Computer Modelling Group Ltd. (CMG) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Open Text Corp.

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Topicus.com, Inc.

Computer Modelling Group Ltd.

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Lightspeed Commerce, Inc.

Docebo, Inc.

Why is Computer Modelling Group Ltd. ?

High Management Efficiency with a high ROE of 37.45%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 14.63

Flat results in Mar 26

NET PROFIT(9M) At CAD 14.03 MM has Grown at -29.79%
ROCE(HY) Lowest at 21.21%
DEBT-EQUITY RATIO (HY) Highest at 19.57 %

With ROE of 22.13%, it has a fair valuation with a 3.83 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -44.75%, its profits have fallen by -27.3%

Majority shareholders : FIIs

Below par performance in long term as well as near term

Along with generating -44.75% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Computer Modelling Group Ltd. should be less than 10%
Overall Portfolio exposure to Software Products should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Computer Modelling Group Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Computer Modelling Group Ltd.

-44.75%

-1.65

42.79%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

13.38%

EBIT Growth (5y)

-2.41%

EBIT to Interest (avg)

14.63

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.47

Sales to Capital Employed (avg)

1.48

Tax Ratio

31.12%

Dividend Payout Ratio

37.86%

Pledged Shares

Institutional Holding

0.12%

ROCE (avg)

272.16%

ROE (avg)

37.45%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

3.83

EV to EBIT

10.69

EV to EBITDA

7.71

EV to Capital Employed

4.64

EV to Sales

2.24

PEG Ratio

Dividend Yield

ROCE (Latest)

43.38%

ROE (Latest)

22.13%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Bearish

RSI

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Mildly Bearish (Daily)

KST

Mildly Bullish

Bearish

Dow Theory

No Trend

Mildly Bearish

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

INTEREST COVERAGE RATIO(Q)

Highest at 1,898.39

RAW MATERIAL COST(Y)

Fallen by -1.6% (YoY

OPERATING PROFIT(Q)

Highest at CAD 11.81 MM

OPERATING PROFIT MARGIN(Q)

Highest at 35.07 %

PRE-TAX PROFIT(Q)

Highest at CAD 7.89 MM

-9What is not working for the Company

NET PROFIT(9M)

At CAD 14.03 MM has Grown at -29.79%

ROCE(HY)

Lowest at 21.21%

DEBT-EQUITY RATIO (HY)

Highest at 19.57 %

DIVIDEND PAYOUT RATIO(Y)

Lowest at 14.43%

CASH AND EQV(HY)

Lowest at CAD 52.33 MM

DIVIDEND PER SHARE(HY)

Lowest at CAD 3.57

Here's what is working for Computer Modelling Group Ltd.

Interest Coverage Ratio

Highest at 1,898.39

in the last five periods

MOJO Watch

The company's ability to manage interest payments is improving

Operating Profit to Interest

Operating Profit

Highest at CAD 11.81 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (CAD MM)

Operating Profit Margin

Highest at 35.07 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at CAD 7.89 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (CAD MM)

Raw Material Cost

Fallen by -1.6% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for Computer Modelling Group Ltd.

Debt-Equity Ratio

Highest at 19.57 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Net Profit

At CAD 14.03 MM has Grown at -29.79%

Year on Year (YoY)

MOJO Watch

Near term Net Profit trend is negative

Net Profit (CAD MM)

Cash and Eqv

Lowest at CAD 52.33 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Dividend per share

Lowest at CAD 3.57

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (CAD)

Dividend Payout Ratio

Lowest at 14.43%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)