Major Drilling Group International Inc.

TSX:MDI Stock Report

Market Cap: CA$687.5m

Major Drilling Group International Valuation

Is MDI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of MDI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MDI (CA$8.36) is trading below our estimate of fair value (CA$27.05)

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

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MDI?

Key metric: As MDI is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for MDI. This is calculated by dividing MDI's market cap by their current earnings.
What is MDI's PE Ratio?
PE Ratio14.5x
EarningsCA$47.18m
Market CapCA$687.46m

Price to Earnings Ratio vs Peers

How does MDI's PE Ratio compare to its peers?

The above table shows the PE ratio for MDI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average27.3x
SLI Standard Lithium
2.6xn/aCA$454.1m
ALS Altius Minerals
86.6x9.0%CA$1.2b
AFM Alphamin Resources
14.5xn/aCA$1.6b
FAR Foraco International
5.7x27.7%CA$218.7m
MDI Major Drilling Group International
14.5x31.4%CA$687.5m

Price-To-Earnings vs Peers: MDI is good value based on its Price-To-Earnings Ratio (14.5x) compared to the peer average (27.3x).

Price to Earnings Ratio vs Industry

How does MDI's PE Ratio compare vs other companies in the CA Metals and Mining Industry?

36 CompaniesPrice / EarningsEstimated GrowthMarket Cap
IMG IAMGOLD
3.9x-10.3%US$2.84b
SLI Standard Lithium
2.6xn/aUS$322.28m
QRC Queen's Road Capital Investment
2.2xn/aUS$244.29m
STGO Steppe Gold
2.3xn/aUS$123.82m
MDI 14.5xIndustry Avg. 13.0xNo. of Companies36PE01632486480+
36 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: MDI is expensive based on its Price-To-Earnings Ratio (14.5x) compared to the Canadian Metals and Mining industry average (12.8x).

Price to Earnings Ratio vs Fair Ratio

What is MDI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MDI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio14.5x
Fair PE Ratio20.1x

Price-To-Earnings vs Fair Ratio: MDI is good value based on its Price-To-Earnings Ratio (14.5x) compared to the estimated Fair Price-To-Earnings Ratio (20.1x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst MDI forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$8.36
CA$13.75
+64.5%
14.0%CA$16.00CA$11.00n/a4
Nov ’25CA$8.30
CA$13.50
+62.7%
17.0%CA$16.00CA$10.00n/a4
Oct ’25CA$8.42
CA$13.50
+60.3%
17.0%CA$16.00CA$10.00n/a4
Sep ’25CA$9.46
CA$14.75
+55.9%
19.4%CA$19.00CA$11.00n/a4
Aug ’25CA$9.25
CA$14.75
+59.5%
19.4%CA$19.00CA$11.00n/a4
Jul ’25CA$9.08
CA$14.75
+62.4%
19.4%CA$19.00CA$11.00n/a4
Jun ’25CA$9.94
CA$14.75
+48.4%
19.4%CA$19.00CA$11.00n/a4
May ’25CA$9.52
CA$15.10
+58.6%
17.6%CA$19.00CA$11.00n/a5
Apr ’25CA$9.11
CA$15.10
+65.8%
17.6%CA$19.00CA$11.00n/a5
Mar ’25CA$7.74
CA$15.35
+98.3%
14.9%CA$19.00CA$12.25n/a5
Feb ’25CA$8.39
CA$15.65
+86.5%
15.1%CA$19.00CA$12.25n/a5
Jan ’25CA$9.21
CA$16.30
+77.0%
10.4%CA$19.00CA$14.50n/a5
Dec ’24CA$7.80
CA$16.30
+109.0%
8.4%CA$18.00CA$14.50n/a5
Nov ’24CA$7.27
CA$16.30
+124.2%
8.4%CA$18.00CA$14.50CA$8.305
Oct ’24CA$8.27
CA$16.30
+97.1%
8.4%CA$18.00CA$14.50CA$8.425
Sep ’24CA$8.76
CA$16.63
+89.8%
8.1%CA$18.00CA$14.50CA$9.464
Aug ’24CA$9.26
CA$16.63
+79.5%
8.1%CA$18.00CA$14.50CA$9.254
Jul ’24CA$9.14
CA$16.63
+81.9%
8.1%CA$18.00CA$14.50CA$9.084
Jun ’24CA$9.20
CA$16.30
+77.2%
8.4%CA$18.00CA$14.50CA$9.945
May ’24CA$10.81
CA$16.30
+50.8%
8.4%CA$18.00CA$14.50CA$9.525
Apr ’24CA$10.63
CA$16.30
+53.3%
8.4%CA$18.00CA$14.50CA$9.115
Mar ’24CA$11.04
CA$16.30
+47.6%
8.4%CA$18.00CA$14.50CA$7.745
Feb ’24CA$11.05
CA$16.30
+47.5%
8.4%CA$18.00CA$14.50CA$8.395
Jan ’24CA$10.52
CA$16.30
+54.9%
8.4%CA$18.00CA$14.50CA$9.215
Dec ’23CA$9.47
CA$16.30
+72.1%
8.4%CA$18.00CA$14.50CA$7.805
Nov ’23CA$8.39
CA$16.30
+94.3%
8.4%CA$18.00CA$14.50CA$7.275

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.

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