Magellan Aerospace (TSE:MAL) Sets New 12-Month High - Still a Buy?

Key Points

• 52-week high: Shares hit a new 52-week high of C$26.00 (last C$25.98) on higher volume, while analysts' consensus rating is Buy with a C$25.00 consensus target and recent upgrades from TD Securities and ATB Cormark.
• Fundamentals: the company has a C$1.48B market cap, P/E of 37.65, debt-to-equity of 10.77, and reported Q results of C$0.18 EPS on C$278.33M revenue; analysts forecast roughly C$0.97 EPS for the year, implying a relatively rich valuation.
• Dividend: Magellan declared a quarterly C$0.05 dividend (C$0.20 annualized) for a 0.8% yield and a 25.36% payout ratio, paid March 31 with an ex-dividend date of March 17.

Shares of Magellan Aerospace Co. (TSE:MAL - Get Free Report) hit a new 52-week high on Wednesday . The company traded as high as C$26.00 and last traded at C$25.98, with a volume of 69054 shares trading hands. The stock had previously closed at C$24.08.

Wall Street Analysts Forecast Growth

A number of brokerages recently weighed in on MAL. TD Securities raised their price objective on Magellan Aerospace from C$24.00 to C$25.00 and gave the company a "buy" rating in a research report on Tuesday, March 31st. ATB Cormark Capital Markets raised Magellan Aerospace to a "moderate buy" rating in a research report on Monday. Two research analysts have rated the stock with a Buy rating, Based on data from MarketBeat.com, the stock presently has an average rating of "Buy" and a consensus target price of C$25.00.

Magellan Aerospace Stock Performance

The company has a debt-to-equity ratio of 10.77, a current ratio of 2.75 and a quick ratio of 1.55. The firm has a market cap of C$1.48 billion, a price-to-earnings ratio of 37.65, a P/E/G ratio of -21.36 and a beta of 0.76. The firm has a fifty day simple moving average of C$22.07 and a two-hundred day simple moving average of C$19.45.

Magellan Aerospace (TSE:MAL - Get Free Report) last issued its quarterly earnings results on Friday, March 27th. The company reported C$0.18 earnings per share for the quarter. The business had revenue of C$278.33 million during the quarter. Magellan Aerospace had a return on equity of 4.83% and a net margin of 3.78%. On average, analysts expect that Magellan Aerospace Co. will post 0.9692308 EPS for the current year.

Magellan Aerospace Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Shareholders of record on Tuesday, March 31st were issued a $0.05 dividend. This represents a $0.20 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Tuesday, March 17th. Magellan Aerospace's dividend payout ratio (DPR) is currently 25.36%.

Magellan Aerospace Company Profile

Magellan Aerospace Corp supplies components to the aerospace industry. It has two major product groups: aerostructures and aeroengines. Its engines and parts may be applied to new aircraft, or as replacement parts to existing platforms. The company also provides aftermarket support by conducting specific repairs and other maintenance services. It serves both commercial (approximately three-fourths of total sales) and defense markets. Additionally, parts and equipment may be provided for power generation projects, but sales do not constitute a material amount.

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