Q: May I have your current thoughts on MDA? Any concerns on the latest quarter? Is executive compensation “reasonable”. I get the impression you considered the stock a hold or a weak buy back in July. Is my understanding correct and if so are you more favourable disposed to the stock now?
Thanks,
Jim
Thanks,
Jim
5i Research Answer:
Another strong quarter does improve our opinion. Consensus calls for 60% earnings growth next year as well. Debt is high, but it is well-positioned and has a strong competitive edge in the sector, where barriers to entry are high. The CEO got total compensation last year of $3.2M. We would not consider this out of line for a ~$2B company. It is 23X earnings which is attractive if it can hit its EPS growth targets.