Latest news with #MagellanAerospace
Yahoo
2 days ago
- Business
- Yahoo
Double Your Money? Top 2 Canadian Stocks in a Tariff-Sensitive Market
Written by Christopher Liew, CFA at The Motley Fool Canada Tariffs are unwelcome in financial markets and disliked by investors. These duties disrupt trade, alter the investment landscape, and heighten volatility. Fortunately, not all sectors have incurred losses due to tariff chaos. Canada's main stock index advanced nearly 7.2% in the last three months, notwithstanding the U.S.-initiated trade war. As of June 4, 2025, 8 of the TSX's 11 primary sectors are in positive territory. The materials sector is the top performer year-to-date (+18.3%), while industrials have been steady (+5.4%). Notably, one stock from each sector is among the top Canadian stocks in a tariff-sensitive market. K92 Mining (TSX:KNT) and Magellan Aerospace (TSX:MAL) have delivered outsized gains thus far this year. Given their astronomical returns, you can double your money by investing in either stock. Their total returns in one year are 110.2%-plus and 110.6%-plus, respectively. K92 Mining, based in Vancouver, owns the Kainantu Goldmine in Papua New Guinea. The $3.6 billion gold producer aims to become a mid-tier one producer. Given six consecutive years of gold production growth, the goal is highly achievable. But why is this mining stock outperforming in 2025? Gold stocks, such as K92, serve as proxies for the physical precious metal and safety nets for tariff-weary investors. Second, the high-grade, high-margin gold mine in Papua New Guinea offers significant growth in gold resources. Third, the solid Q1 2025 financial results assure future growth. In the three months ending March 31, 2025, net earnings and earnings from mine operations soared 2,190.2% and 484.2% respectively to US$70.2 million and US$110.5 million compared to Q1 2024. Total gold production during the quarter reached 45,735 ounces, representing an 87.5% year-over-year increase. For 2025, management expects gold equivalent production of 160,000 to 185,000 ounces (AuEq), compared to the record 149,515 ounces of AuEq in 2024. KNT is no doubt a compelling gold investment opportunity. If you invest today, the share price is $15.64 (+80.2% year-to-date). Magellan Aerospace, a $971.4 million integrated aerospace company, provides complex assemblies and systems solutions for the civil aerospace and defence markets. Its customers are aircraft and engine manufacturers as well as space agencies. Had you invested $7,000 one year ago, your money would be $14,480.40 today. MAL currently trades at $16.88 per share (+68% year-to-date) and pays a modest dividend yield of 1.2%. According to management, U.S. tariffs have created the potential for a new form of turbulence. Nonetheless, Magellan reported better-than-expected financial results for the start of the year. In Q1 2025, total revenues and net income increased 10.9% and 71.4% year-over-year respectively to $260.9 million and $10.8 million. If trade tensions persist, tariffs could impact the commercial aircraft manufacturing market. However, the strong demand in the defence market should continue to provide manufacturers with secure order books for the foreseeable future. Moreover, the modernization of armed forces globally is a positive factor. On April 30, 2025, Magellan signed long-term agreements (LTAs) with Pratt & Whitney (Canada), an RTX business. The LTAs, including a blend of contract extensions to legacy agreements, enhance Magellan's position in the supply chain. Take your pick between K92 Mining and Magellan Aerospace. The former has a clear path to becoming a mid-tier one gold producer. On the other hand, the latter has the makings of an aerospace industry powerhouse. The post Double Your Money? Top 2 Canadian Stocks in a Tariff-Sensitive Market appeared first on The Motley Fool Canada. Before you buy stock in K92 Mining, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and K92 Mining wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $21,345.77!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*. See the Top Stocks * Returns as of 4/21/25 More reading Made in Canada: 5 Homegrown Stocks Ready for the 'Buy Local' Revolution [PREMIUM PICKS] Market Volatility Toolkit Best Canadian Stocks to Buy in 2025 Beginner Investors: 4 Top Canadian Stocks to Buy for 2025 5 Years From Now, You'll Probably Wish You Grabbed These Stocks Subscribe to Motley Fool Canada on YouTube Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends RTX. The Motley Fool has a disclosure policy. 2025
CBC
17-04-2025
- Business
- CBC
Parts supplier sues Magellan Aerospace in Winnipeg for $1.5M, claiming invoices unpaid
Social Sharing A company that makes components for military aircraft in Winnipeg is being sued for more than $1.5 million by a supplier that claims it hasn't been paid for parts it supplied. Magellan Aerospace manufactures the horizontal tail assembly used in Lockheed Martin's F-35A Lightning II Joint Strike Fighter aircraft. A Manitoba company that supplies hardware entered into an agreement in 2011 to supply Magellan with parts for the manufacture of the Joint Strike Fighter. After that agreement expired in 2017, another agreement took effect until April 30, 2023, says the statement of claim filed in court. It says the two companies were unable to negotiate a new agreement, and in December 2024, Adams Supply issued two invoices to Magellan, for a total of $1,499,980.35. The invoices were to be paid by Magellan by April 5, 2025, the lawsuit claims. "Despite Adams Supply fully performing its obligations under the procurement agreement" and issuing invoices, the court document alleges "Magellan has failed, neglected and/or refused to pay the invoices." The lawsuit was filed by A. Adams Supply (1969) Ltd. on April 7 at Manitoba Court of King's Bench in Winnipeg, and names Magellan Aerospace Ltd. and Magellan Aerospace Winnipeg as defendants. The plaintiff is seeking a court judgment for the invoices, plus interest and court costs. The allegations have not been tested in court and Magellan has not filed a statement of defence.
