While it’s not easy for most people to multiply their money in the stock market, it’s definitely not impossible. It usually comes down to finding a high-growth stock at the right time with the right mix of momentum and staying power.
There’s one Canadian stock that’s shown those signals repeatedly. With its fast-growing presence in satellite systems, robotics, and space intelligence, this TSX-listed stock looks like it’s just getting warmed up. In this article, let’s talk about this space-tech stock from Canada that could be a significantly rewarding bet for patient investors.
A top Canadian stock with 10x potential
The company I’m talking about is MDA Space (TSX: MDA), a rapidly growing Toronto-headquartered space tech company with decades of experience working on some of the most advanced space missions. It mainly operates on the leading edge of satellite systems, space robotics, and earth observation technologies.
MDA’s current share price is $28.94, giving it a market cap of $3.7 billion. The stock has jumped 38% in the past year, and more than 330% over the last three years, even after a recent pullback.
In late October, MDA stock dropped more than 15% in a single session, but this wasn’t due to anything directly related to the company’s performance. The decline followed a Bloomberg report suggesting that one of MDA’s customers, Globalstar, was exploring a potential sale and had early talks with SpaceX. The report sparked speculation around the future of Globalstar’s partnerships, including its relationship with MDA.
MDA quickly clarified that its share price fluctuations could be due to unconfirmed and speculative media reports and highlighted that it does not comment on rumours. The company also confirmed it would provide a full business update during its next earnings release on November 14. In short, this drop had nothing to do with MDA’s fundamentals, which remain strong.
Revenues and profits are rising
In the second quarter, MDA posted a solid 54% YoY (year-over-year) jump to $373.3 million. Most of this strong revenue growth came from its satellite systems division, where large-scale programs like Telesat Lightspeed and Globalstar’s new LEO (Low Earth Orbit) constellation gained momentum.
As a result, the company’s profits also surged across the board. MDA reported a 57% YoY jump in its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to $76.3 million, while it ended the quarter with $416.8 million in net cash, giving it plenty of flexibility to keep investing in future growth.
More importantly, despite the recent EchoStar contract cancellation (announced earlier in September), MDA reaffirmed its full-year guidance.
Bold expansion and strategic moves
While some may talk about MDA losing one or two clients or projects, it’s important to note that MDA isn’t relying on just one or two big clients to fuel future growth. It recently completed the acquisition of SatixFy Communications, which is expected to boost its digital satellite offerings.
At the same time, it won a key deal with the Canadian Department of National Defence to provide improved space situational awareness services using deep space radar technology.
Foolish takeaway
MDA expects to generate between $1.57 billion and $1.63 billion in revenue this year, with adjusted EBITDA between $305 million and $320 million. That puts the company on track for roughly 45% YoY growth at the midpoint.
While it may continue to experience volatility in the short term, MDA’s consistent earnings growth, robust financial base, and solid backlog give this top Canadian stock the potential to turn a small investment into something much bigger in the long run.
