Climb Global Solutions (CLMB) AI Stock Analysis

• Market Cap: $466.08M
• Dividend Yield: 0.67%
• Average Volume (3M): 31.93K
• Price to Earnings (P/E): 23.8
• Beta (1Y): 1.02
• Revenue Growth: 42.25%
• EPS Growth: 65.02%
• Country: US
• Employees: 367
• Sector: Technology
• Sector Strength: 66
• Industry: Technology Distributors
• EPS (TTM): 4.28
• Shares Outstanding: 4,602,362
• 10 Day Avg. Volume: 37,759
• 30 Day Avg. Volume: 31,933
• PEG Ratio: 0.38
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.01
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.14
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $136.00
• Price Target Upside: 34.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Climb Global Solutions demonstrates strong financial health and a positive outlook with strategic growth initiatives. However, bearish technical indicators and valuation concerns slightly dampen the overall score. The earnings call and new board appointment provide optimism, but investors should weigh these against potential overvaluation.

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 revenue growth, solid profit margins, and efficient cash flow management. The balance sheet is healthy with low leverage, supporting long-term stability, despite minor cash flow fluctuations.

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
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
29.29M	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
3.09M	2.62M	3.63M	2.29M	2.66M
	Net Debt
-26.69M	-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: 101.27
• 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 101.27 is below the 20-day moving average (MA) of 104.54, below the 50-day MA of 112.06, and below the 200-day MA of 109.15, indicating a bearish trend. The MACD of -2.13 indicates Negative momentum. The RSI at 39.03 is Neutral, neither overbought nor oversold. The STOCH value of 37.17 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	$466.08M	23.75	22.29%	0.67%	42.25%	65.02%
CNXN	73 Outperform	$1.73B	20.60	10.11%	0.66%	4.21%	6.38%
ARW	71 Outperform	$5.97B	15.83	6.68%	―	-11.13%	-43.00%
NSIT	71 Outperform	$4.26B	26.72	11.37%	―	-8.73%	-35.37%
SCSC	71 Outperform	$809.02M	13.58	6.79%	―	-15.92%	-25.15%
AVT	70 Outperform	$4.30B	13.95	6.42%	2.61%	-10.52%	-42.40%
Sector *	60 Neutral	$10.94B	10.48	-7.04%	2.99%	7.55%	-12.20%

Climb Global Solutions Corporate Events

Climb Global Solutions Expands Board with New Appointment

On April 21, 2025, Climb Global Solutions announced the appointment of Paul Giovacchini to its Board of Directors, expanding the board to seven members. Mr. Giovacchini, who brings over 30 years of experience in private equity and corporate governance, will contribute to Climb’s strategic growth initiatives and operational foundation. His expertise is expected to support the company’s long-term vision and growth both domestically and internationally.

Spark’s Take on CLMB Stock

According to Spark, TipRanks’ AI Analyst, CLMB is a Outperform.

Climb Global Solutions exhibits strong financial performance with significant growth in revenue and profitability metrics. The earnings call further supports a positive outlook with robust guidance and strategic initiatives. However, technical indicators show a bearish trend, and valuation metrics suggest potential overvaluation. Overall, the company’s strong fundamentals and positive earnings outlook contribute to a solid stock score, tempered by technical and valuation concerns.

To see Spark’s full report on CLMB stock, click here.