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 has a correct valuation and a medium 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 Return On Assets of 1.75%. This is in the lower half of the industry: MAL underperforms 63.64% of its industry peers.
Looking at the Return On Equity, with a value of 2.53%, MAL belongs to the top of the industry, outperforming 81.82% of the companies in the same industry.
MAL has a Return On Invested Capital of 2.09%. This is in the lower half of the industry: MAL underperforms 72.73% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.75% | ||
| ROE | 2.53% | ||
| ROIC | 2.09% |
ROA(3y)-0.45%
ROA(5y)0.97%
ROE(3y)-0.62%
ROE(5y)1.37%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 2.09%, MAL is doing worse than 63.64% of the companies in the same industry.
MAL's Profit Margin has declined in the last couple of years.
MAL has a Operating Margin of 4.56%. This is in the lower half of the industry: MAL underperforms 72.73% of its industry peers.
In the last couple of years the Operating Margin of MAL has declined.
MAL's Gross Margin of 10.85% is on the low side compared to the rest of the industry. MAL is outperformed by 90.91% of its industry peers.
In the last couple of years the Gross Margin of MAL has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.56% | ||
| PM (TTM) | 2.09% | ||
| GM | 10.85% |
OM growth 3Y-14.99%
OM growth 5Y-20.99%
PM growth 3Y33.35%
PM growth 5Y-35.22%
GM growth 3Y-7.54%
GM growth 5Y-9.51%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MAL is destroying value.
Compared to 1 year ago, MAL has less shares outstanding
MAL has less shares outstanding than it did 5 years ago.
MAL has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 2.97 indicates that MAL is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.97, MAL belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
The Debt to FCF ratio of MAL is 2.27, which is a good value as it means it would take MAL, 2.27 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.27, MAL belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
A Debt/Equity ratio of 0.11 indicates that MAL is not too dependend on debt financing.
The Debt to Equity ratio of MAL (0.11) is better than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 2.27 | ||
| Altman-Z | 2.97 |
ROIC/WACC0.28
WACC7.45%
2.3 Liquidity
MAL has a Current Ratio of 2.58. This indicates that MAL is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of MAL (2.58) is better than 100.00% of its industry peers.
A Quick Ratio of 1.41 indicates that MAL should not have too much problems paying its short term obligations.
The Quick ratio of MAL (1.41) is better than 100.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 270.00% over the past year.
MAL shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -36.34% yearly.
The Revenue has grown by 8.96% in the past year. This is quite good.
MAL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.87% yearly.
EPS 1Y (TTM)270%
EPS 3Y-13.82%
EPS 5Y-36.34%
EPS Q2Q%66.67%
Revenue 1Y (TTM)8.96%
Revenue growth 3Y5.72%
Revenue growth 5Y-1.87%
Sales Q2Q%4.93%
3.2 Future
The Earnings Per Share is expected to grow by 109.18% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 8.78% on average over the next years. This is quite good.
EPS Next Y212.47%
EPS Next 2Y128.9%
EPS Next 3Y109.18%
EPS Next 5YN/A
Revenue Next Year6.41%
Revenue Next 2Y7.7%
Revenue Next 3Y8.78%
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
A Price/Earnings ratio of 29.41 indicates a quite expensive valuation of MAL.
The rest of the industry has a similar Price/Earnings ratio as MAL.
The average S&P500 Price/Earnings ratio is at 29.62. MAL is around the same levels.
With a Price/Forward Earnings ratio of 11.93, the valuation of MAL can be described as very reasonable.
MAL's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.70. MAL is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.41 | ||
| Fwd PE | 11.93 |
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.
Based on the Price/Free Cash Flow ratio, MAL is valued a bit cheaper than 72.73% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.35 | ||
| EV/EBITDA | 7.02 |
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.
A more expensive valuation may be justified as MAL's earnings are expected to grow with 109.18% in the coming years.
PEG (NY)0.14
PEG (5Y)N/A
EPS Next 2Y128.9%
EPS Next 3Y109.18%
5. Dividend
5.1 Amount
With a yearly dividend of 1.00%, MAL is not a good candidate for dividend investing.
MAL's Dividend Yield is a higher than the industry average which is at 8.70.
Compared to an average S&P500 Dividend Yield of 2.27, MAL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
5.2 History
The dividend of MAL decreases each year by -22.41%.
