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MAL

Magellan Aerospace TSX:MAL Stock Report

Last Price

CA$7.20

Market Cap

CA$415.6m

7D

-7.1%

1Y

-32.1%

Updated

05 Jul, 2022

Data

Company Financials +
MAL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth4/6
Past Performance0/6
Financial Health5/6
Dividends1/6

MAL Stock Overview

Magellan Aerospace Corporation, through its subsidiaries, designs, engineers, manufactures, and sells aero engine and structure components for the aerospace markets in Canada, the United States, Europe, and Asia.

Magellan Aerospace Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Magellan Aerospace
Historical stock prices
Current Share PriceCA$7.20
52 Week HighCA$10.99
52 Week LowCA$6.88
Beta1.59
1 Month Change-6.86%
3 Month Change-25.93%
1 Year Change-32.07%
3 Year Change-56.23%
5 Year Change-63.82%
Change since IPO-84.84%

Recent News & Updates

May 26
Magellan Aerospace's (TSE:MAL) Dividend Is Being Reduced To CA$0.08

Magellan Aerospace's (TSE:MAL) Dividend Is Being Reduced To CA$0.08

Magellan Aerospace Corporation's ( TSE:MAL ) dividend is being reduced to CA$0.08 on the 30th of June. The yield is...

May 12
Magellan Aerospace's (TSE:MAL) Dividend Is Being Reduced To CA$0.08

Magellan Aerospace's (TSE:MAL) Dividend Is Being Reduced To CA$0.08

Magellan Aerospace Corporation ( TSE:MAL ) is reducing its dividend to CA$0.08 on the 30th of June. However, the...

Shareholder Returns

MALCA Aerospace & DefenseCA Market
7D-7.1%-0.3%-2.3%
1Y-32.1%-24.8%-5.3%

Return vs Industry: MAL underperformed the Canadian Aerospace & Defense industry which returned -25.7% over the past year.

Return vs Market: MAL underperformed the Canadian Market which returned -4.5% over the past year.

Price Volatility

Is MAL's price volatile compared to industry and market?
MAL volatility
MAL Average Weekly Movement4.1%
Aerospace & Defense Industry Average Movement9.1%
Market Average Movement10.0%
10% most volatile stocks in CA Market17.4%
10% least volatile stocks in CA Market4.4%

Stable Share Price: MAL is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: MAL's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19943,400Phil Underwoodhttps://www.magellan.aero

Magellan Aerospace Corporation, through its subsidiaries, designs, engineers, manufactures, and sells aero engine and structure components for the aerospace markets in Canada, the United States, Europe, and Asia. It offers aero engine products, such as engine frames, cases, bypass ducts, engine shafts, engine processes, engine materials, metallic honeycomb, filament winding, compressor components, turbine components, and afterburner components, as well as small and large wing components, landing gear, horizontal and vertical stabilizers, and nacelle exhaust systems. The company also provides crown modules, vane box and transition ducts, wing spars, wing ribs, wing skins, access covers, and kitting solutions; black brant, rato booster motors, as well as rocket weapon system comprises of fixed wing variant, and rotary wing platforms.

Magellan Aerospace Fundamentals Summary

How do Magellan Aerospace's earnings and revenue compare to its market cap?
MAL fundamental statistics
Market CapCA$415.65m
Earnings (TTM)-CA$6.26m
Revenue (TTM)CA$699.79m

0.6x

P/S Ratio

-66.4x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MAL income statement (TTM)
RevenueCA$699.79m
Cost of RevenueCA$664.75m
Gross ProfitCA$35.04m
Other ExpensesCA$41.30m
Earnings-CA$6.26m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.11
Gross Margin5.01%
Net Profit Margin-0.89%
Debt/Equity Ratio4.7%

How did MAL perform over the long term?

See historical performance and comparison

Dividends

4.4%

Current Dividend Yield

-387%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is MAL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MAL?

Other financial metrics that can be useful for relative valuation.

MAL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.7x
Enterprise Value/EBITDA15.3x
PEG Ration/a

Price to Sales Ratio vs Peers

How does MAL's PS Ratio compare to its peers?

MAL PS Ratio vs Peers
The above table shows the PS ratio for MAL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average0.9x
HRX Héroux-Devtek
0.9x7.3%CA$483.6m
MDA MDA
2x19.3%CA$949.9m
BBD.A Bombardier
0.3x6.0%CA$1.9b
AVP Avcorp Industries
0.4xn/aCA$38.9m
MAL Magellan Aerospace
0.6x13.2%CA$415.6m

Price-To-Sales vs Peers: MAL is good value based on its Price-To-Sales Ratio (0.6x) compared to the peer average (0.9x).


