Magellan Aerospace Corporation, through its subsidiaries, designs, engineers, and manufactures aero engine and aero structure components for aerospace markets in Canada, the United Sates, and Europe. The last earnings update was 57 days ago. More info.
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (CAD, Millions)||CA$84.54||CA$99.72||CA$118.99||CA$127.12||CA$135.81|
|Source||Analyst x1||Analyst x1||Analyst x1||Extrapolated @ (6.83%)||Extrapolated @ (6.83%)|
Discounted (@ 8.43%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = CA$136 × (1 + 2.13%) ÷ (8.43% – 2.13%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
CA$1,909 = CA$439 + CA$1,470
Value = Total value / Shares Outstanding (CA$1,909 / 58)Discount to Share Price
Value per share (CAD): CA$32.79
Current discount (share price of CA$17.52): 46.57%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 8.43% = 2.13% + (0.8 * 7.87%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value (CA$1,019,821,680).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.35 = 0.33 (1 + (1- 26.5%) (8.17%))
Levered Beta used in calculation = 0.8
Purchase Magellan Aerospace on or before the 'Buy Limit' to receive their next dividend payment.
Mr. Phillip Campion Underwood, also known as Phil, has been the President of Magellan Aerospace Corp. since May 13, 2014 and has been its Chief Executive Officer since January 1, 2015. Mr. Underwood served as Vice President of European Operations at Magellan Aerospace Corp., from February 15, 2003 to May 2014. He is responsible for lead the European operations and oversee the Partnership in India. He is responsible for the strategic and operational direction across seven operational divisions which employ more than 1,000 people. He has been Director of Magellan Aerospace Corp. since March 20, 2015. He is an Integral Member of the executive operations team and Board Director for the UK and India. In 2003, he joined the Magellan, when Magellan Aerospace purchased the UK business. During his 33 years in the Aerospace Industry, he has held a number of senior positions with GKN Aerospace both in the UK and the US. Mr. Underwood holds a Bachelor of Science degree and is a Member of the Institute of Industrial Management.
Average tenure of the Magellan Aerospace management team in years:
Average tenure and age of the Magellan Aerospace board of directors in years:
Great news for investors – Magellan Aerospace is still trading at a fairly cheap price. … Another thing to keep in mind is that Magellan Aerospace’s share price is quite stable relative to the rest of the market, as indicated by its low beta. … However, with a relatively muted profit growth of 9.84% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Magellan Aerospace, at least in the short term.Simply Wall St - – Full article
To get some insight, I will try to evaluate Magellan Aerospace's margin behaviour to assist in analysing the revenue and cost anatomy behind the earnings expectations for the future and the impact it has on shareholder returns relative to the wider industry. … See our latest analysis for Magellan Aerospace Breaking Down MAL's Profit Margin Attractive margins generally indicate a desirable ability to translate sales revenue in to earnings, and return for shareholders. … Margin Calculation for MAL Profit Margin = Net Income ÷ Revenue ∴ Profit Margin = 89.10 Million ÷ 965.36 Million = 9.23% The past five years have seen Magellan Aerospace's margin expand, due to average net income growth of 15.94% exceeding a 6.69% average growth in revenue, which means that the previous increase in revenue has coincided with a larger portion falling to the bottom line.Simply Wall St - – Full article
Below, I've laid out key growth figures on how market analysts view Magellan Aerospace's earnings growth trajectory over the next few years and whether the future looks even brighter than the past. … View our latest analysis for Magellan Aerospace Analysts' expectations for this coming year seems pessimistic, with earnings decreasing by a double-digit -10.54%. … This means, we can assume Magellan Aerospace will grow its earnings by 2.37% every year for the next couple of years.Simply Wall St - – Full article
Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for MAL Price per share = CA$19.37 Earnings per share = CA$1.912 ∴ Price-Earnings Ratio = CA$19.37 ÷ CA$1.912 = 10.1x The P/E ratio itself doesn’t tell you a lot; however, it becomes very insightful when you compare it with other similar companies. … Since MAL's P/E of 10.1x is lower than its industry peers (18.5x), it means that investors are paying less than they should for each dollar of MAL's earnings. … For example, if you inadvertently compared lower risk firms with MAL, then investors would naturally value MAL at a lower price since it is a riskier investment.Simply Wall St - – Full article
View our latest analysis for Magellan Aerospace Breaking down ROE — the mother of all ratios Firstly, Return on Equity, or ROE, is simply the percentage of last years’ earning against the book value of shareholders’ equity. … Since Magellan Aerospace’s return covers its cost in excess of 7.60%, its use of equity capital is efficient and likely to be sustainable. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity TSX:MAL Last Perf Apr 16th 18 Basically, profit margin measures how much of revenue trickles down into earnings which illustrates how efficient the business is with its cost management.Simply Wall St - – Full article
