MDA Ltd (MDA) AI Stock Analysis

• Market Cap: C$5.09B
• Dividend Yield: N/A
• Average Volume (3M): 539.00K
• Price to Earnings (P/E): 50.8
• Beta (1Y): 1.27
• Revenue Growth: 49.98%
• EPS Growth: 108.76%
• Country: CA
• Employees: 3,400
• Sector: Industrials
• Sector Strength: 94
• Industry: Aerospace & Defense
• EPS (TTM): 0.29
• Shares Outstanding: 123,084,840
• 10 Day Avg. Volume: 554,157
• 30 Day Avg. Volume: 538,998
• PEG Ratio: 2.19
• Price to Book (P/B): 3.97
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.81
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$41.50
• Price Target Upside: 0.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: C$48.00 ▲(16.36%Upside)

MDA Ltd's overall stock score is driven by strong financial performance and positive earnings call insights, despite technical analysis indicating potential overvaluation and short-term correction risks. The company's robust growth, financial health, and strategic initiatives position it well for future success in the aerospace and defense sector.

Positive Factors

Contract Wins

MDA disclosed a $1.1 billion contract with Globalstar for over 50 Aurora satellites, adding $750 million of incremental backlog.

Guidance

FY2025 guidance for revenue and EBITDA is well above consensus, indicating strong expected growth.

Valuation

The stock's valuation is considered attractive given MDA's strong backlog and pipeline.

Negative Factors

Tariffs

The potential impact of U.S. tariffs on Canadian imports remains uncertain, but is considered manageable due to MDA's non-U.S. backlog and other mitigating factors.

MDA Ltd Business Overview & Revenue Model

Company Description

MDA Ltd. designs, manufactures, and services space robotics, satellite systems and components, and intelligence systems in Canada, the United States, Europe, Asia, the Middle East, and internationally. It offers geointelligence solutions that provide satellite-generated imagery and analytic services to deliver critical and value-added insights in the areas of national security, climate change monitoring, and maritime surveillance. The company also provides robotics and space operations that enable humanity's exploration by providing autonomous robotics and vision sensors that operate in space and on the surfaces of the moon and mars. In addition, it offers satellite systems and spacecraft to enable space-based services, including space-based broadband internet connectivity from low earth orbit satellite constellations. Further, the company provides products and services of defense intelligence systems. It serves government agencies, prime contractors, and space companies. The company was formerly known as Neptune Acquisition Holdings Inc. and changed its name to MDA Ltd. in March 2021. MDA Ltd. was founded in 1969 and is headquartered in Brampton, Canada.

How the Company Makes Money

MDA Ltd generates revenue through a diverse range of streams, including the sale of specialized satellite and space systems, earth observation services, and engineering solutions for aerospace and defense applications. The company earns money by securing contracts with government agencies for defense and space exploration projects, as well as with commercial clients seeking satellite communication and data services. Key partnerships with industry leaders and government bodies also play a significant role in MDA's revenue generation, as they collaborate on large-scale projects and technology development initiatives to expand their market presence and enhance service offerings.

MDA Ltd Financial Statement Overview

Summary

MDA Ltd displays impressive financial performance, with strong revenue growth, profitability, and cash flow generation. The income statement reveals a TTM revenue growth of 13.12%, robust gross profit margin of 24.83%, and a healthy net profit margin of 8.06%. The balance sheet shows low leverage with a debt-to-equity ratio of 0.11, and the cash flow statement highlights excellent liquidity with a 35.95% growth in free cash flow.

Income Statement

MDA Ltd has shown impressive revenue growth, with a TTM increase of 13.12% compared to the previous year. The gross profit margin has remained robust at 24.83%, indicating strong cost control. Net profit margin is healthy at 8.06%, reflecting efficient operations. The EBIT margin of 10.39% and EBITDA margin of 21.04% underscore solid operational performance. Overall, the income statement reflects strong growth and profitability in the aerospace and defense sector.

Balance Sheet

The balance sheet shows a strong equity base with a debt-to-equity ratio of 0.11, indicating low leverage risk. The return on equity is notable at 8.10%, showcasing effective use of equity capital. The equity ratio of 42.63% reflects a solid capital structure with a healthy proportion of equity financing. Overall, the balance sheet positions MDA Ltd for stable financial health and growth potential.

