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Calian Group Ltd. (TSE:CGY)
TSX:CGY
Canadian Market
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Calian Group (CGY) AI Stock Analysis

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TSE:CGY

Calian Group

(TSX:CGY)

Rating:70Outperform
Price Target:
C$55.00
▲(4.50%Upside)
Calian Group's stock score reflects a balanced view of its stability and challenges. The strong corporate events and technical indicators provide a positive outlook, while high valuation metrics and mixed earnings call sentiment temper enthusiasm. Improving profitability and managing economic uncertainties are key to future performance.

Calian Group (CGY) vs. iShares MSCI Canada ETF (EWC)

Calian Group Business Overview & Revenue Model

Company DescriptionCalian Group Ltd. is a diverse Canadian company that operates in various sectors, providing innovative solutions and services in health, learning, IT and cyber solutions, and advanced technologies. The company is known for its comprehensive range of services that include healthcare delivery, training and education, consulting, and engineering solutions, catering to both public and private sector clients across Canada and internationally.
How the Company Makes MoneyCalian Group makes money through a multi-faceted revenue model that capitalizes on its diverse service offerings across different sectors. Key revenue streams include contracts with government and defense organizations for healthcare and training services, IT and cyber solutions for protecting digital infrastructure, and engineering services in the advanced technologies sector. The company also benefits from long-term partnerships and contracts with various public and private sector clients, which provide a steady flow of income. Additionally, Calian occasionally engages in strategic acquisitions to expand its capabilities and market reach, further contributing to its earnings.

Calian Group Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q2-2025)
|
% Change Since: 8.99%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed sentiment with strong performance in the defense segment and strategic acquisitions, but significant challenges in the ITCS segment and economic uncertainties leading to the withdrawal of FY '25 guidance.
Q2-2025 Updates
Positive Updates
Strong Defense Segment Performance
The defense segment, representing close to 50% of revenues, continues to grow with a 10% increase in trailing 12-month revenues to $363 million. The international learning business in defense grew by 395%, health business by 10%, and Advanced Technologies by 19%.
Strategic Acquisition of AMS
Acquisition of AMS, a healthcare service provider in Canada, expands Calian's healthcare solutions and strengthens its competitive position in Northern Canada. AMS has a contract backlog of $250 million and offers cross-selling opportunities.
Successful Share Buyback Program
Calian plans to repurchase up to 6% of shares outstanding in FY '25 through a combination of daily purchases and block trades under the NCIB, with $14 million spent on share buybacks in the last 12 months.
Record International Revenues
42% of total revenues came from international customers in Q2, marking the highest quarter of international revenues both in terms of revenue dollars and as a percentage of overall revenues.
Negative Updates
ITCS Segment Underperformance
The ITCS segment experienced a 25% decline in revenue and was responsible for $8 million of the $10 million decrease in adjusted EBITDA. Revenue and EBITDA declines were attributed to platform transition costs, delayed procurement decisions, and macroeconomic conditions.
Withdrawal of FY '25 Guidance
Calian withdrew its FY '25 guidance due to ongoing economic and geopolitical uncertainty, particularly affecting the ITCS segment, with limited visibility and timing to key opportunities.
Decreased Cash Flow from Operations
Cash flow from operations was $10 million in Q2 compared to $36 million in the same period last year, impacted by lower net profit and working capital usage.
Increased SG&A and Corporate Costs
SG&A increased from $40 million to $45 million, and corporate shared services costs reached $11.6 million, suggesting potential inefficiencies.
Company Guidance
During the Calian Group's Q2 2025 earnings call, the company provided guidance highlighting several key metrics and strategic directions. The ITCS segment faced a 15% year-to-date decline in revenue, with a sharper drop in EBITDA, attributed to temporary cost pressures. The company is undergoing a transition to a Microsoft platform for its cybersecurity services, expecting completion by the end of the year. Despite challenges, Calian reported a strong defense business, with trailing 12-month revenues up 10% to $363 million and a defense pipeline exceeding $1 billion. Additionally, the acquisition of AMS, with a $250 million contract backlog, was announced to bolster Calian's health services in Northern Canada. Overall, while withdrawing FY '25 guidance due to uncertainties, Calian emphasized a solid backlog of $1.4 billion and strategic focus on defense, space, and healthcare to drive future growth.

