Hidden Opportunity in Intelligence Solutions Provider
MacDonald, Dettwiler and Associates Ltd. (MDA) provide ground-based and space-based information solutions for civilian, and commercial customers worldwide. It manufactures and integrates satellites and advanced antennae, it also provides information solutions that include Earth observation ground systems, defense information systems, airborne surveillance systems, transportation management systems, geospatial services, space-based platforms for Earth observation and advanced solutions for space exploration missions, as well as various mission sub-systems and support services.
[PostStockWidget stock_valuation="" pricetype="live" manual_date="Dec. 21, 2012, 2:04pm GMT" symbolcodes="'MDA.TO'" symbolprices="75" div_align="right"]
MDA has a solid track record of growing earnings, dividends and is well covered by analysts.
We believe that the current valuation is an attractive entry point and that there is the possibility that the PE multiple could expand due to the acceleration in the growth rate of earnings.
At $75.50 or less, we would take a full position. Purple Chips 12 – 18 month target: $91.00
LOW VALUATION IN MACDONALD DETTWILER AT $75.50 (MDA-T, $CAD 75.25) FULL POSITION
PURPLE CHIPS TARGET: $91.00 POSITION SIZE: FULL (5.0%) P/E: 14.9X DIV: $1.30 (1.7%) MKT CAP: $2.7B Debt: $500M RETURN ON CAPITAL: 80.1% EARNINGS YIELD: 3.9% 5 YR EPS Growth rate*:12.4% P/E/G Ratio: 1.20 EPS: $5.06 2015 EST.: $6.06 2016 EST.: $6.76
*Blended growth rate= 2/3 historical (5yrs), 1/3 forward.
