Want to see TSE:MDI full AI Analyst Report?
Top Page
Major Drilling
(TSX:MDI)
Select Model
Select Model
Rating:67Neutral
Price Target:
C$17.50
▲(2.10% Upside)
Action:Reiterated
Date:09/06/26
The score is driven primarily by solid underlying financial stability (very low leverage) and a constructive earnings-call outlook pointing to continued demand, pricing improvement, and rising cash flow. Offsetting this, current financials show meaningful margin compression and weaker cash conversion, while technical signals are not strongly supportive and valuation is elevated (P/E ~50) with no dividend yield provided.
Positive Factors
Very low leverage
Very low leverage reduces refinancing exposure and preserves financial flexibility during changes in mining activity. The strong equity base gives Major Drilling room to fund fleet needs, manage cyclical demand, and pursue opportunities without relying heavily on additional borrowing.
Negative Factors
Material margin compression
The sharp decline in net and operating margins shows that revenue growth has not yet translated proportionately into profitability. Persistent labor, consumable, ramp-up, or mix pressures could limit earnings conversion and reduce returns even if drilling demand remains strong.
Read all positive and negative factors
Positive Factors
Negative Factors
Very low leverage
Very low leverage reduces refinancing exposure and preserves financial flexibility during changes in mining activity. The strong equity base gives Major Drilling room to fund fleet needs, manage cyclical demand, and pursue opportunities without relying heavily on additional borrowing.
Read all positive factors
Major Drilling (MDI) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$1.32B
Dividend Yield0.71%
Average Volume (3M)196.19K
Price to Earnings (P/E)52.4
Beta (1Y)2.16
Revenue Growth22.99%
EPS Growth27.46%
CountryCA
Employees2,500
SectorBasic Materials
Sector Strength58
IndustryIndustrial Materials
Share Statistics
EPS (TTM)0.32
Shares Outstanding82,236,280
10 Day Avg. Volume257,492
30 Day Avg. Volume196,189
Financial Highlights & Ratios
PEG Ratio-3.21
Price to Book (P/B)2.31
Price to Sales (P/S)1.45
P/FCF Ratio61.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$22.00Price Target Upside28.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.71
Revenue Forecast (FY)C$1.02B
Major Drilling Business Overview & Revenue Model
Company Description
Major Drilling Group International Inc. delivers expert contract drilling services specifically tailored for mining and mineral exploration enterprises. Their extensive service portfolio encompasses a diverse array of drilling methodologies, such ...
How the Company Makes Money
Major Drilling makes money by providing contract drilling services to mineral exploration and mining customers under service agreements. Revenue is primarily generated from drilling activity performed for clients, typically based on the number of ...
Major Drilling Earnings Call Summary
Earnings Call Date:Sep 02, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Dec 03, 2026
Earnings Call Sentiment Positive
The call was strongly optimistic, supported by record revenue, broad-based regional growth, higher EBITDA and net earnings, improving sequential margins, strong demand, expanding junior activity and a solid liquidity position. The company continues to face lower year-over-year gross margins, higher operating costs, experienced-driller shortages, temporary productivity effects from training, and working capital needs, but management expects pricing improvements and continued demand to support further growth.Positive Updates
Record Quarterly Revenue
Revenue reached $277.3 million, up 22.4% from $226.6 million in the prior-year period and setting a new quarterly record. Growth was delivered across each region as the company deployed rigs to meet growing customer demand.
Negative Updates
Year-Over-Year Gross Margin Decline
Adjusted gross margin excluding depreciation was 24%, down from 25.2% in the same period last year. The decline was partially offset by pricing improvements but reflected ramp-up costs associated with new contracts, higher labor and consumable costs, and investments in workforce training and development.
Read all updates
Q1-2027 Updates
Positive
Negative
Record Quarterly Revenue
Revenue reached $277.3 million, up 22.4% from $226.6 million in the prior-year period and setting a new quarterly record. Growth was delivered across each region as the company deployed rigs to meet growing customer demand.
