# MDA Ltd. (MDA.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Industrials / Aerospace & Defense. Price C$40.84, market value C$6.6 billion.

## Valuation
- **P/E (trailing): 51.7×** (5-yr avg 105.4×, 3-yr avg 35.8×). MDA Ltd. trades at 51.7× trailing earnings, well below its own five-year average of 105.4×: cheap by its own standards. The Industrials median in the September 2026 study was 25.7×. Forward P/E is 22.2×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.67**. A PEG of 0.67 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 3.5×**. Each dollar of revenue is priced at 3.5×.
- **Price / book: 3.8×**. The shares trade at 3.8× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 22.8×**. Enterprise value is 22.8× operating earnings before depreciation, the multiple that ignores how the company is financed; above 20× is demanding.
- **Free-cash-flow yield: 3.5%** (5-yr avg 1.3%). Free cash flow equals 3.5% of the market value, above its five-year average of 1.3%, so the shares are cheaper on cash than they have usually been.
- **Earnings yield: 1.9%**. The inverse of the P/E: 1.9% of the price is earned each year.

## Profitability
- **Gross margin: 20.5%**. MDA Ltd. keeps 20.5% of revenue after the direct cost of what it sells, a thin margin typical of retail, distribution and commodity businesses.
- **Operating margin: 5.9%**. 5.9% of revenue is left after running the business.
- **Net margin: 6.6%**. 6.6% of each dollar of sales reaches the bottom line.
- **Return on equity: 8.0%**. 8.0% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 6.3%**. Return on all capital, debt included, is 6.3%.
- **Return on assets: 3.2%**. Each dollar of assets produces 3.2% of profit.

## Growth
- **Revenue growth (1 yr): 51.2%** (3-yr 36.6%/yr, 5-yr 32.9%/yr). Revenue grew 51.2% over the last year, against 32.9% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): 33.3%** (3-yr 58.7%/yr). Earnings per share rose 33.3%, slower than revenue, so margins compressed.

## Financial health
- **Debt to equity: 0.30**. Debt is 0.30 times equity: a conservative balance sheet.
- **Net debt / EBITDA: 0.9×**. It would take 0.9 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 5.5×**. Operating profit covers interest 5.5× over, a safe margin.
- **Current ratio: 0.47** (quick 0.45). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.90**. A Z-score of 2.90 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend: none**. MDA Ltd. does not currently pay a dividend, but it returned -0.8% of its market value through buybacks over the last year.

## Price and momentum
- **Total return (1 yr): -7.6%** (YTD 53.3%, 3-mo -23.7%). The shares are down 7.6% over twelve months including dividends.
- **From 52-week high: -39.9%** (95.9% above the low). Trading 40% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 41**. An RSI of 41 is neutral.
- **Beta (1 yr): 1.76** (volatility 68%). Beta of 1.76 against the S&P/TSX Composite: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MDA.TO · Page: https://foliofundamentals.com/stocks/mda.to

Not investment advice.