MDA SPACE LTD (MDA.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:MDA - CA55293N1096 - Common Stock
41.11 CAD
+2.04 (+5.22%)
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. MDA has only an average score on both its financial health and profitability. MDA is not priced too expensively while it is growing strongly. Keep and eye on this one! This makes MDA very considerable for growth investing!
1. Profitability
1.1 Basic Checks
- MDA had positive earnings in the past year.
- MDA had a positive operating cash flow in the past year.
- Of the past 5 years MDA 4 years were profitable.
- In the past 5 years MDA always reported a positive cash flow from operatings.
1.2 Ratios
- MDA has a Return On Assets of 3.15%. This is in the better half of the industry: MDA outperforms 69.23% of its industry peers.
- With a decent Return On Equity value of 8.24%, MDA is doing good in the industry, outperforming 76.92% of the companies in the same industry.
- With a Return On Invested Capital value of 5.12%, MDA is not doing good in the industry: 61.54% of the companies in the same industry are doing better.
- MDA had an Average Return On Invested Capital over the past 3 years of 3.99%. This 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
- The Profit Margin of MDA (7.40%) is better than 76.92% of its industry peers.
- In the last couple of years the Profit Margin of MDA has grown nicely.
- MDA's Operating Margin of 9.86% is on the low side compared to the rest of the industry. MDA is outperformed by 61.54% of its industry peers.
- MDA's Operating Margin has improved in the last couple of years.
- 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
- MDA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for MDA has been increased compared to 1 year ago.
- Compared to 1 year ago, MDA has an improved debt to assets ratio.
2.2 Solvency
- MDA has an Altman-Z score of 1.81. This is not the best score and indicates that MDA is in the grey zone with still only limited risk for bankruptcy at the moment.
- MDA's Altman-Z score of 1.81 is amongst the best of the industry. MDA outperforms 84.62% of its industry peers.
- MDA has a debt to FCF ratio of 0.92. This is a very positive value and a sign of high solvency as it would only need 0.92 years to pay back of all of its debts.
- MDA has a better Debt to FCF ratio (0.92) than 100.00% of its industry peers.
- A Debt/Equity ratio of 0.31 indicates that MDA is not too dependend on debt financing.
- MDA's Debt to Equity ratio of 0.31 is amongst the best of the industry. MDA outperforms 84.62% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.31 | ||
| Debt/FCF | 0.92 | ||
| Altman-Z | 1.81 |
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 has a worse Current ratio (0.55) than 84.62% of its industry peers.
- MDA has a Quick Ratio of 0.55. This is a bad value and indicates that MDA is not financially healthy enough and could expect problems in meeting its short term obligations.
- MDA has a Quick ratio (0.54) which 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
- MDA shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 98.25%, which is quite impressive.
- The Earnings Per Share has been growing by 185.75% on average over the past years. This is a very strong growth
- The Revenue has grown by 57.77% in the past year. This is a very strong growth!
- 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.
- The Revenue is expected to grow by 23.84% on average over the next years. This is a very strong growth
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
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of 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
- The Price/Earnings ratio is 36.38, which means the current valuation is very expensive for MDA.
- Compared to the rest of the industry, the Price/Earnings ratio of MDA indicates a slightly more expensive valuation: MDA is more expensive than 61.54% of the companies listed in the same industry.
- MDA's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.60.
- MDA is valuated quite expensively with a Price/Forward Earnings ratio of 26.60.
- 61.54% of the companies in the same industry are cheaper than MDA, based on the Price/Forward Earnings ratio.
- The average S&P500 Price/Forward Earnings ratio is at 25.83. MDA is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 36.38 | ||
| Fwd PE | 26.6 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, MDA is valued a bit more expensive than 69.23% of the companies 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 | 11.13 | ||
| EV/EBITDA | 19.54 |
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)0.34
PEG (5Y)N/A
EPS Next 2Y48.58%
EPS Next 3Y35.72%
5. Dividend
5.1 Amount
- MDA does not give a dividend.
| 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.