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COMPUTER MODELLING GROUP LTD (CMG.CA) Stock Fundamental Analysis

TSX:CMG - Toronto Stock Exchange - CA2052491057 - Common Stock - Currency: CAD

8.55  -0.3 (-3.39%)

Fundamental Rating

6

We assign a fundamental rating of 6 out of 10 to CMG. CMG was compared to 66 industry peers in the Software industry. CMG scores excellent on profitability, but there are some minor concerns on its financial health. CMG is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

8

1. Profitability

1.1 Basic Checks

In the past year CMG was profitable.
CMG had a positive operating cash flow in the past year.
In the past 5 years CMG has always been profitable.
In the past 5 years CMG always reported a positive cash flow from operatings.
CMG.CA Yearly Net Income VS EBIT VS OCF VS FCFCMG.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M

1.2 Ratios

CMG has a Return On Assets of 12.43%. This is amongst the best in the industry. CMG outperforms 89.39% of its industry peers.
With an excellent Return On Equity value of 28.53%, CMG belongs to the best of the industry, outperforming 90.91% of the companies in the same industry.
CMG has a Return On Invested Capital of 20.73%. This is amongst the best in the industry. CMG outperforms 90.91% 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 12.24%.
Industry RankSector Rank
ROA 12.43%
ROE 28.53%
ROIC 20.73%
ROA(3y)14.8%
ROA(5y)16.06%
ROE(3y)38.62%
ROE(5y)44.71%
ROIC(3y)21.89%
ROIC(5y)23.52%
CMG.CA Yearly ROA, ROE, ROICCMG.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60

1.3 Margins

Looking at the Profit Margin, with a value of 16.41%, CMG belongs to the top of the industry, outperforming 89.39% 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 24.42%, CMG belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
In the last couple of years the Operating Margin of CMG has declined.
CMG has a Gross Margin of 80.28%. This is amongst the best in the industry. CMG outperforms 83.33% of its industry peers.
Industry RankSector Rank
OM 24.42%
PM (TTM) 16.41%
GM 80.28%
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
CMG.CA Yearly Profit, Operating, Gross MarginsCMG.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CMG is creating some value.
Compared to 1 year ago, CMG has more shares outstanding
Compared to 5 years ago, CMG has more shares outstanding
CMG has a better debt/assets ratio than last year.
CMG.CA Yearly Shares OutstandingCMG.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
CMG.CA Yearly Total Debt VS Total AssetsCMG.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M

2.2 Solvency

CMG has an Altman-Z score of 5.92. This indicates that CMG is financially healthy and has little risk of bankruptcy at the moment.
CMG has a better Altman-Z score (5.92) than 81.82% of its industry peers.
The Debt to FCF ratio of CMG is 1.41, which is an excellent value as it means it would take CMG, only 1.41 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CMG (1.41) is better than 77.27% of its industry peers.
CMG has a Debt/Equity ratio of 0.49. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.49, CMG perfoms like the industry average, outperforming 45.45% of the companies in the same industry.
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 1.41
Altman-Z 5.92
ROIC/WACC1.64
WACC12.64%
CMG.CA Yearly LT Debt VS Equity VS FCFCMG.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M

2.3 Liquidity

CMG has a Current Ratio of 1.79. 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 decent Current ratio value of 1.79, CMG is doing good in the industry, outperforming 63.64% of the companies in the same industry.
CMG has a Quick Ratio of 1.79. This is a normal value and indicates that CMG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of CMG (1.79) is better than 63.64% of its industry peers.
Industry RankSector Rank
Current Ratio 1.79
Quick Ratio 1.79
CMG.CA Yearly Current Assets VS Current LiabilitesCMG.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M 100M

6

3. Growth

3.1 Past

CMG shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -13.33%.
CMG shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.46% yearly.
The Revenue has grown by 50.88% in the past year. This is a very strong growth!
Measured over the past years, CMG shows a small growth in Revenue. The Revenue has been growing by 7.74% on average per year.
EPS 1Y (TTM)-13.33%
EPS 3Y10.06%
EPS 5Y3.46%
EPS Q2Q%-37.5%
Revenue 1Y (TTM)50.88%
Revenue growth 3Y17.29%
Revenue growth 5Y7.74%
Sales Q2Q%30.19%

3.2 Future

CMG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.08% yearly.
The Revenue is expected to grow by 14.63% on average over the next years. This is quite good.
EPS Next Y-7.94%
EPS Next 2Y15.72%
EPS Next 3Y8.08%
EPS Next 5YN/A
Revenue Next Year23.35%
Revenue Next 2Y19.24%
Revenue Next 3Y15.44%
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.
CMG.CA Yearly Revenue VS EstimatesCMG.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 50M 100M 150M 200M 250M
CMG.CA Yearly EPS VS EstimatesCMG.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 0.1 0.2 0.3 0.4

4

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 32.88 indicates a quite expensive valuation of CMG.
Based on the Price/Earnings ratio, CMG is valued a bit cheaper than 75.76% of the companies in the same industry.
CMG's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 30.43.
With a Price/Forward Earnings ratio of 19.95, CMG is valued on the expensive side.
CMG's Price/Forward Earnings ratio is rather cheap when compared to the industry. CMG is cheaper than 84.85% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.78, CMG is valued at the same level.
Industry RankSector Rank
PE 32.88
Fwd PE 19.95
CMG.CA Price Earnings VS Forward Price EarningsCMG.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60

