Magellan Aerospace (MAL) AI Stock Analysis

• Market Cap: C$975.93M
• Dividend Yield: 0.73%
• Average Volume (3M): 29.31K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.61
• Revenue Growth: 8.59%
• EPS Growth: 242.80%
• Country: CA
• Employees: 3,815
• Sector: Industrials
• Sector Strength: 84
• Industry: Aerospace & Defense
• EPS (TTM): 0.19
• Shares Outstanding: 57,138,580
• 10 Day Avg. Volume: 34,328
• 30 Day Avg. Volume: 29,313
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$21.00
• Price Target Upside: 22.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 65 Neutral
• Price Target: C$18.50 ▲(7.87% Upside)

Magellan Aerospace's strong financial performance and positive corporate events are the primary drivers of its overall score. However, technical analysis indicates bearish momentum, and valuation metrics suggest moderate pricing. The absence of earnings call data limits insights into future guidance.

Magellan Aerospace Business Overview & Revenue Model

Company Description

Magellan Aerospace Corporation, through its subsidiaries, designs, engineers, manufactures, and sells aero engine and structure components for the aerospace markets in Canada, the United States, Europe, and Asia. It offers aero engine products, such as engine frames, cases, bypass ducts, engine shafts, engine processes, engine materials, metallic honeycomb, filament winding, compressor components, turbine components, and afterburner components, as well as small and large wing components, landing gear, horizontal and vertical stabilizers, and nacelle exhaust systems. The company also provides crown modules, vane box and transition ducts, wing spars, wing ribs, wing skins, access covers, and kitting solutions; black brant, rato booster motors, as well as rocket weapon system comprises of fixed wing variant, and rotary wing platforms. In addition, the company offers avionics, machined metal seals, rocket engine mount, and cast products, as well as newspace, and satellite support services. Further, the company provides 3D sand printing, metal pouring, solidification modeling, automated pouring and finishing, digital radiography, and 3D scanning products. Additionally, the company offers maintenance, repair, and overhaul for various engine and components, as well as lifecycle management services to logistics, fleet management, and engineering services. Furthermore, it provides wire strike protection system services. Magellan Aerospace Corporation was incorporated in 1996 and is headquartered in Mississauga, Canada.

How the Company Makes Money

Magellan Aerospace generates revenue through the manufacturing and sale of aerospace components and systems to a diverse clientele, including major aircraft manufacturers, defense contractors, and government agencies. The company capitalizes on long-term contracts and partnerships with key industry players, which often involve multi-year agreements for the supply of critical aerospace components. Additionally, Magellan Aerospace offers aftermarket support and services, providing maintenance, repair, and overhaul (MRO) solutions that contribute to its recurring revenue streams. The company's strategic focus on innovation and operational efficiency also plays a significant role in sustaining its profitability.

Magellan Aerospace Financial Statement Overview

Summary

Magellan Aerospace demonstrates strong financial performance with solid revenue growth, improved profitability, and effective financial leverage management. The slight decline in free cash flow growth suggests areas for improvement, but overall, the company is on a positive financial trajectory.

Income Statement

Magellan Aerospace shows strong revenue growth, increasing from $879.6M in 2023 to $968.0M in TTM, representing a growth rate of 9.99%. The company has improved its profitability, with a net profit margin of 4.13% in TTM, up from 3.77% in 2024. The gross profit margin has also increased, reaching 12.17% in TTM from 11.45% in 2024. Additionally, the EBIT margin improved to 6.19% in TTM from 5.41% in 2024. This indicates a positive trajectory in operational performance, though the margins remain moderate.

Balance Sheet

The balance sheet reflects a robust equity position, with an equity ratio of 69.21% in TTM. The debt-to-equity ratio is low at 0.10, indicating strong financial leverage management. Return on Equity (ROE) improved significantly to 4.90% in TTM from 4.44% in 2024, signaling efficient use of shareholders' funds. The company maintains a healthy balance sheet with stable stockholders' equity growth.

Cash Flow

Cash flow analysis reveals a stable operating cash flow of $100.97M in TTM, with a free cash flow of $59.19M. The operating cash flow to net income ratio is 2.52, indicating strong cash generation relative to reported earnings. However, free cash flow decreased from $63.19M in 2024 to $59.19M in TTM, a decline of 6.34%, suggesting some pressure on cash flow management. The company exhibits a strong cash flow position but with slight decline in free cash flow.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	942.37M	879.62M	764.58M	688.36M	744.41M
Gross Profit	107.89M	88.99M	35.06M	48.33M	96.49M
EBITDA	96.39M	71.01M	31.54M	56.41M	74.93M
Net Income	35.49M	9.25M	-21.69M	-977.00K	3.31M
Balance Sheet
Total Assets	1.15B	1.03B	1.01B	1.00B	1.07B
Cash, Cash Equivalents and Short-Term Investments	56.44M	1.49M	40.94M	32.48M	113.94M
Total Debt	86.42M	73.45M	62.01M	67.77M	115.17M
Total Liabilities	343.44M	287.66M	279.16M	237.99M	286.72M
Stockholders Equity	799.44M	734.04M	728.35M	762.45M	782.50M
Cash Flow
Free Cash Flow	63.19M	-41.56M	34.08M	-9.79M	79.98M
Operating Cash Flow	99.29M	-17.30M	58.54M	12.53M	105.97M
Investing Cash Flow	-35.10M	-23.69M	-23.86M	-20.80M	-25.82M
Financing Cash Flow	-17.62M	1.01M	-26.27M	-73.01M	-35.73M

Magellan Aerospace Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 17.15
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 17.15 is below the 20-day moving average (MA) of 17.52, below the 50-day MA of 17.92, and above the 200-day MA of 12.91, indicating a neutral trend. The MACD of -0.26 indicates Positive momentum. The RSI at 42.34 is Neutral, neither overbought nor oversold. The STOCH value of 44.15 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MAL.

Magellan Aerospace Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	71 Outperform	¥258.28B	14.57	8.48%	2.82%	6.30%	11.95%
MAL	65 Neutral	C$975.93M	24.40	5.12%	0.73%	8.59%	242.80%
CAE	―	$9.28B	31.54	8.87%	―	―	―
BDRBF	―	$12.00B	26.84		―	―	―
MDA	73 Outperform	C$5.76B	47.19	9.64%	―	49.98%	108.76%
BBD.A	63 Neutral	C$16.54B	26.13	-23.10%	―	6.69%	64.89%

Magellan Aerospace Corporate Events

Magellan Aerospace Reports Strong Q1 2025 Results and Strategic Partnerships

Magellan Aerospace Corporation reported a strong financial performance for the first quarter of 2025, with a 10.9% increase in revenue to $260.9 million compared to the same period in 2024. The company also saw significant growth in gross profit and net income, with increases of 41.6% and 71.6% respectively. The announcement of a joint venture with Aequs Private Limited to establish an aerospace sand casting facility in India and an amended agreement with GE Aerospace to produce components for the Korean KF-21 aircraft program are strategic moves that could enhance Magellan’s market position and operational capabilities.