CLIMB GLOBAL SOLUTIONS INC (CLMB) Stock Fundamental Analysis
NASDAQ:CLMB - Nasdaq - US9467601053 - Common Stock
We assign a fundamental rating of 7 out of 10 to CLMB. CLMB was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. CLMB has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. CLMB is growing strongly while it is still valued neutral. This is a good 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.
In the past 5 years CLMB has always been profitable.
Each year in the past 5 years CLMB had a positive operating cash flow.
1.2 Ratios
CLMB has a better Return On Assets (4.42%) than 70.00% of its industry peers.
CLMB has a better Return On Equity (18.74%) than 88.33% of its industry peers.
CLMB has a better Return On Invested Capital (19.45%) than 97.50% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CLMB is significantly above the industry average of 9.03%.
The 3 year average ROIC (16.74%) for CLMB is below the current ROIC(19.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.42% | ||
| ROE | 18.74% | ||
| ROIC | 19.45% |
ROA(3y)4.5%
ROA(5y)4.28%
ROE(3y)17.72%
ROE(5y)15.52%
ROIC(3y)16.74%
ROIC(5y)14.84%
1.3 Margins
With a decent Profit Margin value of 4.00%, CLMB is doing good in the industry, outperforming 65.83% of the companies in the same industry.
In the last couple of years the Profit Margin of CLMB has grown nicely.
CLMB's Operating Margin of 6.16% is fine compared to the rest of the industry. CLMB outperforms 69.17% of its industry peers.
CLMB's Operating Margin has improved in the last couple of years.
CLMB has a Gross Margin of 19.70%. This is in the lower half of the industry: CLMB underperforms 69.17% of its industry peers.
In the last couple of years the Gross Margin of CLMB has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.16% | ||
| PM (TTM) | 4% | ||
| GM | 19.7% |
OM growth 3Y21.63%
OM growth 5Y5.97%
PM growth 3Y25.88%
PM growth 5Y12.71%
GM growth 3Y11.64%
GM growth 5Y4.24%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CLMB is creating value.
The number of shares outstanding for CLMB has been increased compared to 1 year ago.
Compared to 5 years ago, CLMB has more shares outstanding
CLMB has a better debt/assets ratio than last year.
2.2 Solvency
CLMB has an Altman-Z score of 2.91. This is not the best score and indicates that CLMB is in the grey zone with still only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.91, CLMB is in line with its industry, outperforming 43.33% of the companies in the same industry.
CLMB has a debt to FCF ratio of 0.05. This is a very positive value and a sign of high solvency as it would only need 0.05 years to pay back of all of its debts.
CLMB has a Debt to FCF ratio of 0.05. This is amongst the best in the industry. CLMB outperforms 85.83% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that CLMB is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, CLMB is in the better half of the industry, outperforming 63.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Altman-Z | 2.91 |
ROIC/WACC1.84
WACC10.56%
2.3 Liquidity
CLMB has a Current Ratio of 1.02. This is a normal value and indicates that CLMB is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CLMB (1.02) is worse than 94.17% of its industry peers.
CLMB has a Quick Ratio of 1.01. 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 worse Quick ratio (1.01) than 80.83% 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 | 1.02 | ||
| Quick Ratio | 1.01 |
3. Growth
3.1 Past
CLMB shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 41.39%, which is quite impressive.
Measured over the past years, CLMB shows a very strong growth in Earnings Per Share. The EPS has been growing by 28.44% on average per year.
Looking at the last year, CLMB shows a very strong growth in Revenue. The Revenue has grown by 22.91%.
The Revenue has been growing by 14.18% on average over the past years. This is quite good.
EPS 1Y (TTM)41.39%
EPS 3Y39.24%
EPS 5Y28.44%
EPS Q2Q%184.62%
Revenue 1Y (TTM)22.91%
Revenue growth 3Y11.84%
Revenue growth 5Y14.18%
Sales Q2Q%52.12%
3.2 Future
CLMB is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 30.62% yearly.
Based on estimates for the next years, CLMB will show a very strong growth in Revenue. The Revenue will grow by 20.90% on average per year.
EPS Next Y18.5%
EPS Next 2Y30.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year25.13%
Revenue Next 2Y20.9%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 34.02, the valuation of CLMB can be described as expensive.
Based on the Price/Earnings ratio, CLMB is valued a bit cheaper than the industry average as 60.83% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.29. CLMB is valued slightly more expensive when compared to this.
The Price/Forward Earnings ratio is 29.17, which means the current valuation is very expensive for CLMB.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CLMB is on the same level as its industry peers.
CLMB is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.02 | ||
| Fwd PE | 29.17 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CLMB.
Based on the Price/Free Cash Flow ratio, CLMB is valued a bit cheaper than 60.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.45 | ||
| EV/EBITDA | 20.92 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CLMB does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of CLMB may justify a higher PE ratio.
A more expensive valuation may be justified as CLMB's earnings are expected to grow with 30.62% in the coming years.
