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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 72 days ago. More info.


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MAL Share Price and Events
Price Volatility
MAL
Industry
5yr Volatility vs Market

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.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Magellan Aerospace.

TSX:MAL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.5%
Perpetual Growth Rate 10-Year CA Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:MAL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 7.7%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.39
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.385 (1 + (1- 26.5%) (6.89%))
0.405
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.34% + (0.8 * 7.66%)
8.47%

Discounted Cash Flow Calculation for TSX:MAL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Magellan Aerospace is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:MAL DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (CAD, Millions) 106.54 118.06 125.38 133.16 141.41
Source Analyst x1 Analyst x1 Est @ 6.2% Est @ 6.2% Est @ 6.2%
Present Value
Discounted (@ 8.47%)
98.22 100.35 98.25 96.19 94.18
Present value of next 5 years cash flows CA$487.20
TSX:MAL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= CA$141.41 × (1 + 2.34%) ÷ (8.47% – 2.34%)
CA$2,361.59
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= CA$2,361.59 ÷ (1 + 8.47%)5
CA$1,572.88
TSX:MAL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= CA$487.20 + CA$1,572.88
CA$2,060.08
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$2,060.08 / 58.21
CA$35.39
TSX:MAL Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$35.39
Current discount Discount to share price of CA$18.98
= -1 x (CA$18.98 - CA$35.39) / CA$35.39
46.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Magellan Aerospace is available for.
Intrinsic value
46%
Share price is CA$18.98 vs Future cash flow value of CA$35.39
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?
Raw Data
TSX:MAL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-06-30) in CAD CA$1.59
TSX:MAL Share Price ** TSX (2018-10-19) in CAD CA$18.98
Canada Aerospace & Defense Industry PE Ratio Median Figure of 5 Publicly-Listed Aerospace & Defense Companies 17.36x
Canada Market PE Ratio Median Figure of 555 Publicly-Listed Companies 15.04x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Magellan Aerospace.

TSX:MAL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:MAL Share Price ÷ EPS (both in CAD)

= 18.98 ÷ 1.59

11.92x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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 Canada market.
Price based on expected Growth
Does Magellan Aerospace's expected growth come at a high price?
Raw Data
TSX:MAL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 11.92x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
6.8%per year
North America Aerospace & Defense Industry PEG Ratio Median Figure of 34 Publicly-Listed Aerospace & Defense Companies 2.22x
Canada Market PEG Ratio Median Figure of 265 Publicly-Listed Companies 1.11x

*Line of best fit is calculated by linear regression .

TSX:MAL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 11.92x ÷ 6.8%

1.76x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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?
Raw Data
TSX:MAL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-06-30) in CAD CA$12.82
TSX:MAL Share Price * TSX (2018-10-19) in CAD CA$18.98
Canada Aerospace & Defense Industry PB Ratio Median Figure of 9 Publicly-Listed Aerospace & Defense Companies 2.93x
Canada Market PB Ratio Median Figure of 2,227 Publicly-Listed Companies 1.59x
TSX:MAL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:MAL Share Price ÷ Book Value per Share (both in CAD)

= 18.98 ÷ 12.82

1.48x

* Primary Listing of Magellan Aerospace.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magellan Aerospace is good value based on assets compared to the CA Aerospace & Defense industry average.
X
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.

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

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
6.8%
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 2.3%.
Growth vs Market Checks
  • Magellan Aerospace's earnings growth is positive but not above the Canada market average.
  • Magellan Aerospace's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:MAL Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:MAL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 6.8%
TSX:MAL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 3.6%
Canada Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 14.6%
Canada Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
Canada Market Earnings Growth Rate Market Cap Weighted Average 16.6%
Canada Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:MAL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:MAL Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 1,036 101 2
2019-12-31 1,023 100 4
2018-12-31 971 85 4
TSX:MAL Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2018-06-30 955 118 93
2018-03-31 965 132 89
2017-12-31 969 130 111
2017-09-30 980 144 103
2017-06-30 985 128 102
2017-03-31 986 119 105
2016-12-31 1,004 155 89
2016-09-30 1,009 102 90
2016-06-30 1,008 99 89
2016-03-31 989 113 84
2015-12-31 951 94 79
2015-09-30 908 100 72

