Magellan AerospaceMALJF -4.89%74 Operating Margin % is 8.15% as of Mar. 2026, which is 20% above its 10-year median of 6.78. GuruFocus rates MALJF with a GF Score™ of 74/100 and a GF Value™ of $8.37 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 347 Aerospace & Defense companies, Magellan Aerospace ranks better than 50.43% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Magellan Aerospace Operating Margin % Related Terms
Magellan Aerospace Operating Margin % Historical Data
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The historical data trend for Magellan Aerospace's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
MALJF vs GE, RTX, BA: Operating Margin % Comparison
For the Aerospace & Defense subindustry, Magellan Aerospace's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Magellan Aerospace Operating Margin % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, Magellan Aerospace's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Magellan Aerospace's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Magellan Aerospace's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Magellan Aerospace (MALJF) has a Operating Margin % of 8.15% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Magellan Aerospace and its competitors. This is 20% above median its historical median of 6.78. According to the industry distribution chart, Magellan Aerospace ranks #172 out of 347 companies in the Aerospace & Defense industry, placing it in the top 49.6%.
Is Magellan Aerospace's Operating Margin % too high?
Magellan Aerospace's current Operating Margin % of 8.15% is 20% above median its 10-year median of 6.78. The Aerospace & Defense industry median Operating Margin % is 7.75. Magellan Aerospace's value of 8.15% is 5.2% above this industry median. Based on the distribution chart, Magellan Aerospace ranks #172 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, Magellan Aerospace has a GF Score™ of 74/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Magellan Aerospace's Operating Margin % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, Magellan Aerospace ranks #172 out of 347 companies for Operating Margin %. This puts Magellan Aerospace in the upper half of its industry. The industry median Operating Margin % is 7.75. Magellan Aerospace's value of 8.15% is 5.2% above this benchmark. While the company's 10-year median is 6.78 vs. the industry median of 7.75, Magellan Aerospace has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for an Aerospace & Defense company?
The median Operating Margin % among Aerospace & Defense companies is 7.75, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Magellan Aerospace's current Operating Margin % of 8.15% is 5.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Magellan Aerospace and its competitors. For the Aerospace & Defense industry, the median Operating Margin % is 7.75 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magellan Aerospace's current Operating Margin % is 8.15%, which is 20% above median its own 10-year median of 6.78. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magellan Aerospace stock overvalued right now?
Based on GuruFocus' analysis, Magellan Aerospace (MALJF) is currently considered Significantly Overvalued. The stock's GF Value™ is $8.37, compared to a current price of $21.01 — trading 151% above its estimated fair value. The current Operating Margin % is 8.15%, which is 20% above median its 10-year median of 6.78 and 5.2% above the Aerospace & Defense industry median of 7.75. Magellan Aerospace's overall GF Score™ is 74/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Magellan Aerospace (MALJF), the current Operating Margin % is 8.15% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Magellan Aerospace (MALJF) Overvalued in 2026?
Based on GuruFocus' analysis, Magellan Aerospace stock appears to be overvalued.
The current stock price of $21.01 is trading 151% above its estimated GF Value™ of $8.37.
GuruFocus considers Magellan Aerospace to be Significantly Overvalued.
Key valuation signals for MALJF:
Operating Margin %: 8.15% (20% above median its 10-year median of 6.78)
GF Value™: $8.37 vs. price of $21.01 (151% above fair value)
Industry Position: 5.2% above the Aerospace & Defense median (#172 of 347)
No single metric tells the full story. See the MALJF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Magellan Aerospace Corp supplies components to the aerospace industry. Through its subsidiaries, it engineers and manufactures aero-engine and aerostructure components for aerospace markets, including products for defense and space markets, and complementary specialty products. Some of its product offerings include honeycomb and filament-wound tubes, frames, compressor components, bypass ducts, black brant rockets, and helicopter power transmission housings, among others. The group also supports the aftermarket through the supply of spare parts as well as through repair and overhaul services. It operates activities in one reportable segment, namely Aerospace. Geographically, the group derives its maximum revenue from Canada, followed by the United States and Europe.
74GF Score
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