MAGELLAN AEROSPACE CORP (MAL.CA) Stock Fundamental Analysis
TSX:MAL - Toronto Stock Exchange - CA5589122004 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to MAL. MAL was compared to 11 industry peers in the Aerospace & Defense industry. MAL has a great financial health rating, but its profitability evaluates not so good. 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.
In the past year MAL had a positive cash flow from operations.
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 3.10% is amongst the best of the industry. MAL outperforms 81.82% of its industry peers.
With an excellent Return On Equity value of 4.44%, MAL belongs to the best of the industry, outperforming 81.82% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.16%, MAL is doing worse than 63.64% of the companies in the same industry.
| 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
Looking at the Profit Margin, with a value of 3.77%, MAL is doing worse than 63.64% of the companies in the same industry.
In the last couple of years the Profit Margin of MAL has declined.
The Operating Margin of MAL (5.25%) is worse than 63.64% of its industry peers.
MAL's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 11.45%, 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 | 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
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
Compared to 1 year ago, MAL has an improved debt to assets ratio.
2.2 Solvency
MAL has an Altman-Z score of 3.61. 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 3.61, 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 1.37. 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.
With an excellent Debt to Equity ratio value of 0.09, MAL belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.09 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 3.61 |
ROIC/WACC0.37
WACC8.45%
2.3 Liquidity
MAL has a Current Ratio of 2.71. This indicates that MAL is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.71, MAL belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
A Quick Ratio of 1.51 indicates that MAL should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.51, MAL belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.71 | ||
| Quick Ratio | 1.51 |
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.
The Revenue has been growing slightly by 7.13% in the past year.
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)250%
EPS 3YN/A
EPS 5Y-11.62%
EPS Q2Q%72.73%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y11.04%
Revenue growth 5Y-1.5%
Sales Q2Q%10.91%
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 57.87% on average per year.
Based on estimates for the next years, MAL will show a quite strong growth in Revenue. The Revenue will grow by 10.13% on average per year.
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.
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 rather expensively with a Price/Earnings ratio of 23.67.
The rest of the industry has a similar Price/Earnings ratio as MAL.
The average S&P500 Price/Earnings ratio is at 25.91. MAL is around the same levels.
A Price/Forward Earnings ratio of 10.72 indicates a reasonable valuation of MAL.
MAL's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of MAL to the average of the S&P500 Index (21.77), we can say MAL is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.67 | ||
| Fwd PE | 10.72 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as MAL.
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 | 14.98 | ||
| EV/EBITDA | 10.16 |
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 57.87% in the coming years.
PEG (NY)0.49
PEG (5Y)N/A
EPS Next 2Y57.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MAL has a Yearly Dividend Yield of 1.25%.
MAL's Dividend Yield is a higher than the industry average which is at 8.13.
With a Dividend Yield of 1.25, MAL pays less dividend than the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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 (5/26/2025, 7:00:00 PM)
16.57
-0.19 (-1.13%)
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 Cap946.81M
Analysts83.33
Price Target15.81 (-4.59%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.25% |
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)0%
PT rev (3m)3.33%
EPS NQ rev (1m)0%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)9.64%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.67 | ||
| Fwd PE | 10.72 | ||
| P/S | 1 | ||
| P/FCF | 14.98 | ||
| P/OCF | 9.54 | ||
| P/B | 1.18 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 10.16 |
EPS(TTM)0.7
EY4.22%
EPS(NY)1.55
Fwd EY9.33%
FCF(TTM)1.11
FCFY6.67%
OCF(TTM)1.74
OCFY10.49%
SpS16.49
BVpS13.99
TBVpS12.94
PEG (NY)0.49
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 | 3.61 |
F-Score6
WACC8.45%
ROIC/WACC0.37
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)7.13%
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 1Y58.79%
EBIT growth 3YN/A
EBIT growth 5Y-12.15%
EBIT Next Year189.52%
EBIT Next 3Y62.09%
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%