Magellan Aerospace Corp. (MAL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Magellan Aerospace Corp.

Héroux-Devtek, Inc.

Kraken Robotics, Inc.

AirBoss of America Corp.

Drone Delivery Canada Corp.

Bombardier, Inc.

Liberty Defense Holdings Ltd.

Star Navigation Systems Group Ltd.

Aether Global Innovations Corp.

Maritime Launch Services, Inc.

FLYHT Aerospace Solutions Ltd.

Why is Magellan Aerospace Corp. ?

With ROE of 4.71%, it has a very expensive valuation with a 1.17 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of 72.61%, its profits have risen by 108.1% ; the PEG ratio of the company is 0.2

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Magellan Aerospace Corp. should be less than 10%
Overall Portfolio exposure to Aerospace & Defense should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Aerospace & Defense)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Magellan Aerospace Corp. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Magellan Aerospace Corp.

60.94%

0.87

38.62%

S&P/TSX 60

19.1%

1.54

14.62%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

1.99%

EBIT Growth (5y)

-2.47%

EBIT to Interest (avg)

6.61

Debt to EBITDA (avg)

0.26

Net Debt to Equity (avg)

-0.01

Sales to Capital Employed (avg)

1.10

Tax Ratio

25.37%

Dividend Payout Ratio

16.11%

Pledged Shares

Institutional Holding

ROCE (avg)

3.06%

ROE (avg)

1.46%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.18

EV to EBIT

14.64

EV to EBITDA

8.48

EV to Capital Employed

1.18

EV to Sales

0.96

PEG Ratio

0.23

Dividend Yield

ROCE (Latest)

8.09%

ROE (Latest)

4.71%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Sideways

Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Mildly Bearish

Bullish

Dow Theory

Mildly Bearish

Mildly Bullish

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

15What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 112.19 MM

INTEREST COVERAGE RATIO(Q)

Highest at 5,749.37

ROCE(HY)

Highest at 4.85%

RAW MATERIAL COST(Y)

Fallen by -23.82% (YoY

NET PROFIT(9M)

Higher at CAD 32.08 MM

CASH AND EQV(HY)

Highest at CAD 136.93 MM

DEBT-EQUITY RATIO (HY)

Lowest at 1.32 %

-6What is not working for the Company

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.02%

PRE-TAX PROFIT(Q)

Lowest at CAD 8.71 MM

NET PROFIT(Q)

Lowest at CAD 5.37 MM

EPS(Q)

Lowest at CAD 0.09

Here's what is working for Magellan Aerospace Corp.

Interest Coverage Ratio

Highest at 5,749.37 and Grown

In each period in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Cash Flow

Highest at CAD 112.19 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Cash and Eqv

Highest at CAD 136.93 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at 1.32 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by -23.82% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at CAD 11.94 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (CAD MM)

Here's what is not working for Magellan Aerospace Corp.

Inventory Turnover Ratio

Lowest at 3.02% and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Pre-Tax Profit

Lowest at CAD 8.71 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (CAD MM)

Net Profit

Lowest at CAD 5.37 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Net Profit

Fallen at -27.95%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

EPS

Lowest at CAD 0.09

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)