Magellan Aerospace (MAL) AI Stock Analysis

• Market Cap: C$918.79M
• Dividend Yield: 0.87%
• Average Volume (3M): 30.49K
• Price to Earnings (P/E): 24.2
• Beta (1Y): 0.85
• Revenue Growth: 6.58%
• EPS Growth: 121.23%
• Country: CA
• Employees: 3,815
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.09
• Shares Outstanding: 57,138,580
• 10 Day Avg. Volume: 21,217
• 30 Day Avg. Volume: 30,489
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 67 Neutral
• Price Target: C$18.50 ▲(8.19% Upside)

Magellan Aerospace's strong financial performance, characterized by robust revenue growth and a solid balance sheet, is the primary driver of its stock score. Technical indicators suggest a cautious outlook with mixed signals. The valuation appears high, which may limit upside potential.

Magellan Aerospace Business Overview & Revenue Model

Company Description

Magellan Aerospace (MAL) is a leading aerospace company based in Canada, specializing in advanced aerospace systems and solutions. The company operates across multiple sectors, including space, defense, and aviation, providing a wide range of products and services such as satellite systems, spacecraft, aerospace structures, and defense electronics. With a strong emphasis on innovation and technology, Magellan Aerospace serves both governmental and commercial clients, contributing to various high-profile projects in space exploration and national defense.

How the Company Makes Money

Magellan Aerospace generates revenue through a diverse array of business activities. Its primary revenue streams come from government contracts for defense and space projects, including contracts with agencies such as NASA and the Canadian Department of National Defence. Additionally, the company earns income from the design and manufacturing of aerospace components and systems, as well as providing engineering services and solutions to commercial clients in the aviation sector. Strategic partnerships with other aerospace and defense firms enhance its capabilities and market reach, while ongoing investments in research and development allow it to remain competitive and innovate within the aerospace industry.

Magellan Aerospace Financial Statement Overview

Summary

Magellan Aerospace demonstrates strong financial performance with solid revenue growth, improved profitability, and prudent financial leverage. The company shows a positive financial trajectory, although there is a slight decline in free cash flow growth.

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	974.91M	942.37M	879.62M	764.58M	688.36M	744.41M
Gross Profit	124.48M	107.89M	88.99M	35.06M	48.33M	96.49M
EBITDA	101.20M	96.39M	71.01M	31.54M	56.41M	74.93M
Net Income	37.92M	35.49M	9.25M	-21.69M	-977.00K	3.31M
Balance Sheet
Total Assets	1.16B	1.15B	1.03B	1.01B	1.00B	1.07B
Cash, Cash Equivalents and Short-Term Investments	81.39M	56.44M	1.49M	40.94M	32.48M	113.94M
Total Debt	91.99M	86.42M	73.45M	62.01M	67.77M	115.17M
Total Liabilities	353.58M	343.44M	287.66M	279.16M	237.99M	286.72M
Stockholders Equity	805.87M	799.44M	734.04M	728.35M	762.45M	782.50M
Cash Flow
Free Cash Flow	70.23M	63.19M	-41.56M	34.08M	-9.79M	79.98M
Operating Cash Flow	112.19M	99.29M	-17.30M	58.54M	12.53M	105.97M
Investing Cash Flow	-40.98M	-35.10M	-23.69M	-23.86M	-20.80M	-25.82M
Financing Cash Flow	-29.75M	-17.62M	1.01M	-26.27M	-73.01M	-35.73M

Magellan Aerospace Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.10
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 17.1 is above the 20-day moving average (MA) of 17.00, above the 50-day MA of 16.61, and above the 200-day MA of 14.70, indicating a bullish trend. The MACD of 0.20 indicates Negative momentum. The RSI at 53.99 is Neutral, neither overbought nor oversold. The STOCH value of 64.54 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
CAE	―	$12.63B	30.37	8.73%	―	8.04%	―
MDA	―	C$4.44B	37.31	9.64%	―	57.21%	136.79%
MAL	―	C$918.79M	24.23	4.85%	0.87%	6.58%	121.23%
BBD.A	―	C$19.47B	30.85	―	―	6.69%	64.89%
Sector *	―	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BBD.B	―	C$19.65B	31.07	―	―	6.69%	64.89%

Magellan Aerospace Corporate Events

Magellan Aerospace Reports Q2 2025 Financial Results and New Strategic Agreements

Magellan Aerospace Corporation reported its financial results for the second quarter of 2025, showing a revenue increase of 2.8% compared to the previous year, although net income decreased by 27.9%. The company signed significant agreements, including an amendment with GE Aerospace for the production of components for the KF-21 aircraft program and new contracts with Pratt & Whitney Canada. These developments are expected to strengthen Magellan’s market position and enhance its operational capabilities.

The most recent analyst rating on (TSE:MAL) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on Magellan Aerospace stock, see the TSE:MAL Stock Forecast page.

Magellan Aerospace Declares Quarterly Dividend Amid Strategic Growth Focus

Magellan Aerospace Corporation announced a quarterly cash dividend of $0.05 per share, reflecting the company’s commitment to balancing shareholder returns with financial flexibility and investment in growth initiatives. This decision underscores the company’s strategic focus on maintaining a stable financial position while continuing to support its growth and operational objectives.

The most recent analyst rating on (TSE:MAL) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on Magellan Aerospace stock, see the TSE:MAL Stock Forecast page.