Calian Group Financial Statement Overview

Summary
Calian Group demonstrates stability across its financial statements with solid gross margins and effective cash management. However, low net profitability and declining revenue growth present challenges. The balance sheet remains strong with a healthy equity ratio, though returns on equity are limited. Overall, the company is financially stable but must focus on enhancing profitability and sustaining revenue growth.
Income Statement
65
Positive
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
70
Positive
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
78
Positive
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.
BreakdownSep 2024Sep 2023Sep 2022Sep 2021Sep 2020
Income Statement
Total Revenue746.61M658.58M582.17M518.40M432.32M
Gross Profit254.01M204.21M169.23M126.74M89.16M
EBITDA70.78M59.27M56.06M37.59M38.79M
Net Income11.18M18.89M13.60M11.15M20.36M
Balance Sheet
Total Assets707.92M585.72M547.16M457.97M331.05M
Cash, Cash Equivalents and Short-Term Investments51.79M33.73M42.65M78.61M24.23M
Total Debt129.19M74.76M26.54M17.48M19.59M
Total Liabilities381.17M257.35M241.98M165.61M130.65M
Stockholders Equity326.75M328.37M305.19M292.36M200.41M
Cash Flow
Free Cash Flow75.42M48.34M35.82M38.69M-8.55M
Operating Cash Flow87.22M56.77M43.14M46.54M-2.75M
Investing Cash Flow-99.67M-79.62M-72.89M-56.61M-35.19M
Financing Cash Flow30.50M13.94M-6.21M64.44M45.04M

Calian Group Technical Analysis

Technical Analysis Sentiment
Positive
Last Price52.63
Price Trends
50DMA
45.60
Positive
100DMA
44.77
Positive
200DMA
46.21
Positive
Market Momentum
MACD
1.54
Positive
RSI
72.25
Negative
STOCH
64.25
Neutral
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 52.63 is above the 20-day moving average (MA) of 50.14, above the 50-day MA of 45.60, and above the 200-day MA of 46.21, indicating a bullish trend. The MACD of 1.54 indicates Positive momentum. The RSI at 72.25 is Negative, neither overbought nor oversold. The STOCH value of 64.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CGY.

Calian Group Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
C$1.68B9.449.65%9.42%-2.58%100.21%
74
Outperform
C$789.32M20.737.93%1.49%152.09%
72
Outperform
C$611.89M19.4715.03%3.56%-10.24%-23.79%
70
Outperform
C$597.13M14,224.320.01%2.13%3.03%-99.78%
70
Outperform
C$445.38M20.229.69%3.48%16.35%3.98%
69
Neutral
C$94.03M13.0521.19%2.94%-5.30%
65
Neutral
$10.91B15.535.25%2.19%3.15%-27.00%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CGY
Calian Group
52.63
-2.03
-3.71%
TSE:DXT
Dexterra Group
9.82
4.33
78.87%
TSE:TCL.B
Transcontinental Inc. Class B
20.17
5.74
39.78%
TSE:KBL
K-Bro Linen
34.49
0.63
1.86%
TSE:GDI
GDI Integrated
32.50
-2.50
-7.14%
TSE:DCM
Data Commun Management
1.64
-0.83
-33.60%

Calian Group Corporate Events

Business Operations and Strategy
Calian Group Earns Dual Recognition for Excellence and Workplace Culture
Positive
Jul 15, 2025

Calian Group Ltd. has been recognized by TIME Magazine as one of Canada’s Best Companies and by Forbes as one of Canada’s Best Employers for Company Culture. These accolades highlight Calian’s leadership in delivering mission-critical solutions and fostering a supportive workplace culture. The recognition from TIME underscores the company’s commitment to employee satisfaction, revenue growth, and sustainability, while Forbes’ acknowledgment emphasizes Calian’s inclusive and collaborative work environment. These achievements reflect Calian’s dedication to diversity, equity, and inclusion, which are central to its mission of delivering critical outcomes for clients.

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.

Business Operations and Strategy
Calian Secures $250M Contract Amendment to Support Canadian Armed Forces
Positive
Jul 8, 2025

Calian Group Ltd. has announced a $250 million amendment to its Health Care Provider Recruitment contract with Canada’s Department of National Defence, reinforcing its commitment to the Canadian Armed Forces by ensuring the continued delivery of essential health services. This contract amendment consolidates unspent funds from a previous option period with planned funding for the next, contributing to Calian’s $1.6 billion contract backlog, and highlights the company’s ongoing partnership with government and military organizations, bolstering its position as a key player in Canada’s defence sector.

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.

Executive/Board ChangesBusiness Operations and Strategy
Calian Group Appoints Chris Pogue as President of Defence & Space
Positive
Jun 24, 2025

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.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Calian Group Reports Mixed Second Quarter Results Amid Economic Uncertainty
Neutral
May 14, 2025

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.

M&A TransactionsBusiness Operations and Strategy
Calian Group Expands Northern Healthcare Reach with Acquisition of AMS
Positive
May 14, 2025

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.

Business Operations and Strategy
Calian Expands Mental Health Support for Canada’s Public Safety Agencies
Positive
May 5, 2025

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.

Financial Disclosures
Calian Group to Discuss Q2 FY 2025 Results in Upcoming Conference Call
Neutral
Apr 30, 2025

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.

Executive/Board Changes
Calian Group Ltd. Expands Board with Appointment of Eric Demirian
Positive
Apr 24, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 16, 2025