Calian Group (CGY) AI Stock Analysis

• Market Cap: C$572.82M
• Dividend Yield: 2.22%
• Average Volume (3M): 42.35K
• Price to Earnings (P/E): 13613.5
• Beta (1Y): 0.77
• Revenue Growth: 3.03%
• EPS Growth: -99.78%
• Country: CA
• Employees: 4,000
• Sector: Industrials
• Sector Strength: 86
• Industry: Specialty Business Services
• EPS (TTM): 0.93
• Shares Outstanding: 11,372,206
• 10 Day Avg. Volume: 29,017
• 30 Day Avg. Volume: 42,348
• PEG Ratio: -2.13
• Price to Book (P/B): 1.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.78
• 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: C$57.80
• Price Target Upside: 14.75% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 67 Neutral
• Price Target: C$50.00 ▼(-0.73%Downside)

Calian Group Ltd. exhibits strong growth potential driven by strategic acquisitions and solid performance in the defense sector. However, the high valuation and challenges in the ITCS segment pose risks. Despite these challenges, the company maintains a stable financial position with positive corporate developments supporting future growth.

Calian Group Business Overview & Revenue Model

Company Description

Calian Group Ltd. is a diversified professional services company headquartered in Canada. It operates in several sectors including Health, Learning, Advanced Technologies, and IT and Cyber Solutions. The company provides a wide range of services such as healthcare solutions, training and education, engineering services, IT and cyber security, and communication systems, catering to both public and private sector clients.

How the Company Makes Money

Calian Group Ltd. generates revenue through a multi-faceted business model that leverages its diversified services across different industries. Key revenue streams include contracts and service agreements with government bodies, healthcare institutions, and corporate clients. In the Health sector, the company earns from providing clinical services, occupational health solutions, and health technology products. The Learning segment generates income through training programs and educational services. The Advanced Technologies sector contributes by offering engineering services and communication solutions, often involving long-term contracts with industries such as aerospace and defense. The IT and Cyber Solutions sector derives revenue from IT consulting, managed services, and cyber security solutions. Strategic partnerships and acquisitions play a significant role in expanding Calian's capabilities and market reach, further enhancing its revenue potential.

Calian Group Financial Statement Overview

Summary

Calian Group Ltd. shows strong revenue growth and robust cash flow generation. However, declining net profit margins and return on equity present challenges that need addressing for enhanced profitability.

Income Statement

Calian Group Ltd. shows solid revenue growth with a 28.8% increase from 2022 to 2024 TTM, indicating strong business expansion. Gross profit margin for the TTM stands at 31.1%, reflecting efficient cost management. However, net profit margin decreased to 0.6%, indicating increased expenses or other financial pressures. The EBIT margin of 4.4% and EBITDA margin of 7.8% suggest moderate profitability.

Balance Sheet

The company's debt-to-equity ratio of 0.49 in TTM indicates a balanced approach to leveraging debt, and an equity ratio of 44.8% suggests a strong equity base. However, return on equity has decreased to 1.4%, reflecting potential challenges in generating returns from equity investments.

Cash Flow

Operating cash flow is robust at CAD 74.1 million in TTM, with a healthy free cash flow of CAD 63.5 million. The free cash flow to net income ratio is strong, highlighting effective cash conversion. While free cash flow growth has been positive, the operating cash flow to net income ratio indicates some disparity between cash generation and reported earnings.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	752.48M	746.61M	658.58M	582.17M	518.40M	432.32M
Gross Profit	233.69M	254.01M	204.21M	169.23M	126.74M	89.16M
EBITDA	58.47M	70.78M	59.27M	56.06M	37.59M	38.79M
Net Income	4.68M	11.18M	18.89M	13.60M	11.15M	20.36M
Balance Sheet
Total Assets	726.67M	707.92M	585.72M	547.16M	457.97M	331.05M
Cash, Cash Equivalents and Short-Term Investments	59.80M	51.79M	33.73M	42.65M	78.61M	24.23M
Total Debt	160.73M	129.19M	74.76M	26.54M	17.48M	19.59M
Total Liabilities	401.04M	381.17M	257.35M	241.98M	165.61M	130.65M
Stockholders Equity	325.64M	326.75M	328.37M	305.19M	292.36M	200.41M
Cash Flow
Free Cash Flow	63.53M	75.42M	48.34M	35.82M	38.69M	-8.55M
Operating Cash Flow	74.06M	87.22M	56.77M	43.14M	46.54M	-2.75M
Investing Cash Flow	-62.16M	-99.67M	-79.62M	-72.89M	-56.61M	-35.19M
Financing Cash Flow	-3.13M	30.50M	13.94M	-6.21M	64.44M	45.04M

Calian Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 50.37
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CGY, the sentiment is Positive. The current price of 50.37 is above the 20-day moving average (MA) of 46.03, above the 50-day MA of 44.68, and above the 200-day MA of 45.89, indicating a bullish trend. The MACD of 1.78 indicates Negative momentum. The RSI at 75.43 is Negative, neither overbought nor oversold. The STOCH value of 87.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CGY.

