ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. Magellan Aerospace's annualized return on capital (ROC %) for the quarter that ended in Mar. 2026 was 7.38%.
As of today (2026-06-24), Magellan Aerospace's WACC % is 9.24%. Magellan Aerospace's ROC % is 6.52% (calculated using TTM income statement data).
Magellan Aerospace earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Magellan Aerospace (TSX:MAL) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Magellan Aerospace's WACC % is 9.24%. Magellan Aerospace's ROC % is 6.52% (calculated using TTM income statement data).
Magellan Aerospace earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Magellan Aerospace ROC % Related Terms
Magellan Aerospace ROC % Historical Data
* Premium members only.
The historical data trend for Magellan Aerospace's ROC % 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.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* 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 (TSX:MAL) has a ROC % of 7.38% as of Mar. 2026. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Magellan Aerospace and its competitors.
Is Magellan Aerospace's ROC % too high?
Magellan Aerospace's current ROC % is 7.38%. The Aerospace & Defense industry median ROC % is 4.45. Magellan Aerospace's value of 7.38% is 65.8% above this industry median. Overall, Magellan Aerospace has a GF Score™ of 75/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Magellan Aerospace's ROC % compare to GE and RTX?
Magellan Aerospace's ROC % of 7.38% can be compared against companies in the Aerospace & Defense industry. The industry median ROC % is 4.45. Magellan Aerospace's value of 7.38% is 65.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for an Aerospace & Defense company?
The median ROC % among Aerospace & Defense companies is 4.45, based on 351 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Magellan Aerospace's current ROC % of 7.38% is 65.8% 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on Magellan Aerospace and its competitors. For the Aerospace & Defense industry, the median ROC % is 4.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Magellan Aerospace's current ROC % is 7.38%. 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 (TSX:MAL) is currently considered Significantly Overvalued. The stock's GF Value™ is C$11.58, compared to a current price of C$30.99 — trading 167.6% above its estimated fair value. The current ROC % is 7.38% and 65.8% above the Aerospace & Defense industry median of 4.45. Magellan Aerospace's overall GF Score™ is 75/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For Magellan Aerospace (TSX:MAL), the current ROC % is 7.38% 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 (TSX:MAL) Overvalued in 2026?
Based on GuruFocus' analysis, Magellan Aerospace stock appears to be overvalued.
The current stock price of C$30.99 is trading 167.6% above its estimated GF Value™ of C$11.58.
GuruFocus considers Magellan Aerospace to be Significantly Overvalued.
Key valuation signals for TSX:MAL:
ROC %: 7.38%
GF Value™: C$11.58 vs. price of C$30.99 (167.6% above fair value)
Industry Position: 65.8% above the Aerospace & Defense median
No single metric tells the full story. See the TSX:MAL 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.
75GF Score
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