MDA SpaceTSX:MDA +2.79%40 Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus rates TSX:MDA with a GF Score™ of 40/100 and a GF Value™ of C$31.65 (Significantly Overvalued). The stock has 5 warning signs investors should review. Among 334 Aerospace & Defense companies, MDA Space ranks better than 99.7% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. MDA Space's annualized net income for the quarter that ended in Mar. 2026 was C$118 Mil. MDA Space's average shareholder tangible equity for the quarter that ended in Mar. 2026 was C$-76 Mil. Therefore, MDA Space's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was Negative Tangible Equity%.
The historical rank and industry rank for MDA Space's Return-on-Tangible-Equity or its related term are showing as below:
TSX:MDA'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 80.45 Med: 109.25 Max: 138.05
Current: Negative Tangible Equity
During the past 6 years, MDA Space's highest Return-on-Tangible-Equity was 138.05%. The lowest was 80.45%. And the median was 109.25%.
TSX:MDA's Return-on-Tangible-Equity is ranked better than 99.7% of 334
companies
in the Aerospace & Defense industry
Industry Median: 8.195
vs TSX:MDA: Negative Tangible Equity
MDA Space (TSX:MDA) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
MDA Space Return-on-Tangible-Equity Related Terms
MDA Space Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for MDA Space's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TSX:MDA vs SPCX, GE, RTX: Return-on-Tangible-Equity Comparison
For the Aerospace & Defense subindustry, MDA Space's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
MDA Space Return-on-Tangible-Equity vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, MDA Space's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where MDA Space's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of Negative Tangible Equity% mean?
MDA Space (TSX:MDA) has a Return-on-Tangible-Equity of Negative Tangible Equity% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on MDA Space and its competitors. Over the past decade, MDA Space's Return-on-Tangible-Equity has ranged from 80.45 to 138.05. According to the industry distribution chart, MDA Space ranks #1 out of 334 companies in the Aerospace & Defense industry, placing it in the top 0.3%.
Is MDA Space's Return-on-Tangible-Equity too high?
MDA Space's current Return-on-Tangible-Equity is Negative Tangible Equity%. Over the past 10 years, this metric has ranged from a low of 80.45 to a high of 138.05. Based on the distribution chart, MDA Space ranks #1 out of 334 companies in the Aerospace & Defense industry, which is in the top quartile — a strong position relative to peers. Overall, MDA Space has a GF Score™ of 40/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MDA Space's Return-on-Tangible-Equity compare to SPCX and GE?
According to the Aerospace & Defense industry distribution chart, MDA Space ranks #1 out of 334 companies for Return-on-Tangible-Equity. This places MDA Space in the top 0% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.20. Historically, MDA Space's own Return-on-Tangible-Equity has ranged from 80.45 to 138.05 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for an Aerospace & Defense company?
The median Return-on-Tangible-Equity among Aerospace & Defense companies is 8.20, based on 334 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on MDA Space and its competitors. For the Aerospace & Defense industry, the median Return-on-Tangible-Equity is 8.20 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MDA Space's current Return-on-Tangible-Equity is Negative Tangible Equity%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is MDA Space stock overvalued right now?
Based on GuruFocus' analysis, MDA Space (TSX:MDA) is currently considered Significantly Overvalued. The stock's GF Value™ is C$31.65, compared to a current price of C$59.34 — trading 87.5% above its estimated fair value. The current Return-on-Tangible-Equity is Negative Tangible Equity%. MDA Space's overall GF Score™ is 40/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For MDA Space (TSX:MDA), the current Return-on-Tangible-Equity is Negative Tangible Equity% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is MDA Space (TSX:MDA) Overvalued in 2026?
Based on GuruFocus' analysis, MDA Space stock appears to be overvalued.
The current stock price of C$59.34 is trading 87.5% above its estimated GF Value™ of C$31.65.
GuruFocus considers MDA Space to be Significantly Overvalued.
No single metric tells the full story. See the TSX:MDA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
MDA Space Ltd is a developer and manufacturer of technology and services to the space industry. It is an international space mission partner and robotics, satellite systems, and geo-intelligence pioneer. It is engaged in communications satellites, Earth and space observation, space exploration, and infrastructure. The Company collaborates and partners with governments and space agencies, commercial space companies, and defence and aerospace prime contractors in the space industry. Geographically, it generates the majority of its revenue from Canada.
40GF Score
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