COMPUTER MODELLING GROUP LTD (CMG.CA) Stock Fundamental Analysis
Canada - TSX:CMG - CA2052491057 - Common Stock
6.1 CAD
0 (0%)
We assign a fundamental rating of 6 out of 10 to CMG. CMG was compared to 63 industry peers in the Software industry. CMG scores excellent points on both the profitability and health parts. This is a solid base for a good stock. CMG has a decent growth rate and is not valued too expensively. These ratings would make CMG suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year CMG was profitable.
CMG had a positive operating cash flow in the past year.
Each year in the past 5 years CMG has been profitable.
CMG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of CMG (11.30%) is better than 85.71% of its industry peers.
With an excellent Return On Equity value of 25.78%, CMG belongs to the best of the industry, outperforming 92.06% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 18.04%, CMG belongs to the top of the industry, outperforming 92.06% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CMG is significantly above the industry average of 12.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.3% | ||
| ROE | 25.78% | ||
| ROIC | 18.04% |
ROA(3y)13.53%
ROA(5y)14.36%
ROE(3y)34.18%
ROE(5y)37.7%
ROIC(3y)20.34%
ROIC(5y)20.5%
1.3 Margins
With an excellent Profit Margin value of 16.94%, CMG belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
CMG's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 26.27%, CMG belongs to the top of the industry, outperforming 95.24% of the companies in the same industry.
In the last couple of years the Operating Margin of CMG has declined.
The Gross Margin of CMG (80.78%) is better than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.27% | ||
| PM (TTM) | 16.94% | ||
| GM | 80.78% |
OM growth 3Y-10.55%
OM growth 5Y-8.83%
PM growth 3Y-14.58%
PM growth 5Y-10.97%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CMG is creating value.
Compared to 1 year ago, CMG has more shares outstanding
The number of shares outstanding for CMG has been increased compared to 5 years ago.
Compared to 1 year ago, CMG has an improved debt to assets ratio.
2.2 Solvency
CMG has an Altman-Z score of 3.95. This indicates that CMG is financially healthy and has little risk of bankruptcy at the moment.
CMG's Altman-Z score of 3.95 is fine compared to the rest of the industry. CMG outperforms 65.08% of its industry peers.
CMG has a debt to FCF ratio of 1.44. This is a very positive value and a sign of high solvency as it would only need 1.44 years to pay back of all of its debts.
CMG has a Debt to FCF ratio of 1.44. This is in the better half of the industry: CMG outperforms 73.02% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that CMG is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.42, CMG is in line with its industry, outperforming 47.62% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.44 | ||
| Altman-Z | 3.95 |
ROIC/WACC1.72
WACC10.5%
2.3 Liquidity
CMG has a Current Ratio of 1.34. This is a normal value and indicates that CMG is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.34, CMG perfoms like the industry average, outperforming 55.56% of the companies in the same industry.
CMG has a Quick Ratio of 1.34. This is a normal value and indicates that CMG is financially healthy and should not expect problems in meeting its short term obligations.
CMG has a Quick ratio (1.34) which is comparable to the rest of the industry.
CMG does not score too well on the current and quick ratio evaluation. However, as it has 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 | 1.34 | ||
| Quick Ratio | 1.34 |
3. Growth
3.1 Past
CMG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -6.90%.
Measured over the past years, CMG shows a decrease in Earnings Per Share. The EPS has been decreasing by -1.37% on average per year.
CMG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 8.53%.
Measured over the past years, CMG shows a quite strong growth in Revenue. The Revenue has been growing by 11.30% on average per year.
EPS 1Y (TTM)-6.9%
EPS 3Y6.78%
EPS 5Y-1.37%
EPS Q2Q%-20%
Revenue 1Y (TTM)8.53%
Revenue growth 3Y25.05%
Revenue growth 5Y11.3%
Sales Q2Q%-2.92%
3.2 Future
The Earnings Per Share is expected to grow by 2.03% on average over the next years.
CMG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.43% yearly.
EPS Next Y-12.4%
EPS Next 2Y2.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year-4.66%
Revenue Next 2Y-1.15%
Revenue Next 3Y12.44%
Revenue Next 5Y13.43%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 22.59 indicates a rather expensive valuation of CMG.
84.13% of the companies in the same industry are more expensive than CMG, based on the Price/Earnings ratio.
CMG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.93 indicates a rather expensive valuation of CMG.
CMG's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. CMG is cheaper than 76.19% of the companies in the same industry.
CMG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.59 | ||
| Fwd PE | 20.93 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CMG is valued a bit cheaper than 73.02% of the companies in the same industry.
79.37% of the companies in the same industry are more expensive than CMG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.07 | ||
| EV/EBITDA | 11.65 |
4.3 Compensation for Growth
CMG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y2.03%
EPS Next 3YN/A
5. Dividend
5.1 Amount
With a yearly dividend of 0.66%, CMG is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 1.47, CMG pays a better dividend. On top of this CMG pays more dividend than 93.65% of the companies listed in the same industry.
With a Dividend Yield of 0.66, CMG pays less dividend than the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
5.2 History
The dividend of CMG decreases each year by -12.97%.