How does MAL’s operating cash flow stack up against its debt? … On top of this, MAL has produced cash from operations of CA$129.95M in the last twelve months, resulting in an operating cash to total debt ratio of 149.54%, signalling that MAL’s debt is appropriately covered by operating cash. … For MAL, the ratio of 24.69x suggests that interest is comfortably covered, which means that debtors may be willing to loan the company more money, giving MAL ample headroom to grow its debt facilities.Next Steps: MAL has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at a safe level.Simply Wall St - – Full article
Check out our latest analysis for Magellan Aerospace 5 checks you should use to assess a dividend stock When researching a dividend stock, I always follow the following screening criteria: Is it the top 25% annual dividend yield payer? … TSX:MAL Historical Dividend Yield Mar 11th 18 Does Magellan Aerospace pass our checks? … If dividend is a key criteria in your investment consideration, then you need to make sure the dividend stock you're eyeing out is reliable in its payments.Simply Wall St - – Full article
After looking at Magellan Aerospace Corporation's (TSX:MAL) latest earnings announcement (30 September 2017), I found it useful to revisit the company's performance in the past couple of years and assess this against the most recent figures. … Check out our latest analysis for Magellan Aerospace Did MAL's recent earnings growth beat the long-term trend and the industry? … Given that these values may be somewhat myopic, I have computed an annualized five-year figure for Magellan Aerospace's net income, which stands at CA$63.15M This shows that, generally, Magellan Aerospace has been able to consistently raise its earnings over the past few years as well.Simply Wall St - – Full article
I then discount the sum of these cash flows to arrive at a present value estimate. … 5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF (CA$, Millions) CA$79.71 CA$111.01 CA$122.60 CA$132.91 CA$144.08 Source Analyst x1 Analyst x1 Analyst x1 Extrapolated @ (8.41%) Extrapolated @ (8.41%) Present Value Discounted @ 8.43% CA$73.51 CA$94.43 CA$96.18 CA$96.16 CA$96.15 Present Value of 5-year Cash Flow (PVCF)= CA$456 The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = CA$144 × (1 + 2.1%) ÷ (8.4% – 2.1%) = CA$2,337 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = CA$2,337 / ( 1 + 8.4%)5 = CA$1,560 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is CA$2,016.Simply Wall St - – Full article
Magellan Aerospace Corporation (TSX:MAL), a aerospace & defense company based in Canada, had a relatively subdued couple of weeks in terms of changes in share price, which continued to float around the range of CA$20.1 to CA$21.77. … Magellan Aerospace’s share price also seems relatively stable compared to the rest of the market, as indicated by its low beta. … However, with a relatively muted profit growth of 4.52% expected over the next couple of years, growth doesn’t seem like a key driver for a buy decision for Magellan Aerospace, at least in the short term.Simply Wall St - – Full article
Magellan Aerospace Corporation, through its subsidiaries, designs, engineers, and manufactures aero engine and aero structure components for aerospace markets in Canada, the United Sates, and Europe. The company offers aero engines products, including engine frames, compressor and fan cases, turbine cases, shafts, rotor spools, discs and blisks, and gearbox housings; and combustion liners and cases, exhaust frames and systems, engine bypass ducts and frames, acoustically treated exhaust systems, and fan cowl doors, as well as repair and overhaul services. It also provides aero structures components, such as landing gear systems, wing ribs and spars, bulkheads and fuselage components, tailcone assemblies, and composite wing and fairing structures. In addition, the company offers space, satellites, SCISAT, and satellite subsystems; sand cast components comprising engine mounted gearbox housings, power transmission housings, APU housings, engine inlets and intermediate cases, and front frames and fan cases; and wire strike protection systems for helicopter safety. Further, it provides power generation equipment and services, and gas turbines, as well as generates energy from waste; and rocket weapon systems, brant rockets, booster motors, and missile fins and control systems, as well as other support materials. Additionally, the company is involved in the precision machining and assembly of commercial aerospace products, as well as provision of metal finishing treatment services for aerospace products; supply and overhaul of aircraft and helicopter engines and airborne ancillary power units; and provision of aircraft engineering and design consultancy, including engine sales, exchange, and leasing services. Magellan Aerospace Corporation was founded in 1994 and is headquartered in Mississauga, Canada.
|Name:||Magellan Aerospace Corporation|
Magellan Aerospace Corporation
3160 Derry Road East,
Ontario, L4T 1A9,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|TSX||MAL||Common Shares||The Toronto Stock Exchange||CA||CAD||06. Jan 1975|
|OTCPK||MALJ.F||Common Shares||Pink Sheets LLC||US||USD||06. Jan 1975|
|DB||4M7A||Common Shares||Deutsche Boerse AG||DE||EUR||06. Jan 1975|
|Aerospace and Defense|
|Area||Date (UTC time)|
|Company Analysis updated:||2018/05/27 09:14|
|End of day share price update:||2018/05/25 00:00|
|Last estimates confirmation:||2018/05/16|
|Last earnings update:||2018/03/31|
|Last annual earnings update:||2017/12/31|
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
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.