COMPUTER MODELLING GROUP LTD (CMG.CA) Stock Fundamental Analysis
Canada - TSX:CMG - CA2052491057 - Common Stock
6.24 CAD
+0.06 (+0.97%)
CMG gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 63 industry peers in the Software industry. Both the health and profitability get an excellent rating, making CMG a very profitable company, without any liquidiy or solvency issues. CMG has a correct valuation and a medium growth rate. These ratings would make CMG suitable for quality investing!
1. Profitability
1.1 Basic Checks
CMG had positive earnings in the past year.
In the past year CMG had a positive cash flow from operations.
In the past 5 years CMG has always been profitable.
Each year in the past 5 years CMG had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 11.30%, CMG belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.
CMG's Return On Equity of 25.78% is amongst the best of the industry. CMG outperforms 93.65% of its industry peers.
CMG has a better Return On Invested Capital (18.04%) than 92.06% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CMG is significantly above the industry average of 12.35%.
| 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
The Profit Margin of CMG (16.94%) is better than 92.06% of its industry peers.
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.
CMG's Operating Margin has declined in the last couple of years.
CMG has a Gross Margin of 80.78%. This is amongst the best in the industry. CMG outperforms 87.30% 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.
CMG has more shares outstanding than it did 1 year ago.
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 4.01. This indicates that CMG is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.01, CMG is doing good in the industry, outperforming 61.90% of the companies in the same industry.
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 better Debt to FCF ratio (1.44) than 79.37% of its industry peers.
A Debt/Equity ratio of 0.42 indicates that CMG is not too dependend on debt financing.
CMG's Debt to Equity ratio of 0.42 is in line compared to the rest of the industry. CMG outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.42 | ||
| Debt/FCF | 1.44 | ||
| Altman-Z | 4.01 |
ROIC/WACC1.74
WACC10.39%
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.
CMG's Current ratio of 1.34 is in line compared to the rest of the industry. CMG outperforms 53.97% of its industry peers.
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.
With a Quick ratio value of 1.34, CMG perfoms like the industry average, outperforming 53.97% of the companies in the same industry.
The current and quick ratio evaluation for CMG 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 | 1.34 | ||
| 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%.
The Earnings Per Share has been decreasing by -1.37% on average over the past years.
Looking at the last year, CMG shows a quite strong growth in Revenue. The Revenue has grown by 8.53% in the last year.
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
Based on estimates for the next years, CMG will show a small growth in Earnings Per Share. The EPS will grow by 2.03% on average per year.
The Revenue is expected to grow by 13.43% on average over the next years. This is quite good.
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
With a Price/Earnings ratio of 23.11, CMG is valued on the expensive side.
CMG's Price/Earnings ratio is rather cheap when compared to the industry. CMG is cheaper than 87.30% of the companies in the same industry.
When comparing the Price/Earnings ratio of CMG to the average of the S&P500 Index (27.90), we can say CMG is valued inline with the index average.
A Price/Forward Earnings ratio of 21.41 indicates a rather expensive valuation of CMG.
Based on the Price/Forward Earnings ratio, CMG is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.36, CMG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 21.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CMG is valued a bit cheaper than 76.19% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CMG indicates a somewhat cheap valuation: CMG is cheaper than 79.37% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.51 | ||
| EV/EBITDA | 11.92 |
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
CMG has a yearly dividend return of 0.65%, which is pretty low.
Compared to an average industry Dividend Yield of 1.48, CMG pays a better dividend. On top of this CMG pays more dividend than 93.65% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.44, CMG's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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 (10/3/2025, 7:00:00 PM)
6.24
+0.06 (+0.97%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners59.31%
Inst Owner ChangeN/A
Ins Owners2.14%
Ins Owner ChangeN/A
Market Cap515.55M
Analysts72.73
Price Target8.09 (29.65%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.65% |
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)0%
PT rev (3m)-11.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-57.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-38.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-23.95%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-14.37%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.11 | ||
| Fwd PE | 21.41 | ||
| P/S | 4.01 | ||
| P/FCF | 19.51 | ||
| P/OCF | 18.22 | ||
| P/B | 6.1 | ||
| P/tB | 56.96 | ||
| EV/EBITDA | 11.92 |
EPS(TTM)0.27
EY4.33%
EPS(NY)0.29
Fwd EY4.67%
FCF(TTM)0.32
FCFY5.13%
OCF(TTM)0.34
OCFY5.49%
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 | 4.01 |
F-Score4
WACC10.39%
ROIC/WACC1.74
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 Year3%
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%