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Major Drilling Group International

Market Cap

CA$546.7m

Last Updated

2021/04/13 22:14 UTC

Data Sources

Company Financials +

Executive Summary

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 Europe. More Details

Rewards

Trading at 60.1% below our estimate of its fair value

Earnings are forecast to grow 96.05% per year

Risk Analysis

No risks detected for MDI from our risk checks.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Major Drilling Group International's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MDI is less volatile than 75% 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.


Market Performance


7 Day Return

-5.7%

MDI

0.2%

CA Metals and Mining

0.08%

CA Market


1 Year Return

86.0%

MDI

27.6%

CA Metals and Mining

38.6%

CA Market

Return vs Industry: MDI exceeded the Canadian Metals and Mining industry which returned 27.6% over the past year.

Return vs Market: MDI exceeded the Canadian Market which returned 38.6% over the past year.


Shareholder returns

MDIIndustryMarket
7 Day-5.7%0.2%0.08%
30 Day-10.5%2.6%1.1%
90 Day-9.3%-1.7%7.8%
1 Year86.0%86.0%28.9%27.6%43.2%38.6%
3 Year0.9%0.9%50.3%47.0%31.5%18.9%
5 Year-11.6%-11.6%58.1%53.2%56.4%32.8%

Long-Term Price Volatility Vs. Market

How volatile is Major Drilling Group International's share price compared to the market and industry in the last 5 years?


Simply Wall St News

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$6.79) is trading below our estimate of fair value (CA$17.02)

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


Price To Earnings Ratio

PE vs Industry: MDI is unprofitable, so we can't compare its PE Ratio to the CA Metals and Mining industry average.

PE vs Market: MDI is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate MDI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: MDI is good value based on its PB Ratio (1.9x) compared to the CA Metals and Mining industry average (2.8x).


Future Growth

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

96.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MDI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.5%).

Earnings vs Market: MDI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: MDI's is expected to become profitable in the next 3 years.

Revenue vs Market: MDI's revenue (15.4% per year) is forecast to grow faster than the Canadian market (7% per year).

High Growth Revenue: MDI's revenue (15.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MDI's Return on Equity is forecast to be low in 3 years time (10.7%).


Past Performance

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

-3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MDI is currently unprofitable.

Growing Profit Margin: MDI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: MDI is unprofitable, and losses have increased over the past 5 years at a rate of 3.4% per year.

Accelerating Growth: Unable to compare MDI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: MDI is unprofitable, making it difficult to compare its past year earnings growth to the Metals and Mining industry (74.3%).


Return on Equity

High ROE: MDI has a negative Return on Equity (-23.24%), as it is currently unprofitable.


Financial Health

How is Major Drilling Group International's financial position?


Financial Position Analysis

Short Term Liabilities: MDI's short term assets (CA$209.5M) exceed its short term liabilities (CA$59.8M).

Long Term Liabilities: MDI's short term assets (CA$209.5M) exceed its long term liabilities (CA$32.0M).


Debt to Equity History and Analysis

Debt Level: MDI's debt to equity ratio (5.5%) is considered satisfactory.

Reducing Debt: MDI's debt to equity ratio has increased from 3.1% to 5.5% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable MDI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: MDI is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 1.4% per year.


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?

2.7yrs

Average management tenure


CEO

Denis Larocque (50 yo)

5.58yrs

Tenure

CA$914,675

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 ($USD729.24K) is about average for companies of similar size in the Canadian market ($USD745.06K).

Compensation vs Earnings: Denis's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: MDI's management team is considered experienced (2.7 years average tenure).


Board Members

Experienced Board: MDI's board of directors are considered experienced (4.1 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Major Drilling Group International Inc.'s company bio, 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$546.744m
  • Shares outstanding: 80.64m
  • 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


Biography

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 Europe. The c...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/13 22:14
End of Day Share Price2021/04/13 00:00
Earnings2021/01/31
Annual Earnings2020/04/30


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.