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Magellan Aerospace's earnings are expected to grow by 6.8% yearly, however this is not considered high growth (20% yearly).
  • Magellan Aerospace's revenue is expected to grow by 3.6% 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.
Raw Data
TSX:MAL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Magellan Aerospace Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:MAL Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31 1.74 1.74 1.74 1.00
2019-12-31 1.72 1.72 1.71 2.00
2018-12-31 1.46 1.57 1.35 2.00
TSX:MAL Past Financials Data
Date (Data in CAD Millions) EPS *
2018-06-30 1.59
2018-03-31 1.53
2017-12-31 1.91
2017-09-30 1.77
2017-06-30 1.76
2017-03-31 1.80
2016-12-31 1.52
2016-09-30 1.55
2016-06-30 1.54
2016-03-31 1.44
2015-12-31 1.36
2015-09-30 1.23

*GAAP earnings excluding extraordinary items.

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%).
X
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 Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada 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.
Raw Data

All data from Magellan Aerospace Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:MAL Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-06-30 954.54 92.71 55.84
2018-03-31 965.36 89.10 57.43
2017-12-31 968.95 111.28 57.89
2017-09-30 979.98 102.84 57.83
2017-06-30 985.37 102.33 56.54
2017-03-31 986.00 104.79 55.64
2016-12-31 1,003.84 88.58 55.76
2016-09-30 1,009.34 90.05 56.40
2016-06-30 1,007.50 89.48 57.31
2016-03-31 989.27 83.63 57.03
2015-12-31 951.47 79.42 54.95
2015-09-30 907.84 71.81 52.12
2015-06-30 874.18 66.58 51.12
2015-03-31 860.79 63.72 48.32
2014-12-31 843.04 56.57 46.67
2014-09-30 830.05 55.47 46.13
2014-06-30 808.52 51.99 45.07
2014-03-31 777.34 49.55 44.59
2013-12-31 752.13 45.48 43.86
2013-09-30 742.59 50.52 41.98
2013-06-30 723.01 55.82 40.43
2013-03-31 702.49 53.55 38.34
2012-12-31 704.04 57.04 37.46
2012-09-30 690.91 51.91 37.68
2012-06-30 691.12 45.70 36.49
2012-03-31 707.77 41.70 36.85
2011-12-31 691.41 37.41 36.24

*GAAP earnings excluding extraordinary items.

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 has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
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 3/6, 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 6.2x 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.
Raw Data

All data from Magellan Aerospace Company Filings, last reported 3 months ago.

