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
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
| MDI | Industry | Market | |
|---|---|---|---|
| 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 Year | 86.0%86.0% | 28.9%27.6% | 43.2%38.6% |
| 3 Year | 0.9%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
1 week ago | Simply Wall St
What Kind Of Shareholders Own Major Drilling Group International Inc. (TSE:MDI)?4 weeks ago | Simply Wall St
We Think Major Drilling Group International (TSE:MDI) Can Stay On Top Of Its Debt1 month ago | Simply Wall St
Will the Promising Trends At Major Drilling Group International (TSE:MDI) Continue?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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/13 22:14 |
| End of Day Share Price | 2021/04/13 00:00 |
| Earnings | 2021/01/31 |
| Annual Earnings | 2020/04/30 |
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.