It’s the middle of the COVID-19 pandemic and Ostrich investing wants to talk about an Aerospace company???!

Magellan Aerospace is a Canadian small cap that supplies components and parts to the aerospace industry – customer include Airbus and Boeing…we’ve all seen that name in the news recently. Magellan ran into debt trouble back in the financial crisis of 2008/2009 but has since largely delevered its balance sheet. Murray Edwards owns 75% of the shares so the float is pretty small on the stock and I imagine there is not much of an institutional following.

Based on 2019 (which granted seems like a distant memory), the Company trades at less than 3x EV/EBITDA and ~5x earnings.

Is it too early to step into an aerospace stock like Magellan?

This video provides a brief overview of the stock and key considerations for investors.