Calian Group (CGY) AI Stock Analysis

• Market Cap: C$535.06M
• Dividend Yield: 2.35%
• Average Volume (3M): 37.13K
• Price to Earnings (P/E): 116.1
• Beta (1Y): 0.82
• Revenue Growth: 9.02%
• EPS Growth: -76.61%
• Country: CA
• Employees: 4,000
• Sector: Industrials
• Sector Strength: 78
• Industry: Specialty Business Services
• EPS (TTM): 0.88
• Shares Outstanding: 11,690,276
• 10 Day Avg. Volume: 33,455
• 30 Day Avg. Volume: 37,127
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.69
• Price to Cash Flow (P/CF): 29.50
• P/FCF Ratio: 29.50
• 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$60.00
• Price Target Upside: 26.77% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Calian Group Ltd. presents a mixed outlook. Strong revenue and cash flow growth, coupled with strategic expansions and share repurchases, highlight potential for future growth. However, high valuation metrics and profit margin pressures are notable concerns. Moderate technical momentum further supports a cautiously optimistic stance.

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. 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
Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
746.61M	658.58M	582.17M	518.40M	432.32M
	Gross Profit
254.01M	204.21M	169.23M	126.74M	89.16M
	EBIT
43.71M	37.57M	30.46M	28.85M	25.90M
	EBITDA
70.78M	59.27M	56.06M	37.59M	38.79M
	Net Income Common Stockholders
11.18M	18.89M	13.60M	11.15M	20.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
51.79M	33.73M	42.65M	78.61M	24.23M
	Total Assets
707.92M	585.72M	547.16M	457.97M	331.05M
	Total Debt
129.19M	74.76M	26.54M	17.48M	19.59M
	Net Debt
77.41M	41.02M	-16.11M	-61.13M	-4.64M
	Total Liabilities
381.17M	257.35M	241.98M	165.61M	130.65M
	Stockholders Equity
326.75M	328.37M	305.19M	292.36M	200.41M
Cash Flow		Free Cash Flow
75.42M	48.34M	35.82M	38.69M	-8.55M
	Operating Cash Flow
87.22M	56.77M	43.14M	46.54M	-2.75M
	Investing Cash Flow
-99.67M	-79.62M	-72.89M	-56.61M	-35.19M
	Financing Cash Flow
30.50M	13.94M	-6.21M	64.44M	45.04M

Calian Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 47.33
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 Positive. The current price of 47.33 is above the 20-day moving average (MA) of 45.03, above the 50-day MA of 43.55, and above the 200-day MA of 46.99, indicating a bullish trend. The MACD of 1.06 indicates Negative momentum. The RSI at 63.78 is Neutral, neither overbought nor oversold. The STOCH value of 79.57 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QBR.B	79 Outperform	$8.73B	11.71	38.85%	3.49%	3.76%	14.27%
MDA	75 Outperform	C$3.28B	40.72	7.09%	―	33.74%	61.09%
CVE	70 Outperform	$28.83B	9.42	10.88%	4.33%	3.97%	-22.22%
CGY	68 Neutral	C$535.06M	116.08	1.43%	2.35%	9.02%	-76.61%
CAE	67 Neutral	$11.10B	―	-5.31%	―	1.44%	-183.14%
Sector *	63 Neutral	$4.21B	11.55	5.28%	250.72%	4.13%	-9.42%
BCE	57 Neutral	$27.30B	165.70	1.80%	13.38%	-1.07%	-92.15%

Calian Group Corporate Events

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.

Spark’s Take on TSE:CGY Stock

According to Spark, TipRanks’ AI Analyst, TSE:CGY is a Neutral.

Calian Group Ltd. presents a mixed outlook. Strong revenue and cash flow growth, coupled with strategic expansions and share repurchases, highlight potential for future growth. However, high valuation metrics and profit margin pressures are notable concerns. Moderate technical momentum further supports a cautiously optimistic stance.

To see Spark’s full report on TSE:CGY stock, click here.

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.

Spark’s Take on TSE:CGY Stock

According to Spark, TipRanks’ AI Analyst, TSE:CGY is a Outperform.

Calian Group Ltd. exhibits strong financial performance with growth in revenue and cash flow, supported by strategic initiatives in defense and share repurchases. However, high valuation metrics and some operational challenges highlighted in the earnings call temper the outlook. The technical indicators show moderate positive momentum, reinforcing a cautiously optimistic view for the stock.

To see Spark’s full report on TSE:CGY stock, click here.

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.

Calian Group Ltd. Announces Director Election Results

Calian Group Ltd. announced the results of the election of directors during their Annual Meeting of Shareholders held on February 13, 2025. The voting results showed strong support for the nominees, with Josh Blair, Kevin Ford, and other directors receiving high approval ratings. This announcement underscores Calian’s commitment to maintaining a robust leadership team, which is crucial for its strategic operations and market positioning.

Calian Group Reports Record Q1 Revenue Amid Strategic Expansion

Calian Group Ltd. reported a 3% increase in first-quarter revenue to $185 million, marking its highest first-quarter revenue on record. Despite this growth, adjusted EBITDA fell by 17% to $18 million, influenced by changes in revenue mix and increased sales and delivery investments. The company also announced the formation of a new U.S. subsidiary to focus on government and defense sectors, highlighting its strategic focus on expanding its footprint in these areas amidst rising global defense demands.

Calian Group Hits Record Q1 Revenue Amid Global Defence Demand

Calian Group Ltd. reported its highest first-quarter revenue on record with a 3% increase to $185 million, despite a decline in organic growth offset by acquisitions. The company faces a reduction in profitability due to increased operational expenses and amortization charges, but remains optimistic about its future prospects, driven by global demand for defence solutions and potential increased military investment in Canada.

Calian Group Secures Over $50M in Defense Contracts for 2025

Calian Group Ltd. announced securing over $50 million in new and renewed multi-year defense contracts in Q1 of fiscal 2025, reflecting the increasing demand for global security and operational readiness solutions. The contracts include providing operational readiness training for NATO, highlighting Calian’s role in enhancing military preparedness and strengthening its industry positioning, thereby reinforcing its commitment to delivering mission-critical solutions for military forces worldwide.