MAGELLAN AEROSPACE CORP (MAL.CA) Stock Fundamental Analysis
Canada - TSX:MAL - CA5589122004 - Common Stock
16.69 CAD
+0.2 (+1.21%)
We assign a fundamental rating of 6 out of 10 to MAL. MAL was compared to 12 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.
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 has a Return On Assets (3.26%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 4.71%, MAL belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.97%, MAL is in line with its industry, outperforming 41.67% of the companies in the same industry.
| 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
Looking at the Profit Margin, with a value of 3.89%, MAL is in line with its industry, outperforming 41.67% of the companies in the same industry.
In the last couple of years the Profit Margin of MAL has declined.
MAL has a Operating Margin (6.45%) which is comparable to the rest of the industry.
MAL's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 12.77%, MAL is not doing good in the industry: 83.33% of the companies in the same industry are doing better.
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.
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.
Compared to 1 year ago, MAL has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.64 indicates that MAL is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.64, MAL belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
The Debt to FCF ratio of MAL is 1.28, which is an excellent value as it means it would take MAL, only 1.28 years of fcf income to pay off all of its debts.
MAL's Debt to FCF ratio of 1.28 is amongst the best of 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.
MAL has a better Debt to Equity ratio (0.10) than 83.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.28 | ||
| Altman-Z | 3.64 |
ROIC/WACC0.45
WACC8.76%
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 83.33% 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.
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.
MAL shows a small growth in Revenue. In the last year, the Revenue has grown by 6.58%.
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)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 42.60% on average over the next years. This is a very strong growth
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
MAL is valuated quite expensively with a Price/Earnings ratio of 25.29.
MAL's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.41, MAL is valued at the same level.
A Price/Forward Earnings ratio of 12.47 indicates a correct valuation of MAL.
MAL's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MAL is cheaper than 75.00% of the companies in the same industry.
MAL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 22.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.29 | ||
| Fwd PE | 12.47 |
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.
Based on the Price/Free Cash Flow ratio, MAL is valued a bit cheaper than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 13.25 | ||
| EV/EBITDA | 8.57 |
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.
MAL's earnings are expected to grow with 42.60% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.55
PEG (5Y)N/A
EPS Next 2Y46.92%
EPS Next 3Y42.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.15%, MAL has a reasonable but not impressive dividend return.
MAL's Dividend Yield is a higher than the industry average which is at 7.13.
With a Dividend Yield of 1.15, MAL pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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
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 (9/18/2025, 7:00:00 PM)
16.69
+0.2 (+1.21%)
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 Cap953.67M
Analysts76.67
Price Target19.02 (13.96%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.15% |
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)-9.09%
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)-1.88%
Revenue NY rev (3m)2.35%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.29 | ||
| Fwd PE | 12.47 | ||
| P/S | 0.98 | ||
| P/FCF | 13.25 | ||
| P/OCF | 8.5 | ||
| P/B | 1.18 | ||
| P/tB | 1.28 | ||
| EV/EBITDA | 8.57 |
EPS(TTM)0.66
EY3.95%
EPS(NY)1.34
Fwd EY8.02%
FCF(TTM)1.26
FCFY7.54%
OCF(TTM)1.96
OCFY11.76%
SpS17.06
BVpS14.1
TBVpS13.06
PEG (NY)0.55
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 | 3.64 |
F-Score9
WACC8.76%
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%