Calian Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TCL.B	74 Outperform	C$1.72B	9.68	9.65%	9.19%	-2.58%	100.21%
GDI	74 Outperform	C$756.80M	19.88	7.93%	―	1.49%	152.09%
DXT	72 Outperform	C$585.71M	18.64	15.03%	3.72%	-10.24%	-23.79%
KBL	70 Outperform	C$448.86M	20.38	9.69%	3.45%	16.35%	3.98%
DCM	69 Neutral	C$107.85M	14.97	21.19%	2.56%	-5.30%	―
CGY	67 Neutral	C$572.82M	13,613.51	0.01%	2.22%	3.03%	-99.78%
Sector *	61 Neutral	C$6.52B	9.25	3.44%	2.88%	6.99%	-11.09%

Calian Group Corporate Events

Calian Group Appoints Chris Pogue as President of Defence & Space

Calian Group Ltd. announced the appointment of Chris Pogue as President of Defence & Space, effective July 7, 2025. This strategic move aims to enhance Calian’s next-generation defence and space capabilities by integrating its Advanced Technologies and Learning business units. Pogue, a seasoned leader with over 20 years of experience, is expected to drive innovation and operational excellence, aligning with Calian’s One Calian 2026 strategy to meet growing global demand. His leadership is anticipated to strengthen Calian’s market position and foster collaboration with defence and space partners, ensuring mission success in an era of complex global challenges.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$75.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian Group Reports Mixed Second Quarter Results Amid Economic Uncertainty

Calian Group reported its second-quarter results, highlighting a 13% growth in its defense solutions, driven by increased global security needs. However, the company faced challenges in its ITCS segment due to slower customer demand and strategic investments for long-term growth. Revenue decreased by 4% to $194 million, while adjusted EBITDA fell by 36% to $17 million. Despite withdrawing its guidance due to economic and geopolitical uncertainties, Calian remains optimistic about future growth, supported by strong signings, a robust M&A pipeline, and the recent acquisition of Advanced Medical Solutions.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$80.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian Group Expands Northern Healthcare Reach with Acquisition of AMS

Calian Group Ltd. has acquired Advanced Medical Solutions (AMS), a leading provider of remote and emergency healthcare services in Northern Canada. This strategic acquisition aims to enhance healthcare access and outcomes in Canada’s northern regions by combining the expertise and resources of both companies. The partnership will support the expansion of healthcare services in underserved communities, aligning with national priorities and upcoming federal investments in the Arctic region. AMS will operate under Calian during the transition, with a focus on maintaining service continuity and strengthening community partnerships.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$80.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian Expands Mental Health Support for Canada’s Public Safety Agencies

Calian Group Ltd. is addressing the increasing demand for psychological services among Canada’s public safety agencies by expanding its mental health support offerings. The company has experienced significant growth, with a 25% increase in fiscal year 2024 and the addition of 17 new and renewed contracts in the first half of FY25. Calian’s services, which include pre-employment assessments and wellness programs, aim to build resilient public safety workforces and reduce mental health challenges. The company’s efforts are crucial in enhancing team performance and community safety, as public safety personnel face high-stress situations that increase their risk of mental health disorders.

Calian Group to Discuss Q2 FY 2025 Results in Upcoming Conference Call

Calian Group Ltd. announced it will hold a conference call on May 14, 2025, to discuss its second-quarter results for the fiscal year 2025, which will be released earlier that day. This announcement underscores Calian’s commitment to transparency and engagement with its stakeholders, as it continues to navigate the competitive landscape in its diverse sectors.

Calian Group Ltd. Expands Board with Appointment of Eric Demirian

Calian Group Ltd. has announced the appointment of Eric Demirian to its Board of Directors, expanding the board to ten members. Demirian brings extensive financial expertise and experience from his roles in various public and private companies, making him a strategic asset for Calian as it continues its growth journey. His appointment is expected to enhance Calian’s ability to navigate complex financial landscapes and drive long-term value for shareholders.