Magellan Aerospace (MAL) AI Stock Analysis

• Market Cap: C$1.06B
• Dividend Yield: 1.02%
• Average Volume (3M): 35.01K
• Price to Earnings (P/E): 26.5
• Beta (1Y): 0.60
• Revenue Growth: 8.59%
• EPS Growth: 242.80%
• Country: CA
• Employees: 3,815
• Sector: Industrials
• Sector Strength: 83
• Industry: Aerospace & Defense
• EPS (TTM): 0.19
• Shares Outstanding: 57,138,580
• 10 Day Avg. Volume: 28,096
• 30 Day Avg. Volume: 35,013
• PEG Ratio: 1.70
• Price to Book (P/B): 1.08
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.84
• 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$19.00
• Price Target Upside: 2.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: C$21.00 ▲(13.21%Upside)

The overall stock score of 73 reflects strong financial performance and corporate events that position Magellan Aerospace for future growth. While technical indicators suggest a bullish trend, high valuation metrics indicate the stock may be overvalued, warranting cautious optimism.

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 design, engineering, and manufacturing of aerospace components and systems, serving both the commercial and defense sectors. The company earns money by securing contracts with major aerospace OEMs and Tier 1 suppliers for the production of aerostructures, aeroengines, and space products. Magellan Aerospace's revenue streams include the sale of complex castings, advanced composite materials, and precision-machined components. Additionally, the company benefits from long-term supply agreements and partnerships with key players in the aerospace industry, contributing to its earnings stability and growth.

Magellan Aerospace Financial Statement Overview

Summary

Magellan Aerospace demonstrates strong financial performance with notable revenue growth, improved profitability, and prudent financial management. The income statement shows a 9.99% revenue growth, with improved net profit and gross margins. The balance sheet is robust with a low debt-to-equity ratio and improved ROE, while cash flow remains strong despite a slight decline in free cash flow.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	968.02M	942.37M	879.62M	764.58M	688.36M	744.41M
Gross Profit	117.80M	107.89M	88.99M	35.06M	48.33M	96.49M
EBITDA	102.70M	96.39M	71.01M	31.54M	56.41M	74.93M
Net Income	40.00M	35.49M	9.25M	-21.69M	-977.00K	3.31M
Balance Sheet
Total Assets	1.05B	1.15B	1.03B	1.01B	1.00B	1.07B
Cash, Cash Equivalents and Short-Term Investments	2.21M	56.44M	1.49M	40.94M	32.48M	113.94M
Total Debt	64.78M	86.42M	73.45M	62.01M	67.77M	115.17M
Total Liabilities	294.62M	343.44M	287.66M	279.16M	237.99M	286.72M
Stockholders Equity	747.25M	799.44M	734.04M	728.35M	762.45M	782.50M
Cash Flow
Free Cash Flow	59.19M	63.19M	-41.56M	34.08M	-9.79M	79.98M
Operating Cash Flow	100.97M	99.29M	-17.30M	58.54M	12.53M	105.97M
Investing Cash Flow	-40.74M	-35.10M	-23.69M	-23.86M	-20.80M	-25.82M
Financing Cash Flow	-15.18M	-17.62M	1.01M	-26.27M	-73.01M	-35.73M

Magellan Aerospace Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.55
• 50DMA: Positive
• 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 Positive. The current price of 18.55 is above the 20-day moving average (MA) of 18.08, above the 50-day MA of 16.11, and above the 200-day MA of 11.80, indicating a bullish trend. The MACD of 0.82 indicates Positive momentum. The RSI at 59.41 is Neutral, neither overbought nor oversold. The STOCH value of 65.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MAL.

Magellan Aerospace Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAL	73 Outperform	C$1.06B	26.50	5.12%	1.02%	8.59%	242.80%
Sector *	58 Neutral	$1.33B	4.26	-2.93%	9.53%	3.41%	-51.76%
CAE		$8.59B	29.60	8.87%	―	―	―
BDRBF		$8.43B	31.24		―	―	―
MDA	80 Outperform	C$4.25B	42.47	8.54%	―	49.98%	108.76%
BBD.A	70 Neutral	C$11.50B	30.71	-23.10%	―	16.31%	4.12%

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.

Magellan Aerospace Boosts Quarterly Dividend Amid Financial Growth

Magellan Aerospace announced an increase in its quarterly cash dividend to $0.05 per share, reflecting improved financial performance and a stronger balance sheet. This decision underscores the company’s positive financial trajectory and may enhance investor confidence, impacting its market position and stakeholder relations positively.

Magellan Aerospace Secures Long-Term Agreements with Pratt & Whitney Canada

Magellan Aerospace Corporation has signed long-term agreements with Pratt & Whitney Canada, involving contract extensions and new manufacturing program awards. These agreements, which will run until 2034, will see Magellan deliver complex machined components from its facility in Tumkur, India. This move strengthens Magellan’s position as a trusted partner in the aerospace industry and will involve investment in a new machining cell to enhance the facility’s capabilities. The collaboration underscores Magellan’s commitment to providing high-quality, reliable, and innovative solutions in a competitive market.

Magellan Aerospace Expands Partnership with GE Aerospace for KF-21 Engine Production

Magellan Aerospace has amended a long-term Revenue Sharing Agreement with GE Aerospace to include the production of major components for the F414-GE-400K aircraft engine, which will be used in the Korean KF-21 aircraft program. This agreement positions Magellan as the sole provider of F414 engine frames for several programs, including the KF-21, US Navy spares, and Gripen F414-39E engine programs, strengthening its longstanding relationship with GE Aerospace and highlighting its role in the aerospace industry.