MAGELLAN AEROSPACE CORP (MAL.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MAL - CA5589122004 - Common Stock
21.98 CAD
-1.22 (-5.26%)
We assign a fundamental rating of 6 out of 10 to MAL. MAL was compared to 13 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
- MAL had positive earnings in the past year.
- 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
- Looking at the Return On Assets, with a value of 3.77%, MAL is in the better half of the industry, outperforming 76.92% of the companies in the same industry.
- MAL has a better Return On Equity (5.44%) than 69.23% of its industry peers.
- MAL has a worse Return On Invested Capital (4.17%) than 69.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.77% | ||
| ROE | 5.44% | ||
| ROIC | 4.17% |
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's Profit Margin of 4.44% is fine compared to the rest of the industry. MAL outperforms 69.23% of its industry peers.
- In the last couple of years the Profit Margin of MAL has declined.
- With a Operating Margin value of 6.72%, MAL is not doing good in the industry: 69.23% of the companies in the same industry are doing better.
- MAL's Operating Margin has declined in the last couple of years.
- Looking at the Gross Margin, with a value of 13.11%, MAL is doing worse than 84.62% of the companies in the same industry.
- MAL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.72% | ||
| PM (TTM) | 4.44% | ||
| GM | 13.11% |
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.
- The number of shares outstanding for MAL has been reduced compared to 5 years ago.
- The debt/assets ratio for MAL has been reduced compared to a year ago.
2.2 Solvency
- MAL has an Altman-Z score of 4.12. This indicates that MAL is financially healthy and has little risk of bankruptcy at the moment.
- MAL's Altman-Z score of 4.12 is amongst the best of the industry. MAL outperforms 100.00% of its industry peers.
- MAL has a debt to FCF ratio of 1.69. This is a very positive value and a sign of high solvency as it would only need 1.69 years to pay back of all of its debts.
- MAL's Debt to FCF ratio of 1.69 is amongst the best of the industry. MAL outperforms 92.31% of its industry peers.
- A Debt/Equity ratio of 0.10 indicates that MAL is not too dependend on debt financing.
- The Debt to Equity ratio of MAL (0.10) is better than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.1 | ||
| Debt/FCF | 1.69 | ||
| Altman-Z | 4.12 |
ROIC/WACC0.46
WACC8.98%
2.3 Liquidity
- A Current Ratio of 2.66 indicates that MAL has no problem at all paying its short term obligations.
- MAL has a Current ratio of 2.66. This is amongst the best in the industry. MAL outperforms 100.00% of its industry peers.
- MAL has a Quick Ratio of 1.55. This is a normal value and indicates that MAL is financially healthy and should not expect problems in meeting its short term obligations.
- The Quick ratio of MAL (1.55) is better than 92.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.66 | ||
| Quick Ratio | 1.55 |
3. Growth
3.1 Past
- MAL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 129.41%, 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.
- The Revenue has grown by 8.84% in the past year. This is quite good.
- The Revenue has been decreasing by -1.50% on average over the past years.
EPS 1Y (TTM)129.41%
EPS 3YN/A
EPS 5Y-11.62%
EPS Q2Q%120%
Revenue 1Y (TTM)8.84%
Revenue growth 3Y11.04%
Revenue growth 5Y-1.5%
Sales Q2Q%14.39%
3.2 Future
- The Earnings Per Share is expected to grow by 38.76% on average over the next years. This is a very strong growth
- MAL is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.07% yearly.
EPS Next Y29.51%
EPS Next 2Y42.41%
EPS Next 3Y38.76%
EPS Next 5YN/A
Revenue Next Year10.91%
Revenue Next 2Y9.02%
Revenue Next 3Y9.07%
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
- MAL is valuated quite expensively with a Price/Earnings ratio of 28.18.
- MAL's Price/Earnings ratio is a bit cheaper when compared to the industry. MAL is cheaper than 61.54% of the companies in the same industry.
- MAL's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.87.
- The Price/Forward Earnings ratio is 17.48, which indicates a rather expensive current valuation of MAL.
- Based on the Price/Forward Earnings ratio, MAL is valued a bit cheaper than the industry average as 61.54% of the companies are valued more expensively.
- MAL is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 25.96, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.18 | ||
| Fwd PE | 17.48 |
4.2 Price Multiples
- 61.54% of the companies in the same industry are more expensive than MAL, based on the Enterprise Value to EBITDA ratio.
- MAL's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.72 | ||
| EV/EBITDA | 10.85 |
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 38.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.95
PEG (5Y)N/A
EPS Next 2Y42.41%
EPS Next 3Y38.76%
5. Dividend
5.1 Amount
- MAL has a yearly dividend return of 0.85%, which is pretty low.
- Compared to an average industry Dividend Yield of 2.21, MAL pays a bit more dividend than its industry peers.
- With a Dividend Yield of 0.85, MAL pays less dividend than the S&P500 average, which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.85% |
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.
- The dividend of MAL decreased recently.
Dividend Growth(5Y)-24.44%
Div Incr Years0
Div Non Decr Years1
5.3 Sustainability
- MAL pays out 19.15% of its income as dividend. This is a sustainable payout ratio.
DP19.15%
EPS Next 2Y42.41%
EPS Next 3Y38.76%
MAGELLAN AEROSPACE CORP / MAL.CA FAQ
What is the fundamental rating for MAL stock?
ChartMill assigns a fundamental rating of 6 / 10 to MAL.CA.
What is the valuation status for MAL stock?
ChartMill assigns a valuation rating of 5 / 10 to MAGELLAN AEROSPACE CORP (MAL.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for MAGELLAN AEROSPACE CORP?
MAGELLAN AEROSPACE CORP (MAL.CA) has a profitability rating of 3 / 10.
What are the PE and PB ratios of MAGELLAN AEROSPACE CORP (MAL.CA) stock?
The Price/Earnings (PE) ratio for MAGELLAN AEROSPACE CORP (MAL.CA) is 28.18 and the Price/Book (PB) ratio is 1.53.
What is the expected EPS growth for MAGELLAN AEROSPACE CORP (MAL.CA) stock?
The Earnings per Share (EPS) of MAGELLAN AEROSPACE CORP (MAL.CA) is expected to grow by 29.51% in the next year.