CMG has paid a dividend for at least 10 years, which is a reliable track record.
CMG has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)-12.97%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
75.45% of the earnings are spent on dividend by CMG. This is not a sustainable payout ratio.
DP75.45%
EPS Next 2Y2.03%
EPS Next 3YN/A
TSX:CMG (9/12/2025, 7:00:00 PM)
6.1
0 (0%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners56.54%
Inst Owner ChangeN/A
Ins Owners1.66%
Ins Owner ChangeN/A
Market Cap503.98M
Analysts72.73
Price Target8.09 (32.62%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.66% |
Yearly Dividend0.2
Dividend Growth(5Y)-12.97%
DP75.45%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-32.75%
Min EPS beat(2)-38.84%
Max EPS beat(2)-26.66%
EPS beat(4)1
Avg EPS beat(4)-16.48%
Min EPS beat(4)-38.84%
Max EPS beat(4)20.83%
EPS beat(8)2
Avg EPS beat(8)-13.02%
EPS beat(12)4
Avg EPS beat(12)-8.23%
EPS beat(16)7
Avg EPS beat(16)-4.15%
Revenue beat(2)0
Avg Revenue beat(2)-4.39%
Min Revenue beat(2)-7.53%
Max Revenue beat(2)-1.24%
Revenue beat(4)0
Avg Revenue beat(4)-4.05%
Min Revenue beat(4)-7.53%
Max Revenue beat(4)-1.24%
Revenue beat(8)3
Avg Revenue beat(8)0.3%
Revenue beat(12)7
Avg Revenue beat(12)9.7%
Revenue beat(16)10
Avg Revenue beat(16)8.16%
PT rev (1m)-11.9%
PT rev (3m)-19.56%
EPS NQ rev (1m)-9.11%
EPS NQ rev (3m)-57.54%
EPS NY rev (1m)-38.18%
EPS NY rev (3m)-38.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-23.95%
Revenue NY rev (1m)-2.22%
Revenue NY rev (3m)-14.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.59 | ||
| Fwd PE | 20.93 | ||
| P/S | 3.92 | ||
| P/FCF | 19.07 | ||
| P/OCF | 17.81 | ||
| P/B | 5.96 | ||
| P/tB | 55.68 | ||
| EV/EBITDA | 11.65 |
EPS(TTM)0.27
EY4.43%
EPS(NY)0.29
Fwd EY4.78%
FCF(TTM)0.32
FCFY5.24%
OCF(TTM)0.34
OCFY5.61%
SpS1.56
BVpS1.02
TBVpS0.11
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.3% | ||
| ROE | 25.78% | ||
| ROCE | 25.27% | ||
| ROIC | 18.04% | ||
| ROICexc | 26.91% | ||
| ROICexgc | 170.24% | ||
| OM | 26.27% | ||
| PM (TTM) | 16.94% | ||
| GM | 80.78% | ||
| FCFM | 20.55% |
ROA(3y)13.53%
ROA(5y)14.36%
ROE(3y)34.18%
ROE(5y)37.7%
ROIC(3y)20.34%
ROIC(5y)20.5%
ROICexc(3y)53.43%
ROICexc(5y)55.39%
ROICexgc(3y)128.51%
ROICexgc(5y)100.44%
ROCE(3y)28.5%
ROCE(5y)28.72%
ROICexcg growth 3Y29.52%
ROICexcg growth 5Y19.7%
ROICexc growth 3Y-26.35%
ROICexc growth 5Y-14.69%
OM growth 3Y-10.55%
OM growth 5Y-8.83%
PM growth 3Y-14.58%
PM growth 5Y-10.97%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.44 | ||
| Debt/EBITDA | 0.83 | ||
| Cap/Depr | 20.79% | ||
| Cap/Sales | 1.46% | ||
| Interest Coverage | 17.8 | ||
| Cash Conversion | 66.15% | ||
| Profit Quality | 121.3% | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 1.34 | ||
| Altman-Z | 3.95 |
F-Score4
WACC10.5%
ROIC/WACC1.72
Cap/Depr(3y)28.13%
Cap/Depr(5y)22.09%
Cap/Sales(3y)1.49%
Cap/Sales(5y)1.22%
Profit Quality(3y)127.42%
Profit Quality(5y)132.68%
High Growth Momentum
Growth
EPS 1Y (TTM)-6.9%
EPS 3Y6.78%
EPS 5Y-1.37%
EPS Q2Q%-20%
EPS Next Y-12.4%
EPS Next 2Y2.03%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)8.53%
Revenue growth 3Y25.05%
Revenue growth 5Y11.3%
Sales Q2Q%-2.92%
Revenue Next Year-4.66%
Revenue Next 2Y-1.15%
Revenue Next 3Y12.44%
Revenue Next 5Y13.43%
EBIT growth 1Y13%
EBIT growth 3Y11.86%
EBIT growth 5Y1.47%
EBIT Next Year36.15%
EBIT Next 3Y28.05%
EBIT Next 5Y23.11%
FCF growth 1Y4.72%
FCF growth 3Y0.56%
FCF growth 5Y7.84%
OCF growth 1Y3.52%
OCF growth 3Y1.37%
OCF growth 5Y7.82%