Read all positive updates
Company Guidance
Looking ahead to the next quarter, rigs are expected to continue to gradually be deployed into the field at incrementally higher prices, while seniors continue to expand their exploration programs and juniors continue to deploy the capital that they've raised over the past year; demand remains strong, the primary constraint across the industry continues to be the availability of experienced drillers, and the company is increasing the number of training drillers in the field. The learning curve associated with bringing new people into the workforce has a temporary impact on productivity, while price increases are taking hold and progressively offsetting labor, training and ramp-up costs; as a result, margins are expected to continue improving, albeit at a slower pace than revenue growth, and cash flow is projected to increase, with total available liquidity of approximately $160 million.Major Drilling Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
82
Very Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Apr 2026 | Apr 2025 | Apr 2024 | Apr 2022 | Apr 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 939.81M | 889.08M | 727.58M | 706.69M | 735.74M | 650.41M |
| Gross Profit | 138.38M | 128.89M | 130.54M | 152.72M | 176.90M | 139.77M |
| EBITDA | 118.47M | 116.52M | 102.54M | 125.22M | 145.05M | 114.09M |
| Net Income | 25.79M | 21.38M | 25.95M | 53.09M | 74.92M | 53.46M |
Balance Sheet | ||||||
| Total Assets | 812.30M | 766.00M | 718.74M | 612.18M | 611.68M | 557.08M |
| Cash, Cash Equivalents and Short-Term Investments | 59.34M | 62.63M | 45.99M | 96.22M | 94.43M | 71.26M |
| Total Debt | 39.53M | 35.15M | 37.13M | 4.72M | 25.55M | 55.39M |
| Total Liabilities | 231.07M | 209.98M | 196.64M | 118.35M | 159.11M | 197.32M |
| Stockholders Equity | 581.23M | 556.01M | 522.10M | 493.83M | 452.58M | 359.76M |
Cash Flow | ||||||
| Free Cash Flow | 18.54M | 20.80M | 28.39M | 38.50M | 54.50M | 44.93M |
| Operating Cash Flow | 78.67M | 81.84M | 100.92M | 112.03M | 113.19M | 94.87M |
| Investing Cash Flow | -65.71M | -64.06M | -178.03M | -78.39M | -63.98M | -85.84M |
| Financing Cash Flow | -244.00K | -674.00K | 25.92M | -32.52M | -29.61M | 38.25M |
Major Drilling Technical Analysis
Neutral
17.14
Price Trends
15.45
Positive
15.97
Positive
15.56
Positive
Market Momentum
0.29
Positive
46.70
Neutral
21.90
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:MDI, the sentiment is Neutral. The current price of 17.14 is above the 20-day moving average (MA) of 16.85, above the 50-day MA of 15.45, and above the 200-day MA of 15.56, indicating a neutral trend. The MACD of 0.29 indicates Positive momentum. The RSI at 46.70 is Neutral, neither overbought nor oversold. The STOCH value of 21.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:MDI.
Major Drilling Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | C$1.32B | 52.38 | 4.61% | 0.71% | 22.99% | 27.46% | |
61 Neutral | $10.43B | 7.12 | -0.05% | 2.87% | 2.86% | -36.73% | |
55 Neutral | C$283.77M | 17.13 | 12.49% | 1.90% | 7.69% | -34.65% | |
55 Neutral | C$716.35M | -69.15 | -4.79% | ― | ― | -644.00% | |
50 Neutral | C$129.71M | -7.23 | -10.61% | 2.25% | 12.59% | -194.85% | |
48 Neutral | C$48.10M | 77.99 | 0.85% | ― | 3.14% | -90.42% | |
46 Neutral | C$322.92M | -11.62 | -59.68% | ― | ― | -378.81% |
* Basic Materials Sector Average
TSE:MDI
Major Drilling
16.75
7.33
77.81%
TSE:FAR
Foraco International
2.98
0.96
47.52%
TSE:FVL
Freegold Ventures
1.21
-0.15
-11.03%
TSE:GEO
Geodrill
2.70
-0.72
-21.05%
TSE:GQC
GoldQuest Mining
0.84
0.14
20.00%
TSE:OGD
Orbit Garant Drill
1.24
-0.41
-24.85%
Major Drilling Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Major Drilling Shareholders Back Board Slate and Add Mining Finance Veteran
Positive
Sep 4, 2026
Major Drilling reported strong shareholder engagement at its September 3 annual general meeting, with more than 79% of outstanding shares voted. All eight nominated directors were elected with overwhelming support, while the company’s approa...
Business Operations and StrategyFinancial Disclosures
Major Drilling Posts Record Quarterly Revenue as Global Mining Activity Accelerates
Positive
Sep 2, 2026
Major Drilling reported record first‑quarter fiscal 2027 revenue of $277.3 million, up 22.4% year‑over‑year and 18.7% from the prior quarter, as all regions delivered double‑digit growth driven by added rigs and stronger pr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.