Major Drilling (MDI) AI Stock Analysis

• Market Cap: C$970.37M
• Dividend Yield: N/A
• Average Volume (3M): 168.66K
• Price to Earnings (P/E): 48.1
• Beta (1Y): 1.39
• Revenue Growth: 9.50%
• EPS Growth: -57.10%
• Country: CA
• Employees: 2,500
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Industrial Materials
• EPS (TTM): 0.12
• Shares Outstanding: 81,887,830
• 10 Day Avg. Volume: 201,048
• 30 Day Avg. Volume: 168,656
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$13.00
• Price Target Upside: 9.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 76 Outperform
• Price Target: C$11.50 ▼(-2.95% Downside)

Major Drilling's overall stock score is driven by strong technical indicators and moderate financial performance. While revenue growth and strategic positioning in South America are positives, declining margins and high valuation are concerns. The balanced sentiment from the earnings call adds a nuanced view, highlighting both opportunities and challenges.

Major Drilling Business Overview & Revenue Model

Company Description

Major Drilling Group International Inc. provides contract drilling services for mining and mineral exploration companies. The company offers a suite of drilling services, including surface and underground coring, directional, reverse circulation, sonic, geotechnical, environmental, water-well, coal-bed methane, shallow gas, underground percussive, longhole drilling, surface drill and blast, and related mining services. The company was founded in 1980 and is based in Moncton, Canada with additional offices in Mexico, South America, Asia, Africa, USA, and Australia.

How the Company Makes Money

Major Drilling makes money primarily through providing specialized drilling services to mining companies engaged in mineral exploration and development. The company's revenue model is based on contracts with clients for drilling projects, which can range from short-term assignments to long-term exploration programs. Key revenue streams include fees for drilling services, equipment rentals, and related support services. Major Drilling's earnings are significantly influenced by the global demand for minerals, commodity prices, and the level of exploration activity in the mining sector. Additionally, strategic partnerships with mining companies and the expansion of operations into emerging markets contribute to its revenue generation.

Major Drilling Financial Statement Overview

Summary

Major Drilling's financial health is solid but with cautionary signs. Revenue has grown, yet profit margins have compressed, likely due to increased costs or competitive pressures. The balance sheet is robust with low leverage, while cash flow management is effective; however, declining free cash flow may signal future liquidity concerns.

Income Statement

The income statement reveals moderate performance with a declining trend in gross profit margin from 21.6% in 2024 to 17.9% in 2025. The net profit margin decreased from 7.5% to 3.6% over the same period. Despite revenue growth from 2024 to 2025, margins have compressed. The EBIT and EBITDA margins also show contraction, indicating potential operational challenges.

Balance Sheet

The balance sheet remains strong with a low debt-to-equity ratio, rising from 0.01 in 2024 to 0.07 in 2025, reflecting prudent financial management. The equity ratio decreased slightly from 80.6% to 72.7%, while return on equity fell from 10.7% to 5.0%, indicating reduced profitability on equity.

Cash Flow

Cash flow analysis shows a decline in free cash flow from 38.5M in 2024 to 28.4M in 2025, indicating potential strain on cash generation. The operating cash flow to net income ratio improved, signaling efficient cash management despite reduced net income.

Breakdown	Jun 2025	Jun 2024	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	727.58M	706.69M	735.74M	650.41M	432.08M
Gross Profit	130.54M	152.72M	176.90M	139.77M	64.09M
EBITDA	102.54M	125.22M	145.05M	114.09M	52.05M
Net Income	25.95M	53.09M	74.92M	53.46M	10.03M
Balance Sheet
Total Assets	718.74M	612.18M	611.68M	557.08M	388.53M
Cash, Cash Equivalents and Short-Term Investments	45.99M	96.22M	94.43M	71.26M	22.36M
Total Debt	37.13M	4.72M	25.55M	55.39M	19.21M
Total Liabilities	196.64M	118.35M	159.11M	197.32M	108.37M
Stockholders Equity	522.10M	493.83M	452.58M	359.76M	280.16M
Cash Flow
Free Cash Flow	28.39M	38.50M	54.50M	44.93M	3.15M
Operating Cash Flow	100.92M	112.03M	113.19M	94.87M	34.45M
Investing Cash Flow	-178.03M	-78.39M	-63.98M	-85.84M	-29.38M
Financing Cash Flow	25.92M	-32.52M	-29.61M	38.25M	-37.23M

Major Drilling Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 11.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MDI, the sentiment is Positive. The current price of 11.85 is above the 20-day moving average (MA) of 10.51, above the 50-day MA of 9.66, and above the 200-day MA of 8.74, indicating a bullish trend. The MACD of 0.60 indicates Negative momentum. The RSI at 74.28 is Negative, neither overbought nor oversold. The STOCH value of 93.71 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MDI.

Major Drilling Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GEO	77 Outperform	C$162.71M	8.71	10.19%	―	25.87%	389.49%
MDI	76 Outperform	C$970.37M	48.13	3.86%	―	9.50%	-57.10%
OGD	73 Outperform	C$65.66M	8.63	―	―	4.31%	―
FAR	66 Neutral	C$220.93M	0.45	20.82%	2.68%	-19.84%	1114.87%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%

Major Drilling Corporate Events

Major Drilling Sees Revenue Surge in Q1 2026 Amid Strong South American Demand

Major Drilling reported a 19.3% increase in revenue for the first quarter of fiscal 2026, driven by strong activity in Peru and Chile, which offset a slowdown in Australasia. Despite a slight decrease in EBITDA compared to the previous year, the company maintained a strong balance sheet and strategically relocated rigs to meet growing demand. The company anticipates continued growth in the next quarter, with potential margin improvements and increased activity in North America due to rising gold and copper prices and improved junior financing conditions.

The most recent analyst rating on (TSE:MDI) stock is a Buy with a C$10.00 price target. To see the full list of analyst forecasts on Major Drilling stock, see the TSE:MDI Stock Forecast page.

Major Drilling Reports Strong Fiscal 2025 Results Amid Industry Growth

Major Drilling reported a revenue increase to $727.6 million for fiscal year 2025, driven by heightened activity and strategic acquisitions like Explomin, enhancing its South American presence. Despite facing challenges such as tariff-related economic uncertainties and increased startup costs, the company anticipates a strong fiscal 2026, supported by larger exploration budgets from senior customers and a robust safety record, positioning itself well amidst rising gold and copper prices.

The most recent analyst rating on (TSE:MDI) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on Major Drilling stock, see the TSE:MDI Stock Forecast page.