Magellan Aerospace Corporation (MAL.TO) | Investment Case

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's recent performance was positively driven by its Q3 2025 financial results, which included a 16% EPS beat. The company's Board of Directors declared a quarterly cash dividend of $0.05 per share, demonstrating its commitment to returning capital to shareholders. Significant insider ownership of 79% suggests inherent interests in the company's expansion. The company's strong fundamentals and growth potential have positioned it well amidst shifting business models and elevated valuations in the tech sector. Its recent earnings release showed promise.

1.c. Company Highlights

Last Price	21.7
Change Percentage	0.42%
Open	21.77
Previous Close	21.61
Market Cap ( Millions)	1240
Volume	21107
Year High	23.61
Year Low	9.64
M A 50	20.15
M A 200	17.77

FCF Yield	4.32%
Dividend Yield	0.81%
ROE	5.52%
Debt / Equity	11.35%
Net Debt / EBIDTA	19.51%
Price To Book	1.51
Price Earnings Ratio	27.7
Price To FCF	23.17
Price To sales	1.23
EV / EBITDA	11.53

2. Transcript Summary

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3. NewsRoom

Is Magellan Aerospace’s (TSX:MAL) Torpedo Teaming Deal Quietly Recasting Its Defence Supply-Chain Role?

Feb -18

Source:

TKMS and Magellan Sign Teaming Agreement to Support Heavyweight Torpedo Production and In-Service Support for the Canadian Patrol Submarine Project

Feb -12

Source:

Discovering Undiscovered Gems in Canada February 2026

Feb -12

Source:

Exploring 3 Undiscovered Gems In The Canadian Market

Jan -14

Source:

Magellan Aerospace Corporation (TSE:MAL) insiders have significant skin in the game with 79% ownership

Jan -01

Source:

Undiscovered Gems In Canada Featuring 3 Promising Small Caps

Dec -16

Source:

Undiscovered Canadian Gems with Strong Fundamentals for November 2025

Nov -17

Source:

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

Nov -16

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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

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Magellan Aerospace

A-Score: 5.9/10

Value: 5.4

Growth: 4.8

Quality: 5.5

Yield: 3.0

Momentum: 10.0

Volatility: 6.7

1-Year Total Return ->

Park Aerospace

A-Score: 5.2/10

Value: 0.9

Growth: 2.4

Quality: 6.5

Yield: 6.0

Momentum: 9.5

Volatility: 6.0

1-Year Total Return ->

Cadre Holdings

A-Score: 5.1/10

Value: 2.6

Growth: 6.4

Quality: 6.1

Yield: 2.0

Momentum: 8.0

Volatility: 5.3

1-Year Total Return ->

Héroux-Devtek

A-Score: 4.4/10

Value: 4.0

Growth: 4.7

Quality: 4.6

Yield: 0.0

Momentum: 7.0

Volatility: 6.3

1-Year Total Return ->

MDA

A-Score: 4.2/10

Value: 5.2

Growth: 9.3

Quality: 5.8

Yield: 0.0

Momentum: 2.0

Volatility: 2.7

1-Year Total Return ->

VirTra

A-Score: 3.2/10

Value: 4.7

Growth: 5.9

Quality: 5.8

Yield: 0.0

Momentum: 0.5

Volatility: 2.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

7.96%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

9.39%

Magellan Aerospace Corporation - CA5589122004

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on MAL

1.c. Company Highlights

Lower Growth

Less Volatile

Cheaper

Earnings Miss

Revenues Miss

Fairly Valued

Average Yield

Medium Volatility

Stable Momentum

Earnings Beats

Revenues Beats

Strong Momentum

2. Transcript Summary

3. NewsRoom

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%

Services

Expected Growth: 10%

7. Detailed Products

Aerostructures

Aerospace Components

Satellite Systems

Rocket Systems

Engineering and Design Services

8. Magellan Aerospace Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

21.7$

Current Price

21.7$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA