Calian Group (CGY) AI Stock Analysis

• Market Cap: C$575.68M
• Dividend Yield: 2.29%
• Average Volume (3M): 18.08K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: 1.44%
• EPS Growth: -103.80%
• Country: CA
• Employees: 4,000
• Sector: Industrials
• Sector Strength: 72
• Industry: Specialty Business Services
• EPS (TTM): 1.00
• Shares Outstanding: 11,350,168
• 10 Day Avg. Volume: 19,482
• 30 Day Avg. Volume: 18,078
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$59.25
• Price Target Upside: 21.04% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: C$53.00 ▲(8.27% Upside)

Calian Group's strong revenue growth and cash flow generation are significant positives, supported by a robust backlog and strategic investments in the defense sector. However, declining profitability, increased leverage, and challenges in the ITCS segment weigh on the overall score. The negative P/E ratio and neutral technical indicators further temper the outlook.

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 generates revenue through a diverse array of streams. Primarily, the company earns income from its professional services divisions, which include healthcare staffing and IT support services. The healthcare division provides personnel to hospitals and clinics, while the IT sector offers cybersecurity and technology solutions to both public and private entities. Additionally, Calian's engineering and training services contribute significantly to its revenue, with contracts often awarded by government agencies and large corporations. Strategic partnerships with both public sector clients and private industry players also enhance its market reach and profitability. The company's ability to secure long-term contracts and maintain a robust pipeline of projects is crucial for sustaining its earnings.

Calian Group Financial Statement Overview

Summary

Calian Group shows stability with strong gross margins and effective cash management. However, challenges include low net profitability and declining revenue growth. The balance sheet is strong, but returns on equity are limited.

Income Statement

Calian Group's income statement shows moderate performance. The TTM Gross Profit Margin is healthy at 32.0%, indicating effective cost management. However, the Net Profit Margin is quite low at 0.007%, suggesting limited profitability after expenses. The TTM EBIT Margin stands at 3.7%, and the EBITDA Margin at 7.1%, both indicating moderate operational efficiency. Revenue growth is stable, with a 13.1% growth from 2023 to 2024, but recent TTM data shows a slight decline. Overall, while the company maintains decent margins, the low net profit margin highlights profitability challenges.

Balance Sheet

The balance sheet reflects a stable financial position for Calian Group. The Debt-to-Equity Ratio is 0.51, showing a balanced approach to leveraging debt. The Return on Equity (ROE) is low at 0.015%, indicating limited returns generated from shareholders' equity. The Equity Ratio is robust at 41.5%, suggesting strong capital structure and asset management. Overall, the company maintains a solid equity base, though profitability on equity could improve.

Cash Flow

Calian Group's cash flow statement reveals strong cash management. The Free Cash Flow Growth Rate shows a decline of 49.6% in the latest period, but the Operating Cash Flow to Net Income Ratio is high at 982.4, indicating effective cash generation relative to net income. The Free Cash Flow to Net Income Ratio is also robust at 775.5, underscoring strong cash conversion. Overall, while free cash flow has decreased, the company remains efficient in converting income to cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	752.10M	746.61M	658.58M	582.17M	518.40M	432.32M
Gross Profit	254.22M	254.01M	204.21M	169.23M	126.74M	89.16M
EBITDA	50.42M	70.78M	59.27M	56.06M	37.59M	38.79M
Net Income	-659.00K	11.18M	18.89M	13.60M	11.15M	20.36M
Balance Sheet
Total Assets	723.59M	707.92M	585.72M	547.16M	457.97M	331.05M
Cash, Cash Equivalents and Short-Term Investments	56.83M	51.79M	33.73M	42.65M	78.61M	24.23M
Total Debt	184.68M	129.19M	74.76M	26.54M	17.48M	19.59M
Total Liabilities	422.33M	381.17M	257.35M	241.98M	165.61M	130.65M
Stockholders Equity	301.25M	326.75M	328.37M	305.19M	292.36M	200.41M
Cash Flow
Free Cash Flow	48.67M	75.42M	48.34M	35.82M	38.69M	-8.55M
Operating Cash Flow	58.45M	87.22M	56.77M	43.14M	46.54M	-2.75M
Investing Cash Flow	-48.86M	-99.67M	-79.62M	-72.89M	-56.61M	-35.19M
Financing Cash Flow	2.43M	30.50M	13.94M	-6.21M	64.44M	45.04M

Calian Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 48.95
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CGY, the sentiment is Negative. The current price of 48.95 is below the 20-day moving average (MA) of 50.31, below the 50-day MA of 50.89, and above the 200-day MA of 46.99, indicating a neutral trend. The MACD of -0.29 indicates Positive momentum. The RSI at 42.32 is Neutral, neither overbought nor oversold. The STOCH value of 36.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CGY.

Calian Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DXT	72 Outperform	C$640.22M	18.64	14.38%	3.47%	-0.73%	221.74%
TCL.B	68 Neutral	C$1.61B	9.30	9.36%	9.72%	-2.90%	57.43%
GDI	67 Neutral	C$700.56M	20.01	8.55%	―	-2.83%	179.03%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
KBL	63 Neutral	C$470.40M	20.88	8.27%	3.31%	17.75%	7.68%
CGY	61 Neutral	C$575.68M	-934.07	-0.21%	2.29%	1.44%	-103.80%
DCM	52 Neutral	C$73.01M	10.65	17.74%	5.81%	-8.92%	―

Calian Group Corporate Events

Calian Group Enhances Ottawa Airport’s Cybersecurity with New SOC Contract

Calian Group Ltd. has secured a three-year contract with the Ottawa International Airport Authority to implement and manage a cyber-focused Security Operations Centre (SOC). This initiative is part of the airport’s strategy to enhance its cybersecurity capabilities, reflecting a forward-thinking approach to protecting both physical and virtual environments. The partnership builds on a successful IT modernization project and represents a shift towards leveraging advanced systems to support future growth. Calian’s tailored, expert-driven SOC solutions are designed to provide seamless protection, enabling clients to focus on their core operations with confidence in their security posture.

The most recent analyst rating on (TSE:CGY) stock is a Hold with a C$56.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian Group Announces CEO Transition Amidst Record Growth

Calian Group Ltd. announced the retirement of Kevin Ford as CEO after a decade of record growth, with Patrick Houston set to succeed him on January 1, 2026. Under Ford’s leadership, Calian expanded into new markets and diversified its capabilities, establishing itself as a global provider of mission-critical solutions. Houston, who has been instrumental in driving growth through strategic acquisitions and development, aims to continue this momentum by focusing on strategic plans that enhance shareholder value and position Calian for sustained growth.

The most recent analyst rating on (TSE:CGY) stock is a Hold with a C$56.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian Group Expands Defence Capabilities with InField Scientific Acquisition

Calian Group Ltd. has acquired InField Scientific Inc., a Quebec-based engineering company known for its expertise in electromagnetic environmental effects (E3). This acquisition enhances Calian’s defence portfolio, enabling it to offer comprehensive electromagnetic solutions and expand into new markets. The collaboration with InField Scientific will support projects like Canada’s next-generation destroyers, strengthening relationships with key partners such as Lockheed Martin and the Royal Canadian Navy. The acquisition is expected to generate operational synergies and broaden service offerings, positioning Calian for future opportunities in defence markets.

The most recent analyst rating on (TSE:CGY) stock is a Hold with a C$56.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian Group Expands Debt Facility to Support Growth Strategy

Calian Group Ltd. has announced the renewal and expansion of its debt agreement, securing a CDN$200 million facility with a syndicate led by Royal Bank of Canada and including other major financial institutions. The new three-year revolving credit facility totals $350 million, marking a 37% increase over the previous facility, and includes an uncommitted accordion feature for additional financial flexibility. This agreement reflects confidence in Calian’s business fundamentals and long-term strategy, positioning the company to pursue consistent growth and value creation in its core markets.

The most recent analyst rating on (TSE:CGY) stock is a Hold with a C$56.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian Group Launches Canada’s First Defence Innovation Orchestrator

Calian Group Ltd. has launched Calian Ventures, Canada’s first defence innovation orchestrator, aimed at scaling small to mid-sized enterprises (SMEs) in the defence sector. This initiative will help SMEs test, validate, and scale their technologies into operational capabilities for the Canadian Armed Forces and allied markets, addressing a critical gap in Canada’s defence industrial ecosystem and supporting the country’s surge in defence spending.

The most recent analyst rating on (TSE:CGY) stock is a Hold with a C$56.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian Group’s Earnings Call: Growth Amid Challenges

Calian Group Ltd.’s recent earnings call presented a nuanced picture of the company’s current standing, highlighting both promising growth areas and notable challenges. The sentiment conveyed was a blend of optimism and caution, with significant achievements in the defense and international sectors counterbalanced by struggles within the ITCS segment. Despite these hurdles, the company remains optimistic about future growth, supported by a strong backlog and strategic initiatives.

Calian Group Renews Share Repurchase Program to Enhance Shareholder Value

Calian Group Ltd. announced the renewal of its normal course issuer bid (NCIB), allowing the company to repurchase up to 796,283 of its common shares over a 12-month period. This move reflects the company’s belief that its current share price does not fully capture its intrinsic value and long-term potential. With a $1.5 billion backlog and over a decade of record revenue, Calian aims to enhance shareholder value and maintain flexibility in its capital management strategy.

The most recent analyst rating on (TSE:CGY) stock is a Hold with a C$51.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian Group Reaffirms Strategic Direction Amidst Stakeholder Scrutiny

Calian Group Ltd. has reaffirmed its strategic direction and commitment to long-term shareholder value amidst recent scrutiny from Plantro Ltd. The company is enhancing its operations by consolidating key business units, refreshing its Board of Directors, and exploring options for non-core assets, aiming to capitalize on market opportunities and deliver sustained value to shareholders.

The most recent analyst rating on (TSE:CGY) stock is a Hold with a C$51.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian Group Reports Strong Q3 Growth in Defense Sector

Calian Group Ltd. reported a 12% increase in defense solutions revenue for the third quarter, driven by strong momentum in Europe and the U.K. and growing investments in Canada. The company announced a $250 million increase in its health contract with the Department of National Defence, contributing to a robust 9% revenue growth excluding the ITCS segment, which faced demand challenges. The quarter also saw new contract signings totaling $642 million, bringing the backlog to a record $1.5 billion. Despite a decline in adjusted EBITDA due to lower ITCS profitability, Calian remains confident in its growth trajectory, supported by strategic acquisitions and a strong cash flow position.

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.