Major Drilling Group International Inc.
Major Drilling Group International Inc. Fundamental Analysis
Major Drilling Group International Inc. (MDI.TO) shows weak financial fundamentals with a PE ratio of 92.32, profit margin of 1.68%, and ROE of 2.63%. The company generates $0.8B in annual revenue with weak year-over-year growth of 2.96%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 36.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MDI.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakMDI.TO struggles to generate sufficient returns from assets.
Valuation Score
ModerateMDI.TO shows balanced valuation metrics.
Growth Score
WeakMDI.TO faces weak or negative growth trends.
Financial Health Score
ExcellentMDI.TO maintains a strong and stable balance sheet.
Profitability Score
ModerateMDI.TO maintains healthy but balanced margins.
Key Financial Metrics
Is MDI.TO Expensive or Cheap?
P/E Ratio
MDI.TO trades at 92.32 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MDI.TO's PEG of -8.77 indicates potential undervaluation.
Price to Book
The market values Major Drilling Group International Inc. at 2.41 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.16 times EBITDA. This signals the market has high growth expectations.
How Well Does MDI.TO Make Money?
Net Profit Margin
For every $100 in sales, Major Drilling Group International Inc. keeps $1.68 as profit after all expenses.
Operating Margin
Core operations generate 4.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.63 in profit for every $100 of shareholder equity.
ROA
Major Drilling Group International Inc. generates $1.93 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Major Drilling Group International Inc. produces operating cash flow of $84.67M, showing steady but balanced cash generation.
Free Cash Flow
Major Drilling Group International Inc. produces free cash flow of $29.37M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.36 in free cash annually.
FCF Yield
MDI.TO converts 2.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
92.32
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-8.77
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.41
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.56
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.08
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.03
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How MDI.TO Stacks Against Its Sector Peers
| Metric | MDI.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 92.32 | 23.49 | Worse (Expensive) |
| ROE | 2.63% | 883.00% | Weak |
| Net Margin | 1.68% | -94454.00% (disorted) | Weak |
| Debt/Equity | 0.08 | 0.51 | Strong (Low Leverage) |
| Current Ratio | 2.71 | 5.14 | Strong Liquidity |
| ROA | 1.93% | -6300.00% (disorted) | Weak |
MDI.TO outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Major Drilling Group International Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
74.85%
Industry Style: Cyclical, Commodity, Value
High GrowthEPS CAGR
135.96%
Industry Style: Cyclical, Commodity, Value
High GrowthFCF CAGR
135.63%
Industry Style: Cyclical, Commodity, Value
High Growth