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Magellan Aerospace

OTCPK:MALJ.F
Snowflake Description

Very undervalued with flawless balance sheet and pays a dividend.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
MALJ.F
OTCPK
CA$364M
Market Cap
  1. Home
  2. US
  3. Capital Goods
Company description

Magellan Aerospace Corporation, through its subsidiaries, designs, engineers, and manufactures aero engine, and aero structure assemblies and components for aerospace markets in Canada, the United States, Europe, and Asia. The last earnings update was 28 days ago. More info.


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MALJ.F Share Price and Events
7 Day Returns
8.8%
OTCPK:MALJ.F
-5.7%
US Aerospace & Defense
2.4%
US Market
1 Year Returns
-65.9%
OTCPK:MALJ.F
-16.9%
US Aerospace & Defense
-10%
US Market
MALJ.F Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Magellan Aerospace (MALJ.F) 8.8% -44.5% - -65.9% -69.9% -59.6%
US Aerospace & Defense -5.7% -22.7% -32.4% -16.9% -4.5% 17.8%
US Market 2.4% -11% -19.4% -10% 9.6% 21.1%
1 Year Return vs Industry and Market
  • MALJ.F underperformed the Aerospace & Defense industry which returned -16.9% over the past year.
  • MALJ.F underperformed the Market in United States of America which returned -10% over the past year.
Price Volatility
MALJ.F
Industry
5yr Volatility vs Market

Value

 Is Magellan Aerospace undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Magellan Aerospace to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Magellan Aerospace.

OTCPK:MALJ.F Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for OTCPK:MALJ.F
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Aerospace & Defense Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.846 (1 + (1- 26.5%) (32.69%))
1.033
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.03
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.033 * 5.44%)
7.36%

Discounted Cash Flow Calculation for OTCPK:MALJ.F using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Magellan Aerospace is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

OTCPK:MALJ.F DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 7.36%)
2020 16.34 Analyst x1 15.22
2021 69.20 Analyst x1 60.04
2022 74.28 Analyst x1 60.03
2023 78.06 Est @ 5.09% 58.76
2024 81.25 Est @ 4.08% 56.97
2025 83.99 Est @ 3.38% 54.85
2026 86.42 Est @ 2.89% 52.57
2027 88.62 Est @ 2.54% 50.21
2028 90.66 Est @ 2.3% 47.85
2029 92.59 Est @ 2.13% 45.52
Present value of next 10 years cash flows CA$502.00
OTCPK:MALJ.F DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= CA$92.59 × (1 + 1.74%) ÷ (7.36% – 1.74%)
CA$1,676.53
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$1,676.53 ÷ (1 + 7.36%)10
CA$824.21
OTCPK:MALJ.F Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$502.00 + CA$824.21
CA$1,326.21
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$1,326.21 / 58.21
CA$22.78
OTCPK:MALJ.F Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in OTCPK:MALJ.F represents 0.7312x of TSX:MAL
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.7312x
Value per Share
(Listing Adjusted, USD)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 22.78 x 0.7312
$16.66
Value per share (USD) From above. $16.66
Current discount Discount to share price of $4.57
= -1 x ($4.57 - $16.66) / $16.66
72.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Magellan Aerospace is available for.
Intrinsic value
>50%
Share price is $4.57 vs Future cash flow value of $16.66
Current Discount Checks
For Magellan Aerospace to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Magellan Aerospace's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Magellan Aerospace's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Magellan Aerospace's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Magellan Aerospace's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
OTCPK:MALJ.F PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in CAD CA$1.16
TSX:MAL Share Price ** TSX (2020-04-07) in CAD CA$6.25
United States of America Aerospace & Defense Industry PE Ratio Median Figure of 39 Publicly-Listed Aerospace & Defense Companies 13.44x
United States of America Market PE Ratio Median Figure of 2,948 Publicly-Listed Companies 12.95x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Magellan Aerospace.

OTCPK:MALJ.F PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:MAL Share Price ÷ EPS (both in CAD)

= 6.25 ÷ 1.16

5.4x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magellan Aerospace is good value based on earnings compared to the US Aerospace & Defense industry average.
  • Magellan Aerospace is good value based on earnings compared to the United States of America market.
Price based on expected Growth
Does Magellan Aerospace's expected growth come at a high price?
Raw Data
OTCPK:MALJ.F PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 5.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
7%per year
United States of America Aerospace & Defense Industry PEG Ratio Median Figure of 31 Publicly-Listed Aerospace & Defense Companies 1.65x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.92x

*Line of best fit is calculated by linear regression .

