Magellan Aerospace (MAL) AI Stock Analysis

• Market Cap: C$1.02B
• Dividend Yield: 0.98%
• Average Volume (3M): 30.49K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 0.98
• Revenue Growth: 8.84%
• EPS Growth: 131.58%
• Country: CA
• Employees: 3,815
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.22
• Shares Outstanding: 57,079,056
• 10 Day Avg. Volume: 21,217
• 30 Day Avg. Volume: 30,489
• PEG Ratio: 0.06
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.61
• P/FCF Ratio: 9.11
• 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
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: C$18.50 ▲(0.87% Upside)

Magellan Aerospace's strong financial performance and stable technical indicators are the primary drivers of its stock score. The company's robust revenue growth and healthy balance sheet are significant strengths. The valuation is moderate, with a reasonable P/E ratio and a modest dividend yield. Technical analysis suggests stable price trends without significant momentum. The absence of earnings call data limits further insights.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing demand for Magellan's products and services, enhancing its market position and competitive edge.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, allowing for strategic investments and resilience in downturns.

Cash Flow Generation

Improved cash flow generation enhances the company's ability to fund operations, invest in growth opportunities, and return value to shareholders.

Negative Factors

Profitability Margins

Modest profitability margins indicate potential challenges in cost management or pricing power, which could impact long-term earnings growth.

Cash Flow Optimization

Suboptimal cash flow conversion suggests inefficiencies in operations or capital allocation, which may hinder financial performance improvements.

Profitability Improvement

Limited profitability improvement may restrict the company's ability to reinvest in growth or withstand competitive pressures, affecting long-term prospects.

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 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 exhibits strong revenue growth and improved cash flow, supported by a healthy balance sheet with low leverage. However, there is room for improvement in profitability margins.

Income Statement

Magellan Aerospace shows a strong revenue growth trajectory with a TTM revenue growth rate of 71.1%, indicating robust sales performance. The gross profit margin has improved to 12.77% in the TTM, reflecting better cost management. However, the net profit margin remains modest at 3.89%, suggesting room for improvement in profitability. EBIT and EBITDA margins are stable, indicating operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.11, indicating prudent financial leverage. The return on equity has improved to 4.76%, showing better utilization of shareholder funds. The equity ratio is strong, reflecting a solid capital structure.

Cash Flow

Magellan Aerospace has demonstrated positive free cash flow growth of 18.66% in the TTM, indicating improved cash generation capabilities. The operating cash flow to net income ratio is 0.44, suggesting efficient cash conversion. However, the free cash flow to net income ratio of 0.63 indicates potential for further cash flow optimization.

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	63.34M	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: 18.34
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 18.34 is above the 20-day moving average (MA) of 16.83, above the 50-day MA of 17.00, and above the 200-day MA of 15.86, indicating a bullish trend. The MACD of 0.19 indicates Negative momentum. The RSI at 61.28 is Neutral, neither overbought nor oversold. The STOCH value of 89.10 is Negative, 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
FTG	78 Outperform	C$289.49M	20.33	17.40%	―	15.09%	31.55%
CAE	72 Outperform	C$12.84B	28.96	9.00%	―	9.12%	―
MDA	72 Outperform	C$3.22B	27.31	8.88%	―	57.77%	57.55%
MAL	67 Neutral	C$1.02B	22.84	5.64%	0.98%	8.84%	131.58%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DPRO	52 Neutral	$210.74M	-3.21	-48.13%	―	26.74%	53.14%

Magellan Aerospace Corporate Events

Magellan Aerospace Declares Quarterly Dividend Amid Strategic Growth Focus

Magellan Aerospace announced a quarterly cash dividend of $0.05 per share, reflecting the company’s ongoing commitment to balancing shareholder returns with financial flexibility and growth investments. This decision underscores Magellan’s strategic focus on maintaining robust financial health while supporting its growth initiatives, which is crucial for its positioning in the competitive aerospace industry.