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 6 out of 10. The analysis compared the fundamentals against 66 industry peers in the Software industry. While CMG belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. CMG has a correct valuation and a medium growth rate.
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.
CMG had positive earnings in each of the past 5 years.
CMG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 12.43%, CMG belongs to the top of the industry, outperforming 90.91% of the companies in the same industry.
With an excellent Return On Equity value of 28.53%, CMG belongs to the best of the industry, outperforming 92.42% 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 92.42% of its industry peers.
The Average Return On Invested Capital over the past 3 years for CMG is significantly above the industry average of 11.84%.
| Industry Rank | Sector 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%
1.3 Margins
CMG has a Profit Margin of 16.41%. This is amongst the best in the industry. CMG outperforms 90.91% of its industry peers.
In the last couple of years the Profit Margin of CMG has declined.
CMG's Operating Margin of 24.42% is amongst the best of the industry. CMG outperforms 95.45% of its industry peers.
CMG's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 80.28%, CMG belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CMG is still creating some value.
The number of shares outstanding for CMG has been increased compared to 1 year ago.
Compared to 5 years ago, CMG has more shares outstanding
Compared to 1 year ago, CMG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.99 indicates that CMG is not in any danger for bankruptcy at the moment.
The Altman-Z score of CMG (6.99) is better than 84.85% 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 78.79% 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.
CMG has a Debt to Equity ratio (0.49) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.49 | ||
| Debt/FCF | 1.41 | ||
| Altman-Z | 6.99 |
ROIC/WACC1.64
WACC12.62%
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.
CMG has a better Current ratio (1.79) than 63.64% of its industry peers.
A Quick Ratio of 1.79 indicates that CMG should not have too much problems paying its short term obligations.
The Quick ratio of CMG (1.79) is better than 63.64% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.79 | ||
| Quick Ratio | 1.79 |
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%.
The Earnings Per Share has been growing slightly by 3.46% on average over the past years.
The Revenue has grown by 50.88% in the past year. This is a very strong growth!
The Revenue has been growing slightly by 7.74% on average over the past years.
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
The Earnings Per Share is expected to grow by 8.08% on average over the next years. This is quite good.
CMG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.63% yearly.
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
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.
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
With a Price/Earnings ratio of 40.77, CMG can be considered very expensive at the moment.
75.76% of the companies in the same industry are more expensive than CMG, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CMG to the average of the S&P500 Index (29.39), we can say CMG is valued slightly more expensively.
A Price/Forward Earnings ratio of 24.74 indicates a rather expensive valuation of CMG.
Based on the Price/Forward Earnings ratio, CMG is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 94.38. CMG is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.77 | ||
| Fwd PE | 24.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CMG is valued a bit cheaper than the industry average as 63.64% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CMG is valued a bit cheaper than 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.6 | ||
| EV/EBITDA | 22.25 |
4.3 Compensation for Growth
CMG has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)11.8
EPS Next 2Y15.72%
EPS Next 3Y8.08%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.86%, CMG has a reasonable but not impressive dividend return.
CMG's Dividend Yield is rather good when compared to the industry average which is at 1.75. CMG pays more dividend than 95.45% of the companies in the same industry.
CMG's Dividend Yield is comparable with the S&P500 average which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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
5.3 Sustainability
CMG pays out 79.28% of its income as dividend. This is not a sustainable payout ratio.
DP79.28%
EPS Next 2Y15.72%
EPS Next 3Y8.08%
COMPUTER MODELLING GROUP LTD
TSX:CMG (2/11/2025, 7:00:00 PM)
10.6
-0.29 (-2.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners56.59%
Inst Owner ChangeN/A
Ins Owners1.57%
Ins Owner ChangeN/A
Market Cap871.64M
Analysts76.36
Price Target14.35 (35.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend0.2
Dividend Growth(5Y)-12.94%
DP79.28%
Div Incr Years0
Div Non Decr Years3
Ex-DateN/A
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.77 | ||
| Fwd PE | 24.74 | ||
| P/S | 6.96 | ||
| P/FCF | 32.6 | ||
| P/OCF | 31.57 | ||
| P/B | 12.09 | ||
| P/tB | 19.24 | ||
| EV/EBITDA | 22.25 |
EPS(TTM)0.26
EY2.45%
EPS(NY)0.43
Fwd EY4.04%
FCF(TTM)0.33
FCFY3.07%
OCF(TTM)0.34
OCFY3.17%
SpS1.52
BVpS0.88
TBVpS0.55
PEG (NY)N/A
PEG (5Y)11.8
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 6.99 |
F-Score6
WACC12.62%
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%