Yahoo Finance Why Fundamental Investors Might Love Magellan Aerospace Corporation (TSE:MAL)
Attractive stocks have exceptional fundamentals. In the case of Magellan Aerospace Corporation (TSE:MAL), there’s is a company that has been able to sustain great financial health, trading at an attractive share price. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my high-level commentary, take a look at the report on Magellan Aerospace here.
Flawless balance sheet and undervalued
MAL’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This implies that MAL manages its cash and cost levels well, which is a key determinant of the company’s health. MAL seems to have put its debt to good use, generating operating cash levels of 1.56x total debt in the most recent year. This is also a good indication as to whether debt is properly covered by the company’s cash flows. MAL is currently trading below its true value, which means the market is undervaluing the company’s expected cash flow going forward. This mispricing gives investors the opportunity to buy into the stock at a cheap price compared to the value they will be receiving, should analysts’ consensus forecast growth be correct. Compared to the rest of the aerospace & defense industry, MAL is also trading below its peers, relative to earnings generated. This further reaffirms that MAL is potentially undervalued.
Next Steps:
For Magellan Aerospace, I’ve compiled three pertinent aspects you should look at:
Future Outlook: What are well-informed industry analysts predicting for MAL’s future growth? Take a look at our free research report of analyst consensus for MAL’s outlook.
Historical Performance: What has MAL’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of MAL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
