MDA Space Ltd (MDA) AI Stock Analysis

• Market Cap: C$4.26B
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): 35.9
• Beta (1Y): 0.88
• Revenue Growth: 57.21%
• EPS Growth: 136.79%
• Country: CA
• Employees: 3,400
• Sector: Industrials
• Sector Strength: 72
• Industry: Aerospace & Defense
• EPS (TTM): 0.38
• Shares Outstanding: 126,083,140
• 10 Day Avg. Volume: 1,094,904
• 30 Day Avg. Volume: 1,010,243
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$46.33
• Price Target Upside: 37.11% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 68 Neutral
• Price Target: C$36.00 ▲(6.54% Upside)

MDA Ltd's overall stock score is driven by strong financial performance and a positive earnings call, indicating robust revenue growth and significant contract wins. However, technical analysis suggests bearish momentum, and the valuation indicates the stock may be overpriced. The absence of a dividend yield further impacts the valuation score.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market positioning, enhancing long-term financial stability and market presence.

Significant Contract Wins

Major contract wins like EchoStar enhance revenue visibility and reinforce the company's leadership in satellite technology, supporting future growth.

Strong Backlog

A robust backlog ensures future revenue streams and operational stability, allowing the company to plan and invest in long-term strategic initiatives.

Negative Factors

Revenue Decline in Geointelligence

Declining revenues in the Geointelligence segment could indicate challenges in maintaining market share or adapting to customer needs, impacting future growth.

Working Capital Fluctuations

Significant fluctuations in working capital can strain cash flow management, potentially affecting the company's ability to fund operations and growth initiatives.

Potential Risks with EchoStar Contract

Regulatory issues with key contracts like EchoStar can pose risks to revenue realization and project execution, impacting financial performance.

MDA Space 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 channels, primarily from the sale of its advanced technology solutions and services. Key revenue streams include contracts with government agencies for space exploration and defense projects, commercial sales of satellite systems and geospatial data services, and partnerships with international organizations. The company benefits from long-term contracts and strategic alliances that provide a steady income flow, while continued innovation and investment in R&D help maintain its competitive edge and expand its market reach.

MDA Space Ltd Financial Statement Overview

Summary

MDA Ltd shows strong financial health with robust revenue growth and stable profitability. The balance sheet reflects balanced leverage and effective equity utilization. Despite challenges in free cash flow growth, the company maintains solid cash generation capability.

Income Statement

MDA Ltd has demonstrated strong revenue growth with a 10.75% increase in the TTM period, indicating robust demand and market presence. The gross profit margin of 24.54% and net profit margin of 8.48% reflect solid profitability, although slightly lower than previous periods. The EBIT and EBITDA margins are healthy at 13.29% and 20.43% respectively, showcasing efficient operational management. Overall, the income statement reflects a positive growth trajectory and stable profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.30, indicating a balanced approach to leveraging. The return on equity (ROE) of 9.53% is commendable, reflecting effective use of equity to generate profits. The equity ratio stands at 40.62%, suggesting a solid equity base. While the company maintains a stable financial position, the increase in total debt over previous periods warrants monitoring.

