Climb Global Solutions (CLMB) AI Stock Analysis

• Market Cap: $603.01M
• Dividend Yield: 0.52%
• Average Volume (3M): 47.48K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 1.01
• Revenue Growth: 56.45%
• EPS Growth: 59.09%
• Country: US
• Employees: 367
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 1.39
• Shares Outstanding: 4,617,206
• 10 Day Avg. Volume: 46,608
• 30 Day Avg. Volume: 47,485
• PEG Ratio: 0.62
• Price to Book (P/B): 6.25
• Price to Sales (P/S): 1.22
• P/FCF Ratio: 20.02
• Enterprise Value/Market Cap: 0.76
• Enterprise Value/Revenue: 0.79
• Enterprise Value/Gross Profit: 4.34
• Enterprise Value/Ebitda: 10.97
• 1Y Price Target: $136.00
• Price Target Upside: 4.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: $142.00 ▲(9.26% Upside)

Climb Global Solutions demonstrates strong financial performance and positive earnings call sentiment, which are the most significant factors driving the score. However, the stock's technical indicators suggest a potential bearish trend, and its valuation appears high, which tempers the overall score.

Positive Factors

Revenue Growth

The substantial increase in net sales indicates strong demand for CLMB's services, reflecting effective market positioning and growth strategy.

Strategic Partnerships

The partnership with Forcepoint enhances CLMB's product offerings and market reach, aligning with industry trends in AI-native data security.

Balance Sheet Health

A strong balance sheet with low leverage provides financial stability and flexibility, supporting long-term strategic initiatives.

Negative Factors

Cash Flow Weakness

Declining free cash flow growth may limit CLMB's ability to reinvest in business operations and pursue growth opportunities.

Leadership Changes

Leadership changes may introduce uncertainty in strategic direction and affect stakeholder confidence in the company's management.

Partnership Loss

Losing the Citrix partnership could impact revenue streams and market presence, necessitating adjustments in strategic partnerships.

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 generates revenue through a combination of service contracts, subscription-based models, and project-based engagements. Key revenue streams include consulting services for cloud migration, cybersecurity assessments, and ongoing managed services for data management. The company also forms strategic partnerships with technology providers to enhance its service offerings, such as collaborations with leading cloud platforms and cybersecurity firms. These partnerships not only broaden CLMB's service portfolio but also create additional revenue opportunities through joint marketing initiatives and bundled service offerings.

Climb Global Solutions Financial Statement Overview

Summary

Climb Global Solutions demonstrates strong financial health with consistent revenue growth, solid profitability, and efficient cash flow management. The balance sheet is notably strong with low leverage, supporting long-term stability.

Income Statement

Climb Global Solutions shows strong revenue growth with a notable increase of 9.79% in the TTM compared to the previous year. The company has maintained a solid gross profit margin of 18.89% and a net profit margin of 3.83% in the TTM, indicating strong profitability. The EBIT and EBITDA margins also reflect efficient operational performance at 5.82% and 6.74% respectively.

Balance Sheet

The balance sheet reflects a low debt-to-equity ratio of 0.03, indicating minimal leverage and financial risk. The equity ratio stands at 25.81%, showing a healthy proportion of equity in the asset base. The return on equity is robust at 20.47%, highlighting effective use of shareholder funds to generate profits.

Cash Flow

The company's free cash flow growth rate is strong, with a slight decline in the TTM, but maintaining a solid operating cash flow to net income ratio of 1.44. The free cash flow to net income ratio is also impressive at 1.18, demonstrating effective cash management and conversion of earnings into cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	578.44M	465.61M	352.01M	304.35M	282.58M	251.57M
Gross Profit	105.21M	91.08M	64.25M	54.09M	45.72M	33.04M
EBITDA	41.68M	35.01M	20.28M	18.59M	13.59M	7.53M
Net Income	22.10M	18.61M	12.32M	12.50M	9.20M	4.47M
Balance Sheet
Total Assets	420.69M	469.18M	335.10M	231.86M	190.75M	165.53M
Cash, Cash Equivalents and Short-Term Investments	28.59M	29.78M	36.30M	20.25M	29.27M	29.35M
Total Debt	2.32M	3.09M	2.62M	3.63M	2.29M	2.66M
Total Liabilities	314.75M	378.59M	260.33M	171.28M	138.34M	120.82M
Stockholders Equity	105.18M	90.59M	74.77M	60.57M	52.42M	44.72M
Cash Flow
Free Cash Flow	14.16M	28.27M	37.13M	2.06M	4.45M	37.95M
Operating Cash Flow	18.67M	33.74M	42.12M	4.56M	4.71M	37.97M
Investing Cash Flow	-25.47M	-26.43M	-17.67M	-11.01M	-258.00K	-16.80M
Financing Cash Flow	-12.89M	-12.96M	-8.95M	-1.83M	-4.40M	-6.74M

Climb Global Solutions Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 129.96
• 50DMA: Positive
• 100DMA: Positive
• 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 Neutral. The current price of 129.96 is below the 20-day moving average (MA) of 135.65, above the 50-day MA of 129.79, and above the 200-day MA of 116.94, indicating a neutral trend. The MACD of 0.56 indicates Positive momentum. The RSI at 47.72 is Neutral, neither overbought nor oversold. The STOCH value of 22.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	$603.01M	26.26	23.39%	0.52%	56.45%	59.09%
CNXN	74 Outperform	$1.58B	18.55	9.78%	0.88%	4.94%	-1.79%
ARW	73 Outperform	$6.42B	14.10	7.74%	―	-3.95%	-16.72%
SCSC	66 Neutral	$932.94M	14.16	7.82%	―	-6.72%	-1.14%
AVT	65 Neutral	$4.32B	18.95	4.83%	2.52%	-6.55%	-49.61%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NSIT	61 Neutral	$3.45B	26.12	8.67%	―	-7.61%	-50.01%

Climb Global Solutions Corporate Events

Climb Global Solutions Terminates CIO Vito Legrottaglie

On June 12, 2025, Climb Global Solutions, Inc. announced the termination of Vito Legrottaglie as Chief Information Officer, effective June 13, 2025. As part of a separation agreement, Mr. Legrottaglie will receive cash compensation for consulting services and accelerated vesting of certain stock units, impacting the company’s executive structure and potentially influencing stakeholder perceptions.