Climb Global Solutions (CLMB) AI Stock Analysis

• Market Cap: $520.78M
• Dividend Yield: 0.6%
• Average Volume (3M): 37.85K
• Price to Earnings (P/E): 28.3
• Beta (1Y): 1.12
• Revenue Growth: 32.27%
• EPS Growth: 48.97%
• Country: US
• Employees: 365
• Sector: Technology
• Sector Strength: 46
• Industry: Hardware & Equipment
• EPS (TTM): 4.06
• Shares Outstanding: 4,597,295
• 10 Day Avg. Volume: 32,209
• 30 Day Avg. Volume: 37,847
• PEG Ratio: 0.58
• Price to Book (P/B): N/A
• Price to Sales (P/S): 1.16
• Price to Cash Flow (P/CF): 8.40
• P/FCF Ratio: 8.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $136.00
• Price Target Upside: 23.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Climb Global Solutions demonstrates strong financial performance and positive earnings call sentiment, supported by new leadership and strategic growth initiatives. However, technical indicators suggest caution in the short-term, and valuation metrics imply potential overvaluation. The overall stock score reflects a balanced outlook with strengths in financial health and growth prospects but tempered by current market conditions.

Positive Factors

Earnings

Climb reported non-GAAP EPS that significantly exceeded forecasts, driven by higher net sales and better-than-expected adjusted EBITDA margins.

Financial Performance

Adjusted EBITDA vastly exceeded expectations, highlighting strong financial performance.

Growth Strategy

The company's distribution business is focused on the sales/service of a portfolio of emerging technology software products, which should collectively generate rapid growth over the next few years.

Negative Factors

Market Competition

The company’s main distribution competitors in the United States are large distributors, which are more costly and less focused on marketing the software products of smaller vendors.

Climb Global Solutions Business Overview & Revenue Model

Company Description

Climb Global Solutions Inc. operates as a value-added information technology (IT) distribution and solutions company in the United States, Canada, Europe, the United Kingdom, and internationally. It operates in two segments, Distribution and Solutions. The company distributes technical software and hardware to corporate and value added resellers, consultants, and systems integrators under the names Climb Channel Solutions and Sigma Software Distribution; and software, hardware, and services under the names TechXtend and Grey Matter. It also resells computer software and hardware developed by others, as well as provides technical services to end user customers. In addition, the company offers a line of products from various software vendors; and tools for virtualization/cloud computing, security, networking, storage and infrastructure management, application lifecycle management, and other technically sophisticated domains, as well as computer hardware. Climb Global Solutions Inc. markets its products through its own web sites, local and on-line seminars, events, webinars, and social media, as well as direct email and printed materials. It provides IT distribution and solutions for companies in the security, data management, cloud, connectivity, storage and HCI, virtualization, and software and ALM industries. The company was formerly known as Wayside Technology Group, Inc. and changed its name to Climb Global Solutions Inc. in October 2022. Climb Global Solutions Inc. was incorporated in 1982 and is headquartered in Eatontown, New Jersey.

How the Company Makes Money

Climb Global Solutions makes money primarily through the distribution and resale of IT products and solutions. The company earns revenue by partnering with technology vendors to distribute their products to a network of resellers, system integrators, and managed service providers. Key revenue streams include the sale of software licenses, hardware products, and cloud services. Additionally, Climb Global Solutions benefits from strategic partnerships with leading technology companies, enabling them to offer a broad portfolio of products and solutions. The company's earnings are bolstered by its ability to provide value-added services, such as technical support, training, and consulting, which enhance customer satisfaction and foster long-term relationships.

Climb Global Solutions Financial Statement Overview

Summary

Climb Global Solutions shows strong financial health with improved profitability and robust equity position. Income growth is solid with improved margins, and cash flow generation is efficient. However, there is room for better asset utilization and operational efficiency.

Income Statement

Climb Global Solutions demonstrates strong revenue growth, with a consistent upward trajectory over recent years. The Gross Profit Margin and Net Profit Margin have improved, reflecting better cost management and profitability. However, the EBIT and EBITDA margins, while positive, indicate room for further operational efficiency improvements.

