CLIMB GLOBAL SOLUTIONS INC (CLMB) Stock Fundamental Analysis
NASDAQ:CLMB - Nasdaq - US9467601053 - Common Stock - Currency: USD
Taking everything into account, CLMB scores 7 out of 10 in our fundamental rating. CLMB was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. Both the health and profitability get an excellent rating, making CLMB a very profitable company, without any liquidiy or solvency issues. CLMB is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, CLMB could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
CLMB had positive earnings in the past year.
In the past year CLMB had a positive cash flow from operations.
Each year in the past 5 years CLMB has been profitable.
In the past 5 years CLMB always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.16%, CLMB is in the better half of the industry, outperforming 74.40% of the companies in the same industry.
CLMB has a better Return On Equity (19.99%) than 89.60% of its industry peers.
The Return On Invested Capital of CLMB (22.81%) is better than 96.80% of its industry peers.
CLMB had an Average Return On Invested Capital over the past 3 years of 18.93%. This is significantly above the industry average of 9.35%.
The last Return On Invested Capital (22.81%) for CLMB is above the 3 year average (18.93%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 19.99% | ||
| ROIC | 22.81% |
ROA(3y)4.24%
ROA(5y)3.99%
ROE(3y)18.74%
ROE(5y)16.56%
ROIC(3y)18.93%
ROIC(5y)16.63%
1.3 Margins
With a decent Profit Margin value of 3.74%, CLMB is doing good in the industry, outperforming 69.60% of the companies in the same industry.
CLMB's Profit Margin has improved in the last couple of years.
The Operating Margin of CLMB (6.18%) is better than 70.40% of its industry peers.
In the last couple of years the Operating Margin of CLMB has grown nicely.
Looking at the Gross Margin, with a value of 19.06%, CLMB is doing worse than 68.00% of the companies in the same industry.
CLMB's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.18% | ||
| PM (TTM) | 3.74% | ||
| GM | 19.06% |
OM growth 3Y14.98%
OM growth 5Y9.58%
PM growth 3Y7.37%
PM growth 5Y3.97%
GM growth 3Y6.55%
GM growth 5Y6.37%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CLMB is creating value.
Compared to 1 year ago, CLMB has more shares outstanding
CLMB has more shares outstanding than it did 5 years ago.
CLMB has a better debt/assets ratio than last year.
2.2 Solvency
CLMB has an Altman-Z score of 3.04. This indicates that CLMB is financially healthy and has little risk of bankruptcy at the moment.
CLMB's Altman-Z score of 3.04 is in line compared to the rest of the industry. CLMB outperforms 50.40% of its industry peers.
CLMB has a debt to FCF ratio of 0.03. This is a very positive value and a sign of high solvency as it would only need 0.03 years to pay back of all of its debts.
The Debt to FCF ratio of CLMB (0.03) is better than 88.00% of its industry peers.
CLMB has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
CLMB has a better Debt to Equity ratio (0.00) than 66.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Altman-Z | 3.04 |
ROIC/WACC2.52
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.05 indicates that CLMB should not have too much problems paying its short term obligations.
CLMB has a Current ratio of 1.05. This is amonst the worse of the industry: CLMB underperforms 92.80% of its industry peers.
CLMB has a Quick Ratio of 1.04. This is a normal value and indicates that CLMB is financially healthy and should not expect problems in meeting its short term obligations.
CLMB has a Quick ratio of 1.04. This is in the lower half of the industry: CLMB underperforms 79.20% of its industry peers.
The current and quick ratio evaluation for CLMB is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 101.09% over the past year.
Measured over the past years, CLMB shows a very strong growth in Earnings Per Share. The EPS has been growing by 21.90% on average per year.
The Revenue has grown by 42.24% in the past year. This is a very strong growth!
Measured over the past years, CLMB shows a quite strong growth in Revenue. The Revenue has been growing by 17.40% on average per year.
EPS 1Y (TTM)101.09%
EPS 3Y25.42%
EPS 5Y21.9%
EPS Q2Q%41.67%
Revenue 1Y (TTM)42.24%
Revenue growth 3Y18.11%
Revenue growth 5Y17.4%
Sales Q2Q%49.36%
3.2 Future
The Earnings Per Share is expected to grow by 11.79% on average over the next years. This is quite good.
CLMB is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.74% yearly.
EPS Next Y6.17%
EPS Next 2Y11.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year30.54%
Revenue Next 2Y18.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 20.23, which indicates a rather expensive current valuation of CLMB.
Based on the Price/Earnings ratio, CLMB is valued a bit cheaper than 72.80% of the companies in the same industry.
When comparing the Price/Earnings ratio of CLMB to the average of the S&P500 Index (26.31), we can say CLMB is valued slightly cheaper.
A Price/Forward Earnings ratio of 17.02 indicates a rather expensive valuation of CLMB.
