This Space Robotics Stock is Aiming for the Stars

Canada's MDA Space has the expertise and the contracts to triumph in the new space race. Will it be able to leverage its stellar potential?

Key Takeaways

• MDA Space has a two-decade history of supporting the International Space Station.

• The Canadian company is likely to be a key player in helping the space robotics market grow at a CAGR of 8.7% between 2005 and 2030 to $12.09bn.

• Its satellite systems business is the biggest segment by revenue and is enjoying significant growth thanks to lucrative contracts.

1. A 203.94%, 52-Week Rally

MDA Space [MDALF] is an Ontario-based space technology company.

It has something of a complicated history. Here is the gist. Founded in 1969, the company started life as MacDonald, Dettwiler and Associates, hence the acronym MDA.^[1] After acquiring Earth imagery firm DigitalGlobe for $2.4bn in 2017, MDA rebranded to Maxar Technologies and listed on the New York Stock Exchange under the ticker MDA.^[2] Then, in 2020, Maxar sold its MDA subsidiary to a group of private investors^[3], who took the company public on the Toronto Stock Exchange in 2021.

MDA rebranded itself as MDA Space in March 2024. Explaining the decision, the company said in a press release that it is “an identity evolution that honors the past, recognizes the present and further positions the company to lead in a new era of space innovation”.^[4]

We will refer to the company as MDA Space throughout this analysis.

The company has three verticals: satellite systems (supplying satellites to commercial and government customers for numerous purposes, including Earth observation and lunar exploration); robotics (supporting space missions and operations with robotic technology); and geointelligence (providing satellite-generated imagery for commercial and government purposes).

This deep dive will focus on how MDA Space is helping Canada to establish itself as a potential major player in the space robotics market, as well as how its satellite business is driving growth. We will also consider how the stock stacks up against North American Earth imagery and satellite companies Planet Labs [PL] and Rocket Lab [RKLB].