Magellan Aerospace Corp reports 40.4% Net Income growth and 1.7 pp EBITDA Margin growth from 14.3% to 16.0%
22.03.2016 • About Magellan Aerospace Corp (
$MAL) • By InTwits
Magellan Aerospace Corp reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is expanding: 16.0% in 2015 vs. 14.3% in 2014 vs. 13.3% in 2011
- Magellan Aerospace Corp has medium CAPEX intensity: 5 year average CAPEX/Revenue was 5.3%. At the same time it's in pair with industry average of 6.3%.
- CAPEX is quite volatile: 13.3 in 2015, 11.9 in 2014, 16.3 in 2013, 9.3 in 2012, 5.7 in 2011
- The company has highly profitable business model: ROIC is at 17.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Magellan Aerospace Corp ($MAL) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 691.4 | 704.0 | 752.1 | 843.0 | 951.5 | 12.9% |
| Gross Profit | 97.4 | 98.8 | 112.3 | 133.8 | 164.4 | 22.9% |
| SG&A | | | | | 56.7 | |
| EBITDA | 92.0 | 91.1 | 100.2 | 120.9 | 152.6 | 26.3% |
| Net Income | 37.4 | 57.0 | 45.5 | 56.6 | 79.4 | 40.4% |
Balance Sheet
|
|---|
| Cash | 26.5 | 22.4 | 7.8 | 2.6 | 5.5 | 109.4% |
| Short Term Debt | 12.5 | 32.3 | 146.9 | 40.0 | 55.3 | 38.1% |
| Long Term Debt | 100.6 | 213.3 | 63.8 | 62.6 | 60.2 | -4.0% |
Cash flow
|
|---|
| Capex | 59.3 | 33.7 | 31.3 | 35.5 | 43.9 | 23.7% |
Ratios
|
|---|
| Revenue growth | -5.5% | 1.8% | 6.8% | 12.1% | 12.9% | |
| EBITDA growth | -6.2% | -1.0% | 10.0% | 20.7% | 26.3% | |
| Gross Margin | 14.1% | 14.0% | 14.9% | 15.9% | 17.3% | 1.4% |
| EBITDA Margin | 13.3% | 12.9% | 13.3% | 14.3% | 16.0% | 1.7% |
| Net Income Margin | 5.4% | 8.1% | 6.0% | 6.7% | 8.3% | 1.6% |
| SG&A, % of revenue | | | | | 6.0% | 6.0% |
| CAPEX, % of revenue | 8.6% | 4.8% | 4.2% | 4.2% | 4.6% | 0.4% |
| ROIC | 14.2% | 13.0% | 11.7% | 15.0% | 17.3% | 2.3% |
| ROE | 14.9% | 18.5% | 12.2% | 13.0% | 15.3% | 2.3% |
| Net Debt/EBITDA | 0.9x | 2.5x | 2.0x | 0.8x | 0.7x | -0.1x |
Revenue and profitability
Magellan Aerospace Corp's Revenue surged on 12.9% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 0.62 pp from 7.5% to 6.9% in FY2015.
Gross Margin increased slightly on 1.4 pp from 15.9% to 17.3% in 2015.
Net Income marign increased slightly on 1.6 pp from 6.7% to 8.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
Magellan Aerospace Corp's CAPEX/Revenue was 4.6% in 2015. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average CAPEX/Revenue for the last three years was 4.3%.
Return on investment
The company operates at good ROIC (17.25%) and ROE (15.32%). ROIC increased on 2.3 pp from 15.0% to 17.3% in 2015. ROE increased on 2.3 pp from 13.0% to 15.3% in 2015.
Leverage (Debt)
Debt level is 0.7x Net Debt / EBITDA and 0.8x Debt / EBITDA. Net Debt / EBITDA dropped on 0.1x from 0.8x to 0.7x in 2015. Debt jumped on 12.4% in 2015 while cash surged on 109% in 2015.
Management team
The company's CEO Philip C Underwood is a founder and has spent 3 years at the company. Elena M Milantoni is a Magellan Aerospace Corp's CFO. Elena M Milantoni has spent 2 years at the company.
Appendix 1: Peers in Industrial
Below we provide Magellan Aerospace Corp benchmarking against other companies in Industrial industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Electrovaya Inc ($EFL) | | -4.0% | -71.2% | 160.5% | 123.8% |
| Enterprise Group Inc ($E) | 14.5% | 3.5% | 88.3% | 128.5% | |
| Carmanah Technologies Corp ($CMH) | 5.8% | -26.4% | -2.0% | 68.8% | |
| Exco Technologies Ltd ($XTC) | | 19.7% | 0.9% | 50.5% | 35.3% |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 0.8% | 11.5% | 4.9% | 9.1% | 9.1% |
|---|
| Magellan Aerospace Corp ($MAL) | | 1.8% | 6.8% | 12.1% | 12.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | 74.0% |
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | 75.6% |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| |
|---|
| Median (88 companies) | 23.4% | 23.4% | 23.4% | 23.1% | 24.2% |
|---|
| Magellan Aerospace Corp ($MAL) | 14.1% | 14.0% | 14.9% | 15.9% | 17.3% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | 50.9% |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | 48.9% |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | 39.0% |
| Evertz Technologies Ltd ($ET) | 37.2% | 29.6% | 29.1% | 23.0% | 27.0% |
| Badger Daylighting Ltd ($BAD) | 27.2% | 25.7% | 25.9% | 27.9% | 24.6% |
| |
|---|
| Median (69 companies) | 8.1% | 9.2% | 8.3% | 7.2% | 9.5% |
|---|
| Magellan Aerospace Corp ($MAL) | 13.3% | 12.9% | 13.3% | 14.3% | 16.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | 41.3% |
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | 42.0% |
| Enterprise Group Inc ($E) | 3.6% | 17.4% | 27.2% | 32.7% | |
| ENTREC Corp ($ENT) | | 35.0% | 26.7% | 29.5% | 18.0% |
| Horizon North Logistics Inc ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | 14.7% |
| |
|---|
| Median (92 companies) | 2.4% | 3.0% | 3.5% | 3.1% | 3.9% |
|---|
| Magellan Aerospace Corp ($MAL) | 8.6% | 4.8% | 4.2% | 4.2% | 4.6% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | 51.0% |
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | |
| SNC-Lavalin Group Inc ($SNC) | 14.6% | 10.7% | 4.0% | 35.2% | 11.4% |
| Alarmforce Industries Inc ($AF) | 18.3% | 5.3% | 24.0% | 33.9% | 19.0% |
| Epicore BioNetworks Inc ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 8.9% | 9.3% | 8.5% | 8.5% | 10.6% |
|---|
| Magellan Aerospace Corp ($MAL) | 14.2% | 13.0% | 11.7% | 15.0% | 17.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Conifex Timber Inc ($CFF) | | | 2.7x | 6.1x | 35.9x |
| Ag Growth International Inc ($AFN) | 2.4x | 2.9x | -0.1x | 2.1x | 14.1x |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | 12.9x |
| Progressive Waste Solutions Ltd ($BIN) | 2.5x | 4.5x | 3.3x | 2.9x | 10.6x |
| Finning International Inc ($FTT) | 1.8x | 2.3x | 1.8x | 1.4x | 9.4x |
| |
|---|
| Median (62 companies) | 1.1x | 1.5x | 1.4x | 1.3x | 1.2x |
|---|
| Magellan Aerospace Corp ($MAL) | 0.9x | 2.5x | 2.0x | 0.8x | 0.7x |