Price to Earnings Ratio vs Industry

How does MAL's PE Ratio compare vs other companies in the North American Aerospace & Defense Industry?

Price-To-Sales vs Industry: MAL is good value based on its Price-To-Sales Ratio (0.6x) compared to the Canadian Aerospace & Defense industry average (3x)


Price to Sales Ratio vs Fair Ratio

What is MAL's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MAL PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio0.6x
Fair PS Ratio0.6x

Price-To-Sales vs Fair Ratio: MAL is good value based on its Price-To-Sales Ratio (0.6x) compared to the estimated Fair Price-To-Sales Ratio (0.6x).


Share Price vs Fair Value

What is the Fair Price of MAL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MAL (CA$7.2) is trading below our estimate of fair value (CA$10.46)

Significantly Below Fair Value: MAL is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MAL's PEG Ratio to determine if it is good value.


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Future Growth

How is Magellan Aerospace forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

4/6

Future Growth Score 4/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


141.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MAL is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: MAL is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MAL is expected to become profitable in the next 3 years.

Revenue vs Market: MAL's revenue (13.2% per year) is forecast to grow faster than the Canadian market (6.5% per year).

High Growth Revenue: MAL's revenue (13.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MAL's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Magellan Aerospace performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-43.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MAL is currently unprofitable.

Growing Profit Margin: MAL is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MAL is unprofitable, and losses have increased over the past 5 years at a rate of 43.9% per year.

Accelerating Growth: Unable to compare MAL's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MAL is unprofitable, making it difficult to compare its past year earnings growth to the Aerospace & Defense industry (28.8%).


Return on Equity

High ROE: MAL has a negative Return on Equity (-0.84%), as it is currently unprofitable.


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Financial Health

How is Magellan Aerospace's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MAL's short term assets (CA$483.3M) exceed its short term liabilities (CA$146.4M).

Long Term Liabilities: MAL's short term assets (CA$483.3M) exceed its long term liabilities (CA$101.3M).


Debt to Equity History and Analysis

Debt Level: MAL's net debt to equity ratio (2.3%) is considered satisfactory.

Reducing Debt: MAL's debt to equity ratio has reduced from 22.4% to 4.7% over the past 5 years.

Debt Coverage: MAL's debt is well covered by operating cash flow (94.8%).

Interest Coverage: Insufficient data to determine if MAL's interest payments on its debt are well covered by EBIT.


Balance Sheet


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Dividend

What is Magellan Aerospace current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


4.44%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: MAL's dividend (4.44%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: MAL's dividend (4.44%) is low compared to the top 25% of dividend payers in the Canadian market (5.36%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, MAL has been paying a dividend for less than 10 years.

Growing Dividend: MAL's dividend payments have increased, but the company has only paid a dividend for 9 years.


Earnings Payout to Shareholders

Earnings Coverage: MAL is paying a dividend but the company is unprofitable.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (194.5%), MAL's dividend payments are not well covered by cash flows.


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Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average management tenure


CEO

Phil Underwood

8.17yrs

Tenure

CA$825,297

Compensation

Mr. Phillip Campion Underwood, also known as Phil, has been the President of Magellan Aerospace Corporation since May 13, 2014 and has been its Chief Executive Officer since January 1, 2015. Mr. Underwood...


CEO Compensation Analysis

Compensation vs Market: Phil's total compensation ($USD631.80K) is below average for companies of similar size in the Canadian market ($USD1.26M).

Compensation vs Earnings: Phil's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MAL's management team is seasoned and experienced (5.3 years average tenure).


Board Members

Experienced Board: MAL's board of directors are considered experienced (8.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Magellan Aerospace Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Magellan Aerospace Corporation
  • Ticker: MAL
  • Exchange: TSX
  • Founded: 1994
  • Industry: Aerospace and Defense
  • Sector: Capital Goods
  • Implied Market Cap: CA$415.650m
  • Shares outstanding: 57.73m
  • Website: https://www.magellan.aero

Number of Employees


Location

  • Magellan Aerospace Corporation
  • 3160 Derry Road East
  • Mississauga
  • Ontario
  • L4T 1A9
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/05 00:00
End of Day Share Price2022/07/05 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.