Cash Flow

MDA Ltd's cash flow is robust, with a remarkable free cash flow growth of 35.95% over the past year. The operating cash flow to net income ratio is an impressive 10.74, indicating strong cash generation relative to profits. The free cash flow to net income ratio stands at 8.48, highlighting efficient cash flow management. The cash flow statement demonstrates excellent liquidity and financial flexibility, supporting future growth initiatives.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.08B	807.60M	641.20M	476.90M	295.60M
Gross Profit	281.70M	244.00M	228.40M	167.80M	33.80M
EBITDA	230.00M	154.00M	150.80M	124.00M	43.60M
Net Income	79.40M	48.80M	26.30M	2.90M	-17.30M
Balance Sheet
Total Assets	2.60B	2.16B	1.75B	1.53B	1.46B
Cash, Cash Equivalents and Short-Term Investments	166.70M	22.50M	39.30M	83.60M	78.60M
Total Debt	136.80M	525.00M	251.90M	160.40M	580.20M
Total Liabilities	1.42B	1.10B	750.20M	572.90M	997.80M
Stockholders Equity	1.18B	1.06B	1.00B	961.70M	457.40M
Cash Flow
Free Cash Flow	614.80M	-179.70M	-123.10M	-22.50M	43.10M
Operating Cash Flow	815.60M	13.50M	57.00M	72.10M	56.40M
Investing Cash Flow	-229.90M	-217.60M	-180.10M	-98.80M	-1.01B
Financing Cash Flow	-436.10M	187.40M	78.80M	30.60M	1.03B

MDA Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MDA, the sentiment is Positive. The current price of 41.25 is above the 20-day moving average (MA) of 38.58, above the 50-day MA of 32.61, and above the 200-day MA of 27.38, indicating a bullish trend. The MACD of 2.84 indicates Negative momentum. The RSI at 71.12 is Negative, neither overbought nor oversold. The STOCH value of 52.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MDA.

MDA Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDA	74 Outperform	C$5.09B	50.83	8.54%	―	49.98%	108.76%
Sector *	65 Neutral	$11.08B	15.70	5.19%	2.15%	3.13%	-24.94%
CAE	―	$9.24B	31.78	8.87%	―	―	―
BDRBF	―	$11.76B	42.32		―	―	―
FTG	77 Outperform	C$285.56M	19.95	18.05%	―	17.52%	54.86%
MAL	73 Outperform	C$1.02B	25.51	5.12%	0.70%	8.59%	242.80%
BBD.A	68 Neutral	C$16.00B	41.37	-23.10%	―	16.31%	4.12%

MDA Ltd Corporate Events

MDA Space Appoints Rob Singh as VP of Strategic Solutions

MDA Space has appointed Rabindra (Rob) Singh as Vice President of Strategic Solutions, a new role aimed at driving strategic customer solutions and growth opportunities. With over 30 years of experience in the space industry, Singh’s appointment is expected to enhance MDA’s ability to meet customer demand and expand its presence in the global space economy.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on MDA Ltd stock, see the TSE:MDA Stock Forecast page.

MDA Space to Announce Q2 2025 Financial Results on August 7

MDA Space announced it will release its second quarter 2025 financial results on August 7, 2025, before the market opens. The company will hold a conference call and webcast to discuss these results, providing stakeholders with insights into its financial performance and strategic direction. The webcast will be available on the MDA Space Investor Relations website for a year, allowing stakeholders to access the information at their convenience.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on MDA Ltd stock, see the TSE:MDA Stock Forecast page.

MDA Space Ltd. Leads SkyPhi Mission for 5G Satellite Communications

MDA Space Ltd. announced its leadership role in the SkyPhi mission, funded by the European Space Agency and the UK Space Agency, to develop regenerative 5G direct-to-device satellite communications from low Earth orbit. This initiative, part of the ARTES program, highlights the UK’s leadership in satellite innovation and involves collaboration with UK-based partners CGI and Open Cosmos. The project aims to enhance the UK’s competitive edge in the space sector by advancing satellite-enabled 5G services and strengthening the industrial base of the UK space industry.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on MDA Ltd stock, see the TSE:MDA Stock Forecast page.