72.80% of the companies in the same industry are more expensive than CLMB, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 22.13. CLMB is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.23 | ||
| Fwd PE | 17.02 |
4.2 Price Multiples
76.00% of the companies in the same industry are more expensive than CLMB, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CLMB is valued a bit cheaper than the industry average as 76.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.79 | ||
| EV/EBITDA | 12.16 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of CLMB may justify a higher PE ratio.
PEG (NY)3.28
PEG (5Y)0.92
EPS Next 2Y11.79%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CLMB has a yearly dividend return of 0.66%, which is pretty low.
Compared to an average industry Dividend Yield of 2.07, CLMB pays a better dividend. On top of this CLMB pays more dividend than 84.00% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.39, CLMB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
The dividend of CLMB decreases each year by -0.59%.
CLMB has been paying a dividend for at least 10 years, so it has a reliable track record.
CLMB has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.59%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
15.95% of the earnings are spent on dividend by CLMB. This is a low number and sustainable payout ratio.
DP15.95%
EPS Next 2Y11.79%
EPS Next 3YN/A
105
-1.07 (-1.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners62.28%
Inst Owner ChangeN/A
Ins Owners6.12%
Ins Owner Change-16.45%
Market Cap480.90M
Analysts85.71
Price Target138.72 (32.11%)
Short Float %2.96%
Short Ratio2.41
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend0.66
Dividend Growth(5Y)-0.59%
DP15.95%
Div Incr Years0
Div Non Decr Years17
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)49.13%
Min EPS beat(2)-6.37%
Max EPS beat(2)104.62%
EPS beat(4)3
Avg EPS beat(4)55.54%
Min EPS beat(4)-6.37%
Max EPS beat(4)104.62%
EPS beat(8)4
Avg EPS beat(8)26.39%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)39.19%
Min Revenue beat(2)38.66%
Max Revenue beat(2)39.73%
Revenue beat(4)2
Avg Revenue beat(4)16.74%
Min Revenue beat(4)-7.19%
Max Revenue beat(4)39.73%
Revenue beat(8)3
Avg Revenue beat(8)6.74%
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-9.09%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-4.81%
EPS NY rev (3m)12.97%
Revenue NQ rev (1m)16.7%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)11.67%
Revenue NY rev (3m)11.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.23 | ||
| Fwd PE | 17.02 | ||
| P/S | 0.94 | ||
| P/FCF | 20.79 | ||
| P/OCF | 17.08 | ||
| P/B | 5.03 | ||
| P/tB | 20.06 | ||
| EV/EBITDA | 12.16 |
EPS(TTM)5.19
EY4.94%
EPS(NY)6.17
Fwd EY5.88%
FCF(TTM)5.05
FCFY4.81%
OCF(TTM)6.15
OCFY5.85%
SpS111.62
BVpS20.86
TBVpS5.23
PEG (NY)3.28
PEG (5Y)0.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.16% | ||
| ROE | 19.99% | ||
| ROCE | 30.86% | ||
| ROIC | 22.81% | ||
| ROICexc | 33.4% | ||
| ROICexgc | N/A | ||
| OM | 6.18% | ||
| PM (TTM) | 3.74% | ||
| GM | 19.06% | ||
| FCFM | 4.53% |
ROA(3y)4.24%
ROA(5y)3.99%
ROE(3y)18.74%
ROE(5y)16.56%
ROIC(3y)18.93%
ROIC(5y)16.63%
ROICexc(3y)28.59%
ROICexc(5y)29.12%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)25.61%
ROCE(5y)22.49%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-0.33%
ROICexc growth 5Y11.12%
OM growth 3Y14.98%
OM growth 5Y9.58%
PM growth 3Y7.37%
PM growth 5Y3.97%
GM growth 3Y6.55%
GM growth 5Y6.37%
F-Score8
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.03 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 87.38% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 179.44 | ||
| Cash Conversion | 75.42% | ||
| Profit Quality | 121.09% | ||
| Current Ratio | 1.05 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 3.04 |
F-Score8
WACC9.06%
ROIC/WACC2.52
Cap/Depr(3y)131.55%
Cap/Depr(5y)82.89%
Cap/Sales(3y)1.14%
Cap/Sales(5y)0.7%
Profit Quality(3y)160.71%
Profit Quality(5y)282.94%
High Growth Momentum
Growth
EPS 1Y (TTM)101.09%
EPS 3Y25.42%
EPS 5Y21.9%
EPS Q2Q%41.67%
EPS Next Y6.17%
EPS Next 2Y11.79%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)42.24%
Revenue growth 3Y18.11%
Revenue growth 5Y17.4%
Sales Q2Q%49.36%
Revenue Next Year30.54%
Revenue Next 2Y18.74%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y92.19%
EBIT growth 3Y35.8%
EBIT growth 5Y28.65%
EBIT Next Year85.64%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-34.56%
FCF growth 3Y85.21%
FCF growth 5Y55.2%
OCF growth 1Y-27.7%
OCF growth 3Y92.78%
OCF growth 5Y59.68%