Calian Group (CGY) AI Stock Analysis

• Market Cap: C$508.00M
• Dividend Yield: 2.51%
• Average Volume (3M): 53.73K
• Price to Earnings (P/E): 12073.0
• Beta (1Y): 0.73
• Revenue Growth: 3.03%
• EPS Growth: -99.78%
• Country: CA
• Employees: 4,000
• Sector: Industrials
• Sector Strength: 88
• Industry: Specialty Business Services
• EPS (TTM): 0.93
• Shares Outstanding: 11,372,206
• 10 Day Avg. Volume: 44,241
• 30 Day Avg. Volume: 53,731
• PEG Ratio: -1.85
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.48
• 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: 26.56% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 58 Neutral
• Price Target: C$46.00 ▲(0.72%Upside)

Calian Group's overall score is influenced most significantly by its solid financial performance and strategic growth initiatives. However, technical indicators suggest potential short-term price corrections, and valuation metrics raise concerns about overvaluation. Earnings call insights highlight strong defense segment performance but also reveal challenges, particularly in the ITCS segment, which impact future guidance.

Calian Group Business Overview & Revenue Model

Company Description

Calian Group Ltd. provides business services and solutions in the areas of health, defense, security, aerospace, engineering, AgTech, and information technology (IT) in Canada, the United States, and Europe. The company's Advanced Technologies segment offers developed products and engineering solutions for the space, communications, nuclear, agriculture, defense, automotive, and government sectors; software and product development, custom manufacturing, full life-cycle support, studies, requirements analysis, project management, multi-discipline engineered system solutions, and training services; communication systems and products for terrestrial and satellite networks; satellite gateways comprising aperture radio frequency antennas, and telemetry tracking and control, as well as software solutions for managing and monitoring networks; engineering and technical services for propulsion, electrical and electronic systems, computer and nuclear systems, naval architecture, and aerospace; and nuclear services to develop waste management and decommissioning solutions. Its Health segment offers primary care and occupational health services; and clinic management, healthcare practitioner support, and psychological assessment services. The company's Learning segment provides training services and solutions; and consulting services in emergency management, training, and advanced training technologies, as well as Calian MaestroEDE, a tool for collective training exercises for military customers; and Calian ResponseReady, an online platform and simulation tool for emergency management training exercise delivery and evaluation. Its IT segment provides cloud migration, IT development, SAP consulting, and cyber security solutions, as well as IT support services. The company was formerly known as Calian Technologies Ltd. and changed its name to Calian Group Ltd. in April 2016. The company was incorporated in 1982 and is headquartered in Ottawa, Canada.

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. demonstrates strong growth potential with significant revenue and cash flow improvements. However, the decline in profit margins and return on equity reflects areas that need addressing to enhance profitability and investor returns. The financial position is supported by a solid balance sheet with manageable debt levels, providing a stable foundation for future growth.

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
	EBIT
33.20M	43.71M	37.57M	30.46M	28.85M	25.90M
	EBITDA
58.47M	70.78M	59.27M	56.06M	37.59M	38.79M
	Net Income Common Stockholders
4.68M	11.18M	18.89M	13.60M	11.15M	20.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
59.80M	51.79M	33.73M	42.65M	78.61M	24.23M
	Total Assets
726.67M	707.92M	585.72M	547.16M	457.97M	331.05M
	Total Debt
160.73M	129.19M	74.76M	26.54M	17.48M	19.59M
	Net Debt
100.94M	77.41M	41.02M	-16.11M	-61.13M	-4.64M
	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: 45.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 45.67 is above the 20-day moving average (MA) of 40.33, above the 50-day MA of 43.58, and above the 200-day MA of 45.61, indicating a bullish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 65.08 is Neutral, neither overbought nor oversold. The STOCH value of 94.48 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
DCM	79 Outperform	C$112.83M	15.66	21.19%	1.23%	-5.30%	―
TCL.B	77 Outperform	C$1.76B	9.91	9.65%	23.14%	-2.58%	100.21%
KBL	74 Outperform	C$371.00M	20.71	9.69%	3.40%	16.35%	3.98%
DXT	72 Outperform	C$545.51M	17.35	15.03%	4.00%	-10.24%	-23.79%
GDI	71 Outperform	C$776.60M	19.49	7.93%	―	1.49%	152.09%
Sector *	66 Neutral	$4.51B	12.29	5.40%	3.67%	4.15%	-12.21%
CGY	58 Neutral	C$508.00M	12,072.97	0.01%	2.51%	3.03%	-99.78%

Calian Group Corporate Events

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.

Calian Group Ltd. Boosts Share Repurchase Strategy Amid Market Undervaluation

Calian Group Ltd. announced plans to increase its share repurchases through block trades, aiming to buy back approximately 250,000 shares worth around $10 million. This decision comes as the company experiences a share price at five-year lows despite consecutive record years of revenue and adjusted EBITDA. Calian’s CEO, Kevin Ford, emphasized the company’s growth potential and the market’s underestimation of its opportunities in defense, space, and healthcare sectors. The move is part of Calian’s strategy to enhance shareholder value and align with its M&A agenda, which remains a top priority for capital allocation.