COMPUTER MODELLING GROUP LTD (CMG.CA) Stock Fundamental Analysis
TSX:CMG - Toronto Stock Exchange - CA2052491057 - Common Stock - Currency: CAD
CMG gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 is not valued too expensively and it also shows a decent growth rate. These ratings could make CMG a good candidate 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.
CMG had positive earnings in each of the past 5 years.
Each year in the past 5 years CMG had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 12.30%, CMG belongs to the best of the industry, outperforming 90.48% of the companies in the same industry.
Looking at the Return On Equity, with a value of 30.06%, CMG belongs to the top of the industry, outperforming 92.06% of the companies in the same industry.
CMG has a better Return On Invested Capital (18.94%) than 90.48% of its industry peers.
CMG had an Average Return On Invested Capital over the past 3 years of 21.89%. This is significantly above the industry average of 13.74%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.3% | ||
| ROE | 30.06% | ||
| ROIC | 18.94% |
ROA(3y)14.8%
ROA(5y)16.06%
ROE(3y)38.62%
ROE(5y)44.71%
ROIC(3y)21.89%
ROIC(5y)23.52%
1.3 Margins
CMG has a better Profit Margin (19.18%) than 92.06% of its industry peers.
CMG's Profit Margin has declined in the last couple of years.
CMG has a better Operating Margin (26.23%) than 95.24% of its industry peers.
CMG's Operating Margin has declined in the last couple of years.
The Gross Margin of CMG (80.74%) is better than 85.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.23% | ||
| PM (TTM) | 19.18% | ||
| GM | 80.74% |
OM growth 3Y-5.7%
OM growth 5Y-4.55%
PM growth 3Y-6.93%
PM growth 5Y-3.96%
GM growth 3YN/A
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so CMG is creating value.
The number of shares outstanding for CMG has been increased compared to 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 4.54. This indicates that CMG is financially healthy and has little risk of bankruptcy at the moment.
CMG has a better Altman-Z score (4.54) than 71.43% of its industry peers.
The Debt to FCF ratio of CMG is 1.13, which is an excellent value as it means it would take CMG, only 1.13 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CMG (1.13) is better than 76.19% of its industry peers.
A Debt/Equity ratio of 0.44 indicates that CMG is not too dependend on debt financing.
CMG has a Debt to Equity ratio (0.44) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 4.54 |
ROIC/WACC1.99
WACC9.54%
2.3 Liquidity
A Current Ratio of 1.27 indicates that CMG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.27, CMG is in line with its industry, outperforming 57.14% of the companies in the same industry.
CMG has a Quick Ratio of 1.27. 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 of 1.27. This is comparable to the rest of the industry: CMG outperforms 57.14% of its industry peers.
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 | 1.27 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.90% over the past year.
CMG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.46% yearly.
CMG shows a strong growth in Revenue. In the last year, the Revenue has grown by 32.48%.
The Revenue has been growing slightly by 7.74% on average over the past years.
EPS 1Y (TTM)6.9%
EPS 3Y10.06%
EPS 5Y3.46%
EPS Q2Q%71.43%
Revenue 1Y (TTM)32.48%
Revenue growth 3Y17.29%
Revenue growth 5Y7.74%
Sales Q2Q%8.38%
3.2 Future
The Earnings Per Share is expected to grow by 8.08% on average over the next years. This is quite good.
The Revenue is expected to grow by 14.63% on average over the next years. This is quite good.
EPS Next Y-3.96%
EPS Next 2Y11.35%
EPS Next 3Y8.08%
EPS Next 5YN/A
Revenue Next Year21.09%
Revenue Next 2Y16.11%
Revenue Next 3Y11.88%
Revenue Next 5Y14.63%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 26.45 indicates a quite expensive valuation of CMG.
CMG's Price/Earnings ratio is rather cheap when compared to the industry. CMG is cheaper than 80.95% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.03. CMG is around the same levels.
A Price/Forward Earnings ratio of 20.67 indicates a rather expensive valuation of CMG.
CMG's Price/Forward Earnings ratio is rather cheap when compared to the industry. CMG is cheaper than 82.54% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CMG to the average of the S&P500 Index (21.94), we can say CMG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.45 | ||
| Fwd PE | 20.67 |
4.2 Price Multiples
66.67% of the companies in the same industry are more expensive than CMG, based on the Enterprise Value to EBITDA ratio.
CMG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CMG is cheaper than 73.02% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.57 | ||
| EV/EBITDA | 16.16 |
4.3 Compensation for Growth
CMG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.65
EPS Next 2Y11.35%
EPS Next 3Y8.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.39%, CMG has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.79, CMG pays a better dividend. On top of this CMG pays more dividend than 95.24% of the companies listed in the same industry.
CMG's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
5.2 History
The dividend of CMG decreases each year by -12.94%.
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)-12.94%
Div Incr Years0
Div Non Decr Years3
5.3 Sustainability
CMG pays out 66.60% of its income as dividend. This is not a sustainable payout ratio.
