TSE:MAL

Magellan Aerospace (MAL.TO)

31.96
-1.35 (4.05%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
63 watching
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Investor Insights
star iconJun 5, 2026, 12:00 am

This summary was created by AI, based on 9 opinions in the last 12 months.

Magellan Aerospace (MAL-T) has received strong endorsements from analysts as a top pick due to its robust growth potential in the defense and aerospace sectors. The company's earnings reports indicate significant increases in cash reserves and a successful strategy of debt retirement and share buybacks. With over 30% of its revenue tied to defense spending, and a promising backlog of orders, particularly amid rising military expenditures, the outlook is positive. Analysts note the strong insider ownership, which presents opportunities while limiting institutional interest. Valuations suggest the stock remains competitive in terms of earnings, making it one of the cheapest options in the North American aerospace sector.

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Consensus
Bullish
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Valuation
Undervalued
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BUY

A prime candidate for what you want to be looking for in Canada. Manufacturer that is steeped in Canadian dollar labour. Trade at 5-6 times. Management is really positive on what is going on right now.

PARTIAL BUY

Stock has been behaving strangely. Very thinly traded, so when someone decides to Buy or Sell, they can knock it around quite a bit. He has been buying at around $7.50 or a little bit lower. This should do very well because a lot of their revenues are US-based and their labour costs are Canadian. He would suggest that you average in.

TOP PICK

We haven’t actually seen the positive leverage of a weak Cdn$ versus a strong US$ actually play out in manufacturers. This is likely where earnings prices are going to be and will likely play out over the next several years. He likes aerospace. Have operating leverage as they have a lot of hard fixed assets, as well as financial leverage. Yield of 1.55% and trading at less than 5X EBITDA versus the groups of 7.5-8 times. Very cheap.

WEAK BUY
On his stock watch list. Have tremendous potential. Debt problem. Made a marvelous recovery. One critical shareholder. Less attractive at $4 than earlier. Not as attractive as other companies but he will re-visit it after most recent earnings.
COMMENT
Interesting company. Seem to be getting their house in order. Big debt load. Continuing getting orders. A contrarian play. His hesitancy is that it has moved up a fair bit so he thinks there are companies that are of greater interest for him
WAIT
On his watch list. Debt was going up and they were loosing money. Has been a leader in aerospace for years in Canada. A contrarian play. Wait
DON'T BUY
Fairly leveraged balance sheet. Longer term, the aerospace business is not a bad business but would avoid it right now. Highly cyclical.
DON'T BUY
Debt load is too big for him. Has not done well in this sector. Still have all kinds of difficulties.
DON'T BUY
(Market Call Minute) Not unlike Loblaws (L-T), Tembec (TBC-T) and Quebecor World (IQW-T).
COMMENT
Prefers Northstar Aerospace (NAS-T) which is a better investment. Likes the aerospace sector right now.
DON'T BUY
A tough, tough business. Well run, but they have done some silly financings in the past. Doersn't like the space. You can make some money if you're numble and can read the space.
DON'T BUY
Hit by the Cdn$ and by taking on a lot of orders that require them to build working capital which takes a lot of capital. Weak balance sheet. Need another financing which will dilute share price.
SELL
Had a bit of an upturn and would take advantage of this and sell.
DON'T BUY
Potential earnings and book value looks great, but they have a very large debt.
WEAK BUY
Good price. Not sure if their earnings can grow again, but doesn't see any further drop in price.
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