TSE:MAL
Magellan Aerospace (MAL.TO)
Financials 
Technical Analysis 
Sep 3, 2026, 12:00 amThis summary was created by AI, based on 15 opinions in the last 12 months.
Magellan Aerospace (MAL) has garnered significant attention from analysts who commend its robust positioning within the Canadian aerospace and defense sector. The company holds substantial contracts with major players like Airbus and Boeing, and anticipated growth of approximately 20% annually is noted due to increasing demand for defense applications. Analysts have observed improving EBITA margins and an influx of cash reserves as debt diminishes and share buybacks continue. This positive momentum is underscored by a consistent pattern of achieving set price targets over time, highlighting a favorable operational landscape. Overall, MAL appears well-positioned for long-term growth, attracting a consensus recommendation as a 'Top Pick' among market experts.
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Premium contentThis Canadian aerospace manufacturing company has formed broad agreements recently with India and Korea. Recently reported earnings showed a 70% increase in quarterly income, allowing cash reserves to grow while debt was retired and shares bought back. It trades at 24x earnings and 1.2x book. Its dividend is backed by a payout ratio under 20% of cash flow. We recommend setting a stop-loss at $13, looking to achieve $21 -- upside over 22%. Yield 1.1%
(Analysts’ price target is $21.00)The stock is cheap, and acting better. The sector (in the US, mostly) has been seeing some good numbers recently. It hit a 52-week high this week. We think it can be held, and >$10 is possible, even $12 under good conditions. $16 we think would be a stretch.
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EPS of 11c beat estimates of 10c; Revenue of $235.2M missed estimates by 2.6%. EBITDA of $21.69M missed estimates by 10%. Revenue rose 5.3%. EPS rose from 7c in the prior period. EBITDA rose 17%. Canada revenue declined, but US revenue rose more than 20% on volume increases for fighter and wide-bodied aircraft. Strong growth is expected in 2024 overall. We would consider the quarter, OK, but not great. The stock remains cheap, but unexcitng.
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Peter ImhofPeter Imhof
(A Top Pick Feb 28/17. Up 17.83%.) A very low multiple stock. Trades at around 11.5-12×2018 earnings. Part of the reason is that there is not much liquidity with the company. All the other companies in this space trade at around 18X earnings. There is a good chance this company may eventually get taken out. He is going to continue to hold.
Peter ImhofHe really likes this company. The multiple is very low. When he recommended it in the past, it was about 10X earnings. You only have to get a couple of multiple readings above that to get a much, much higher stock price. Last quarter wasn’t great, but thinks the cash flow generation is still there. The problem is that it is very illiquid, so for individuals it is a good one to own, but for institutions it is difficult.
Manufactures components for Airbus and Boeing. Trading at 11X trailing earnings and 10X forward earnings. They’ve done an incredible job. At some point, maybe they buy something, and then they can add some liquidity. A good balance sheet. They’ve grown the earnings at 24% over the last few years. Dividend yield of 1.5%. (Analysts’ price target is $23.25.)
Peter ImhofHas always had nice contracts with Boeing and Airbus. It has been a long horizon for them to get to the stage to finally enjoy some of these great contracts. As long as the aerospace business continues to do well, and he thinks it will, the company will do well. This is one you probably should think about owning.
Jim Huang
(A Top Pick Nov 12/14. Up 20.99%.) There has been tremendous growth in the airline business. A wonderful Canadian story. Thinks it is going to be a continuing growth story going forward.
Brendan Caldwell(A Top Pick Nov 12/14. Up 27.78%.) The drop in energy prices has certainly helped this company. You are probably better off owning an airline manufacturer rather than an airline itself. This makes all kinds of airline components.
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We reiterate MAL as a TOP PICK. Recently reported earnings showed a 17% increase in EPS and a 25% increase in gross profits. The aerospace parts maker relies on the US for less than 25% of its revenues with the balance primarily in Canada and the rest in Europe (military/defense accounts for about a third of revenues). It trades at 24x earnings and 1.1x book. Cash reserves are growing, as debt is retired and shares bought back. We continue to recommend a stop at $13, looking to achieve $21 -- upside potential over 30%. Yield 0%
(Analysts’ price target is $21.00)