Magellan Aerospace Corp EBITDA Margin dropped on 16.0 pp from 16.0% to in 2016
08.03.2017 • About Magellan Aerospace Corp (
$MAL) • By InTwits
Magellan Aerospace Corp reported FY2016 financial results today. Overall the company's long term financial model is characterised by the following facts: It operates with high leverage: Net Debt/EBITDA is 3.5x while industry average is 2.2x.
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Magellan Aerospace Corp ($MAL) key annual financial indicators
| mln. CAD | 2012 | 2013 | 2014 | 2015 | 2016 | 2016/2015 |
|---|
P&L
|
|---|
| Revenue | 704 | 752 | 843 | 951 | 1,004 | 5.5% |
| Gross Profit | 99 | 112 | 134 | 164 | | -100.0% |
| SG&A | | | | 57 | | -100.0% |
| EBITDA | 91 | 100 | 121 | 153 | | -100.0% |
| Net Income | 57 | 45 | 57 | 79 | 89 | 11.5% |
Balance Sheet
|
|---|
| Cash | 22 | 8 | 3 | 6 | | -100.0% |
| Short Term Debt | 32 | 147 | 40 | 55 | | -100.0% |
| Long Term Debt | 213 | 64 | 63 | 60 | | -100.0% |
Cash flow
|
|---|
| Capex | 34 | 31 | 35 | 44 | | -100.0% |
Ratios
|
|---|
| Revenue growth | 1.8% | 6.8% | 12.1% | 12.9% | 5.5% | |
| EBITDA growth | -1.0% | 10.0% | 20.7% | 26.3% | | |
| Gross Margin | 14.0% | 14.9% | 15.9% | 17.3% | | -17.3% |
| EBITDA Margin | 12.9% | 13.3% | 14.3% | 16.0% | 0.0% | -16.0% |
| Net Income Margin | 8.1% | 6.0% | 6.7% | 8.3% | 8.8% | 0.5% |
| SG&A, % of revenue | | | | 6.0% | | -6.0% |
| CAPEX, % of revenue | 4.8% | 4.2% | 4.2% | 4.6% | | -4.6% |
| ROIC | 13.0% | 11.7% | 15.0% | 17.3% | | -17.3% |
| ROE | 18.5% | 12.2% | 13.0% | 15.3% | | -15.3% |
| Net Debt/EBITDA | 2.5x | 2.0x | 0.8x | 0.7x | | -0.7x |
Magellan Aerospace Corp ($MAL) key quoterly financial indicators
| mln. CAD | FY16Q1 | FY16Q2 | FY16Q3 | FY16Q4 | YoY change |
|---|
P&L
|
|---|
| Revenue | 266 | 253 | 238 | 247 | 16.6% | 7.8% | 0.8% | -2.2% |
| EBITDA | 46 | 46 | 38 | 43 | 30.6% | 27.4% | 2.0% | -0.5% |
| Net Income | 23 | 22 | 19 | 24 | 21.9% | 35.5% | 1.6% | -5.8% |
Balance Sheet
|
|---|
| Cash | 6 | 5 | 3 | 8 | 117.0% | -60.4% | -76.0% | 37.3% |
| Short Term Debt | 51 | 56 | 54 | 51 | 12.7% | 23.1% | 17.3% | -8.1% |
| Long Term Debt | 58 | 58 | 58 | 58 | -7.6% | -4.7% | -4.1% | -3.2% |
Ratios
|
|---|
| Gross Margin | 18.2% | 18.2% | 16.3% | 18.4% | 1.1% | 0.8% | -0.5% | 0.7% |
| EBITDA Margin | 17.3% | 18.2% | 16.1% | 17.6% | 1.9% | 2.8% | 0.2% | 0.3% |
| Net Income Margin | 8.8% | 8.8% | 7.9% | 9.7% | 0.4% | 1.8% | 0.1% | -0.4% |
Revenue and profitability
The company's Revenue increased on 5.5%. Revenue growth showed slow down in FY16Q4 - it was -2.2% YoY.
Net Income marign showed almost no change in FY2016.
Management team
Philip C Underwood is a the company's CEO. Philip C Underwood is a founder and has spent 3 years at the company. Elena M Milantoni is a The company's CFO. Elena M Milantoni has spent 2 years at the company.
