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Magellan Aerospace

TSX:MAL
Snowflake Description

Flawless balance sheet and undervalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MAL
TSX
CA$1B
Market Cap
  1. Home
  2. CA
  3. Capital Goods
Company description

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.


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MAL Value

 Is Magellan Aerospace undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Magellan Aerospace to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.

How is this discounted cash flow calculated?

Current Discount
Amount off the current price Magellan Aerospace is available for.
Intrinsic value
47%
Share price is CA$17.52 vs Future cash flow value of CA$32.79
Current Discount Checks
For Magellan Aerospace to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Magellan Aerospace's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Magellan Aerospace's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Magellan Aerospace's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Magellan Aerospace's earnings available for a low price, and how does this compare to other companies in the same industry?
  • Magellan Aerospace is good value based on earnings compared to the CA Aerospace & Defense industry average.
  • Magellan Aerospace is good value based on earnings compared to the CA market.
Price based on expected Growth
Does Magellan Aerospace's expected growth come at a high price?
  • Magellan Aerospace is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Magellan Aerospace's assets?
  • Magellan Aerospace is good value based on assets compared to the CA Aerospace & Defense industry average.
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Value checks
We assess Magellan Aerospace's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Magellan Aerospace has a total score of 5/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
    Note 2: PEG ratio is based on analysts EPS growth expectations in 1 year (-2.96%).

    Full details on the Value part of the Simply Wall St company analysis model.
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Discounted cash flow (2 Stage Free Cash Flow to Equity)

The calculations below outline how an intrinsic value for Magellan Aerospace 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.

5 year cash flow forecast

Present value of next 5 years cash flows:
CA$439

Terminal Value

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) = 2.13%:
CA$2,203

Present value of terminal value:
CA$1,470

Equity Value

Equity Value (Total value) = Present value of next 5 years cash flows + terminal value
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%



Estimate of Discount Rate

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%)



Estimate of Bottom Up Beta

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



Assumptions
  1. The risk free rate of 2.13% is from the 10 year government bond rate in CAD.
  2. The bottom-up beta is estimated by analysing other companies in the same industry.
  3. The Equity Risk Premium is calculated by subtracting the risk free rate from the market return premium (7.87%) (source: Buffet).
  4. The dividend discount model is automatically used for companies in the following industries: Banks, Insurance, Real Estate Investment Trusts (REITs), Diversified Financial Services and Capital Markets.

MAL Future Performance

 How is Magellan Aerospace expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
6.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Magellan Aerospace expected to grow at an attractive rate?
  • Magellan Aerospace's earnings growth is expected to exceed the low risk savings rate of 3.5%.
Growth vs Market Checks
  • Magellan Aerospace's earnings growth is positive but not above the CA market average.
  • Magellan Aerospace's revenue growth is positive but not above the CA market average.
Annual Growth Rates Comparison
Analysts growth expectations
Super high growth metrics
High Growth Checks
  • Magellan Aerospace's earnings are expected to grow by 6.1% yearly, however this is not considered high growth (20% yearly).
  • Magellan Aerospace's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Magellan Aerospace is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
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Future performance checks
We assess Magellan Aerospace's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the CA market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the CA market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Magellan Aerospace has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

MAL Past Performance

  How has Magellan Aerospace performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Magellan Aerospace's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Magellan Aerospace's year on year earnings growth rate has been positive over the past 5 years.
  • Magellan Aerospace's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Magellan Aerospace's 1-year earnings growth is negative, it can't be compared to the CA Aerospace & Defense industry average.
Earnings and Revenue History
Magellan Aerospace's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Magellan Aerospace has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Magellan Aerospace used its assets more efficiently than the CA Aerospace & Defense industry average last year based on Return on Assets.
  • Magellan Aerospace's use of capital has not improved over the past 3 years (Return on Capital Employed).
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Past performance checks
We assess Magellan Aerospace's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Magellan Aerospace has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

MAL Health

 How is Magellan Aerospace's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Magellan Aerospace's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Magellan Aerospace is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Magellan Aerospace's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Magellan Aerospace's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 5.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
  • Magellan Aerospace's level of debt (11.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (73.3% vs 11.4% today).
  • Debt is well covered by operating cash flow (158.7%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 25.6x coverage).
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Financial health checks
We assess Magellan Aerospace's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Magellan Aerospace has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

MAL Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.94%
Current annual income from Magellan Aerospace dividends. Estimated to be 2.15% next year.
If you bought CA$2,000 of Magellan Aerospace shares you are expected to receive CA$39 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Magellan Aerospace's dividend is below the low risk savings rate (2.08%).
  • Magellan Aerospace's dividend is below the markets top dividend payers (4.87%).
Upcoming dividend payment

Purchase Magellan Aerospace on or before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
  • Whilst dividend payments have been stable, Magellan Aerospace has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Magellan Aerospace only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Magellan Aerospace's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by net profit (5.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by net profit (4.3x coverage).
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Income/ dividend checks
We assess Magellan Aerospace's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
  2. Current dividend yield, is there one at all, is it higher than the low risk savings rate, and is it above the top 25% of dividend payers? (2 checks)
  3. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  4. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  5. How sustainable is the dividend, can Magellan Aerospace afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  6. Magellan Aerospace has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

MAL Management

 What is the CEO of Magellan Aerospace's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Phil Underwood, image provided by Google.
Phil Underwood
COMPENSATION CA$797,986
TENURE AS CEO 3.3 years
CEO Bio

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.

