 | ||
| EV/EBITDA | 7.98 |
EPS(TTM)0.66
EY4.24%
EPS(NY)1.34
Fwd EY8.61%
FCF(TTM)1.26
FCFY8.1%
OCF(TTM)1.96
OCFY12.63%
SpS17.06
BVpS14.1
TBVpS13.06
PEG (NY)0.51
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.26% | ||
| ROE | 4.71% | ||
| ROCE | 6.92% | ||
| ROIC | 3.97% | ||
| ROICexc | 4.35% | ||
| ROICexgc | 4.67% | ||
| OM | 6.45% | ||
| PM (TTM) | 3.89% | ||
| GM | 12.77% | ||
| FCFM | 7.38% |
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-Score9
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.28 | ||
| Debt/EBITDA | 0.75 | ||
| Cap/Depr | 87.02% | ||
| Cap/Sales | 4.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 102.82% | ||
| Profit Quality | 189.74% | ||
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 3.53 |
F-Score9
WACC8.81%
ROIC/WACC0.45
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)120%
EPS 3YN/A
EPS 5Y-11.62%
EPS Q2Q%-30.77%
EPS Next Y45.8%
EPS Next 2Y46.92%
EPS Next 3Y42.6%
EPS Next 5YN/A
Revenue 1Y (TTM)6.58%
Revenue growth 3Y11.04%
Revenue growth 5Y-1.5%
Sales Q2Q%2.83%
Revenue Next Year10.59%
Revenue Next 2Y7.01%
Revenue Next 3Y5.99%
Revenue Next 5YN/A
EBIT growth 1Y72.79%
EBIT growth 3YN/A
EBIT growth 5Y-12.15%
EBIT Next Year189.52%
EBIT Next 3Y62.09%
EBIT Next 5YN/A
FCF growth 1Y1657.38%
FCF growth 3YN/A
FCF growth 5Y3.82%
OCF growth 1Y603.22%
OCF growth 3Y99.39%
OCF growth 5Y-0.96%