Yahoo
31-03-2025
- Business
- Yahoo
Can Mixed Fundamentals Have A Negative Impact on Magellan Aerospace Corporation (TSE:MAL) Current Share Price Momentum?
Most readers would already be aware that Magellan Aerospace's (TSE:MAL) stock increased significantly by 34% over the past three months. But the company's key financial indicators appear to be differing across the board and that makes us question whether or not the company's current share price momentum can be maintained. Specifically, we decided to study Magellan Aerospace's ROE in this article. Return on Equity or ROE is a test of how effectively a company is growing its value and managing investors' money. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. ROE can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Magellan Aerospace is: 4.4% = CA$35m ÷ CA$803m (Based on the trailing twelve months to December 2024). The 'return' is the yearly profit. One way to conceptualize this is that for each CA$1 of shareholders' capital it has, the company made CA$0.04 in profit. Check out our latest analysis for Magellan Aerospace So far, we've learned that ROE is a measure of a company's profitability. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. On the face of it, Magellan Aerospace's ROE is not much to talk about. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 12% either. Given the circumstances, the significant decline in net income by 28% seen by Magellan Aerospace over the last five years is not surprising. We reckon that there could also be other factors at play here. For example, it is possible that the business has allocated capital poorly or that the company has a very high payout ratio. So, as a next step, we compared Magellan Aerospace's performance against the industry and were disappointed to discover that while the company has been shrinking its earnings, the industry has been growing its earnings at a rate of 11% over the last few years. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. Is Magellan Aerospace fairly valued compared to other companies? These 3 valuation measures might help you decide. Magellan Aerospace's low LTM (or last twelve month) payout ratio of 16% (or a retention ratio of 84%) over the last three years should mean that the company is retaining most of its earnings to fuel its growth but the company's earnings have actually shrunk. The low payout should mean that the company is retaining most of its earnings and consequently, should see some growth. So there might be other factors at play here which could potentially be hampering growth. For instance, the business has faced some headwinds. Additionally, Magellan Aerospace has paid dividends over a period of at least ten years, which means that the company's management is determined to pay dividends even if it means little to no earnings growth. Our latest analyst data shows that the future payout ratio of the company over the next three years is expected to be approximately 18%. On the whole, we feel that the performance shown by Magellan Aerospace can be open to many interpretations. While the company does have a high rate of profit retention, its low rate of return is probably hampering its earnings growth. With that said, we studied the latest analyst forecasts and found that while the company has shrunk its earnings in the past, analysts expect its earnings to grow in the future. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
17-03-2025
- Business
- Yahoo
Exploring Three Canadian Small Caps with Solid Financials
In 2025, the Canadian stock market has experienced volatility amid a broader global economic uncertainty, with diversification emerging as a key theme for investors seeking to navigate negative returns and policy-related overhangs. In this environment, identifying small-cap stocks with solid financials can offer opportunities for long-term growth and stability, making them potential gems in a diversified portfolio. Name Debt To Equity Revenue Growth Earnings Growth Health Rating TWC Enterprises 4.89% 13.46% 20.23% ★★★★★★ Genesis Land Development 46.48% 30.46% 55.37% ★★★★★☆ Maxim Power 25.01% 12.79% 17.14% ★★★★★☆ Mako Mining 10.21% 38.44% 58.78% ★★★★★☆ Grown Rogue International 24.92% 19.37% 188.55% ★★★★★☆ Corby Spirit and Wine 59.18% 8.79% -5.67% ★★★★☆☆ Petrus Resources 19.44% 17.20% 46.03% ★★★★☆☆ Senvest Capital 78.27% -8.22% -9.65% ★★★★☆☆ Queen's Road Capital Investment 8.87% 13.76% 16.18% ★★★★☆☆ Dundee 3.76% -37.57% 44.64% ★★★★☆☆ Click here to see the full list of 39 stocks from our TSX