MacDonald, Dettwiler & Associates 2

Sound bite for Twitter and StockTwits is: Stock price cheap, debt ratios low. On most testing this stock's price comes out as cheap. It is certainly below the median. The low debt ratios are a bit of a concern and would make the company vulnerable in bad times. See my spreadsheet on MacDonald, Dettwiler & Associates.

I do not own this stock of MacDonald, Dettwiler & Associates (TSX-MDA, OTC-MDDWF). I read about this stock in MPL Communication's Advice Hotline dated October 10, 2012. CanTech likes it also. It is a Tech stock with dividends.

The 5 year low, median and high median Price/Earnings per Share Ratios are 18.77, 23.39 and 28.00. The corresponding 10 year values are a bit lower at 16.39, 21.71 and 25.20. The current P/E Ratio is 15.55 based on a stock price of $73.86 and 2015 EPS estimate of $4.75. This stock price testing suggests that the stock price is relatively cheap.

I get a Graham Price of $53.40. The 10 year low, median and high median Price/Graham Price Ratios are 1.61, 1.93 and 2.32. The current P/GP Ratio is 1.38 based on a stock price of $73.86. This stock price testing suggests that the stock price is relatively cheap.

I get a 10 year median Price/Book Value per Share Ratio of 3.83. The current P/B Ratio is 2.77, a value some 28% lower than the 10 years median ratio. The current P/B Ratio is based on BVPS of $26.68 and a stock price of $73.86. This stock price testing suggests that the stock price is relatively cheap.

I only have a 4 year median dividend yield which is 1.93%. The current dividend yield is 2% based on a stock price of $73.86 and dividends of $1.48. This testing suggests that the stock price is relatively reasonable and below the median.

I get a 10 year P/S Ratio of 1.54. The current P/S Ratio is 1.23 based on Revenue estimate for 2015 of $2.178M ($60.18 per share) and a share price of $73.86. The current P/S Ratio is some 20% lower than the 10 year ratio. This stock price testing suggests that the stock price is relatively cheap.

When I look at analysts' recommendations, I find Strong Buy, Buy and Hold Recommendations. The most recommendations are a Hold. The consensus recommendation is a Buy. The 12 month consensus stock price is $96.80. This implies a total return of 33.06% with 31.06% from capital gains and 2% from dividends.

The last time CanTech reviewed this company, Richard Tse said that its competition was increasing and the stock was currently expensive. The site of the Market Business talks about recent analysts ratings on this stock. Joseph Solitro of Motley Fool thinks that this stock is a screaming buy.

This is the second of two parts. The first part was posted on Monday, September 28, 2015 and is available here. The first part talks about the stock and the second part talks about the stock price.

MacDonald, Dettwiler & Associates Ltd. is a global communications and information company providing operational solutions to commercial and government organizations worldwide. Its web site is here MacDonald, Dettwiler & Associates.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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