CEO Compensation
  • Phil's compensation has been consistent with company performance over the past year.
  • Phil's compensation is higher than average for a company of this size and profit level.
Management Team Tenure

Average tenure of the Magellan Aerospace management team in years:

3.3
Average Tenure
  • The tenure for the Magellan Aerospace management team is about average.
Management Team

Norman Edwards

TITLE
Executive Chairman
AGE
57

Phil Underwood

TITLE
President
COMPENSATION
CA$798K
TENURE
3.3 yrs

Elena Milantoni

TITLE
CFO & Corporate Secretary
COMPENSATION
CA$322K
TENURE
2.3 yrs

Jo-Ann Ball

TITLE
Vice President of Human Resources
COMPENSATION
CA$292K

Larry Winegarden

TITLE
Vice President of Corporate Strategy
COMPENSATION
CA$334K

Laura Podaima

TITLE
Director of Marketing Services and Corporate Communications
TENURE
6.9 yrs

Karen Yoshiki-Gravelsins

TITLE
Vice President of Corporate Stewardship and Operational Excellence

Mark Allcock

TITLE
Vice President of Information Technology
TENURE
3.3 yrs

Jason Addis

TITLE
Vice President of European Operations
TENURE
3.6 yrs

Haydn Martin

TITLE
Vice President of New Business Development
TENURE
1.1 yrs
Board of Directors Tenure

Average tenure and age of the Magellan Aerospace board of directors in years:

23.3
Average Tenure
72.5
Average Age
  • The average tenure for the Magellan Aerospace board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Phil Underwood

TITLE
President
COMPENSATION
CA$798K
TENURE
3.2 yrs

Bruce Gowan

TITLE
Independent Director
COMPENSATION
CA$95K
TENURE
28.3 yrs

Norman Edwards

TITLE
Executive Chairman
AGE
57

Steve Somerville

TITLE
Independent Director
COMPENSATION
CA$88K
TENURE
5 yrs

Beth M. Bandler

TITLE
Independent Director
COMPENSATION
CA$80K
TENURE
4 yrs

Bill Dimma

TITLE
Independent Director
COMPENSATION
CA$72K
AGE
88
TENURE
29.3 yrs

William Davis

TITLE
Independent Director
COMPENSATION
CA$72K
AGE
87
TENURE
29.3 yrs

Larry G. Moeller

TITLE
Director
COMPENSATION
CA$72K
AGE
58
TENURE
23.3 yrs
Recent Insider Trading
  • No 3 month insider trading information.
Who owns this company?
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Management checks
We assess Magellan Aerospace's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap and profit (greater than 0.5% of the company's profit + 0.03% of market cap)? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Magellan Aerospace has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

MAL News

External News
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Simply Wall St News

Should You Buy Magellan Aerospace Corporation (TSE:MAL) At $17.36?

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 -

Magellan Aerospace Corporation (TSE:MAL): Are Forecast Margins sustainable?

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 -

What Should Investors Know About Magellan Aerospace Corporation's (TSE:MAL) Earnings Trajectory?

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 -

Should You Buy Magellan Aerospace Corporation (TSE:MAL) At This PE Ratio?

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 -

Can Magellan Aerospace Corporation's (TSE:MAL) ROE Continue To Surpass The Industry Average?

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 -

Are Magellan Aerospace Corporation's (TSE:MAL) Interest Costs Too High?

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 -

3 Days Left Before Magellan Aerospace Corporation (TSE:MAL) Will Start Trading Ex-Dividend, Should You Buy?

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 -

Does Magellan Aerospace Corporation's (TSE:MAL) Recent Track Record Look Strong?

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 -

An Intrinsic Value Calculation For Magellan Aerospace Corporation (TSE:MAL) Shows It's 41.97% Undervalued

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 -

Have Investors Already Priced In Magellan Aerospace Corporation's (TSE:MAL) Growth?

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 -

MAL Company Info

Map
Description

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.

Details
Name: Magellan Aerospace Corporation
MAL
Exchange: TSX
Founded: 1994
CA$1,019,821,680
58,209,000
Website: http://www.magellan.aero
Address: Magellan Aerospace Corporation
3160 Derry Road East,
Mississauga,
Ontario, L4T 1A9,
Canada
Listings
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
Number of employees
Current staff
Staff numbers
3,800
Magellan Aerospace employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
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.