Magellan Aerospace (MAL) AI Stock Analysis

• Market Cap: C$1.04B
• Dividend Yield: 0.96%
• Average Volume (3M): 30.49K
• Price to Earnings (P/E): 23.4
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: C$20.50 ▲(11.78% Upside)

Magellan Aerospace's stock score is driven by strong technical indicators and a stable financial position. The positive momentum and price trends are significant strengths. However, the high P/E ratio and challenges in cash flow management are notable risks that temper the overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and product demand, supporting long-term business stability and competitiveness.

Financial Health

A low debt-to-equity ratio suggests conservative financial management, providing flexibility for future investments and resilience in downturns.

Profitability Improvement

Enhanced profitability margins reflect effective cost management and operational efficiency, strengthening the company's competitive position.

Negative Factors

Cash Flow Challenges

Declining free cash flow growth can limit the company's ability to invest in growth opportunities and maintain liquidity, posing a risk to financial stability.

Moderate Margins

Moderate profit margins indicate potential vulnerability to cost increases or pricing pressures, which could impact long-term profitability.

Return on Equity

While ROE has improved, it remains relatively low, indicating potential inefficiencies in generating returns for shareholders, affecting investor confidence.

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 revenue growth and improved gross profit margins, indicating robust sales performance and better cost management. The balance sheet is healthy with low leverage and improving returns on equity. Cash flow generation is positive, though there is room for optimization. Overall, the financial health is robust, positioning the company well for future growth.

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	1.01B	942.37M	879.62M	764.58M	688.36M	744.41M
Gross Profit	132.06M	107.89M	88.99M	35.06M	48.33M	96.49M
EBITDA	109.42M	96.39M	71.01M	31.54M	56.41M	74.93M
Net Income	44.74M	35.49M	9.25M	-21.69M	-977.00K	3.31M
Balance Sheet
Total Assets	1.19B	1.15B	1.03B	1.01B	1.00B	1.07B
Cash, Cash Equivalents and Short-Term Investments	72.00M	56.44M	1.49M	40.94M	32.48M	113.94M
Total Debt	93.34M	86.42M	73.45M	63.34M	67.77M	115.17M
Total Liabilities	362.02M	343.44M	287.66M	279.16M	237.99M	286.72M
Stockholders Equity	822.33M	799.44M	734.04M	728.35M	762.45M	782.50M
Cash Flow
Free Cash Flow	53.51M	63.19M	-41.56M	34.08M	-9.79M	79.98M
Operating Cash Flow	98.38M	99.29M	-17.30M	58.54M	12.53M	105.97M
Investing Cash Flow	-44.87M	-35.10M	-23.69M	-23.86M	-20.80M	-25.82M
Financing Cash Flow	-20.20M	-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 17.04, above the 50-day MA of 17.02, and above the 200-day MA of 15.95, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 64.83 is Neutral, neither overbought nor oversold. The STOCH value of 91.19 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$291.76M	20.64	17.40%	―	15.09%	31.55%
MAL	72 Outperform	C$1.04B	23.35	5.64%	0.96%	8.84%	131.58%
CAE	72 Outperform	$13.36B	30.51	9.00%	―	9.12%	―
MDA	70 Outperform	C$3.26B	28.98	8.88%	―	57.77%	57.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
DPRO	52 Neutral	$243.08M	―	-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.