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Stockchase InsightsMDA Ltd.MDA.TOPARTIAL BUYAug 16, 2023

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

EPS of 8c mostly matched estimates (8.2c); revenue of $196M was 1% better than expected. EBITDA of $40.4M was 11.5% better. Results were good, and guidance was raised. MDA also won a very large contract which adds significantly to earnings/revenue visibility. The stock has had a very big run; at 28X earnings it cannot be called cheap, but we think momentum can continue. We can't comment on position size but think it is buyable for aggressive investors, though we would not expect the same pace as recent gains.
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Stockchase Insights

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$10.41

Stock price when the opinion was issued

$59.11

As of Jun 19, 2026. Market Open.

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BUY

Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Forecasts call for sales growth of 23.5% and EPS growth of 21.1% in 2024. MDA has displayed nice momentum following a solid Q3 and has a large backlog of business. Additionally, MDA has started to see cash flows begin to increase. MDA is up 59% in the last year and a valuation of 17.9x forward earnings is decent considering the strong momentum in the last year and forecasted outlook. We are comfortable adding to MDA at the current levels.
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PAST TOP PICK

(A Top Pick Dec 30/22, Up 82%)

The Telesat contract really kicked them up. (Telsat contracted MDA for a major project.) MDA was able to lower the costs which allowed Telesat to raise financing for their project. Happy to continue owning this.

BUY

Last week, the Telesat deal surprised everyone. Nobody saw it coming. MDA developed a technology that really dropped the costs, so they were able to raise the financing. That deal was a feather in the cap, but MDA's demand will grow anyway. He likes the story and is hanging on, not selling any shares.

BUY

He's been buying this all along. It bottomed at $6 and is now around $8.50. They're like the arms dealer in the old space race--making components in satellites. They're very well positioned. Are generating cash flow and raised full-year guidance. Delivered a good beat last quarter. Their valuation will expand. Satellites will continue to launch so there will be demand.

TOP PICK

Arms dealers of the space race. So well positioned, great growth profile. 20% annualized growth rate. In a growth area, and these guys make the nuts and bolts. Decent valuation, positive free cashflow. No dividend.

(Analysts’ price target is $10.50)

PAST TOP PICK

(A Top Pick Feb 07/22, Down 17%)

Still likes it despite the disappointment. Haven't missed numbers. They're still expecting 25% cashflow growth over the next 3-4 years. Potential for takeout.

TOP PICK

Only recently spinoff as a public company. Arms dealer for "space race" (components for space equipment). Continue to push out state of the art products. Current share price presenting a buying opportunity. Good for long term share holders.

BUY

note: audio problems during broadcast Likes it. Don't look at earnings now, but instead the operating cash flow. Built-in contracts are fine. They have projected 25% annualized cash flow growth in the next 5 years. Not a well-known name, which is why shares are down so much this year, but they haven't done anything to disappoint investors.

PAST TOP PICK

(A Top Pick Aug 23/21, Down 45%) Better than 20% annual cashflow growth over the next 4 years. Sector has fallen out of favour. Not well followed. Tax-loss selling. In prime position for space travel. Good balance sheet. Likes prospects.

PAST TOP PICK

(A Top Pick Jun 18/21, Down 45%) 5 year growth rate of ~25%. Have been able to get most of contracts expected to get. Backlog of orders has grown. Small cap stock under the radar screen. Will continue to hold shares in the company.

BUY

They have built-in growth for the next 5 years. The component they're building for satellites is huge. cash flow and operating earnings. Good balance sheet.

TOP PICK

Satellite technology. It's the nuts and bolts in the aspect of geo-spatial intelligence.. A smaller cap with growth. Pretty good balance sheet. More than $400 million in revenue last year. Could be $1 1/2 billion revenue by 2025. 3 Buys, 3 Holds, 0 Sells

TOP PICK

Believes major growth going forward. Programs and technology will delivery over 20% growth in earnings. Likes the space and this company is a reasonable way to invest. Satellite technology enabling everything from pollution tracking to wildfire impact.

BUY

He likes it. About 8 times operating cash and forward earnings at a 20-25% rate. This is a bit of a show-me story. Margins are improving. It trades thinly. He continues to like it.

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