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MDI: Share Buyback Will Support Future Upside Despite Softer Outlook

MDI: Share Buyback Plan Will Drive Shareholder Value Over Coming Years

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MDI
AnalystConsensusTarget
Not Invested
Published 13 Mar 2025

Update shared on 13 Dec 2025

Fair value Increased 3.85%
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AnalystConsensusTarget's Fair Value
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1Y
50.8%
7D
-3.1%

Analysts have modestly raised their price target on Major Drilling Group International from 15.60 dollars to 16.20 dollars, reflecting slightly higher expected valuation multiples despite more conservative assumptions for revenue growth and profit margins.

What's in the News

  • Zacatecas Silver Corp. signed a new community access agreement with Ejido Panuco in Zacatecas, Mexico, and finalized a drill contract with Major Drilling for an initial 4,000 metres of angled diamond drilling at the Zacatecas Silver Project (Key Developments).
  • The Zacatecas Silver program will focus on extending high grade mineralization and expanding the Mineral Resource Estimate, with Major Drilling ready to mobilize once permits from SEMARNAT are secured (Key Developments).
  • Major Drilling announced a normal course issuer bid to repurchase up to 4,097,159 common shares, or 5% of its outstanding share capital, with all repurchased shares to be cancelled and the program scheduled to run until October 20, 2026 (Key Developments).
  • The Board of Directors authorized the share buyback plan on October 17, 2025, aligning with management's capital allocation strategy and confidence in the company valuation (Key Developments).

Valuation Changes

  • The fair value estimate has risen slightly from CA$15.60 to CA$16.20, reflecting a modestly higher target valuation.
  • The discount rate has increased marginally from 7.14% to 7.21%, implying a slightly higher required return on equity.
  • Revenue growth has been revised down from 19.52% to 16.20%, indicating more conservative expectations for top-line expansion.
  • The net profit margin has edged down from 5.89% to 5.78%, suggesting a modestly softer profitability outlook.
  • The future P/E multiple has risen from 20.47x to 22.05x, indicating a slightly higher valuation multiple being applied to forward earnings.

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