MDA Space Completes Acquisition of SatixFy Communications

MDA Space Ltd. has completed its acquisition of SatixFy Communications Ltd., a company specializing in next-generation satellite communication solutions. This acquisition enhances MDA Space’s satellite systems strategy and strengthens its competitive edge as the demand for digital satellite solutions grows. The integration of SatixFy’s operations and technology into MDA’s Satellite Systems business is expected to bolster the company’s offerings in the rapidly expanding global space market.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on MDA Ltd stock, see the TSE:MDA Stock Forecast page.

MDA Space Extends Maritime Surveillance Contract with Canadian Government

MDA Space Ltd. has announced an extension of its contract with Fisheries and Oceans Canada to provide satellite surveillance data and analytics for maritime security. This extension supports Canada’s leadership in maritime safety and aligns with international commitments to combat illegal fishing. The contract includes future use of MDA’s upcoming Earth observation constellation, CHORUS, enhancing Canada’s capabilities in monitoring and intercepting illegal maritime activities, thereby strengthening its Indo-Pacific Strategy.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on MDA Ltd stock, see the TSE:MDA Stock Forecast page.

MDA Space Secures $60 Million Contract for River-class Destroyer Program

MDA Space Ltd has secured a $60 million contract for the next phase of the River-class Destroyer program, focusing on the delivery and integration of sensor systems for the first three ships. These systems are designed to enhance situational awareness and protect against laser and optical guided threats, supporting the Royal Canadian Navy’s missions. The project is part of Canada’s National Shipbuilding Strategy, with Irving Shipbuilding Inc. constructing the ships and Lockheed Martin Canada leading the combat management system design.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on MDA Ltd stock, see the TSE:MDA Stock Forecast page.

MDA Space and SatixFy Amend Merger Agreement with Increased Offer

MDA Space Ltd. and SatixFy Communications Ltd. have amended their merger agreement, increasing the all-cash transaction offer to US$3.00 per ordinary share, valuing SatixFy at approximately US$280 million. This decision followed a competitive ‘go-shop’ process where SatixFy received a higher offer from a third party, leading to negotiations with MDA. The increased offer was deemed the best value for shareholders, with 57% of SatixFy shareholders already committed to supporting the revised merger agreement. The shareholder meeting to approve the merger has been postponed to allow for proper disclosure.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$17.00 price target. To see the full list of analyst forecasts on MDA Ltd stock, see the TSE:MDA Stock Forecast page.

MDA Space Announces 2025 AGM Results and Strategic Decisions

MDA Space announced the results of its 2025 Annual General Meeting, where 69.22% of common shares were represented. The meeting saw the election of nine directors, the appointment of KPMG LLP as the independent auditor, and approval of the company’s executive compensation approach. These decisions reflect MDA Space’s commitment to maintaining robust governance and operational transparency, potentially strengthening its position in the space industry.

MDA Space Ltd. Reports Strong Q1 2025 Results and Strategic Acquisition

MDA Space Ltd. reported strong financial results for the first quarter of 2025, with a significant increase in revenue and backlog, driven by new contracts such as the Globalstar LEO constellation. The company achieved a 68% year-over-year revenue growth, reaching $351 million, and a 103% increase in adjusted net income. MDA Space’s strategic acquisition of SatixFy Communications is expected to enhance its satellite systems offerings, positioning the company well to capitalize on growing demand in the space industry. The reaffirmation of its 2025 financial outlook underscores its confidence in continued growth and market expansion.

MDA Space Ltd. Reports Strong Q1 2025 Results and Strategic Expansion

MDA Space Ltd. reported a robust first quarter for 2025, with significant financial growth highlighted by a 46% increase in backlog and a 68% rise in revenues compared to the previous year. The company achieved an adjusted EBITDA of $68.6 million, marking a 63% year-over-year increase, and maintained a strong net cash position. Notably, MDA secured a major contract with Globalstar for its next-generation LEO constellation and announced the acquisition of SatixFy Communications, enhancing its satellite systems offerings. The company reaffirmed its positive financial outlook for 2025, anticipating continued growth driven by strategic initiatives and strong market demand.