4.2 Price Multiples

CMG's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CMG is cheaper than 63.64% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CMG is valued a bit cheaper than the industry average as 71.21% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 26.36
EV/EBITDA 17.87
CMG.CA Per share dataCMG.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0.5 1 1.5

4.3 Compensation for Growth

CMG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)9.51
EPS Next 2Y15.72%
EPS Next 3Y8.08%

4

5. Dividend

5.1 Amount

CMG has a Yearly Dividend Yield of 2.26%. Purely for dividend investing, there may be better candidates out there.
CMG's Dividend Yield is rather good when compared to the industry average which is at 1.63. CMG pays more dividend than 95.45% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, CMG has a dividend comparable with the average S&P500 company.
Industry RankSector Rank
Dividend Yield 2.26%

5.2 History

The dividend of CMG decreases each year by -12.94%.
CMG has been paying a dividend for at least 10 years, so it has 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
CMG.CA Yearly Dividends per shareCMG.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 0 0 0 0

5.3 Sustainability

79.28% of the earnings are spent on dividend by CMG. This is not a sustainable payout ratio.
DP79.28%
EPS Next 2Y15.72%
EPS Next 3Y8.08%
CMG.CA Yearly Income VS Free CF VS DividendCMG.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M
CMG.CA Dividend Payout.CMG.CA Dividend Payout, showing the Payout Ratio.CMG.CA Dividend Payout.PayoutRetained Earnings

COMPUTER MODELLING GROUP LTD

TSX:CMG (2/14/2025, 7:00:00 PM)

8.55

-0.3 (-3.39%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-11 2025-02-11
Earnings (Next)05-20 2025-05-20
Inst Owners56.59%
Inst Owner ChangeN/A
Ins Owners1.57%
Ins Owner ChangeN/A
Market Cap704.86M
Analysts76.36
Price Target14.35 (67.84%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.26%
Yearly Dividend0.2
Dividend Growth(5Y)-12.94%
DP79.28%
Div Incr Years0
Div Non Decr Years3
Ex-Date03-06 2025-03-06 (0.05)
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-27.62%
Min EPS beat(2)-33.99%
Max EPS beat(2)-21.25%
EPS beat(4)1
Avg EPS beat(4)-14.62%
Min EPS beat(4)-33.99%
Max EPS beat(4)14.24%
EPS beat(8)3
Avg EPS beat(8)-5.26%
EPS beat(12)5
Avg EPS beat(12)-2.07%
EPS beat(16)7
Avg EPS beat(16)-2.06%
Revenue beat(2)0
Avg Revenue beat(2)-2.91%
Min Revenue beat(2)-4.7%
Max Revenue beat(2)-1.13%
Revenue beat(4)2
Avg Revenue beat(4)0.16%
Min Revenue beat(4)-4.7%
Max Revenue beat(4)5.76%
Revenue beat(8)6
Avg Revenue beat(8)15.03%
Revenue beat(12)9
Avg Revenue beat(12)11.54%
Revenue beat(16)11
Avg Revenue beat(16)8.14%
PT rev (1m)0%
PT rev (3m)-4.37%
EPS NQ rev (1m)-3.06%
EPS NQ rev (3m)-5.45%
EPS NY rev (1m)-1.37%
EPS NY rev (3m)-8.03%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.12%
Valuation
Industry RankSector Rank
PE 32.88
Fwd PE 19.95
P/S 5.63
P/FCF 26.36
P/OCF 25.53
P/B 9.78
P/tB 15.56
EV/EBITDA 17.87
EPS(TTM)0.26
EY3.04%
EPS(NY)0.43
Fwd EY5.01%
FCF(TTM)0.32
FCFY3.79%
OCF(TTM)0.33
OCFY3.92%
SpS1.52
BVpS0.87
TBVpS0.55
PEG (NY)N/A
PEG (5Y)9.51
Profitability
Industry RankSector Rank
ROA 12.43%
ROE 28.53%
ROCE 27.85%
ROIC 20.73%
ROICexc 46.98%
ROICexgc 105.03%
OM 24.42%
PM (TTM) 16.41%
GM 80.28%
FCFM 21.34%
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-Score6
Asset Turnover0.76
Health
Industry RankSector Rank
Debt/Equity 0.49
Debt/FCF 1.41
Debt/EBITDA 0.93
Cap/Depr 11.68%
Cap/Sales 0.7%
Interest Coverage 16.1
Cash Conversion 72.44%
Profit Quality 130%
Current Ratio 1.79
Quick Ratio 1.79
Altman-Z 5.92
F-Score6
WACC12.64%
ROIC/WACC1.64
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)-13.33%
EPS 3Y10.06%
EPS 5Y3.46%
EPS Q2Q%-37.5%
EPS Next Y-7.94%
EPS Next 2Y15.72%
EPS Next 3Y8.08%
EPS Next 5YN/A
Revenue 1Y (TTM)50.88%
Revenue growth 3Y17.29%
Revenue growth 5Y7.74%
Sales Q2Q%30.19%
Revenue Next Year23.35%
Revenue Next 2Y19.24%
Revenue Next 3Y15.44%
Revenue Next 5Y14.63%
EBIT growth 1Y-6.85%
EBIT growth 3Y10.6%
EBIT growth 5Y2.84%
EBIT Next Year36.15%
EBIT Next 3Y18.65%
EBIT Next 5Y20.87%
FCF growth 1Y3.1%
FCF growth 3Y10.82%
FCF growth 5Y9.36%
OCF growth 1Y3.81%
OCF growth 3Y10.93%
OCF growth 5Y9.05%