MDA SpaceTSX:MDA -1.37%47 ROE % is 7.40% as of Mar. 2026, which is 56% above its 10-year median of 4.73. GuruFocus rates TSX:MDA with a GF Score™ of 47/100 and a GF Value™ of C$31.65 (Significantly Overvalued). The stock has 2 warning signs investors should review. Among 347 Aerospace & Defense companies, MDA Space ranks better than 52.74% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. MDA Space's annualized net income for the quarter that ended in Mar. 2026 was C$118 Mil. MDA Space's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was C$1,601 Mil. Therefore, MDA Space's annualized ROE % for the quarter that ended in Mar. 2026 was 7.40%.
The historical rank and industry rank for MDA Space's ROE % or its related term are showing as below:
TSX:MDA'
s ROE % Range Over the Past 10 Years
Min: 0.41 Med: 4.73 Max: 8.57
Current: 7.48
During the past 6 years, MDA Space's highest ROE % was 8.57%. The lowest was 0.41%. And the median was 4.73%.
TSX:MDA's ROE % is ranked better than 52.74% of 347
companies
in the Aerospace & Defense industry
Industry Median: 5.91
vs TSX:MDA: 7.48
MDA Space (TSX:MDA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
MDA Space ROE % Related Terms
MDA Space ROE % Historical Data
* Premium members only.
The historical data trend for MDA Space's ROE % 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.
For the Aerospace & Defense subindustry, MDA Space's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Aerospace & Defense Industry
For the Aerospace & Defense industry and Industrials sector, MDA Space's ROE % distribution charts can be found below:
* The bar in red indicates where MDA Space's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
MDA Space (TSX:MDA) has a ROE % of 7.40% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on MDA Space and its competitors. This is 56% above median its historical median of 4.73. Over the past decade, MDA Space's ROE % has ranged from 0.41 to 8.57. According to the industry distribution chart, MDA Space ranks #164 out of 347 companies in the Aerospace & Defense industry, placing it in the top 47.3%.
Is MDA Space's ROE % too high?
MDA Space's current ROE % of 7.40% is 56% above median its 10-year median of 4.73. Over the past 10 years, this metric has ranged from a low of 0.41 to a high of 8.57. The Aerospace & Defense industry median ROE % is 5.91. MDA Space's value of 7.40% is 25.2% above this industry median. Based on the distribution chart, MDA Space ranks #164 out of 347 companies in the Aerospace & Defense industry, which is above the industry midpoint. Overall, MDA Space has a GF Score™ of 47/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does MDA Space's ROE % compare to GE and RTX?
According to the Aerospace & Defense industry distribution chart, MDA Space ranks #164 out of 347 companies for ROE %. This puts MDA Space in the upper half of its industry. The industry median ROE % is 5.91. MDA Space's value of 7.40% is 25.2% above this benchmark. Historically, MDA Space's own ROE % has ranged from 0.41 to 8.57 over the past decade. While the company's 10-year median is 4.73 vs. the industry median of 5.91, MDA Space has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for an Aerospace & Defense company?
The median ROE % among Aerospace & Defense companies is 5.91, based on 347 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. MDA Space's current ROE % of 7.40% is 25.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on MDA Space and its competitors. For the Aerospace & Defense industry, the median ROE % is 5.91 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. MDA Space's current ROE % is 7.40%, which is 56% above median its own 10-year median of 4.73. 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$50.48 — trading 59.5% above its estimated fair value. The current ROE % is 7.40%, which is 56% above median its 10-year median of 4.73 and 25.2% above the Aerospace & Defense industry median of 5.91. MDA Space's overall GF Score™ is 47/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For MDA Space (TSX:MDA), the current ROE % is 7.40% 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$50.48 is trading 59.5% above its estimated GF Value™ of C$31.65.
GuruFocus considers MDA Space to be Significantly Overvalued.
Key valuation signals for TSX:MDA:
ROE %: 7.40% (56% above median its 10-year median of 4.73)
GF Value™: C$31.65 vs. price of C$50.48 (59.5% above fair value)
Industry Position: 25.2% above the Aerospace & Defense median (#164 of 347)
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.
47GF Score
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