TSX:MAL Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-06-30 746.23 75.82 17.46
2018-03-31 731.10 83.27 12.08
2017-12-31 694.23 86.90 40.39
2017-09-30 663.71 110.30 13.25
2017-06-30 652.24 135.69 11.87
2017-03-31 641.43 143.78 4.96
2016-12-31 607.33 152.33 7.61
2016-09-30 579.91 201.54 3.38
2016-06-30 562.46 214.70 5.02
2016-03-31 564.11 230.59 5.66
2015-12-31 577.35 251.24 5.54
2015-09-30 546.24 230.77 14.10
2015-06-30 512.28 231.33 12.67
2015-03-31 491.99 193.55 2.61
2014-12-31 459.60 184.10 2.65
2014-09-30 445.13 204.15 10.88
2014-06-30 428.03 211.18 5.52
2014-03-31 424.01 223.06 8.12
2013-12-31 408.16 210.65 7.76
2013-09-30 377.88 230.13 8.21
2013-06-30 369.63 238.99 12.77
2013-03-31 342.17 251.32 14.35
2012-12-31 334.53 245.55 22.42
2012-09-30 309.63 255.41 17.10
2012-06-30 306.39 241.02 23.76
2012-03-31 292.71 241.32 30.53
2011-12-31 282.70 233.80 26.52
  • Magellan Aerospace's level of debt (10.2%) 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 (64.6% vs 10.2% today).
  • Debt is well covered by operating cash flow (155.6%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 26.3x coverage).
X
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
1.79%
Current annual income from Magellan Aerospace dividends. Estimated to be 2.03% next year.
If you bought CA$2,000 of Magellan Aerospace shares you are expected to receive CA$36 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 pays a lower dividend yield than the bottom 25% of dividend payers in Canada (1.98%).
  • Magellan Aerospace's dividend is below the markets top 25% of dividend payers in Canada (6%).
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.
Raw Data
TSX:MAL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
North America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 23 Stocks 1.6%
Canada Market Average Dividend Yield Market Cap Weighted Average of 328 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1%
Canada Bottom 25% Dividend Yield 25th Percentile 2%
Canada Top 25% Dividend Yield 75th Percentile 6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:MAL Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.43 2.00
2019-12-31 0.38 2.00
2018-12-31 0.35 2.00
TSX:MAL Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2018-08-03 0.340 1.964
2018-05-01 0.340 2.019
2018-03-02 0.340 1.733
2017-11-03 0.340 1.650
2017-08-04 0.260 1.402
2017-05-02 0.260 1.272
2017-03-03 0.260 1.322
2016-11-14 0.260 1.435
2016-08-10 0.230 1.366
2016-05-10 0.230 1.286
2016-02-23 0.230 1.428
2015-11-10 0.230 1.466
2015-08-11 0.220 1.304
2015-05-12 0.220 1.266
2015-02-20 0.220 1.627
2014-11-07 0.220 1.628
2014-08-12 0.160 1.345
2014-05-13 0.160 1.392
2014-02-20 0.160 1.932
2013-11-08 0.120 1.566
2013-08-08 0.120 2.152

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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 earnings (5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4.1x coverage).
X
Income/ dividend checks
We assess Magellan Aerospace's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. 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)
  7. 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 3.8 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 remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure of the Magellan Aerospace management team in years:

3.8
Average Tenure
  • The tenure for the Magellan Aerospace management team is about average.
Management Team

Norman Edwards

TITLE
Executive Chairman
AGE
58

Phil Underwood

TITLE
President
COMPENSATION
CA$798K
TENURE
3.8 yrs

Elena Milantoni

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

Jo-Ann Ball

TITLE
Vice President of Human Resources
COMPENSATION
CA$292K

Laura Podaima

TITLE
Director of Marketing Services & Corporate Communications
TENURE
7.3 yrs

Jim Powell

TITLE
Vice President of Mergers
TENURE
0.8 yrs

Karen Yoshiki-Gravelsins

TITLE
Vice President of Corporate Stewardship and Operational Excellence

Mark Allcock

TITLE
Vice President of Information Technology
TENURE
3.8 yrs

Jason Addis

TITLE
Vice President of European Operations
TENURE
4 yrs

Haydn Martin

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

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

23.8
Average Tenure
73.5
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
3.6 yrs

Bruce Gowan

TITLE
Independent Director
COMPENSATION
CA$95K
TENURE
28.8 yrs

Norman Edwards

TITLE
Executive Chairman
AGE
58

Steve Somerville

TITLE
Independent Director
COMPENSATION
CA$88K
TENURE
5.4 yrs

Beth M. Bandler

TITLE
Independent Director
COMPENSATION
CA$80K
TENURE
4.4 yrs

Bill Dimma

TITLE
Independent Director
COMPENSATION
CA$72K
AGE
89
TENURE
29.8 yrs

William Davis

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

Larry G. Moeller

TITLE
Director
COMPENSATION
CA$72K
AGE
59
TENURE
23.8 yrs
Who owns this company?
Recent Insider Trading
  • Magellan Aerospace insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Start End Shares Value (USD)
24. Aug 18 Sell Bruce Gowan Individual 24. Aug 18 24. Aug 18 -1,000 $-12,433.94
30. May 18 Buy Bruce Gowan Individual 29. May 18 29. May 18 1,000 $13,436.59
X
Management checks
We assess Magellan Aerospace's management by checking for:
  1. Is the CEO's compensation unreasonable compared to 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

How Should Investors React To Magellan Aerospace Corporation's (TSE:MAL) CEO Pay?