OTCPK:MALJ.F PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 5.4x ÷ 7%

0.77x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magellan Aerospace is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Magellan Aerospace's assets?
Raw Data
OTCPK:MALJ.F PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in CAD CA$13.96
TSX:MAL Share Price * TSX (2020-04-07) in CAD CA$6.25
United States of America Aerospace & Defense Industry PB Ratio Median Figure of 53 Publicly-Listed Aerospace & Defense Companies 1.71x
United States of America Market PB Ratio Median Figure of 5,162 Publicly-Listed Companies 1.26x
OTCPK:MALJ.F PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:MAL Share Price ÷ Book Value per Share (both in CAD)

= 6.25 ÷ 13.96

0.45x

* Primary Listing of Magellan Aerospace.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Magellan Aerospace is good value based on assets compared to the US Aerospace & Defense industry average.
X
Value checks
We assess Magellan Aerospace's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Aerospace & Defense industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Aerospace & Defense industry average (and greater than 0)? (1 check)
  5. Magellan Aerospace has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Magellan Aerospace expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Magellan Aerospace expected to grow at an attractive rate?
  • Magellan Aerospace's earnings growth is expected to exceed the low risk savings rate of 1.7%.
Growth vs Market Checks
  • Magellan Aerospace's earnings growth is positive but not above the United States of America market average.
  • Magellan Aerospace's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
OTCPK:MALJ.F Future Growth Rates Data Sources
Data Point Source Value (per year)
OTCPK:MALJ.F Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 7%
OTCPK:MALJ.F Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 2.7%
United States of America Aerospace & Defense Industry Earnings Growth Rate Market Cap Weighted Average 10.3%
United States of America Aerospace & Defense Industry Revenue Growth Rate Market Cap Weighted Average 3.4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
OTCPK:MALJ.F Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
OTCPK:MALJ.F Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 1,085 65 1
2021-12-31 1,034 81 3
2020-12-31 862 147,850 36 3
2020-04-08
OTCPK:MALJ.F Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-12-31 1,016 104 67
2019-09-30 1,024 122 88
2019-06-30 1,015 125 90
2019-03-31 992 117 92
2018-12-31 967 100 89
2018-09-30 945 107 91
2018-06-30 941 118 91
2018-03-31 952 132 87
2017-12-31 955 130 109
2017-09-30 970 144 102
2017-06-30 985 128 102
2017-03-31 986 119 105

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Magellan Aerospace's earnings are expected to grow by 7% yearly, however this is not considered high growth (20% yearly).
  • Magellan Aerospace's revenue is expected to grow by 2.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
OTCPK:MALJ.F Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from Magellan Aerospace Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:MALJ.F Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31 1.16 1.16 1.16 1.00
2021-12-31 1.39 1.64 1.14 2.00
2020-12-31 0.62 0.94 0.29 2.00
2020-04-08
OTCPK:MALJ.F Past Financials Data
Date (Data in CAD Millions) EPS *
2019-12-31 1.16
2019-09-30 1.50
2019-06-30 1.55
2019-03-31 1.58
2018-12-31 1.53
2018-09-30 1.57
2018-06-30 1.56
2018-03-31 1.50
2017-12-31 1.88
2017-09-30 1.75
2017-06-30 1.76
2017-03-31 1.80

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Magellan Aerospace will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Magellan Aerospace's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Magellan Aerospace has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Magellan Aerospace performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Magellan Aerospace's growth in the last year to its industry (Aerospace & Defense).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Magellan Aerospace's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Magellan Aerospace's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Magellan Aerospace's 1-year earnings growth is negative, it can't be compared to the US Aerospace & Defense industry average.
Earnings and Revenue History
Magellan Aerospace's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Magellan Aerospace Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

OTCPK:MALJ.F Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 1,016.22 67.38 60.05
2019-09-30 1,023.93 87.55 59.42
2019-06-30 1,014.87 90.32 58.41
2019-03-31 992.01 92.07 56.30
2018-12-31 966.75 89.12 55.63
2018-09-30 945.00 91.41 56.36
2018-06-30 941.05 90.92 55.84
2018-03-31 951.87 87.31 57.43
2017-12-31 955.46 109.49 57.89
2017-09-30 969.90 101.62 57.50
2017-06-30 985.37 102.33 56.54
2017-03-31 986.00 104.79 55.64
2016-12-31 1,003.84 88.58 55.76
2016-09-30 1,009.34 90.05 56.40
2016-06-30 1,007.50 89.48 57.31
2016-03-31 989.27 83.63 57.03
2015-12-31 951.47 79.42 54.95
2015-09-30 907.84 71.81 52.12
2015-06-30 874.18 66.58 51.12
2015-03-31 860.79 63.72 48.32
2014-12-31 843.04 56.57 46.67
2014-09-30 830.05 55.47 46.13
2014-06-30 808.52 51.99 45.07
2014-03-31 777.34 49.55 44.59
2013-12-31 752.13 45.48 43.86
2013-09-30 742.59 50.52 41.98
2013-06-30 723.01 55.82 40.43

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Magellan Aerospace has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Magellan Aerospace used its assets less efficiently than the US Aerospace & Defense industry average last year based on Return on Assets.
  • Magellan Aerospace's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Magellan Aerospace's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Aerospace & Defense industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Magellan Aerospace has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Magellan Aerospace's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Magellan Aerospace's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Magellan Aerospace is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Magellan Aerospace's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Magellan Aerospace's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 7.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Magellan Aerospace Company Filings, last reported 3 months ago.

