As the S&P/TSX Composite Index continues to trade close to its all-time highs, it’s becoming increasingly difficult to justify paying up for stocks that have already surged over the past few months. While bargains are getting harder to spot, there’s one amazing growth stock that seems really undervalued right now as its business continues to grow strongly under the surface. That’s exactly the kind of setup long-term investors look for. It may not be very popular yet, but this company’s latest results show real momentum in revenue, profits, and future contracts.
Let’s take a closer look at this dirt-cheap TSX stock, trading far below its peak but still delivering impressive growth — making it an ideal choice if you’re looking to put $3,000 to work today.
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This top TSX stock looks way too cheap to ignore
Among all cheap stocks catching my eye, MDA Space (TSX: MDA) checks all the right boxes for value and momentum. If you don’t know it already, it’s a Canadian aerospace tech firm that’s gradually becoming a major name in global space infrastructure.
Despite recent strong earnings, MDA stock has tumbled nearly 54% from its 52-week high, now trading at just $22.26 per share, giving it a market cap of $2.8 billion. While the company doesn’t currently pay a dividend, that shouldn’t be a dealbreaker for growth-focused investors.
Momentum is strong beneath the surface
While MDA stock has taken a hit lately, the company’s financials are moving in the right direction. In the third quarter of 2025, MDA Space posted a solid 45% YoY (year-over-year) jump in its total revenue to $409.8 million. The surge was driven mainly by higher volumes of work in its satellite systems and robotics businesses. These segments benefited from the ramp-up of the Telesat Lightspeed and Globalstar next-gen constellation programs.
During the quarter, its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 14% YoY to $82.8 million, keeping its EBITDA margin healthy at 20.2%. As a result, the company also posted $46.1 million in adjusted quarterly net profit, reflecting a strong 33% jump from a year ago.
Despite these gains, however, MDA’s operating cash flow slipped on a YoY basis due to working capital swings. But overall, the firm continues to generate solid cash flows and has maintained a low net debt-to-EBITDA ratio of just 0.3, which gives it plenty of room to grow without taking on unnecessary risk.
Its long-term story remains intact
Notably, MDA Space ended the latest quarter with a backlog of $4.4 billion, giving it solid visibility into future revenue. That backlog is being actively converted into revenue, which is a clear sign of real demand for its technology and services.
In July, it closed the acquisition of SatixFy Communications, strengthening its end-to-end satellite systems offering. On top of that, the company recently reaffirmed its full-year 2025 guidance last week, expecting $1.57 billion to $1.63 billion in revenue and $305 million to $320 million in adjusted EBITDA. At the midpoint, that’s nearly 48% annual revenue growth and 45% EBITDA growth YoY.
With a massive growth pipeline, strong demand across all its core segments, and a valuation that looks disconnected from its performance, MDA stock looks really appealing to buy on the dip right now and hold for the long term.