First, this article will compare CEO compensation with compensation at similar sized companies. … How Does Phil Underwood's Compensation Compare With Similar Sized Companies. … It would therefore appear that Magellan Aerospace Corporation pays Phil Underwood more than the median CEO remuneration at companies of a similar size, in the same market

Simply Wall St -

Is Magellan Aerospace Corporation's (TSE:MAL) PE Ratio A Signal To Buy For Investors?

The content of this article will benefit those of you who are starting to educate yourself about investing in the stock market. … and want to learn about the link between company’s fundamentals and stock market performance. … While MAL might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions.

Simply Wall St -

How Financially Strong Is Magellan Aerospace Corporation (TSE:MAL)?

While investors primarily focus on the growth potential and competitive landscape of the small-cap companies, they end up ignoring a key aspect, which could be the biggest threat to its existence: its financial health. … Assessing first and foremost the financial health is. … Here are a few basic checks that are good enough to have a broad overview of the company’s financial strength.

Simply Wall St -

Who Are The Top Investors In Magellan Aerospace Corporation (TSE:MAL)?

I am going to take a deep dive into Magellan Aerospace Corporation’s (TSE:MAL) most recent ownership structure, not a frequent subject of discussion among individual investors. … A company's ownership structure is often linked to its share performance in both the long- and short-term. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.

Simply Wall St -

Understanding Your Return On Investment In Magellan Aerospace Corporation (TSE:MAL)

This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Thus, to understand how your money can grow by investing in Magellan Aerospace, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

Is Magellan Aerospace Corporation (TSE:MAL) A Smart Pick For Income Investors?

Over the past 5 years, Magellan Aerospace Corporation (TSE:MAL) has returned an average of 2.00% per year to shareholders in terms of dividend yield. … Does Magellan Aerospace tick all the boxes of a great dividend stock? … See our latest analysis for Magellan Aerospace

Simply Wall St -

Why Magellan Aerospace Corporation (TSE:MAL) Could Be A Buy

received a lot of attention from a substantial price movement on the TSX over the last few months, increasing to CA$19.77 at one point, and dropping to the lows of CA$15.46. … A question to answer is whether Magellan Aerospace's current trading price of CA$15.46 reflective of the actual value of the? … Let’s take a look at Magellan Aerospace’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

How Magellan Aerospace Corporation (TSE:MAL) Can Add Value To Your Portfolio

Magellan Aerospace Corporation (TSE:MAL) is a company with exceptional fundamental characteristics. … is a company that has been able to sustain great financial health, trading at an attractive share price. … report on Magellan Aerospace here

Simply Wall St -

Magellan Aerospace Corporation (TSE:MAL): What You Have To Know Before Buying For The Upcoming Dividend

If you are interested in cashing in on Magellan Aerospace Corporation's (TSE:MAL) upcoming dividend of CA$0.085 per share, you only have 5 days left to buy the shares before its ex-dividend date, 14 June 2018, in time for dividends payable on the 29 June 2018. … 5 checks you should use to assess a dividend stock? … Has it consistently paid a stable dividend without missing a payment or drastically cutting payout

Simply Wall St -

An Intrinsic Calculation For Magellan Aerospace Corporation (TSE:MAL) Shows It's 48% Undervalued

Today I will be providing a simple run through of a valuation method used to estimate the attractiveness of Magellan Aerospace Corporation (TSX:MAL) as an investment opportunity by taking the foreast future cash flows of the company and discounting them back to today's value. … 5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF (CA$, 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%) Present Value Discounted @ 8.47% CA$77.94 CA$84.76 CA$93.24 CA$91.83 CA$90.45 Present Value of 5-year Cash Flow (PVCF)= CA$438 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = CA$136 × (1 + 2.3%) ÷ (8.5% – 2.3%) = CA$2,268 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = CA$2,268 / ( 1 + 8.5%)5 = CA$1,511 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is CA$1,949.

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$1,100,150,100
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: 2018/10/19 21:09
End of day share price update: 2018/10/19 00:00
Last estimates confirmation: 2018/10/15
Last earnings filing: 2018/08/08
Last earnings reported: 2018/06/30
Last annual earnings reported: 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.