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Magellan Aerospace
(TSX:MAL)
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Rating:67Neutral
Price Target:
C$38.00
▲(8.26% Upside)
Action:Downgraded
Date:08/17/26
Overall score reflects improving fundamentals and a conservative balance sheet as key positives, partially offset by weak TTM cash conversion (negative free cash flow) and a high valuation (P/E ~53.9). Technicals are supportive due to a strong uptrend, but overbought signals reduce upside confidence in the near term.
Positive Factors
Strong revenue and earnings growth
Strong recent revenue and EPS growth indicate improving demand and earnings power. If sustained through aerospace production programs, this can support scale benefits and strengthen Magellan’s financial position over the next several quarters.
Negative Factors
Negative free cash flow
Negative free cash flow weakens cash conversion and may reflect working-capital needs, elevated investment, or timing issues. If prolonged, it could constrain funding flexibility even while reported earnings remain positive.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong revenue and earnings growth
Strong recent revenue and EPS growth indicate improving demand and earnings power. If sustained through aerospace production programs, this can support scale benefits and strengthen Magellan’s financial position over the next several quarters.
Read all positive factors
Magellan Aerospace (MAL) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$2.02B
Dividend Yield0.58%
Average Volume (3M)30.49K
Price to Earnings (P/E)33.1
Beta (1Y)1.63
Revenue Growth15.36%
EPS Growth57.18%
CountryCA
Employees3,973
SectorIndustrials
Sector Strength72
IndustryAerospace & Defense
Share Statistics
EPS (TTM)1.05
Shares Outstanding57,079,056
10 Day Avg. Volume21,217
30 Day Avg. Volume30,489
Financial Highlights & Ratios
PEG Ratio2.38
Price to Book (P/B)1.29
Price to Sales (P/S)1.01
P/FCF Ratio38.31
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$45.50Price Target Upside29.63% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.34
Revenue Forecast (FY)C$1.17B
Magellan Aerospace Business Overview & Revenue Model
Company Description
Magellan Aerospace Corporation, operating via its various subsidiaries, specializes in the design, engineering, production, and distribution of both aero engine and structural parts for the global aerospace sector. Its market presence extends acro...
How the Company Makes Money
Magellan Aerospace makes money primarily by manufacturing and supplying aerospace components, subassemblies, and systems to original equipment manufacturers (OEMs) and major tier-one suppliers in the commercial and defense aerospace markets. Reven...
Magellan Aerospace Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
56
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.12B | 1.04B | 942.37M | 879.62M | 764.58M | 688.36M |
| Gross Profit | 165.54M | 140.72M | 107.89M | 88.99M | 35.06M | 48.33M |
| EBITDA | 145.01M | 104.22M | 96.39M | 71.01M | 31.54M | 56.41M |
| Net Income | 59.55M | 39.44M | 35.49M | 9.25M | -21.69M | -977.00K |
Balance Sheet | ||||||
| Total Assets | 1.28B | 1.17B | 1.15B | 1.03B | 1.01B | 1.00B |
| Cash, Cash Equivalents and Short-Term Investments | 40.80M | 64.05M | 56.44M | 1.49M | 40.94M | 32.48M |
| Total Debt | 96.67M | 88.61M | 86.42M | 73.45M | 63.34M | 67.77M |
| Total Liabilities | 410.64M | 340.00M | 343.44M | 287.66M | 279.16M | 237.99M |
| Stockholders Equity | 864.70M | 822.45M | 799.44M | 734.04M | 728.35M | 762.45M |
Cash Flow | ||||||
| Free Cash Flow | -24.33M | 27.61M | 63.19M | -41.56M | 34.08M | -9.79M |
| Operating Cash Flow | 35.57M | 78.60M | 99.29M | -17.30M | 58.54M | 12.53M |
| Investing Cash Flow | -62.40M | -55.09M | -35.10M | -23.69M | -23.86M | -20.80M |
| Financing Cash Flow | -14.45M | -15.45M | -17.62M | 1.01M | -26.27M | -73.01M |
Magellan Aerospace Technical Analysis
Neutral
35.10
Price Trends
34.85
Negative
30.93
Positive
25.46
Positive
Market Momentum
0.82
Positive
43.87
Neutral
3.46
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MAL, the sentiment is Neutral. The current price of 35.1 is below the 20-day moving average (MA) of 37.66, above the 50-day MA of 34.85, and above the 200-day MA of 25.46, indicating a neutral trend. The MACD of 0.82 indicates Positive momentum. The RSI at 43.87 is Neutral, neither overbought nor oversold. The STOCH value of 3.46 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MAL.
Magellan Aerospace Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
84 Outperform | C$583.77M | 36.30 | 15.33% | ― | 11.09% | 4.67% | |
67 Neutral | C$2.02B | 33.10 | 7.11% | 0.57% | 15.36% | 57.18% | |
67 Neutral | C$11.05B | 38.29 | 5.47% | ― | 5.38% | -31.14% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | C$6.98B | 52.62 | 6.60% | ― | 38.30% | -13.39% | |
49 Neutral | C$221.03M | -5.77 | -27.52% | ― | 26.30% | 55.00% |
* Industrials Sector Average
TSE:MAL
Magellan Aerospace
34.75
19.06
121.48%
TSE:CAE
CAE
34.32
-3.52
-9.30%
TSE:FTG
Firan Tech
21.78
10.19
87.92%
TSE:DPRO
Draganfly
6.23
0.25
4.18%
TSE:MDA
MDA Space Ltd
42.62
-1.58
-3.57%
Magellan Aerospace Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Magellan Aerospace Posts Strong Q2 Results and Secures New Canadian Defence Deals
Positive
Aug 12, 2026
Magellan Aerospace reported strong financial momentum in the second quarter of 2026, with revenue rising 22.3% year over year to $305.6 million and gross profit up 41.6%, reflecting improved operating performance across its aerospace segment. Net ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.