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MDI

Major Drilling Group InternationalTSX:MDI Stock Report

Market Cap

CA$806.5m

7D

4.4%

1Y

49.9%

Updated

25 Oct, 2021

Data

Company Financials +
MDI fundamental analysis
Snowflake Score
Valuation3/6
Future Growth4/6
Past Performance3/6
Financial Health5/6
Dividends0/6

MDI Overview

Major Drilling Group International Inc. provides contract drilling services for mining and mineral exploration companies in Canada, the United States, Mexico, South America, Asia, Africa, and Australia.

Major Drilling Group International Competitors

Foraco International

TSX:FAR

CA$221.7m

Geodrill

TSX:GEO

CA$106.9m

Orbit Garant Drilling

TSX:OGD

CA$37.4m

Primoris Services

NasdaqGS:PRIM

US$1.5b

Price History & Performance

Summary of all time highs, changes and price drops for Major Drilling Group International
Historical stock prices
Current Share PriceCA$9.79
52 Week HighCA$5.85
52 Week LowCA$11.34
Beta1.55
1 Month Change13.18%
3 Month Change21.62%
1 Year Change49.92%
3 Year Change111.45%
5 Year Change42.50%
Change since IPO351.85%

Recent News & Updates

Shareholder Returns

MDICA Metals and MiningCA Market
7D4.4%1.0%1.3%
1Y49.9%-1.6%33.6%

Return vs Industry: MDI exceeded the Canadian Metals and Mining industry which returned -1.6% over the past year.

Return vs Market: MDI exceeded the Canadian Market which returned 33.6% over the past year.

Price Volatility

Is MDI's price volatile compared to industry and market?
MDI volatility
MDI Beta1.55
Industry Beta1.13
Market Beta1

Stable Share Price: MDI is not significantly more volatile than the rest of Canadian stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: MDI's weekly volatility (7%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
19802,500Denis Larocquehttps://www.majordrilling.com

Major Drilling Group International Inc. provides contract drilling services for mining and mineral exploration companies in Canada, the United States, Mexico, South America, Asia, Africa, and Australia. The company offers a suite of drilling services, including surface and underground coring, directional, reverse circulation, sonic, geotechnical, environmental, water-well, coal-bed methane, shallow gas, underground percussive/longhole drilling, surface drill and blast, and various mine services. As of April 30, 2021, it had 588 drill rigs.

Major Drilling Group International Fundamentals Summary

How do Major Drilling Group International's earnings and revenue compare to its market cap?
MDI fundamental statistics
Market CapCA$806.47m
Earnings (TTM)CA$18.95m
Revenue (TTM)CA$493.65m

42.6x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MDI income statement (TTM)
RevenueCA$493.65m
Cost of RevenueCA$414.33m
Gross ProfitCA$79.32m
ExpensesCA$60.38m
EarningsCA$18.95m

Last Reported Earnings

Jul 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.23
Gross Margin16.07%
Net Profit Margin3.84%
Debt/Equity Ratio16.3%

How did MDI perform over the long term?

See historical performance and comparison

Valuation

Is Major Drilling Group International undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MDI (CA$9.4) is trading below our estimate of fair value (CA$34.48)

Significantly Below Fair Value: MDI is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: MDI is poor value based on its PE Ratio (40.9x) compared to the Canadian Metals and Mining industry average (11.1x).

PE vs Market: MDI is poor value based on its PE Ratio (40.9x) compared to the Canadian market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: MDI is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: MDI's PB Ratio (2.5x) is in line with the CA Metals and Mining industry average.


Future Growth

How is Major Drilling Group International forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

61.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDI's forecast earnings growth (61.9% per year) is above the savings rate (1.6%).

Earnings vs Market: MDI's earnings (61.9% per year) are forecast to grow faster than the Canadian market (12% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MDI's revenue (12.9% per year) is forecast to grow faster than the Canadian market (6.7% per year).

High Growth Revenue: MDI's revenue (12.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if MDI's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Major Drilling Group International performed over the past 5 years?

8.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDI has high quality earnings.

Growing Profit Margin: MDI became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MDI has become profitable over the past 5 years, growing earnings by 8.1% per year.

Accelerating Growth: MDI has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MDI has become profitable in the last year, making it difficult to compare its past year earnings growth to the Metals and Mining industry (102.9%).


Return on Equity

High ROE: MDI's Return on Equity (6.1%) is considered low.


Financial Health

How is Major Drilling Group International's financial position?


Financial Position Analysis

Short Term Liabilities: MDI's short term assets (CA$254.2M) exceed its short term liabilities (CA$88.6M).

Long Term Liabilities: MDI's short term assets (CA$254.2M) exceed its long term liabilities (CA$88.5M).


Debt to Equity History and Analysis

Debt Level: MDI's debt to equity ratio (16.3%) is considered satisfactory.

Reducing Debt: MDI's debt to equity ratio has increased from 2.4% to 16.3% over the past 5 years.

Debt Coverage: MDI's debt is well covered by operating cash flow (103.3%).

Interest Coverage: MDI's interest payments on its debt are well covered by EBIT (17.5x coverage).


Balance Sheet


Dividend

What is Major Drilling Group International current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MDI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MDI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MDI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MDI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: MDI is not paying a notable dividend for the Canadian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MDI's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.5yrs

Average management tenure


CEO

Denis Larocque (51 yo)

6.08yrs

Tenure

CA$921,571

Compensation

Mr. Denis Larocque has been President and Chief Executive Officer of Major Drilling Group International Inc. since September 11, 2015. Mr. Larocque joined Major Drilling Group International Inc. in 1994 an...


CEO Compensation Analysis

Compensation vs Market: Denis's total compensation ($USD745.26K) is below average for companies of similar size in the Canadian market ($USD1.11M).

Compensation vs Earnings: Denis's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: MDI's management team is considered experienced (4.5 years average tenure).


Board Members

Experienced Board: MDI's board of directors are considered experienced (4.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.2%.


Top Shareholders

Company Information

Major Drilling Group International Inc.'s employee growth, exchange listings and data sources


Key Information

  • Name: Major Drilling Group International Inc.
  • Ticker: MDI
  • Exchange: TSX
  • Founded: 1980
  • Industry: Diversified Metals and Mining
  • Sector: Materials
  • Market Cap: CA$806.466m
  • Shares outstanding: 82.38m
  • Website: https://www.majordrilling.com

Number of Employees


Location

  • Major Drilling Group International Inc.
  • 111 St. George Street
  • Suite 100
  • Moncton
  • New Brunswick
  • E1C 1T7
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/25 23:15
End of Day Share Price2021/10/25 00:00
Earnings2021/07/31
Annual Earnings2021/04/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.