MDA Space Ltd. Common Shares (MDA)

FairStock Score: 24/100 — RISKY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn high returns on capital, turn profits into cash, and sell at a sensible price. MDA Space has real technology in satellite communications, MDA AURORA, autonomous robotics and space systems, with 4,000 employees and international reach. But the numbers give me pause. In the latest reported quarter (2026-Q2), revenue was $498.6M and net income was $27.9M, a 5.60% margin. That is a low margin for a technology business and leaves little cushion. The provided data also show negative profit growth, a sign that sales growth is not reaching the bottom line. More concerning, trailing free cash flow is -$100.8M and the FairStock FCF yield is -2.2%. A business that consumes cash is not compounding for owners. Balance sheet leverage is modest with D/E 0.20, and beta is 0.20, but returns are weak: ROE 6.68% and ROCE 2.75% (FairStock calculations). Those are not the economics of a wide moat. Valuation is the opposite of Graham's margin of safety. At the 2026-10-13 close, the FairStock P/E is 50.14 and P/B is 3.71; the Graham Number is $13.22, implying the price is about 116% above that conservative value. The FairStock Altman Z-Score is 1.61 and Piotroski F-Score is 5/9, suggesting neither a fortress nor clear distress, while the FairStock Score is 24/100. FairStock's Lynch category is none because there are only 0 years of filed results and 3 are needed. The 2026-10-13 close of $28.58 is near the low end of the 52-week range of $23.23–$49.37. The key question is whether margins and free cash flow can improve enough to justify the price.

In plain English: MDA Space makes space technology such as satellites, communications gear, and robots for space, the Moon, and Mars. In its latest reported quarter (2026-Q2), it earned $27.9M on $498.6M of revenue, a thin 5.60% margin, and it used more cash than it generated over the past year. At the 2026-10-13 close of $28.58, the price looks expensive compared with its earnings and accounting value.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer