Computer Modelling (CMG) AI Stock Analysis

• Market Cap: C$622.35M
• Dividend Yield: 2.62%
• Average Volume (3M): 164.58K
• Price to Earnings (P/E): 27.7
• Beta (1Y): 1.05
• Revenue Growth: 19.11%
• EPS Growth: -15.97%
• Country: CA
• Employees: 320
• Sector: Technology
• Sector Strength: 94
• Industry: Software - Application
• EPS (TTM): 0.06
• Shares Outstanding: 82,540,016
• 10 Day Avg. Volume: 98,276
• 30 Day Avg. Volume: 164,577
• PEG Ratio: -2.88
• Price to Book (P/B): 7.52
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 21.25
• 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$8.67
• Price Target Upside: 13.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 77 Outperform
• Price Target: C$8.50 ▲(11.40%Upside)

The strong financial performance and positive corporate events are significant strengths for Computer Modelling, indicating potential for sustained growth. While technical analysis and valuation suggest some caution, particularly in long-term technical trends and moderate valuation, the strategic partnership with Baker Hughes provides a positive outlook and strengthens the stock's position.

Positive Factors

Financial Performance

CMG reported strong results, driven by growth in its Seismic Solutions segment.

Revenue Growth

Seismic Solutions revenue surged 26% year-over-year to $14.1 million, driven by the Sharp acquisition and favorable foreign exchange rates.

Strategic Initiatives

Management is strategically shifting focus towards growing software sales, expected to drive long-term recurring revenue growth and margin accretion.

Negative Factors

Valuation

Valuation remains the biggest hurdle, maintaining a $12 target price and Market Perform rating.

Computer Modelling Business Overview & Revenue Model

Company Description

Computer Modelling Group Ltd. (CMG) is a leading global provider of reservoir simulation software for the oil and gas industry. The company specializes in developing advanced software tools that assist in the simulation and modeling of complex petroleum reservoirs. CMG's suite of products is designed to optimize oil and gas recovery processes, enhance reservoir management, and improve the economic viability of energy extraction operations.

How the Company Makes Money

CMG generates revenue primarily through the sale of its software licenses and related services. The company offers perpetual and annual software licensing options to its clients, which include major oil and gas companies, national oil corporations, and independent producers. Additionally, CMG provides maintenance and support services, which constitute a recurring revenue stream. Training and consulting services further augment the company's earnings, as these services help clients maximize the utility of CMG's software solutions. CMG's strong client relationships and industry reputation enable it to maintain a stable customer base and secure long-term contracts, contributing to its financial stability.

Computer Modelling Financial Statement Overview

Summary

Computer Modelling exhibits robust financial performance with strong revenue growth and efficient cash flow management. The company's balance sheet highlights reduced leverage and a solid equity position, providing stability. However, there is a slight decline in net profit margin, indicating some room for improvement in cost management.

Income Statement

The company demonstrates strong revenue growth with a positive trajectory, increasing from $66.2M in 2022 to $129.4M in 2025. Gross profit margin remains robust, consistently above 80%, indicating efficient cost management. Net profit margin has slightly decreased from 24.9% in 2022 to 17.3% in 2025, reflecting increased operational costs. EBIT and EBITDA margins remain healthy, showcasing stable profitability.

Balance Sheet

The balance sheet reflects solid financial health with a declining debt-to-equity ratio, improving from 0.85 in 2022 to 0.45 in 2025, indicating reduced leverage risk. Return on equity is strong, though it slightly decreased to 26.1% in 2025 from 39.4% in 2022 due to increased equity. The equity ratio has improved, signifying a strong equity base relative to total assets.

Cash Flow

Cash flow analysis shows significant free cash flow generation, with a growth rate of 1.7% from 2024 to 2025, indicating effective cash management. Operating cash flow to net income ratio remains above 1, demonstrating efficient conversion of income into cash. Despite slight fluctuations in capital expenditures, the company maintains a strong free cash flow to net income ratio, supporting dividend payments and potential reinvestments.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	129.45M	108.68M	73.85M	66.20M	67.36M
Gross Profit	104.51M	91.45M	56.69M	49.92M	51.67M
EBITDA	43.24M	42.47M	31.46M	29.35M	32.60M
Net Income	22.44M	26.26M	19.80M	18.41M	20.19M
Balance Sheet
Total Assets	204.76M	172.37M	137.13M	125.15M	122.49M
Cash, Cash Equivalents and Short-Term Investments	43.88M	63.08M	66.85M	59.66M	49.07M
Total Debt	38.58M	36.96M	37.98M	39.59M	40.96M
Total Liabilities	118.85M	104.56M	84.68M	78.43M	79.07M
Stockholders Equity	85.91M	67.81M	52.45M	46.72M	43.42M
Cash Flow
Free Cash Flow	28.50M	35.43M	23.83M	28.01M	26.03M
Operating Cash Flow	29.92M	36.08M	25.88M	28.71M	26.43M
Investing Cash Flow	-37.96M	-23.46M	-2.05M	-703.00K	-397.00K
Financing Cash Flow	-13.67M	-16.38M	-16.64M	-17.42M	-17.47M

Computer Modelling Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.63
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CMG, the sentiment is Positive. The current price of 7.63 is above the 20-day moving average (MA) of 7.37, above the 50-day MA of 7.28, and below the 200-day MA of 8.99, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 60.81 is Neutral, neither overbought nor oversold. The STOCH value of 62.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CMG.

Computer Modelling Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMG	77 Outperform	C$622.35M	27.74	29.19%	2.62%	19.11%	-15.97%
DCBO	77 Outperform	C$1.29B	41.08	41.12%	―	20.52%	246.69%
KXS	74 Outperform	C$5.69B	408.84	2.32%	―	15.14%	-31.45%
ENGH	74 Outperform	C$1.31B	16.72	13.26%	5.78%	5.12%	-2.77%
TCS	71 Outperform	C$560.14M	125.08	6.39%	0.89%	1.75%	139.02%
BLN	56 Neutral	C$548.56M	―	-13.97%	―	26.80%	69.67%
Sector *	50 Neutral	C$3.06B	2.41	-63.57%	2.26%	4.49%	-6.15%

Computer Modelling Corporate Events

CMG and Baker Hughes Partner to Enhance Digital Integration in Energy Sector

Computer Modelling Group Ltd. (CMG) has announced a strategic agreement with Baker Hughes to enhance the integration of their simulation and seismic technologies with Baker Hughes’ digital offerings. This collaboration aims to deliver comprehensive software and consulting solutions for upstream energy development, optimizing asset value through improved workflows. The partnership will expand market reach and enable both companies to offer end-to-end workflows, enhancing user experience and ease of use. This initiative is expected to strengthen CMG’s industry positioning by leveraging collective expertise to provide superior consulting services in subsurface and surface oil and gas, geothermal, and CCUS systems.

The most recent analyst rating on (TSE:CMG) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on Computer Modelling stock, see the TSE:CMG Stock Forecast page.

Computer Modelling Group Reports Fiscal 2025 Results and Strategic Outlook

Computer Modelling Group Ltd. reported a 19% increase in total revenue for fiscal 2025, driven primarily by acquisitions, despite challenges in organic growth due to macroeconomic factors and a low oil price environment. The company anticipates a shift in revenue mix towards software, with potential challenges in demonstrating total revenue growth in fiscal 2026, and remains committed to strategic acquisitions to ensure long-term resilience.

The most recent analyst rating on (TSE:CMG) stock is a Buy with a C$15.00 price target. To see the full list of analyst forecasts on Computer Modelling stock, see the TSE:CMG Stock Forecast page.