DP66.6%
EPS Next 2Y11.35%
EPS Next 3Y8.08%
TSX:CMG (5/21/2025, 7:00:00 PM)
8.2
-0.31 (-3.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners56.36%
Inst Owner ChangeN/A
Ins Owners1.65%
Ins Owner ChangeN/A
Market Cap676.83M
Analysts74.55
Price Target13.11 (59.88%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.39% |
Yearly Dividend0.2
Dividend Growth(5Y)-12.94%
DP66.6%
Div Incr Years0
Div Non Decr Years3
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.21%
Min EPS beat(2)-21.25%
Max EPS beat(2)20.83%
EPS beat(4)2
Avg EPS beat(4)-5.04%
Min EPS beat(4)-33.99%
Max EPS beat(4)20.83%
EPS beat(8)3
Avg EPS beat(8)-4.3%
EPS beat(12)5
Avg EPS beat(12)-2.31%
EPS beat(16)7
Avg EPS beat(16)-2.29%
Revenue beat(2)0
Avg Revenue beat(2)-3.72%
Min Revenue beat(2)-4.7%
Max Revenue beat(2)-2.75%
Revenue beat(4)1
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-4.7%
Max Revenue beat(4)0.72%
Revenue beat(8)5
Avg Revenue beat(8)14.03%
Revenue beat(12)8
Avg Revenue beat(12)11.05%
Revenue beat(16)11
Avg Revenue beat(16)8.23%
PT rev (1m)0%
PT rev (3m)-8.63%
EPS NQ rev (1m)0%
EPS NQ rev (3m)9.52%
EPS NY rev (1m)0%
EPS NY rev (3m)4.33%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.68%
Revenue NY rev (1m)-0.09%
Revenue NY rev (3m)-1.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.45 | ||
| Fwd PE | 20.67 | ||
| P/S | 5.29 | ||
| P/FCF | 19.57 | ||
| P/OCF | 19.1 | ||
| P/B | 8.28 | ||
| P/tB | 97.6 | ||
| EV/EBITDA | 16.16 |
EPS(TTM)0.31
EY3.78%
EPS(NY)0.4
Fwd EY4.84%
FCF(TTM)0.42
FCFY5.11%
OCF(TTM)0.43
OCFY5.24%
SpS1.55
BVpS0.99
TBVpS0.08
PEG (NY)N/A
PEG (5Y)7.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.3% | ||
| ROE | 30.06% | ||
| ROCE | 25.45% | ||
| ROIC | 18.94% | ||
| ROICexc | 27.09% | ||
| ROICexgc | 142.87% | ||
| OM | 26.23% | ||
| PM (TTM) | 19.18% | ||
| GM | 80.74% | ||
| FCFM | 27.01% |
ROA(3y)14.8%
ROA(5y)16.06%
ROE(3y)38.62%
ROE(5y)44.71%
ROIC(3y)21.89%
ROIC(5y)23.52%
ROICexc(3y)68.59%
ROICexc(5y)63.9%
ROICexgc(3y)99.12%
ROICexgc(5y)82.21%
ROCE(3y)29.42%
ROCE(5y)31.6%
ROICexcg growth 3Y39.09%
ROICexcg growth 5YN/A
ROICexc growth 3Y1.81%
ROICexc growth 5YN/A
OM growth 3Y-5.7%
OM growth 5Y-4.55%
PM growth 3Y-6.93%
PM growth 5Y-3.96%
GM growth 3YN/A
GM growth 5YN/A
F-Score4
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.13 | ||
| Debt/EBITDA | 0.87 | ||
| Cap/Depr | 10.38% | ||
| Cap/Sales | 0.67% | ||
| Interest Coverage | 17.36 | ||
| Cash Conversion | 84.71% | ||
| Profit Quality | 140.81% | ||
| Current Ratio | 1.27 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 4.54 |
F-Score4
WACC9.54%
ROIC/WACC1.99
Cap/Depr(3y)28.09%
Cap/Depr(5y)23.27%
Cap/Sales(3y)1.48%
Cap/Sales(5y)1.27%
Profit Quality(3y)135.82%
Profit Quality(5y)123.92%
High Growth Momentum
Growth
EPS 1Y (TTM)6.9%
EPS 3Y10.06%
EPS 5Y3.46%
EPS Q2Q%71.43%
EPS Next Y-3.96%
EPS Next 2Y11.35%
EPS Next 3Y8.08%
EPS Next 5YN/A
Revenue 1Y (TTM)32.48%
Revenue growth 3Y17.29%
Revenue growth 5Y7.74%
Sales Q2Q%8.38%
Revenue Next Year21.09%
Revenue Next 2Y16.11%
Revenue Next 3Y11.88%
Revenue Next 5Y14.63%
EBIT growth 1Y2.98%
EBIT growth 3Y10.6%
EBIT growth 5Y2.84%
EBIT Next Year34.85%
EBIT Next 3Y17.96%
EBIT Next 5Y20.87%
FCF growth 1Y17.92%
FCF growth 3Y10.82%
FCF growth 5Y9.36%
OCF growth 1Y19.21%
OCF growth 3Y10.93%
OCF growth 5Y9.05%