Major Drilling Group International Inc.
Major Drilling Group International Inc. Fundamental Analysis
Major Drilling Group International Inc. (MJDLF) shows weak financial fundamentals with a PE ratio of 86.75, profit margin of 1.95%, and ROE of 2.97%. 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 37.0/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MJDLF's fundamental strength across five key dimensions:
Efficiency Score
WeakMJDLF struggles to generate sufficient returns from assets.
Valuation Score
ModerateMJDLF shows balanced valuation metrics.
Growth Score
WeakMJDLF faces weak or negative growth trends.
Financial Health Score
ExcellentMJDLF maintains a strong and stable balance sheet.
Profitability Score
ModerateMJDLF maintains healthy but balanced margins.
Key Financial Metrics
Is MJDLF Expensive or Cheap?
P/E Ratio
MJDLF trades at 86.75 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MJDLF's PEG of -3.04 indicates potential undervaluation.
Price to Book
The market values Major Drilling Group International Inc. at 2.48 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 14.17 times EBITDA. This signals the market has high growth expectations.
How Well Does MJDLF Make Money?
Net Profit Margin
For every $100 in sales, Major Drilling Group International Inc. keeps $1.95 as profit after all expenses.
Operating Margin
Core operations generate 3.86 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $2.97 in profit for every $100 of shareholder equity.
ROA
Major Drilling Group International Inc. generates $2.05 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. generates limited operating cash flow of $69.22M, signaling weaker underlying cash strength.
Free Cash Flow
Major Drilling Group International Inc. generates weak or negative free cash flow of $15.12M, restricting financial flexibility.
FCF Per Share
Each share generates $0.18 in free cash annually.
FCF Yield
MJDLF converts 1.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
86.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-3.04
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.48
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.69
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.49
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
0.05
vs 25 benchmark
How MJDLF Stacks Against Its Sector Peers
| Metric | MJDLF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 86.75 | 27.01 | Worse (Expensive) |
| ROE | 2.97% | 949.00% | Weak |
| Net Margin | 1.95% | -16159.00% (disorted) | Weak |
| Debt/Equity | 0.07 | 0.48 | Strong (Low Leverage) |
| Current Ratio | 2.49 | 4.42 | Strong Liquidity |
| ROA | 2.05% | -6411.00% (disorted) | Weak |
MJDLF 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