Magellan Aerospace Corporation: Company Profile and SWOT Analysis by ICDResearch

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									Magellan Aerospace Corporation

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Magellan Aerospace Corporation                                                  Financial Snapshot

                                                                                Operating Performance
Fast Facts
                                       3160 Derry Road East, Mississauga, L4T   The company reported revenue of US$710.33 million
Headquarters Address
                                       1A9,Canada                               during the fiscal year 2010 (2010). The company's
                                                                                revenue grew at a CAGR of 8.69% during 2006–
Telephone                              + 1 905 6771889
                                                                                2010, with an annual growth of 17.94% over 2009. In
                                                                                2010, the company recorded an operating margin of
Fax                                    + 1 905 6775658                          5.79%, as against 3.47% in 2009.

Website                                www.magellanaerospace.com
                                                                                Revenue and Margins
Ticker Symbol, Stock Exchange          MAL, Toronto Stock Exchange

Number of Employees                    3,600

Fiscal Year End                        December

Revenue (in US$ million)               710.33

Revenue (in CAD million)               731.63




SWOT Analysis                                                                   Return on Equity

Strengths                              Weaknesses                               The company recorded a return on equity (ROE) of
                                                                                15.57% for 2010, as compared to its peers, Lockheed
Strong customer base                   Limited liquidity position               Martin Corporation (Ticker: LMT), Raytheon Company
                                                                                (Ticker: RTN) and Northrop Grumman Corporation
                                                                                (Ticker: NOC), which recorded ROEs of 78.91%,
Strong operational performance                                                  18.86% and 15.14% respectively. The company
                                                                                reported a net profit margin of 5.79% in 2010.
Opportunities                          Threats
                                                                                Return on Equity
40-30-30 strategy                      Foreign currency fluctuations

Positive outlook of airline industry   Stringent regulations




                                                                                Liquidity Position

                                                                                The company reported a current ratio of 0.88 in 2010,
                                                                                as compared to its peers, Lockheed Martin
                                                                                Corporation, Raytheon Company and Northrop
                                                                                Grumman Corporation, which recorded current ratios
                                                                                of 1.15, 1.48 and 1.18 respectively. As of December
                                                                                2010, the company recorded cash and short-term
                                                                                investments of worth US$24.23 million, against
                                                                                US$64.60 million current debt. The company reported
                                                                                a debt to equity ratio of 1.11 in 2010 as compared to
                                                                                its peers, Lockheed Martin Corporation, Raytheon
                                                                                Company and Northrop Grumman Corporation, which
                                                                                recorded debt to equity ratios of 1.35, 0.37 and 0.36
                                                                                respectively.




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Magellan Aerospace Corporation - SWOT Profile                                                                          Page 1
Magellan Aerospace Corporation

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TABLE OF CONTENTS

1     Business Analysis ................................................................................................................................... 5
    1.1       Company Overview ................................................................................................................................................5
    1.2       Business Description ..............................................................................................................................................5
    1.3       Major Products and Services .................................................................................................................................6
2     Analysis of Key Performance Indicators ............................................................................................... 7
    2.1       Five Year Snapshot: Overview of Financial and Operational Performance Indicators ..........................................7
    2.2       Key Financial Performance Indicators .................................................................................................................10
      2.2.1       Revenue and Operating Profit .........................................................................................................................10
      2.2.2       Asset, Liabilities and Capex .............................................................................................................................11
      2.2.3       Net Debt vs. Gearing Ratio ..............................................................................................................................12
      2.2.4       Operational Efficiency ......................................................................................................................................13
      2.2.5       Solvency ..........................................................................................................................................................14
      2.2.6       Valuation ..........................................................................................................................................................15
    2.3       Competitive Benchmarking ..................................................................................................................................16
      2.3.1       Market Capitalization .......................................................................................................................................17
      2.3.2       Efficiency ..........................................................................................................................................................18
      2.3.3       Capital Expenditure ............................................................
								
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