Climb Global Solutions (CLMB) AI Stock Analysis

• Market Cap: $475.18M
• Dividend Yield: 0.66%
• Average Volume (3M): 44.94K
• Price to Earnings (P/E): 22.2
• Beta (1Y): 1.04
• Revenue Growth: 51.09%
• EPS Growth: 25.86%
• Country: US
• Employees: 367
• Sector: Technology
• Sector Strength: 88
• Industry: Technology Distributors
• EPS (TTM): 1.31
• Shares Outstanding: 4,613,446
• 10 Day Avg. Volume: 53,866
• 30 Day Avg. Volume: 44,943
• 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: 1.19
• Enterprise Value/Revenue: 0.91
• Enterprise Value/Gross Profit: 5.36
• Enterprise Value/Ebitda: 15.52
• 1Y Price Target: $136.00
• Price Target Upside: 27.93% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 4.75
• Revenue Forecast (FY): $625.18M

• Rating: 73 Outperform
• Price Target: $137.00 ▲(28.87% Upside)

Climb Global Solutions' strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. The technical analysis indicates mixed signals, with potential short-term weakness but longer-term strength. The valuation suggests the stock is relatively expensive, which slightly offsets the positive aspects.

Positive Factors

Revenue Growth

The significant increase in net sales reflects robust demand and effective market penetration, indicating strong growth potential and competitive positioning in the technology distribution sector.

Strategic Partnerships

Strategic partnerships and leadership appointments enhance Climb's market reach and operational capabilities, fostering long-term growth and innovation in cybersecurity and cloud solutions.

Balance Sheet Health

A low debt-to-equity ratio indicates minimal leverage, reducing financial risk and enhancing the company's ability to invest in growth opportunities and withstand economic fluctuations.

Negative Factors

Cash Flow Weakness

The decline in free cash flow growth suggests potential challenges in cash generation, which could limit the company's ability to fund new projects or respond to market changes effectively.

Citrix Partnership Loss

Losing the Citrix partnership may impact revenue streams and market presence in certain regions, requiring strategic adjustments to mitigate potential negative effects on growth.

Gross Profit Margin Decline

A decline in gross profit margin indicates potential cost pressures, which could affect profitability if not managed effectively, impacting long-term financial performance.

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 multiple streams, primarily by providing cloud services and IT management solutions to businesses. Their revenue model includes subscription fees for cloud services, hourly rates for consulting and implementation projects, and recurring fees from managed services agreements. Additionally, CLMB benefits from strategic partnerships with major technology providers, allowing them to resell software licenses and hardware solutions, further diversifying their income. The company also engages in training and support services, adding another layer to their revenue generation.

Climb Global Solutions Financial Statement Overview

Summary

Climb Global Solutions demonstrates strong financial performance with consistent revenue growth, solid profitability, and effective cash flow management. The company maintains low leverage, enhancing financial stability. Minor declines in profit margins are noted, but the overall trajectory remains positive.

Income Statement

Climb Global Solutions demonstrates strong revenue growth with a TTM increase of 7.26% and a previous annual growth of 32.27%. The company maintains healthy gross and net profit margins, although there is a slight decline in margins over the TTM period. EBIT and EBITDA margins remain robust, indicating efficient operational performance.

Balance Sheet

The company exhibits a solid balance sheet with a low debt-to-equity ratio of 0.022 in the TTM period, reflecting minimal leverage risk. Return on equity is strong at 22.52%, showcasing effective utilization of equity. The equity ratio is stable, indicating a balanced asset structure.

Cash Flow

Climb Global Solutions shows impressive free cash flow growth of 189.09% in the TTM period, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is moderate, suggesting efficient cash conversion. However, the free cash flow to net income ratio indicates room for improvement in cash retention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	620.43M	465.61M	352.01M	304.35M	282.58M	251.57M
Gross Profit	105.35M	91.08M	64.25M	52.04M	45.72M	33.04M
EBITDA	36.35M	35.01M	20.28M	19.01M	14.05M	7.53M
Net Income	21.16M	18.61M	12.32M	12.18M	9.20M	4.47M
Balance Sheet
Total Assets	376.09M	469.18M	335.10M	231.86M	190.75M	165.53M
Cash, Cash Equivalents and Short-Term Investments	49.84M	29.78M	36.30M	20.25M	29.27M	29.35M
Total Debt	2.54M	3.09M	2.62M	3.63M	2.29M	2.66M
Total Liabilities	266.83M	378.59M	260.33M	171.28M	138.34M	120.82M
Stockholders Equity	109.26M	90.59M	74.77M	60.57M	52.42M	44.72M
Cash Flow
Free Cash Flow	40.93M	28.27M	37.13M	2.06M	4.45M	37.95M
Operating Cash Flow	44.48M	33.74M	42.12M	4.56M	4.71M	37.97M
Investing Cash Flow	-3.84M	-26.43M	-17.67M	-11.01M	-258.00K	-16.80M
Financing Cash Flow	-12.86M	-12.96M	-8.95M	-1.83M	-4.40M	-6.74M

Climb Global Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 106.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 106.31 is above the 20-day moving average (MA) of 105.82, below the 50-day MA of 121.89, and below the 200-day MA of 114.59, indicating a bearish trend. The MACD of -5.73 indicates Negative momentum. The RSI at 38.35 is Neutral, neither overbought nor oversold. The STOCH value of 57.61 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	73 Outperform	$475.18M	22.17	21.27%	0.66%	51.09%	25.86%
CNXN	73 Outperform	$1.48B	18.12	9.30%	1.02%	3.19%	-4.91%
AVT	67 Neutral	$3.85B	17.63	4.71%	2.83%	-2.30%	-29.75%
ARW	64 Neutral	$5.55B	11.89	7.70%	―	3.16%	1.09%
SCSC	64 Neutral	$918.73M	13.05	8.11%	―	-4.88%	2.57%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NSIT	60 Neutral	$2.94B	22.15	8.51%	―	-6.69%	-51.74%

Climb Global Solutions Corporate Events

Climb Global Solutions Reports Strong Q3 Growth

Climb Global Solutions, Inc. is a value-added global IT distribution and solutions company that specializes in emerging and innovative technologies, operating across the U.S., Canada, and Europe. The company provides IT distribution and solutions for industries such as Security, Data Management, Connectivity, and more.

Climb Global Solutions’ Earnings Call Highlights Robust Growth

The recent earnings call for Climb Global Solutions, Inc. exuded a largely positive sentiment, underscoring the company’s robust financial growth, fruitful vendor partnerships, and strategic operational enhancements. Despite encountering hurdles such as the termination of the Citrix partnership and a rise in SG&A expenses, the company remains poised for sustained growth.

Climb Global Solutions Reports Strong Q2 2025 Growth

Climb Global Solutions, Inc. is a value-added global IT distribution and solutions company that operates across the U.S., Canada, and Europe, specializing in emerging and innovative technologies in sectors such as Security, Data Management, and Cloud services.