PEG (NY)1.84
PEG (5Y)1.2
EPS Next 2Y30.62%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CLMB has a yearly dividend return of 0.54%, which is pretty low.
Compared to an average industry Dividend Yield of 1.87, CLMB pays a better dividend. On top of this CLMB pays more dividend than 84.17% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.28, CLMB's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
5.2 History
The dividend of CLMB decreases each year by -0.54%.
CLMB has paid a dividend for at least 10 years, which is a reliable track record.
CLMB has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.54%
Div Incr Years0
Div Non Decr Years17
5.3 Sustainability
18.43% of the earnings are spent on dividend by CLMB. This is a low number and sustainable payout ratio.
DP18.43%
EPS Next 2Y30.62%
EPS Next 3YN/A
CLIMB GLOBAL SOLUTIONS INC
NASDAQ:CLMB (1/22/2025, 1:52:18 PM)
135.38
-1.2 (-0.88%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners58.38%
Inst Owner ChangeN/A
Ins Owners10.53%
Ins Owner Change0.11%
Market Cap624.10M
Analysts85.71
Price Target138.72 (2.47%)
Short Float %2.4%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.54% |
Yearly Dividend0.66
Dividend Growth(5Y)-0.54%
DP18.43%
Div Incr Years0
Div Non Decr Years17
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)61.94%
Min EPS beat(2)53.19%
Max EPS beat(2)70.7%
EPS beat(4)3
Avg EPS beat(4)42.03%
Min EPS beat(4)-21.57%
Max EPS beat(4)70.7%
EPS beat(8)N/A
Avg EPS beat(8)N/A
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)0
Avg Revenue beat(2)-5.71%
Min Revenue beat(2)-7.19%
Max Revenue beat(2)-4.24%
Revenue beat(4)1
Avg Revenue beat(4)-1.96%
Min Revenue beat(4)-14.07%
Max Revenue beat(4)17.64%
Revenue beat(8)3
Avg Revenue beat(8)-2.14%
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)51.11%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.56%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.02 | ||
| Fwd PE | 29.17 | ||
| P/S | 1.52 | ||
| P/FCF | 36.45 | ||
| P/OCF | 28.99 | ||
| P/B | 7.12 | ||
| P/tB | 52.01 | ||
| EV/EBITDA | 20.92 |
EPS(TTM)3.98
EY2.94%
EPS(NY)4.64
Fwd EY3.43%
FCF(TTM)3.71
FCFY2.74%
OCF(TTM)4.67
OCFY3.45%
SpS89.07
BVpS19.02
TBVpS2.6
PEG (NY)1.84
PEG (5Y)1.2
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.42% | ||
| ROE | 18.74% | ||
| ROCE | 26.07% | ||
| ROIC | 19.45% | ||
| ROICexc | 25.2% | ||
| ROICexgc | N/A | ||
| OM | 6.16% | ||
| PM (TTM) | 4% | ||
| GM | 19.7% | ||
| FCFM | 4.17% |
ROA(3y)4.5%
ROA(5y)4.28%
ROE(3y)17.72%
ROE(5y)15.52%
ROIC(3y)16.74%
ROIC(5y)14.84%
ROICexc(3y)28.97%
ROICexc(5y)26.65%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)22.45%
ROCE(5y)19.9%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-0.23%
ROICexc growth 5Y7.29%
OM growth 3Y21.63%
OM growth 5Y5.97%
PM growth 3Y25.88%
PM growth 5Y12.71%
GM growth 3Y11.64%
GM growth 5Y4.24%
F-Score6
Asset Turnover1.1
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.05 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 115.79% | ||
| Cap/Sales | 1.07% | ||
| Interest Coverage | 77.29 | ||
| Cash Conversion | 74.03% | ||
| Profit Quality | 104.24% | ||
| Current Ratio | 1.02 | ||
| Quick Ratio | 1.01 | ||
| Altman-Z | 2.91 |
F-Score6
WACC10.56%
ROIC/WACC1.84
Cap/Depr(3y)105.36%
Cap/Depr(5y)68.27%
Cap/Sales(3y)0.78%
Cap/Sales(5y)0.48%
Profit Quality(3y)125.45%
Profit Quality(5y)261.15%
High Growth Momentum
Growth
EPS 1Y (TTM)41.39%
EPS 3Y39.24%
EPS 5Y28.44%
EPS Q2Q%184.62%
EPS Next Y18.5%
EPS Next 2Y30.62%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)22.91%
Revenue growth 3Y11.84%
Revenue growth 5Y14.18%
Sales Q2Q%52.12%
Revenue Next Year25.13%
Revenue Next 2Y20.9%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y63.06%
EBIT growth 3Y36.04%
EBIT growth 5Y21%
EBIT Next Year141.97%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y389.26%
FCF growth 3Y-0.72%
FCF growth 5Y22.2%
OCF growth 1Y326.24%
OCF growth 3Y3.52%
OCF growth 5Y24.82%