Balance Sheet

The company maintains a robust equity position with a healthy Equity Ratio, indicating financial stability. The Debt-to-Equity Ratio is low, suggesting prudent leverage usage. Return on Equity (ROE) is solid, reflecting effective use of shareholders' capital. However, there is a need to further enhance asset utilization to maximize returns.

Cash Flow

Strong operating cash flow coupled with consistent free cash flow generation indicates solid cash management. The Free Cash Flow to Net Income Ratio is favorable, demonstrating efficient conversion of earnings to cash. However, fluctuations in free cash flow growth suggest potential volatility in cash generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
465.61M	352.01M	304.35M	282.58M	251.57M
	Gross Profit
91.08M	64.25M	54.09M	45.72M	33.04M
	EBIT
27.99M	16.49M	17.31M	12.05M	5.30M
	EBITDA
35.01M	20.28M	18.59M	13.59M	7.53M
	Net Income Common Stockholders
18.61M	12.32M	12.50M	9.20M	4.47M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
29.78M	36.30M	20.25M	29.27M	29.35M
	Total Assets
469.18M	335.10M	231.86M	190.75M	165.53M
	Total Debt
2.90M	2.62M	3.63M	2.29M	2.66M
	Net Debt
-26.88M	-33.67M	-16.62M	-26.99M	-26.69M
	Total Liabilities
378.59M	260.33M	171.28M	138.34M	120.82M
	Stockholders Equity
90.59M	74.77M	60.57M	52.42M	44.72M
Cash Flow		Free Cash Flow
28.27M	37.13M	2.06M	4.45M	37.95M
	Operating Cash Flow
33.74M	42.12M	4.56M	4.71M	37.97M
	Investing Cash Flow
-26.43M	-17.67M	-11.01M	-258.00K	-16.80M
	Financing Cash Flow
-12.96M	-8.95M	-1.83M	-4.40M	-6.74M

Climb Global Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 110.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CLMB, the sentiment is Negative. The current price of 110 is below the 20-day moving average (MA) of 117.86, below the 50-day MA of 123.57, and above the 200-day MA of 103.41, indicating a neutral trend. The MACD of -3.00 indicates Positive momentum. The RSI at 37.70 is Neutral, neither overbought nor oversold. The STOCH value of 27.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CLMB.

Climb Global Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CLMB	75 Outperform	$520.78M	28.28	21.95%	0.60%	32.27%	48.97%
CDW	69 Neutral	$22.17B	21.14	49.04%	1.49%	-1.77%	-1.82%
AVT	68 Neutral	$4.20B	13.83	6.45%	2.64%	-12.21%	-51.31%
SNX	68 Neutral	$9.07B	15.77	8.42%	1.31%	4.62%	16.55%
ARW	66 Neutral	$5.58B	14.70	6.78%	―	-15.66%	-54.03%
SCSC	64 Neutral	$831.55M	13.96	6.79%	―	-15.92%	-25.15%
Sector *	58 Neutral	$21.67B	10.60	-18.43%	2.42%	4.66%	-24.45%

Climb Global Solutions Corporate Events

Climb Global Solutions Appoints New Chairman Amid Board Changes

On January 29, 2025, Climb Global Solutions announced the appointment of John McCarthy as the new Chairman of the Board, effective January 28, 2025, following the resignation of Jeff Geygan, which will be effective on February 28, 2025. This change also results in the reduction of the Board from seven to six members, with five members being independent. Mr. McCarthy, who has been a director since 2019, brings over 30 years of executive technology leadership experience to the role, having previously held senior roles in notable technology companies. His appointment is part of the company’s strategic vision to continue driving growth and success.

Climb Global Solutions Appoints New Chief Financial Officer

Climb Global Solutions announced the appointment of Matthew Sullivan as the new Chief Financial Officer following the retirement of Andrew Clark. Sullivan, who has been with the company since 2019 and served as Chief Accounting Officer, brings extensive financial leadership experience and has played a key role in the company’s growth strategy, particularly through strategic acquisitions. The transition aims to ensure continuity in leadership and further strengthen Climb’s financial operations and strategic initiatives.