MAGELLAN AEROSPACE CORP (MAL.CA) Stock Fundamental Analysis
TSX:MAL - Toronto Stock Exchange - CA5589122004 - Common Stock - Currency: CAD
MAL gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 11 industry peers in the Aerospace & Defense industry. MAL has an excellent financial health rating, but there are some minor concerns on its profitability. MAL has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
MAL had positive earnings in the past year.
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.
MAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of MAL (3.39%) is better than 81.82% of its industry peers.
MAL has a better Return On Equity (4.90%) than 81.82% of its industry peers.
MAL has a worse Return On Invested Capital (3.68%) than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 4.9% | ||
| ROIC | 3.68% |
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 4.13%. This is amongst the best in the industry. MAL outperforms 81.82% of its industry peers.
MAL's Profit Margin has declined in the last couple of years.
MAL's Operating Margin of 6.01% is on the low side compared to the rest of the industry. MAL is outperformed by 63.64% of its industry peers.
In the last couple of years the Operating Margin of MAL has declined.
With a Gross Margin value of 12.17%, MAL is not doing good in the industry: 81.82% of the companies in the same industry are doing better.
MAL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.01% | ||
| PM (TTM) | 4.13% | ||
| GM | 12.17% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), MAL is destroying value.
Compared to 1 year ago, MAL has about the same amount of shares outstanding.
Compared to 5 years ago, MAL has less shares outstanding
The debt/assets ratio for MAL has been reduced compared to a year ago.
2.2 Solvency
MAL has an Altman-Z score of 3.68. This indicates that MAL is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 3.68, MAL belongs to the best 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's Debt to FCF ratio of 1.37 is amongst the best of the industry. MAL outperforms 90.91% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that MAL is not too dependend on debt financing.
MAL has a Debt to Equity ratio of 0.08. This is amongst the best in the industry. MAL outperforms 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 1.37 | ||
| Altman-Z | 3.68 |
ROIC/WACC0.41
WACC8.91%
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 90.91% of its industry peers.
A Quick Ratio of 1.46 indicates that MAL should not have too much problems paying its short term obligations.
The Quick ratio of MAL (1.46) is better than 90.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
MAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 250.00%, 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 quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.59%.
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)8.59%
Revenue growth 3Y11.04%
Revenue growth 5Y-1.5%
Sales Q2Q%10.91%
3.2 Future
The Earnings Per Share is expected to grow by 57.87% on average over the next years. This is a very strong growth
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
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 25.64, which means the current valuation is very expensive for MAL.
Compared to the rest of the industry, the Price/Earnings ratio of MAL is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.30, MAL is valued at the same level.
A Price/Forward Earnings ratio of 11.62 indicates a reasonable valuation of MAL.
72.73% of the companies in the same industry are more expensive than MAL, based on the Price/Forward Earnings ratio.
MAL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.64 | ||
| Fwd PE | 11.62 |
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 63.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.48 | ||
| EV/EBITDA | 10 |
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 57.87% in the coming years.
PEG (NY)0.53
PEG (5Y)N/A
EPS Next 2Y57.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MAL has a Yearly Dividend Yield of 1.10%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 7.56, MAL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.35, MAL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
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 14.28% of its income as dividend. This is a sustainable payout ratio.
DP14.28%
EPS Next 2Y57.87%
EPS Next 3YN/A
TSX:MAL (7/11/2025, 7:00:00 PM)
17.95
-0.28 (-1.54%)
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 Cap1.03B
Analysts47.5
Price Target18.51 (3.12%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.1% |
Yearly Dividend0.1
Dividend Growth(5Y)-24.44%
DP14.28%
Div Incr Years0
Div Non Decr Years1
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)42.63%
Min EPS beat(2)-5.94%
Max EPS beat(2)91.19%
EPS beat(4)1
Avg EPS beat(4)5.71%
Min EPS beat(4)-38.12%
Max EPS beat(4)91.19%
EPS beat(8)1
Avg EPS beat(8)-25.1%
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)2
Avg Revenue beat(2)6.99%
Min Revenue beat(2)5.68%
Max Revenue beat(2)8.31%
Revenue beat(4)2
Avg Revenue beat(4)0.79%
Min Revenue beat(4)-8.37%
Max Revenue beat(4)8.31%
Revenue beat(8)3
Avg Revenue beat(8)-0.56%
Revenue beat(12)5
Avg Revenue beat(12)0.16%
Revenue beat(16)5
Avg Revenue beat(16)-1.38%
PT rev (1m)0%
PT rev (3m)17.1%
EPS NQ rev (1m)21.05%
EPS NQ rev (3m)15%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)10.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.64 | ||
| Fwd PE | 11.62 | ||
| P/S | 1.06 | ||
| P/FCF | 17.48 | ||
| P/OCF | 10.16 | ||
| P/B | 1.26 | ||
| P/tB | 1.36 | ||
| EV/EBITDA | 10 |
EPS(TTM)0.7
EY3.9%
EPS(NY)1.55
Fwd EY8.61%
FCF(TTM)1.03
FCFY5.72%
OCF(TTM)1.77
OCFY9.84%
SpS16.94
BVpS14.28
TBVpS13.22
PEG (NY)0.53
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.39% | ||
| ROE | 4.9% | ||
| ROCE | 6.32% | ||
| ROIC | 3.68% | ||
| ROICexc | 3.91% | ||
| ROICexgc | 4.2% | ||
| OM | 6.01% | ||
| PM (TTM) | 4.13% | ||
| GM | 12.17% | ||
| FCFM | 6.06% |
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 | 0.08 | ||
| Debt/FCF | 1.37 | ||
| Debt/EBITDA | 0.67 | ||
| Cap/Depr | 93.53% | ||
| Cap/Sales | 4.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 97.6% | ||
| Profit Quality | 146.67% | ||
| Current Ratio | 2.61 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 3.68 |
F-Score6
WACC8.91%
ROIC/WACC0.41
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)8.59%
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 1Y70.02%
EBIT growth 3YN/A
EBIT growth 5Y-12.15%
EBIT Next Year189.52%
EBIT Next 3Y62.09%
EBIT Next 5YN/A
FCF growth 1Y234.87%
FCF growth 3YN/A
FCF growth 5Y3.82%
OCF growth 1Y151.03%
OCF growth 3Y99.39%
OCF growth 5Y-0.96%