Cash Flow

The cash flow statement reveals a decline in free cash flow growth by 15.21%, which could indicate potential cash management challenges. However, the operating cash flow to net income ratio of 0.75 and free cash flow to net income ratio of 0.74 suggest that the company is generating sufficient cash relative to its net income. Despite the recent decline in free cash flow, the overall cash flow position remains relatively strong.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.35B	1.08B	807.60M	641.20M	476.90M	295.60M
Gross Profit	332.10M	281.70M	244.00M	228.40M	167.80M	33.80M
EBITDA	276.50M	230.00M	154.00M	150.80M	124.00M	43.60M
Net Income	114.70M	79.40M	48.80M	26.30M	2.90M	-17.30M
Balance Sheet
Total Assets	3.16B	2.60B	2.16B	1.75B	1.53B	1.46B
Cash, Cash Equivalents and Short-Term Investments	665.90M	166.70M	22.50M	39.30M	83.60M	78.60M
Total Debt	391.10M	136.80M	525.00M	251.90M	160.40M	580.20M
Total Liabilities	1.87B	1.42B	1.10B	750.20M	572.90M	997.80M
Stockholders Equity	1.28B	1.18B	1.06B	1.00B	961.70M	457.40M
Cash Flow
Free Cash Flow	708.50M	614.80M	-179.70M	-123.10M	-22.50M	43.10M
Operating Cash Flow	961.70M	815.60M	13.50M	57.00M	72.10M	56.40M
Investing Cash Flow	-226.60M	-229.90M	-217.60M	-180.10M	-98.80M	-1.01B
Financing Cash Flow	-110.70M	-436.10M	187.40M	78.80M	30.60M	1.03B

MDA Space Ltd Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 33.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MDA, the sentiment is Neutral. The current price of 33.79 is below the 20-day moving average (MA) of 35.41, below the 50-day MA of 40.06, and above the 200-day MA of 30.88, indicating a neutral trend. The MACD of -2.19 indicates Negative momentum. The RSI at 39.61 is Neutral, neither overbought nor oversold. The STOCH value of 75.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MDA.

MDA Space Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FTG	75 Outperform	C$297.80M	20.85	15.52%	―	17.52%	54.86%
CAE	73 Outperform	C$12.73B	30.62	8.44%	―	8.04%	―
MDA	68 Neutral	C$4.26B	35.86	9.64%	―	57.21%	136.79%
BBD.B	65 Neutral	C$19.23B	30.35	-28.41%	―	6.69%	64.89%
BBD.A	64 Neutral	C$19.23B	30.57	-28.35%	―	6.69%	64.89%
MAL	64 Neutral	C$933.07M	24.60	4.71%	0.92%	6.58%	121.23%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

MDA Space Ltd Corporate Events

MDA Space Ltd Appoints New Managing Director for UK Operations

MDA Space Ltd has appointed Andrew Stanniland as the new Managing Director of MDA Space UK, effective September 10, 2025. Stanniland, who has over 30 years of experience in the space sector, will lead the UK operations from the Didcot office, aiming to drive growth and innovation. His appointment is seen as a strategic move to strengthen MDA Space’s presence in the UK and capitalize on new opportunities in the evolving space market. Stanniland succeeds Anita Bernie, who has contributed significantly to the company over the past three years.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$51.00 price target. To see the full list of analyst forecasts on MDA Space Ltd stock, see the TSE:MDA Stock Forecast page.

MDA Space Ltd. Faces Contract Termination by EchoStar, Maintains Growth Outlook

MDA Space Ltd. announced that EchoStar Corporation has terminated their constellation contract due to a shift in EchoStar’s business strategy following spectrum allocation discussions with the FCC. Despite this setback, MDA Space will be compensated for termination costs and remains focused on its $4.6 billion backlog, excluding the EchoStar contract, which ensures revenue growth through 2025. The company continues to pursue opportunities in digital satellite constellations for broadband data and direct-to-device communication satellites, maintaining its fiscal 2025 financial outlook.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$51.00 price target. To see the full list of analyst forecasts on MDA Space Ltd stock, see the TSE:MDA Stock Forecast page.

MDA Space Ltd Reports Robust Q2 2025 Results and Strategic Expansions

MDA Space Ltd reported strong financial results for Q2 2025, with a 54% increase in revenue and a 57% rise in adjusted EBITDA compared to the previous year. The company secured a significant $1.8 billion contract with EchoStar for a LEO satellite constellation, enhancing its leadership in the non-terrestrial network market. Additionally, MDA announced the acquisition of SatixFy Communications and an agreement with the Canadian Space Agency to manage the David Florida Laboratory, further solidifying its position in the 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.