Magellan Aerospace Corporation Fundamental Analysis (TSX: MAL.TO)
Magellan Aerospace Corporation Fundamental Analysis (TSX: MAL.TO)
Magellan Aerospace Corporation (TSX: MAL.TO) shows weak financial fundamentals with a PE ratio of 30.25, profit margin of 5.30%, and ROE of 7.11%. The company generates $1.1B in annual revenue with strong year-over-year growth of 10.86%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 50.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MAL.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakMAL.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateMAL.TO shows balanced valuation metrics.
Growth Score
ExcellentMAL.TO delivers strong and consistent growth momentum.
Financial Health Score
ExcellentMAL.TO maintains a strong and stable balance sheet.
Profitability Score
WeakMAL.TO struggles to sustain strong margins.
Key Financial Metrics
Is MAL.TO Expensive or Cheap?
P/E Ratio
MAL.TO trades at 30.25 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MAL.TO's PEG of 0.51 indicates potential undervaluation.
Price to Book
The market values Magellan Aerospace Corporation at 2.08 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.12 times EBITDA. This signals the market has high growth expectations.
How Well Does MAL.TO Make Money?
Net Profit Margin
For every $100 in sales, Magellan Aerospace Corporation keeps $5.30 as profit after all expenses.
Operating Margin
Core operations generate 8.62 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.11 in profit for every $100 of shareholder equity.
ROA
Magellan Aerospace Corporation generates $4.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Magellan Aerospace Corporation generates limited operating cash flow of $35.83M, signaling weaker underlying cash strength.
Free Cash Flow
Magellan Aerospace Corporation generates weak or negative free cash flow of $-24.51M, restricting financial flexibility.
FCF Per Share
Each share generates $-0.43 in free cash annually.
FCF Yield
MAL.TO converts -1.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
30.25
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.51
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.08
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.11
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.52
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How MAL.TO Stacks Against Its Sector Peers
| Metric | MAL.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 30.25 | 29.34 | Neutral |
| ROE | 7.11% | 1104.00% | Weak |
| Net Margin | 5.30% | -25189.00% (disorted) | Weak |
| Debt/Equity | 0.11 | 0.95 | Strong (Low Leverage) |
| Current Ratio | 2.52 | 21.76 | Strong Liquidity |
| ROA | 4.66% | -1328228.00% (disorted) | Weak |
MAL.TO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Magellan Aerospace Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
42.64%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
1110.01%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
-24.61%
Industry Style: Cyclical, Value, Infrastructure
Declining