Magellan Aerospace (MAL) AI Stock Analysis

• Market Cap: C$1.30B
• Dividend Yield: 0.93%
• Average Volume (3M): 30.49K
• Price to Earnings (P/E): 26.8
• Beta (1Y): 1.26
• Revenue Growth: 8.84%
• EPS Growth: 131.58%
• Country: CA
• Employees: 3,815
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.19
• Shares Outstanding: 57,079,056
• 10 Day Avg. Volume: 21,217
• 30 Day Avg. Volume: 30,489
• PEG Ratio: 2.38
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 1.01
• P/FCF Ratio: 38.31
• 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$25.00
• Price Target Upside: 9.51% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 1.22
• Revenue Forecast (FY): C$1.10B

• Rating: 62 Neutral
• Price Target: C$23.50 ▲(2.93% Upside)
• Action: Downgraded Date: 03/30/26
• Date: Action: Downgraded 03/30/26

The score is supported by improving financial performance and a low-debt balance sheet, but is held back by inconsistent cash generation (notably weaker free cash flow in 2025) and bearish technical signals (below key moving averages with negative MACD). Valuation is reasonable but not particularly compelling given the low dividend yield.

Positive Factors

Revenue & Margin Improvement

Sustained revenue growth coupled with meaningful margin recovery indicates improving program mix, pricing or cost control that should persist as production programs normalize. Higher gross and EBIT margins provide a stronger earnings base that supports reinvestment and resiliency across cycles.

Negative Factors

Free Cash Flow Volatility

Inconsistent cash conversion undermines financial durability—sharp declines in free cash flow limit the company's ability to self-fund growth, sustain dividends, reduce debt, or absorb program delays. Persistent volatility raises refinancing and investment-risk considerations over the medium term.

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, su...

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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, su...

How the Company Makes Money

Magellan Aerospace makes money primarily by manufacturing and supplying aerospace components, subassemblies, and systems to aircraft and engine manufacturers and their supply chains, with revenue largely tied to long-term production programs and a...

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Magellan Aerospace makes money primarily by manufacturing and supplying aerospace components, subassemblies, and systems to aircraft and engine manufacturers and their supply chains, with revenue largely tied to long-term production programs and a...

Magellan Aerospace Financial Statement Overview

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.04B	942.37M	879.62M	764.58M	688.36M
Gross Profit	140.72M	107.89M	88.99M	35.06M	48.33M
EBITDA	126.89M	96.39M	71.01M	31.54M	56.41M
Net Income	39.44M	35.49M	9.25M	-21.69M	-977.00K
Balance Sheet
Total Assets	1.17B	1.15B	1.03B	1.01B	1.00B
Cash, Cash Equivalents and Short-Term Investments	64.05M	56.44M	1.49M	40.94M	32.48M
Total Debt	88.61M	86.42M	73.45M	63.34M	67.77M
Total Liabilities	340.00M	343.44M	287.66M	279.16M	237.99M
Stockholders Equity	822.45M	799.44M	734.04M	728.35M	762.45M
Cash Flow
Free Cash Flow	27.61M	63.19M	-41.56M	34.08M	-9.79M
Operating Cash Flow	78.60M	99.29M	-17.30M	58.54M	12.53M
Investing Cash Flow	-55.09M	-35.10M	-23.69M	-23.86M	-20.80M
Financing Cash Flow	-15.45M	-17.62M	1.01M	-26.27M	-73.01M

Magellan Aerospace Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 22.83
• 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 22.83 is above the 20-day moving average (MA) of 22.40, above the 50-day MA of 22.03, and above the 200-day MA of 18.60, indicating a bullish trend. The MACD of -0.26 indicates Positive momentum. The RSI at 54.43 is Neutral, neither overbought nor oversold. The STOCH value of 75.29 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
FTG	74 Outperform	C$523.61M	21.66	14.42%	―	15.09%	31.55%
MDA	71 Outperform	C$4.79B	30.51	8.88%	―	57.77%	57.55%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CAE	63 Neutral	C$11.82B	30.69	7.50%	―	9.12%	―
MAL	62 Neutral	C$1.30B	26.82	4.83%	0.93%	8.84%	131.58%
DPRO	46 Neutral	C$274.81M	-6.53	-48.00%	―	26.74%	53.14%