Undiscovered Gems With Strong Fundamentals screener. We'll examine a selection from our screener results. Simply Wall St Value Rating: ★★★★☆☆ Overview: Cardinal Energy Ltd. is involved in the acquisition, development, optimization, and production of petroleum and natural gas across Alberta, British Columbia, and Saskatchewan with a market capitalization of CA$996.74 million. Operations: Cardinal Energy generates revenue primarily from the production and sale of petroleum and natural gas. The company's net profit margin has shown variability, reflecting changes in commodity prices and operational efficiencies. Cardinal Energy, a relatively small player in the Canadian energy sector, has shown resilience with earnings growing by 4.6% last year, outperforming the broader oil and gas industry's -23.7%. The company trades at 71.1% below its estimated fair value, suggesting potential undervaluation. Its net debt to equity ratio stands at a satisfactory 8.8%, reflecting prudent financial management over five years as it reduced from 29.5% to 9.3%. Recent initiatives include issuing CAD 45 million in debentures to reduce senior credit facility debt and fund thermal oil projects, positioning Cardinal for strategic growth opportunities despite forecasted earnings decline of 33.3% annually over three years. Dive into the specifics of Cardinal Energy here with our thorough health report. Review our historical performance report to gain insights into Cardinal Energy's's past performance. Simply Wall St Value Rating: ★★★★★★ Overview: Magellan Aerospace Corporation, with a market cap of CA$611.38 million, engineers and manufactures aeroengine and aerostructure components for aerospace markets in Canada, the United States, and Europe through its subsidiaries. Operations: Magellan Aerospace generates revenue primarily from its aerospace segment, amounting to CA$942.37 million. The company's net profit margin has shown variability across different periods. Magellan Aerospace is making waves in the aerospace sector, showcasing impressive earnings growth of 283.8% last year, far outpacing the industry average of 24%. The company has reduced its debt to equity ratio from 8.9% to 6% over five years, indicating solid financial management. Trading at a significant discount to its estimated fair value by 82.8%, Magellan's shares appear attractively priced for investors seeking value. Recent strategic moves include a joint venture with Aequs Private Limited in India, aiming to expand sand casting capabilities and support both commercial and defense sectors in one of the fastest-growing aviation markets globally. Click here to discover the nuances of Magellan Aerospace with our detailed analytical health report. Understand Magellan Aerospace's track record by examining our Past report. Simply Wall St Value Rating: ★★★★★★ Overview: TWC Enterprises Limited owns, operates, and manages golf clubs under the ClubLink One Membership More Golf brand in Canada and the United States, with a market cap of CA$433.41 million. Operations: TWC Enterprises generates revenue primarily from its Canadian Golf Club Operations, which account for CA$156.58 million, followed by US Golf Club Operations at CA$24.08 million. TWC Enterprises showcases intriguing potential, with earnings surging 78.2% over the past year, significantly outpacing the Hospitality industry's -15.9%. The company reported a net income of CA$40.6 million for 2024, up from CA$22.04 million in 2023, reflecting robust growth despite a large one-off gain of CA$9.9 million impacting results. TWC's debt to equity ratio impressively shrank from 30% to 4.9% over five years, highlighting prudent financial management while trading at a substantial discount to its estimated fair value by 92.6%. A recent dividend increase further underscores confidence in future prospects and shareholder returns. Navigate through the intricacies of TWC Enterprises with our comprehensive health report here. Evaluate TWC Enterprises' historical performance by accessing our past performance report. Access the full spectrum of 39 TSX Undiscovered Gems With Strong Fundamentals by clicking on this link. Already own these companies? Bring clarity to your investment decisions by linking up your portfolio with Simply Wall St, where you can monitor all the vital signs of your stocks effortlessly. Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide. Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TSX:CJ TSX:MAL and TSX:TWC. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
