Calian Group (CGY) AI Stock Analysis

• Market Cap: C$563.13M
• Dividend Yield: 2.26%
• Average Volume (3M): 22.67K
• Price to Earnings (P/E): 13697.3
• Beta (1Y): 0.82
• 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: 11,346,658
• 10 Day Avg. Volume: 14,809
• 30 Day Avg. Volume: 22,669
• 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$58.50
• Price Target Upside: 17.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: C$56.00 ▲(12.83% Upside)

Calian Group's overall stock score reflects strong financial performance in revenue growth and cash flow, supported by positive earnings call insights. However, challenges in profitability, valuation concerns, and technical indicators suggest caution. The company's strategic focus on defense and international growth provides a positive outlook, but cost management and ITCS segment issues need addressing.

Calian Group Business Overview & Revenue Model

Company Description

Calian 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 Money

Calian 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 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: Neutral
• Last Price: 49.63
• 50DMA: Negative
• 100DMA: Positive
• 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 Neutral. The current price of 49.63 is below the 20-day moving average (MA) of 51.26, below the 50-day MA of 50.38, and above the 200-day MA of 46.49, indicating a neutral trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.01 is Neutral, neither overbought nor oversold. The STOCH value of 20.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	76 Outperform	1.63B	9.37	6.35%	9.64%	-2.90%	57.43%
DXT	72 Outperform	566.39M	16.48	―	3.85%	-5.62%	88.69%
CGY	66 Neutral	C$563.13M	13,697.30	-0.21%	2.26%	1.44%	-103.80%
KBL	66 Neutral	460.43M	20.37	6.84%	3.33%	17.75%	7.68%
GDI	63 Neutral	665.55M	18.98	6.45%	―	-0.87%	117.78%
DCM	53 Neutral	77.43M	11.29	19.17%	5.36%	-8.92%	―
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Calian Group Corporate Events

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.

Calian Group to Discuss Q3 FY 2025 Results in Upcoming Conference Call

Calian Group Ltd. announced it will hold a conference call on August 13, 2025, to discuss its third-quarter fiscal year 2025 results, which will be released earlier that day. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor relations.

The most recent analyst rating on (TSE:CGY) stock is a Buy with a C$61.00 price target. To see the full list of analyst forecasts on Calian Group stock, see the TSE:CGY Stock Forecast page.

Calian Group Earns Dual Recognition for Excellence and Workplace Culture

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.

Calian Secures $250M Contract Amendment to Support Canadian Armed Forces

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.

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.