MAGELLAN AEROSPACE CORP (MAL.CA) Stock Fundamental Analysis
Canada - TSX:MAL - CA5589122004 - Common Stock
16.65 CAD
-0.6 (-3.48%)
Overall MAL gets a fundamental rating of 5 out of 10. We evaluated MAL against 11 industry peers in the Aerospace & Defense industry. MAL has a great financial health rating, but its profitability evaluates not so good. 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.
Of the past 5 years MAL 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of MAL (3.26%) is worse than 63.64% of its industry peers.
The Return On Equity of MAL (4.71%) is better than 81.82% of its industry peers.
With a Return On Invested Capital value of 3.97%, 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 | 3.26% | ||
| 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
MAL has a Profit Margin of 3.89%. This is in the lower half of the industry: MAL underperforms 63.64% of its industry peers.
In the last couple of years the Profit Margin of MAL has declined.
MAL's Operating Margin of 6.45% is on the low side compared to the rest of the industry. MAL is outperformed by 63.64% of its industry peers.
MAL's Operating Margin has declined in the last couple of years.
MAL has a worse Gross Margin (12.77%) than 81.82% of its industry peers.
In the last couple of years the Gross Margin of MAL has declined.
| 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.
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.
Compared to 1 year ago, MAL has an improved debt to assets ratio.
2.2 Solvency
MAL has an Altman-Z score of 3.63. This indicates that MAL is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.63, MAL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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.
Looking at the Debt to FCF ratio, with a value of 1.28, MAL belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
MAL has a Debt/Equity ratio of 0.10. This is a healthy value indicating a solid balance between debt and equity.
MAL's Debt to Equity ratio of 0.10 is amongst the best of the industry. MAL outperforms 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 3.63 |
ROIC/WACC0.46
WACC8.68%
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.
MAL's Current ratio of 2.61 is amongst the best of the industry. MAL outperforms 100.00% of its industry peers.
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.
The Quick ratio of MAL (1.49) is better than 90.91% 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.
The earnings per share for MAL have been decreasing by -11.62% on average. This is quite bad
Looking at the last year, MAL shows a small growth in Revenue. The Revenue has grown by 6.58% in the last year.
The Revenue has been decreasing by -1.50% on average over the past years.
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
The Earnings Per Share is expected to grow by 33.79% on average over the next years. This is a very strong growth
Based on estimates for the next years, MAL will show a small growth in Revenue. The Revenue will grow by 5.99% on average per year.
EPS Next Y31.14%
EPS Next 2Y39.82%
EPS Next 3Y33.79%
EPS Next 5YN/A
Revenue Next Year10.59%
Revenue Next 2Y7.01%
Revenue Next 3Y5.99%
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
MAL is valuated quite expensively with a Price/Earnings ratio of 25.23.
MAL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.35, MAL is valued at the same level.
MAL is valuated correctly with a Price/Forward Earnings ratio of 13.74.
72.73% of the companies in the same industry are more expensive than MAL, based on the Price/Forward Earnings ratio.
MAL's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 22.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.23 | ||
| Fwd PE | 13.74 |
4.2 Price Multiples
72.73% of the companies in the same industry are more expensive than MAL, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, MAL is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.22 | ||
| EV/EBITDA | 8.55 |
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 33.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.81
PEG (5Y)N/A
EPS Next 2Y39.82%
EPS Next 3Y33.79%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.16%, MAL has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 7.39, MAL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.44, MAL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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.
The dividend of MAL decreased recently.
Dividend Growth(5Y)-24.44%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
MAL pays out 18.83% of its income as dividend. This is a sustainable payout ratio.
DP18.83%
EPS Next 2Y39.82%
EPS Next 3Y33.79%
TSX:MAL (10/10/2025, 7:00:00 PM)
16.65
-0.6 (-3.48%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryAerospace & Defense
Earnings (Last)
Earnings (Next)
Inst Owners2.65%
Inst Owner ChangeN/A
Ins Owners79.31%
Ins Owner ChangeN/A
Market Cap951.38M
Analysts76.67
Price Target19.02 (14.23%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.16% |
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)0%
PT rev (3m)2.75%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-9.09%
EPS NY rev (1m)-10.06%
EPS NY rev (3m)-11.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.23 | ||
| Fwd PE | 13.74 | ||
| P/S | 0.98 | ||
| P/FCF | 13.22 | ||
| P/OCF | 8.48 | ||
| P/B | 1.18 | ||
| P/tB | 1.27 | ||
| EV/EBITDA | 8.55 |
EPS(TTM)0.66
EY3.96%
EPS(NY)1.21
Fwd EY7.28%
FCF(TTM)1.26
FCFY7.56%
OCF(TTM)1.96
OCFY11.79%
SpS17.06
BVpS14.1
TBVpS13.06
PEG (NY)0.81
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 | 3.63 |
F-Score9
WACC8.68%
ROIC/WACC0.46
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 Y31.14%
EPS Next 2Y39.82%
EPS Next 3Y33.79%
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 Year171.4%
EBIT Next 3Y53.81%
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%