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)-22.41%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
MAL pays out 29.57% of its income as dividend. This is a sustainable payout ratio.
DP29.57%
EPS Next 2Y128.9%
EPS Next 3Y109.18%
TSX:MAL (2/21/2025, 7:00:00 PM)
10
-0.02 (-0.2%)
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 Cap571.40M
Analysts83.33
Price Target15.3 (53%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1% |
Yearly Dividend0.1
Dividend Growth(5Y)-22.41%
DP29.57%
Div Incr Years0
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-31.2%
Min EPS beat(2)-38.12%
Max EPS beat(2)-24.29%
EPS beat(4)0
Avg EPS beat(4)-45.43%
Min EPS beat(4)-100%
Max EPS beat(4)-19.33%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)0
Avg Revenue beat(2)-5.41%
Min Revenue beat(2)-8.37%
Max Revenue beat(2)-2.45%
Revenue beat(4)0
Avg Revenue beat(4)-3.82%
Min Revenue beat(4)-8.37%
Max Revenue beat(4)-0.82%
Revenue beat(8)2
Avg Revenue beat(8)-1.51%
Revenue beat(12)3
Avg Revenue beat(12)-1.46%
Revenue beat(16)4
Avg Revenue beat(16)-2.55%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-29.27%
EPS NQ rev (3m)-29.27%
EPS NY rev (1m)0%
EPS NY rev (3m)-18.85%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.41 | ||
| Fwd PE | 11.93 | ||
| P/S | 0.62 | ||
| P/FCF | 14.35 | ||
| P/OCF | 7.96 | ||
| P/B | 0.75 | ||
| P/tB | 0.81 | ||
| EV/EBITDA | 7.02 |
EPS(TTM)0.34
EY3.4%
EPS(NY)0.84
Fwd EY8.38%
FCF(TTM)0.7
FCFY6.97%
OCF(TTM)1.26
OCFY12.56%
SpS16.19
BVpS13.39
TBVpS12.35
PEG (NY)0.14
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.75% | ||
| ROE | 2.53% | ||
| ROCE | 4.88% | ||
| ROIC | 2.09% | ||
| ROICexc | 2.17% | ||
| ROICexgc | 2.33% | ||
| OM | 4.56% | ||
| PM (TTM) | 2.09% | ||
| GM | 10.85% | ||
| FCFM | 4.3% |
ROA(3y)-0.45%
ROA(5y)0.97%
ROE(3y)-0.62%
ROE(5y)1.37%
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 3Y-11.19%
ROICexcg growth 5Y-23.93%
ROICexc growth 3Y-10.48%
ROICexc growth 5Y-23.08%
OM growth 3Y-14.99%
OM growth 5Y-20.99%
PM growth 3Y33.35%
PM growth 5Y-35.22%
GM growth 3Y-7.54%
GM growth 5Y-9.51%
F-Score7
Asset Turnover0.84
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.11 | ||
| Debt/FCF | 2.27 | ||
| Debt/EBITDA | 0.93 | ||
| Cap/Depr | 72.74% | ||
| Cap/Sales | 3.46% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.29% | ||
| Profit Quality | 205.87% | ||
| Current Ratio | 2.58 | ||
| Quick Ratio | 1.41 | ||
| Altman-Z | 2.97 |
F-Score7
WACC7.45%
ROIC/WACC0.28
Cap/Depr(3y)41.58%
Cap/Depr(5y)52.2%
Cap/Sales(3y)2.61%
Cap/Sales(5y)3.24%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)270%
EPS 3Y-13.82%
EPS 5Y-36.34%
EPS Q2Q%66.67%
EPS Next Y212.47%
EPS Next 2Y128.9%
EPS Next 3Y109.18%
EPS Next 5YN/A
Revenue 1Y (TTM)8.96%
Revenue growth 3Y5.72%
Revenue growth 5Y-1.87%
Sales Q2Q%4.93%
Revenue Next Year6.41%
Revenue Next 2Y7.7%
Revenue Next 3Y8.78%
Revenue Next 5YN/A
EBIT growth 1Y860.05%
EBIT growth 3Y-10.13%
EBIT growth 5Y-22.47%
EBIT Next Year63.56%
EBIT Next 3Y37.19%
EBIT Next 5YN/A
FCF growth 1Y19.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y25.32%
OCF growth 3YN/A
OCF growth 5YN/A