OTCPK:MALJ.F Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 815.88 72.85 69.64
2019-09-30 799.34 72.77 48.23
2019-06-30 794.36 70.48 41.37
2019-03-31 798.13 74.05 38.46
2018-12-31 787.67 77.97 63.32
2018-09-30 752.17 70.16 22.94
2018-06-30 746.23 75.82 17.46
2018-03-31 731.10 83.27 12.08
2017-12-31 699.25 86.90 40.39
2017-09-30 663.71 110.30 13.25
2017-06-30 652.24 135.69 11.87
2017-03-31 641.43 143.78 4.96
2016-12-31 607.33 152.33 7.61
2016-09-30 579.91 201.54 3.38
2016-06-30 562.46 214.70 5.02
2016-03-31 564.11 230.59 5.66
2015-12-31 577.35 251.24 5.54
2015-09-30 546.24 230.77 14.10
2015-06-30 512.28 231.33 12.67
2015-03-31 491.99 193.55 2.61
2014-12-31 459.60 184.10 2.65
2014-09-30 445.13 204.15 10.88
2014-06-30 428.03 211.18 5.52
2014-03-31 424.01 223.06 8.12
2013-12-31 408.16 210.65 7.76
2013-09-30 377.88 230.13 8.21
2013-06-30 369.63 238.99 12.77
  • Magellan Aerospace's level of debt (8.9%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (40% vs 8.9% today).
  • Debt is well covered by operating cash flow (143%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 20.4x coverage).
X
Financial health checks
We assess Magellan Aerospace's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Magellan Aerospace has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Magellan Aerospace's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
6.72%
Current annual income from Magellan Aerospace dividends. Estimated to be 6.72% next year.
If you bought $2,000 of Magellan Aerospace shares you are expected to receive $134 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Magellan Aerospace's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.93%).
  • Magellan Aerospace's dividend is above the markets top 25% of dividend payers in United States of America (5.46%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
OTCPK:MALJ.F Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
United States of America Aerospace & Defense Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 2.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1935 Stocks 2.9%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.9%
United States of America Top 25% Dividend Yield 75th Percentile 5.5%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

OTCPK:MALJ.F Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2022-12-31 0.42 1.00
2021-12-31 0.42 1.00
2020-12-31 0.42 1.00
2020-04-08
OTCPK:MALJ.F Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2020-03-06 0.420 6.606
2019-11-08 0.420 2.947
2019-08-02 0.400 2.575
2019-05-07 0.400 2.385
2019-03-08 0.400 2.217
2018-11-02 0.400 2.490
2018-08-03 0.340 1.935
2018-05-01 0.340 2.019
2018-03-02 0.340 1.733
2017-11-03 0.340 1.650
2017-08-04 0.260 1.402
2017-05-02 0.260 1.272
2017-03-03 0.260 1.322
2016-11-14 0.260 1.435
2016-08-10 0.230 1.366
2016-05-10 0.230 1.286
2016-02-23 0.230 1.428
2015-11-10 0.230 1.466
2015-08-11 0.220 1.304
2015-05-12 0.220 1.266
2015-02-20 0.220 1.627
2014-11-07 0.220 1.628
2014-08-12 0.160 1.345
2014-05-13 0.160 1.392
2014-02-20 0.160 1.932
2013-11-08 0.120 1.566
2013-08-08 0.120 2.152

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Whilst dividend payments have been stable, Magellan Aerospace has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Magellan Aerospace only paid a dividend in the past 7 years.
Current Payout to shareholders
What portion of Magellan Aerospace's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.9x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (2.8x coverage).
X
Income/ dividend checks
We assess Magellan Aerospace's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Magellan Aerospace afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Magellan Aerospace has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Magellan Aerospace's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Phil Underwood
COMPENSATION CA$811,289
TENURE AS CEO 5.3 years
CEO Bio

Mr. Phillip Campion Underwood, also known as Phil, has been the President of Magellan Aerospace Corp. since May 13, 2014 and has been its Chief Executive Officer since January 1, 2015. Mr. Underwood served as Vice President of European Operations at Magellan Aerospace Corp., from February 15, 2003 to May 2014. He is responsible for lead the European operations and oversee the Partnership in India. He is responsible for the strategic and operational direction across seven operational divisions which employ more than 1,000 people. He has been Director of Magellan Aerospace Corp. since March 20, 2015. He is an Integral Member of the executive operations team and Board Director for the UK and India. In 2003, he joined the Magellan, when Magellan Aerospace purchased the UK business. During his 33 years in the Aerospace Industry, he has held a number of senior positions with GKN Aerospace both in the UK and the US. Mr. Underwood holds a Bachelor of Science degree and is a Member of the Institute of Industrial Management.