Appendix 1: Peers in Industrial
Below we provide Magellan Aerospace Corp benchmarking against other companies in Industrial industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Progressive Waste Solutions Ltd ($BIN) | | 16.1% | 7.8% | 1.8% | 59.4% |
| Baylin Technologies Inc ($BYL) | | 16.5% | -44.0% | -4.1% | 47.5% |
| CCL Industries Inc ($CCL.B) | | 44.4% | 36.8% | 17.5% | 30.8% |
| Stantec Inc ($STN) | | 17.9% | 13.3% | 14.4% | 30.5% |
| Avigilon Corp ($AVO) | | 72.6% | 41.9% | 17.7% | 22.2% |
| |
|---|
| Median (51 companies) | | 4.9% | 9.9% | 7.7% | 2.6% |
|---|
| Magellan Aerospace Corp ($MAL) | | 6.8% | 12.1% | 12.9% | 5.5% |
Top companies by Gross margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Pure Technologies Ltd ($PUR) | 77.9% | 78.0% | 77.5% | 75.6% | |
| WSP Global Inc ($WSP) | 81.1% | 83.2% | 81.0% | 74.0% | 76.7% |
| Avigilon Corp ($AVO) | 49.3% | 54.2% | 56.6% | 57.4% | 52.0% |
| Stantec Inc ($STN) | 55.0% | 54.7% | 54.9% | 54.5% | 54.1% |
| IWG Technologies Inc ($IWG) | 53.3% | 54.0% | 49.0% | 47.8% | 54.9% |
| |
|---|
| Median (49 companies) | 23.9% | 24.0% | 21.9% | 21.9% | 22.2% |
|---|
| Magellan Aerospace Corp ($MAL) | 14.0% | 14.9% | 15.9% | 17.3% | |
Top companies by EBITDA margin, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Canadian National Railway Co ($CNR) | 46.5% | 45.9% | 46.8% | 50.9% | 54.3% |
| Canadian Pacific Railway Ltd ($CP) | 26.1% | 32.4% | 43.7% | 48.9% | 51.6% |
| Badger Daylighting Ltd ($BAD) | 25.7% | 25.9% | 27.9% | 24.6% | 24.2% |
| IWG Technologies Inc ($IWG) | 12.7% | 25.5% | 20.0% | 24.0% | 26.9% |
| Winpak Ltd ($WPK) | 19.5% | 18.6% | 18.7% | 22.7% | 23.5% |
| |
|---|
| Median (53 companies) | 10.2% | 8.3% | 8.0% | 7.8% | 11.1% |
|---|
| Magellan Aerospace Corp ($MAL) | 12.9% | 13.3% | 14.3% | 16.0% | |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Newalta Corp ($NAL) | 21.7% | 34.5% | 35.1% | 42.0% | 9.6% |
| Cargojet Inc ($CJT.A) | 7.0% | 6.3% | 54.1% | 41.3% | |
| Algoma Central Corp ($ALC) | 15.9% | 7.3% | 5.0% | 27.4% | 58.2% |
| Canadian Pacific Railway Ltd ($CP) | 20.2% | 20.2% | 21.9% | 22.7% | 19.0% |
| Canadian National Railway Co ($CNR) | 17.4% | 18.7% | 18.9% | 21.5% | 22.4% |
| |
|---|
| Median (54 companies) | 3.2% | 3.6% | 4.4% | 3.7% | 4.3% |
|---|
| Magellan Aerospace Corp ($MAL) | 4.8% | 4.2% | 4.2% | 4.6% | |
Top companies by ROIC, %
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| IBI Group Inc ($IBG) | 4.8% | -9.0% | 11.6% | 21.9% | 26.2% |
| IWG Technologies Inc ($IWG) | 17.0% | 36.3% | 23.4% | 27.2% | 25.7% |
| Winpak Ltd ($WPK) | 20.4% | 18.0% | 18.3% | 22.6% | 21.8% |
| Toromont Industries Ltd ($TIH) | 28.8% | 25.8% | 24.3% | 23.5% | 21.7% |
| Intertape Polymer Group Inc ($ITP) | 12.3% | 13.7% | 22.5% | 23.0% | 21.0% |
| |
|---|
| Median (55 companies) | 12.2% | 9.6% | 11.0% | 8.3% | 9.0% |
|---|
| Magellan Aerospace Corp ($MAL) | 13.0% | 11.7% | 15.0% | 17.3% | |
Top companies by Net Debt / EBITDA
| Top 5 | FY2012 | FY2013 | FY2014 | FY2015 | FY2016 |
|---|
| Conifex Timber Inc ($CFF) | | 2.7x | 6.1x | 35.9x | 3.6x |
| Ag Growth International Inc ($AFN) | 2.9x | -0.1x | 2.1x | 14.1x | |
| Cargojet Inc ($CJT.A) | 1.5x | 1.5x | 31.5x | 12.9x | |
| Progressive Waste Solutions Ltd ($BIN) | 4.5x | 3.3x | 2.9x | 10.6x | 3.8x |
| Finning International Inc ($FTT) | 2.3x | 1.8x | 1.4x | 9.4x | 2.5x |
| |
|---|
| Median (49 companies) | 1.5x | 1.5x | 1.3x | 1.0x | 1.9x |
|---|
| Magellan Aerospace Corp ($MAL) | 2.5x | 2.0x | 0.8x | 0.7x | |
