COMPUTER MODELLING GROUP LTD (CMG.CA) Stock Fundamental Analysis
TSX:CMG - Toronto Stock Exchange - CA2052491057 - Common Stock - Currency: CAD
We assign a fundamental rating of 6 out of 10 to CMG. CMG was compared to 60 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 is not valued too expensively and it also shows a decent growth rate. These ratings would make CMG suitable for quality investing!
1. Profitability
1.1 Basic Checks
In the past year CMG was profitable.
In the past year CMG had a positive cash flow from operations.
In the past 5 years CMG has always been profitable.
In the past 5 years CMG always reported a positive cash flow from operatings.
1.2 Ratios
CMG has a Return On Assets of 12.30%. This is amongst the best in the industry. CMG outperforms 88.33% of its industry peers.
CMG has a Return On Equity of 30.06%. This is amongst the best in the industry. CMG outperforms 91.67% of its industry peers.
The Return On Invested Capital of CMG (18.94%) is better than 91.67% 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 13.09%.
| 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
Looking at the Profit Margin, with a value of 19.18%, CMG belongs to the top of the industry, outperforming 91.67% of the companies in the same industry.
In the last couple of years the Profit Margin of CMG has declined.
CMG has a better Operating Margin (26.23%) than 95.00% of its industry peers.
In the last couple of years the Operating Margin of CMG has declined.
CMG has a Gross Margin of 80.74%. This is amongst the best in the industry. CMG outperforms 85.00% 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), CMG is creating value.
The number of shares outstanding for CMG has been increased compared to 1 year ago.
CMG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CMG has been reduced compared to a year ago.
2.2 Solvency
CMG has an Altman-Z score of 4.38. This indicates that CMG is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.38, CMG is doing good in the industry, outperforming 66.67% of the companies in the same industry.
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.
With a decent Debt to FCF ratio value of 1.13, CMG is doing good in the industry, outperforming 76.67% of the companies in the same industry.
CMG has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.44, CMG perfoms like the industry average, outperforming 46.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.44 | ||
| Debt/FCF | 1.13 | ||
| Altman-Z | 4.38 |
ROIC/WACC1.96
WACC9.64%
2.3 Liquidity
CMG has a Current 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.
Looking at the Current ratio, with a value of 1.27, CMG is in line with its industry, outperforming 55.00% 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's Quick ratio of 1.27 is in line compared to the rest of the industry. CMG outperforms 55.00% 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
CMG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.90%.
The Earnings Per Share has been growing slightly by 3.46% on average over the past years.
Looking at the last year, CMG shows a very strong growth in Revenue. The Revenue has grown by 32.48%.
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)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 Year21.2%
Revenue Next 2Y16.11%
Revenue Next 3Y11.88%
Revenue Next 5Y14.63%
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 accelerating.
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
A Price/Earnings ratio of 25.19 indicates a quite expensive valuation of CMG.
Compared to the rest of the industry, the Price/Earnings ratio of CMG indicates a somewhat cheap valuation: CMG is cheaper than 78.33% of the companies listed in the same industry.
CMG is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 28.92, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 19.68, the valuation of CMG can be described as rather expensive.
Based on the Price/Forward Earnings ratio, CMG is valued cheaper than 85.00% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.65, CMG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.19 | ||
| Fwd PE | 19.68 |
4.2 Price Multiples
61.67% of the companies in the same industry are more expensive than CMG, based on the Enterprise Value to EBITDA ratio.
75.00% 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 | 18.64 | ||
| EV/EBITDA | 15.39 |
4.3 Compensation for Growth
CMG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)7.29
EPS Next 2Y11.35%
EPS Next 3Y8.08%
5. Dividend
5.1 Amount
CMG has a Yearly Dividend Yield of 2.67%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of CMG has falen by -23.80%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CMG's Dividend Yield is rather good when compared to the industry average which is at 1.92. CMG pays more dividend than 95.00% of the companies in the same industry.
CMG's Dividend Yield is comparable with the S&P500 average which is at 2.51.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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
66.60% of the earnings are spent on dividend by CMG. This is not a sustainable payout ratio.
DP66.6%
EPS Next 2Y11.35%
EPS Next 3Y8.08%
TSX:CMG (4/24/2025, 7:00:00 PM)
7.81
+0.3 (+3.99%)
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 Cap644.64M
Analysts74.55
Price Target13.11 (67.86%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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)1.97%
EPS NQ rev (3m)9.52%
EPS NY rev (1m)-0.23%
EPS NY rev (3m)2.9%
Revenue NQ rev (1m)-0.05%
Revenue NQ rev (3m)-2.68%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-1.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.19 | ||
| Fwd PE | 19.68 | ||
| P/S | 5.03 | ||
| P/FCF | 18.64 | ||
| P/OCF | 18.19 | ||
| P/B | 7.89 | ||
| P/tB | 92.95 | ||
| EV/EBITDA | 15.39 |
EPS(TTM)0.31
EY3.97%
EPS(NY)0.4
Fwd EY5.08%
FCF(TTM)0.42
FCFY5.37%
OCF(TTM)0.43
OCFY5.5%
SpS1.55
BVpS0.99
TBVpS0.08
PEG (NY)N/A
PEG (5Y)7.29
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 | 4.38 |
F-Score4
WACC9.64%
ROIC/WACC1.96
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 Year21.2%
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%