MAGELLAN AEROSPACE CORP (MAL.CA) Stock Fundamental Analysis
TSX:MAL - Toronto Stock Exchange - CA5589122004 - Common Stock - Currency: CAD
MAL gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 11 industry peers in the Aerospace & Defense industry. While MAL has a great health rating, there are worries on its profitability. 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.
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
MAL's Return On Assets of 3.10% is amongst the best of the industry. MAL outperforms 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 4.44%, MAL belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
MAL's Return On Invested Capital of 3.16% is on the low side compared to the rest of the industry. MAL is outperformed by 63.64% of its industry peers.
| 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
The Profit Margin of MAL (3.77%) is comparable to the rest of the industry.
MAL's Profit Margin has declined in the last couple of years.
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.
With a Gross Margin value of 11.45%, 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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MAL 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.
MAL has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 3.22 indicates that MAL is not in any danger for bankruptcy at the moment.
MAL has a better Altman-Z score (3.22) than 90.91% of its industry peers.
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 | 3.22 |
ROIC/WACC0.39
WACC8.14%
2.3 Liquidity
A Current Ratio of 2.71 indicates that MAL has no problem at all paying its short term obligations.
MAL's Current ratio of 2.71 is amongst the best of the industry. MAL outperforms 100.00% of its industry peers.
MAL has a Quick Ratio of 1.51. This is a normal value and indicates that MAL is financially healthy and should not expect problems in meeting 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 287.50% over the past year.
The earnings per share for MAL have been decreasing by -11.62% on average. This is quite bad
The Revenue has been growing slightly by 7.13% in the past year.
MAL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -1.50% yearly.
EPS 1Y (TTM)287.5%
EPS 3YN/A
EPS 5Y-11.62%
EPS Q2Q%6143.48%
Revenue 1Y (TTM)7.13%
Revenue growth 3Y11.04%
Revenue growth 5Y-1.5%
Sales Q2Q%7.66%
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.
MAL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.13% yearly.
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.
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
A Price/Earnings ratio of 20.35 indicates a rather expensive valuation of MAL.
MAL's Price/Earnings is on the same level as the industry average.
The average S&P500 Price/Earnings ratio is at 28.78. MAL is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 13.73, which indicates a correct valuation of MAL.
MAL's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.32, MAL is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.35 | ||
| Fwd PE | 13.73 |
4.2 Price Multiples
MAL's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MAL indicates a somewhat cheap valuation: MAL is cheaper than 63.64% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 11.41 | ||
| EV/EBITDA | 7.76 |
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)0.42
PEG (5Y)N/A
EPS Next 2Y57.87%
EPS Next 3YN/A
5. Dividend
5.1 Amount
MAL has a yearly dividend return of 0.79%, which is pretty low.
Compared to an average industry Dividend Yield of 8.37, MAL pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.79, MAL pays less dividend than the S&P500 average, which is at 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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 (4/25/2025, 7:00:00 PM)
12.62
-0.08 (-0.63%)
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 Cap721.11M
Analysts83.33
Price Target15.81 (25.28%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.79% |
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)3.33%
PT rev (3m)3.33%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)9.64%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)-0.87%
Revenue NY rev (3m)-0.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.35 | ||
| Fwd PE | 13.73 | ||
| P/S | 0.77 | ||
| P/FCF | 11.41 | ||
| P/OCF | 7.26 | ||
| P/B | 0.9 | ||
| P/tB | 0.98 | ||
| EV/EBITDA | 7.76 |
EPS(TTM)0.62
EY4.91%
EPS(NY)0.92
Fwd EY7.28%
FCF(TTM)1.11
FCFY8.76%
OCF(TTM)1.74
OCFY13.77%
SpS16.49
BVpS13.99
TBVpS12.94
PEG (NY)0.42
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 | 3.22 |
F-Score6
WACC8.14%
ROIC/WACC0.39
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)287.5%
EPS 3YN/A
EPS 5Y-11.62%
EPS Q2Q%6143.48%
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%7.66%
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 Year176.15%
EBIT Next 3YN/A
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%