CEO Compensation
  • Phil's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Phil's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure of the Magellan Aerospace management team in years:

3.1
Average Tenure
  • The tenure for the Magellan Aerospace management team is about average.
Management Team

Norman Edwards

TITLE
Executive Chairman
AGE
59

Phil Underwood

TITLE
President
COMPENSATION
CA$811K
TENURE
5.3 yrs

Elena Milantoni

TITLE
Chief Financial Officer
COMPENSATION
CA$344K
TENURE
4.3 yrs

Hyden Martin

TITLE
Vice President of Business Development
COMPENSATION
CA$393K
TENURE
1.8 yrs

Jo-Ann Ball

TITLE
Vice President of Human Resources
COMPENSATION
CA$293K

Craig Vaughan

TITLE
Corporate Secretary
TENURE
1.9 yrs
Board of Directors Tenure

Average tenure and age of the Magellan Aerospace board of directors in years:

16.1
Average Tenure
60
Average Age
  • The average tenure for the Magellan Aerospace board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Norman Edwards

TITLE
Executive Chairman
AGE
59

Phil Underwood

TITLE
President
COMPENSATION
CA$811K
TENURE
5.1 yrs

Bruce Gowan

TITLE
Independent Director
COMPENSATION
CA$95K
TENURE
30.3 yrs

Steve Somerville

TITLE
Independent Director
COMPENSATION
CA$88K
TENURE
6.9 yrs

William Davis

TITLE
Independent Director
COMPENSATION
CA$72K
AGE
89
TENURE
31.3 yrs

Larry G. Moeller

TITLE
Director
COMPENSATION
CA$72K
AGE
60
TENURE
25.3 yrs

Beth M. Bandler

TITLE
Independent Director
COMPENSATION
CA$80K
TENURE
5.9 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Magellan Aerospace individual insiders in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
25. Mar 20 Buy Bruce Gowan Individual 20. Mar 20 20. Mar 20 1,000 $4.35 $4,349
X
Management checks
We assess Magellan Aerospace's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Magellan Aerospace has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Magellan Aerospace Corporation, through its subsidiaries, designs, engineers, and manufactures aero engine, and aero structure assemblies and components for aerospace markets in Canada, the United States, Europe, and Asia. The company offers aero engine products, including engine frames, compressor and fan cases, turbine cases, shafts, rotor spools, discs and blisks, and gearbox housings; and combustion liners and cases, exhaust frames and systems, engine bypass ducts and frames, acoustically treated exhaust systems, and fan cowl doors, as well as repair and overhaul services. It also provides aero structure components, such as landing gear systems, wing ribs and spars, bulkheads and fuselage components, tailcone assemblies, and composite wing and fairing structures. In addition, the company offers space, satellites, SCISAT, and satellite subsystems; sand cast components comprising engine mounted gearbox housings, power transmission housings, APU housings, engine inlets and intermediate cases, and front frames and fan cases; and wire strike protection systems for helicopter safety. Further, it provides power generation equipment and services, and gas turbines, as well as generates energy from waste; and rocket weapon systems, brant rockets, booster motors, and missile fins and control systems, as well as other support materials. Additionally, the company is involved in the precision machining and assembly of commercial aerospace products, as well as provision of metal finishing treatment services for aerospace products; supply and overhaul of aircraft and helicopter engines and airborne ancillary power units; and provision of aircraft engineering and design consultancy, including engine sales, exchange, and leasing services. Magellan Aerospace Corporation was founded in 1994 and is headquartered in Mississauga, Canada.

Details
Name: Magellan Aerospace Corporation
MALJ.F
Exchange: OTCPK
Founded: 1994
CA$257,168,688
58,209,001
Website: http://www.magellan.aero
Address: Magellan Aerospace Corporation
3160 Derry Road East,
Mississauga,
Ontario, L4T 1A9,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX MAL Common Shares The Toronto Stock Exchange CA CAD 06. Jan 1975
OTCPK MALJ.F Common Shares Pink Sheets LLC US USD 06. Jan 1975
DB 4M7A Common Shares Deutsche Boerse AG DE EUR 06. Jan 1975
Number of employees
Current staff
Staff numbers
4,200
Magellan Aerospace employees.
Industry
Aerospace and Defense
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/08 12:42
End of day share price update: 2020/04/07 00:00
Last estimates confirmation: 2020/03/25
Last earnings filing: 2020/03/11
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.