MDA SPACE LTD (MDA.CA) Stock Fundamental Analysis
Canada • Toronto Stock Exchange • TSX:MDA • CA55293N1096
39.22 CAD
-1.89 (-4.6%)
Last: Jan 29, 2026, 07:00 PM
Taking everything into account, MDA scores 6 out of 10 in our fundamental rating. MDA was compared to 13 industry peers in the Aerospace & Defense industry. Both the profitability and the financial health of MDA get a neutral evaluation. Nothing too spectacular is happening here. MDA is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make MDA suitable for growth investing!
1. Profitability
1.1 Basic Checks
- In the past year MDA was profitable.
- In the past year MDA had a positive cash flow from operations.
- MDA had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years MDA had a positive operating cash flow.
1.2 Ratios
- MDA has a better Return On Assets (3.15%) than 69.23% of its industry peers.
- MDA's Return On Equity of 8.24% is fine compared to the rest of the industry. MDA outperforms 76.92% of its industry peers.
- MDA's Return On Invested Capital of 5.12% is on the low side compared to the rest of the industry. MDA is outperformed by 61.54% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for MDA is below the industry average of 8.00%.
- The 3 year average ROIC (3.99%) for MDA is below the current ROIC(5.12%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.15% | ||
| ROE | 8.24% | ||
| ROIC | 5.12% |
ROA(3y)2.27%
ROA(5y)1.16%
ROE(3y)4.65%
ROE(5y)2.1%
ROIC(3y)3.99%
ROIC(5y)N/A
1.3 Margins
- With a decent Profit Margin value of 7.40%, MDA is doing good in the industry, outperforming 76.92% of the companies in the same industry.
- In the last couple of years the Profit Margin of MDA has grown nicely.
- Looking at the Operating Margin, with a value of 9.86%, MDA is doing worse than 61.54% of the companies in the same industry.
- In the last couple of years the Operating Margin of MDA has grown nicely.
- The Gross Margin of MDA (24.62%) is better than 69.23% of its industry peers.
- MDA's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.86% | ||
| PM (TTM) | 7.4% | ||
| GM | 24.62% |
OM growth 3Y34.46%
OM growth 5YN/A
PM growth 3Y129.51%
PM growth 5YN/A
GM growth 3Y-9.5%
GM growth 5YN/A
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MDA is destroying value.
- The number of shares outstanding for MDA has been increased compared to 1 year ago.
- MDA has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 1.82 indicates that MDA is not a great score, but indicates only limited risk for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 1.82, MDA belongs to the top of the industry, outperforming 84.62% of the companies in the same industry.
- The Debt to FCF ratio of MDA is 0.92, which is an excellent value as it means it would take MDA, only 0.92 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 0.92, MDA belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
- MDA has a Debt/Equity ratio of 0.31. This is a healthy value indicating a solid balance between debt and equity.
- MDA has a better Debt to Equity ratio (0.31) than 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | 1.82 |
ROIC/WACC0.55
WACC9.29%
2.3 Liquidity
- A Current Ratio of 0.55 indicates that MDA may have some problems paying its short term obligations.
- MDA's Current ratio of 0.55 is on the low side compared to the rest of the industry. MDA is outperformed by 84.62% of its industry peers.
- A Quick Ratio of 0.54 indicates that MDA may have some problems paying its short term obligations.
- The Quick ratio of MDA (0.54) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.55 | ||
| Quick Ratio | 0.54 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 98.25% over the past year.
- Measured over the past years, MDA shows a very strong growth in Earnings Per Share. The EPS has been growing by 185.75% on average per year.
- MDA shows a strong growth in Revenue. In the last year, the Revenue has grown by 57.77%.
- MDA shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 31.32% yearly.
EPS 1Y (TTM)98.25%
EPS 3Y185.75%
EPS 5YN/A
EPS Q2Q%-16.67%
Revenue 1Y (TTM)57.77%
Revenue growth 3Y31.32%
Revenue growth 5YN/A
Sales Q2Q%45.11%
3.2 Future
- Based on estimates for the next years, MDA will show a very strong growth in Earnings Per Share. The EPS will grow by 35.72% on average per year.
- MDA is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 23.84% yearly.
EPS Next Y105.61%
EPS Next 2Y48.58%
EPS Next 3Y35.72%
EPS Next 5YN/A
Revenue Next Year52.26%
Revenue Next 2Y30.25%
Revenue Next 3Y23.84%
Revenue Next 5YN/A
3.3 Evolution
- The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
- Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 34.71 indicates a quite expensive valuation of MDA.
- Based on the Price/Earnings ratio, MDA is valued a bit more expensive than 61.54% of the companies in the same industry.
- When comparing the Price/Earnings ratio of MDA to the average of the S&P500 Index (28.30), we can say MDA is valued slightly more expensively.
- Based on the Price/Forward Earnings ratio of 25.38, the valuation of MDA can be described as expensive.
- Based on the Price/Forward Earnings ratio, MDA is valued a bit more expensive than 61.54% of the companies in the same industry.
- The average S&P500 Price/Forward Earnings ratio is at 25.57. MDA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.71 | ||
| Fwd PE | 25.38 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of MDA indicates a slightly more expensive valuation: MDA is more expensive than 69.23% of the companies listed in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of MDA indicates a somewhat cheap valuation: MDA is cheaper than 61.54% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.62 | ||
| EV/EBITDA | 19.61 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- The decent profitability rating of MDA may justify a higher PE ratio.
- A more expensive valuation may be justified as MDA's earnings are expected to grow with 35.72% in the coming years.
PEG (NY)0.33
PEG (5Y)N/A
EPS Next 2Y48.58%
EPS Next 3Y35.72%
5. Dividend
5.1 Amount
- No dividends for MDA!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
MDA SPACE LTD / MDA.CA FAQ
What is the fundamental rating for MDA stock?
ChartMill assigns a fundamental rating of 6 / 10 to MDA.CA.
Can you provide the valuation status for MDA SPACE LTD?
ChartMill assigns a valuation rating of 4 / 10 to MDA SPACE LTD (MDA.CA). This can be considered as Fairly Valued.
What is the profitability of MDA stock?
MDA SPACE LTD (MDA.CA) has a profitability rating of 6 / 10.
What is the financial health of MDA SPACE LTD (MDA.CA) stock?
The financial health rating of MDA SPACE LTD (MDA.CA) is 5 / 10.
What is the earnings growth outlook for MDA SPACE LTD?
The Earnings per Share (EPS) of MDA SPACE LTD (MDA.CA) is expected to grow by 105.61% in the next year.