Magellan Aerospace (MAL) AI Stock Analysis

• Market Cap: C$964.50M
• Dividend Yield: 0.58%
• Average Volume (3M): 41.62K
• Price to Earnings (P/E): 24.1
• Beta (1Y): 0.57
• Revenue Growth: 8.59%
• EPS Growth: 242.80%
• Country: CA
• Employees: 3,815
• Sector: Industrials
• Sector Strength: 92
• Industry: Aerospace & Defense
• EPS (TTM): 0.19
• Shares Outstanding: 57,138,580
• 10 Day Avg. Volume: 40,601
• 30 Day Avg. Volume: 41,616
• 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: 10.92% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 78 Outperform
• Price Target: C$19.50 ▲(13.84%Upside)

Magellan Aerospace's strong financial performance and positive technical indicators are the primary drivers of the stock's solid score. While the valuation appears high, strategic corporate events and partnerships provide a positive outlook for future growth.

Magellan Aerospace Business Overview & Revenue Model

Company Description

Magellan Aerospace Corporation (MAL) is a Canadian-based aerospace company that designs, engineers, and manufactures components for the global aerospace industry. The company operates in both the commercial and defense sectors, offering a wide range of products and services, including aerostructures, aeroengines, and space products. Magellan Aerospace's core offerings include the production of complex castings, advanced composites, and machining of critical components, serving major aerospace original equipment manufacturers (OEMs) and Tier 1 suppliers worldwide.

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
	EBIT
59.88M	50.95M	31.70M	-11.97M	6.70M	42.41M
	EBITDA
102.70M	96.39M	71.01M	31.54M	56.41M	74.93M
	Net Income Common Stockholders
40.00M	35.49M	9.25M	-21.69M	-977.00K	3.31M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
2.21M	56.44M	1.49M	40.94M	32.48M	113.94M
	Total Assets
1.05B	1.15B	1.03B	1.01B	1.00B	1.07B
	Total Debt
64.78M	86.42M	73.45M	62.01M	67.77M	115.17M
	Net Debt
62.57M	29.99M	71.96M	21.07M	35.28M	1.23M
	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: 17.13
• 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 17.13 is above the 20-day moving average (MA) of 16.45, above the 50-day MA of 14.32, and above the 200-day MA of 11.13, indicating a bullish trend. The MACD of 0.86 indicates Positive momentum. The RSI at 65.52 is Neutral, neither overbought nor oversold. The STOCH value of 51.93 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
MDA	80 Outperform	C$3.59B	36.41	8.54%	―	49.98%	108.76%
MAL	78 Outperform	C$964.50M	24.11	5.12%	0.58%	8.59%	242.80%
BBD.B	73 Outperform	$9.75B	26.13	-18.58%	―	16.31%	4.12%
BBD.A	69 Neutral	C$9.75B	26.15	-23.10%	―	16.31%	4.12%
CAE	67 Neutral	$11.46B	28.73	8.87%	―	1.44%	-183.14%
Sector *	66 Neutral	$4.50B	12.28	5.32%	248.52%	4.13%	-12.36%

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.

Magellan Aerospace Reports Strong Q4 2024 Financial Results

Magellan Aerospace Corporation reported a strong financial performance for the fourth quarter of 2024, with revenues increasing by 7.7% to CAD 240.7 million and a significant rise in net income to CAD 15.9 million. The company’s gross profit and adjusted EBITDA also saw substantial growth, reflecting improved operational efficiency and profitability. This financial success underscores Magellan’s robust position in the aerospace industry and its ability to capitalize on market opportunities, benefiting stakeholders and enhancing its competitive edge.