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1. Company Snapshot

1.a. 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, such as engine frames, cases, bypass ducts, engine shafts, engine processes, engine materials, metallic honeycomb, filament winding, compressor components, turbine components, and afterburner components, as well as small and large wing components, landing gear, horizontal and vertical stabilizers, and nacelle exhaust systems.The company also provides crown modules, vane box and transition ducts, wing spars, wing ribs, wing skins, access covers, and kitting solutions; black brant, rato booster motors, as well as rocket weapon system comprises of fixed wing variant, and rotary wing platforms.


In addition, the company offers avionics, machined metal seals, rocket engine mount, and cast products, as well as newspace, and satellite support services.Further, the company provides 3D sand printing, metal pouring, solidification modeling, automated pouring and finishing, digital radiography, and 3D scanning products.Additionally, the company offers maintenance, repair, and overhaul for various engine and components, as well as lifecycle management services to logistics, fleet management, and engineering services.


Furthermore, it provides wire strike protection system services.Magellan Aerospace Corporation was incorporated in 1996 and is headquartered in Mississauga, Canada.

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1.b. Last Insights on MAL

Magellan Aerospace Corporation faces challenges, with its estimated fair value at CA$37.19, suggesting it's undervalued. The company's Q2 2025 financial results, released on August 12, 2025, likely influenced its recent performance. A quarterly dividend of $0.05 per share, announced on August 8, 2025, provides shareholder returns. A normal course issuer bid, renewed on June 11, 2025, allows share buybacks, reducing outstanding shares. Economic conditions, including a contraction in GDP and potential monetary easing, may impact the company's performance.

1.c. Company Highlights

2. Transcript Summary

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3. NewsRoom

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Undiscovered Canadian Gems with Strong Fundamentals for November 2025

Nov -17

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Magellan Aerospace Corporation Just Recorded A 16% EPS Beat: Here's What Analysts Are Forecasting Next

Nov -16

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Magellan Aerospace Corporation Announces Financial Results

Nov -13

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Magellan Aerospace Announces Quarterly Dividend

Nov -07

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Aecon Group And 2 Other Stocks On The TSX That May Be Trading Below Fair Value Estimates

Nov -03

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3 TSX Stocks That May Be Trading Below Their Estimated Value In October 2025

Oct -31

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3 TSX Stocks Estimated To Be Trading Below Their Fair Value In October 2025

Oct -27

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TSX Value Stocks Including Boyd Group Services That May Be Priced Below Intrinsic Estimates

Oct -24

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (8.38%)

6. Segments

Aerospace

Expected Growth: 8%

Magellan Aerospace Corporation's 8% growth in Aerospace is driven by increasing demand for commercial aircraft, rising defense spending, and growing adoption of advanced materials and technologies. Additionally, the company's diversified product portfolio, strong relationships with major OEMs, and strategic investments in R&D and digitalization are contributing to its growth momentum.

Services

Expected Growth: 10%

Magellan Aerospace Corporation's 10% growth in services is driven by increasing demand for aircraft maintenance, repair, and overhaul (MRO) services, expansion into new markets, and strategic partnerships. Additionally, the company's investment in digital technologies, such as predictive maintenance and analytics, enhances its service offerings and drives growth.

7. Detailed Products

Aerostructures

Design, development, and manufacturing of complex aircraft structures and assemblies

Aerospace Components

Design, development, and manufacturing of aircraft components, including landing gear, flight control systems, and engine components

Satellite Systems

Design, development, and manufacturing of satellite components and systems, including antennas, propulsion systems, and satellite buses

Rocket Systems

Design, development, and manufacturing of rocket components and systems, including launch vehicles, propulsion systems, and payload fairings

Engineering and Design Services

Providing engineering and design services for aerospace and defense companies, including design, analysis, and testing

8. Magellan Aerospace Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Magellan Aerospace Corporation is moderate due to the availability of alternative materials and technologies in the aerospace industry.

Bargaining Power Of Customers

The bargaining power of customers for Magellan Aerospace Corporation is low due to the specialized nature of the products and services offered, which limits the ability of customers to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Magellan Aerospace Corporation is moderate due to the presence of multiple suppliers in the market, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants for Magellan Aerospace Corporation is low due to the high barriers to entry in the aerospace industry, including the need for significant capital investment and specialized expertise.

Intensity Of Rivalry

The intensity of rivalry for Magellan Aerospace Corporation is high due to the presence of several established players in the aerospace industry, leading to intense competition for market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 9.10%
Debt Cost 9.39%
Equity Weight 90.90%
Equity Cost 9.39%
WACC 9.39%
Leverage 10.01%

11. Quality Control: Magellan Aerospace Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Magellan Aerospace

A-Score: 5.8/10

Value: 5.8

Growth: 4.8

Quality: 5.4

Yield: 3.0

Momentum: 9.5

Volatility: 6.3

1-Year Total Return ->

Stock-Card
Park Aerospace

A-Score: 5.4/10

Value: 0.8

Growth: 2.4

Quality: 6.4

Yield: 7.0

Momentum: 9.5

Volatility: 6.0

1-Year Total Return ->

Stock-Card
MDA

A-Score: 5.4/10

Value: 4.4

Growth: 9.3

Quality: 6.2

Yield: 0.0

Momentum: 9.5

Volatility: 2.7

1-Year Total Return ->

Stock-Card
Cadre Holdings

A-Score: 4.1/10

Value: 1.5

Growth: 6.4

Quality: 5.6

Yield: 2.0

Momentum: 4.0

Volatility: 5.3

1-Year Total Return ->

Stock-Card
Héroux-Devtek

A-Score: 4.1/10

Value: 3.1

Growth: 4.8

Quality: 5.3

Yield: 0.0

Momentum: 5.0

Volatility: 6.3

1-Year Total Return ->

Stock-Card
VirTra

A-Score: 3.3/10

Value: 3.6

Growth: 5.9

Quality: 5.8

Yield: 0.0

Momentum: 2.5

Volatility: 1.7

1-Year Total Return ->

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

16.96$

Current Price

16.96$

Potential

-0.00%

Expected Cash-Flows