MDA Ltd.
MDA Ltd. Fundamental Analysis
MDA Ltd. (MDA.TO) shows weak financial fundamentals with a PE ratio of 44.19, profit margin of 6.64%, and ROE of 8.38%. The company generates $1.6B in annual revenue with strong year-over-year growth of 33.74%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 55.4/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze MDA.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakMDA.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateMDA.TO shows balanced valuation metrics.
Growth Score
ExcellentMDA.TO delivers strong and consistent growth momentum.
Financial Health Score
ModerateMDA.TO shows balanced financial health with some risks.
Profitability Score
WeakMDA.TO struggles to sustain strong margins.
Key Financial Metrics
Is MDA.TO Expensive or Cheap?
P/E Ratio
MDA.TO trades at 44.19 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MDA.TO's PEG of -19.67 indicates potential undervaluation.
Price to Book
The market values MDA Ltd. at 3.54 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 17.21 times EBITDA. This signals the market has high growth expectations.
How Well Does MDA.TO Make Money?
Net Profit Margin
For every $100 in sales, MDA Ltd. keeps $6.64 as profit after all expenses.
Operating Margin
Core operations generate 7.76 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $8.38 in profit for every $100 of shareholder equity.
ROA
MDA Ltd. generates $3.23 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
MDA Ltd. produces operating cash flow of $408.04M, showing steady but balanced cash generation.
Free Cash Flow
MDA Ltd. generates strong free cash flow of $232.51M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.84 in free cash annually.
FCF Yield
MDA.TO converts 4.85% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
44.19
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-19.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.54
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.94
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.30
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.47
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.08
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How MDA.TO Stacks Against Its Sector Peers
| Metric | MDA.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 44.19 | 25.85 | Worse (Expensive) |
| ROE | 8.38% | 1270.00% | Weak |
| Net Margin | 6.64% | -41866.00% (disorted) | Weak |
| Debt/Equity | 0.30 | 0.79 | Strong (Low Leverage) |
| Current Ratio | 0.47 | 10.04 | Weak Liquidity |
| ROA | 3.23% | -1493990.00% (disorted) | Weak |
MDA.TO outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews MDA Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
168.77%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
437.60%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
1318.29%
Industry Style: Cyclical, Value, Infrastructure
High Growth