MDA Space Ltd. Common Shares (MDA)

FairStock Score: 24/100 — RISKY

Key Financials

Strengths

• Revenue growth of 44.0% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($12) with negative 175% margin of safety—limited downside protection
• Altman Z-Score of 1.4 places it in the financial distress zone—elevated bankruptcy risk

AI Analysis

MDA Space Ltd. Common Shares is a small-cap industrials company valued at $4.5 billion. The business generates $2.1 billion in annual revenue with a 1.1% net margin. From a quality standpoint, MDA shows solid Piotroski F-Score of 6/9 and distressed Altman Z-Score of 1.4 warrants caution. On valuation, the stock is commanding a steep 65.3x multiple, with trades far above its Graham Number ($12) with no margin of safety. Growth dynamics show revenue growing at 44.0% and profit growth of -4.4%. Our composite FairStock Score of 24/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

MDA's 44% revenue growth trajectory could accelerate as it captures additional market share in the industrials sector. Operational leverage in the business model means incremental revenue growth could disproportionately boost bottom-line profitability.

Bear Case

At 65x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer