MDA Space Ltd (MDA) AI Stock Analysis

• Market Cap: C$3.28B
• Dividend Yield: N/A
• Average Volume (3M): 1.09M
• Price to Earnings (P/E): 27.5
• 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: 126,319,405
• 10 Day Avg. Volume: 813,518
• 30 Day Avg. Volume: 1,087,175
• PEG Ratio: 0.73
• Price to Book (P/B): 3.02
• Price to Sales (P/S): 3.28
• P/FCF Ratio: 5.24
• 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$43.20
• Price Target Upside: 85.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 71 Outperform
• Price Target: C$26.00 ▲(11.49% Upside)

MDA Ltd's overall stock score is driven by strong financial performance and a positive earnings call, indicating robust growth prospects and strategic positioning in the Aerospace & Defense industry. However, bearish technical indicators and moderate valuation suggest caution in the short term.

Positive Factors

Revenue Growth

The significant year-over-year revenue growth indicates strong demand for MDA's products and services, enhancing its market position and financial stability.

Contract Wins

This major contract win not only boosts MDA's backlog but also positions the company as a leader in next-generation satellite technology, ensuring long-term revenue streams.

Strong Backlog

A robust backlog ensures future revenue stability and reflects strong customer demand, supporting MDA's growth trajectory and strategic planning.

Negative Factors

Geointelligence Revenue Decline

The decline in Geointelligence revenues could indicate challenges in this segment, potentially affecting overall profitability and market competitiveness.

Working Capital Fluctuations

Significant fluctuations in working capital can impact cash flow stability, potentially hindering MDA's ability to invest in growth opportunities.

EchoStar Contract Risks

Regulatory issues with a major contract partner like EchoStar could pose risks to project execution and revenue realization, impacting MDA's financial outlook.

MDA Space Ltd Business Overview & Revenue Model

Company Description

MDA Space Ltd (MDA) is a leading provider of advanced space-based technologies and services, operating primarily in the aerospace and defense sectors. The company specializes in satellite systems, Earth observation solutions, and space robotics, delivering innovative products and services that enhance national security, environmental monitoring, and space exploration capabilities. MDA's portfolio includes satellite communications systems, radar imaging satellites, and robotic systems for space applications, catering to both commercial and government clients worldwide.

How the Company Makes Money

MDA generates revenue through multiple streams, primarily by contracting with governmental agencies, defense organizations, and commercial enterprises. Key revenue streams include the design, manufacturing, and deployment of satellite systems and related technologies, which often involve long-term contracts and projects. Additionally, MDA earns income from providing data services derived from its satellite operations, such as Earth observation data and analytics. The company has established strategic partnerships with various aerospace organizations and technology firms, enhancing its capabilities and market reach, which further contributes to its financial performance.

MDA Space Ltd Financial Statement Overview

Summary

MDA Ltd exhibits strong financial health with robust revenue growth and stable profitability. The balance sheet reflects a balanced leverage position and effective equity utilization. While the cash flow statement indicates some challenges in free cash flow growth, the company maintains a solid cash generation capability. Overall, MDA Ltd is well-positioned in the Aerospace & Defense industry with a positive financial outlook.

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	394.13M
Gross Profit	382.10M	325.50M	275.60M	252.10M	191.30M	140.27M
EBITDA	214.20M	162.80M	131.20M	128.90M	75.70M	36.80M
Net Income	114.70M	79.40M	48.80M	26.30M	2.90M	-23.07M
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	786.40M	677.40M	-134.50M	-80.80M	19.60M	53.60M
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: Negative
• Last Price: 23.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MDA, the sentiment is Negative. The current price of 23.32 is below the 20-day moving average (MA) of 31.99, below the 50-day MA of 34.28, and below the 200-day MA of 31.56, indicating a bearish trend. The MACD of -3.00 indicates Positive momentum. The RSI at 17.79 is Positive, neither overbought nor oversold. The STOCH value of 3.01 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:MDA.

MDA Space Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CAE	76 Outperform	$12.24B	29.43	8.73%	―	8.04%	―
FTG	74 Outperform	C$279.42M	19.76	17.40%	―	15.09%	31.55%
MDA	71 Outperform	C$3.28B	27.54	9.64%	―	57.21%	136.79%
MAL	67 Neutral	C$967.93M	25.52	4.85%	0.88%	6.58%	121.23%
BBD.A	64 Neutral	C$19.58B	31.16	―	―	6.60%	-1.71%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
BBD.B	63 Neutral	$19.82B	33.53	―	―	6.60%	-1.71%

MDA Space Ltd Corporate Events

MDA Space Invests $10 Million in Maritime Launch to Boost Canada’s Space Capabilities

MDA Space Ltd. has announced a $10 million equity investment in Maritime Launch Services Inc., marking a significant step in enhancing Canada’s sovereign space capabilities. This investment is expected to accelerate the readiness of Spaceport Nova Scotia for orbital launch operations, providing a reliable domestic launch option for various clients and strengthening Canada’s position in the global launch services market. The partnership is anticipated to drive economic growth, create high-quality jobs, and attract global investment, while MDA Space will gain operational involvement and strategic rights within Maritime Launch.

The most recent analyst rating on (TSE:MDA) stock is a Hold with a C$32.00 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. Responds to Share Price Fluctuations Amid Speculation

MDA Space Ltd. has addressed recent fluctuations in its share price, attributing them to speculative media reports regarding mergers and acquisitions among its customers. The company has stated that it does not comment on rumors and will provide a comprehensive business outlook in its upcoming earnings release on November 14, 2025.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$39.00 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. Announces Q3 2025 Earnings Release and Conference Call

MDA Space Ltd. has announced the release of its third quarter 2025 financial results, scheduled for November 14, 2025, before market opening. The company will hold a conference call and webcast to discuss these results, which will be accessible live and as a replay on their Investor Relations website. This announcement underscores MDA’s commitment to transparency and engagement with its stakeholders, providing insights into its financial performance and strategic direction.

The most recent analyst rating on (TSE:MDA) stock is a Buy with a C$48.00 price target. To see the full list of analyst forecasts on MDA Space Ltd stock, see the TSE:MDA Stock Forecast page.

MDA Space to Enhance Canadian Space Security with New SDA Services

MDA Space Ltd. has been selected to provide enhanced space situational awareness services to the Canadian Department of National Defence, in collaboration with ThothX Group. This partnership highlights the growing importance of Space Domain Awareness (SDA) in protecting Canada’s space assets from increasing orbital congestion. The new service will utilize ThothX’s Earthfence Radar Capability and MDA’s secure data management to track and assess satellites and space objects in geosynchronous orbit. This initiative underscores Canadian leadership in the global SDA market and aims to address the escalating risks to space-based infrastructure from orbital debris and potential collisions.

The most recent analyst rating on (TSE:MDA) stock is a Hold with a C$36.00 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 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 Ltd. Showcases Strong Growth in Earnings Call

MDA Ltd. Reports Strong Financial Growth Amid Strategic Advancements