Computer Modelling (CMG) AI Stock Analysis

• Market Cap: C$429.36M
• Dividend Yield: 3.11%
• Average Volume (3M): 246.83K
• Price to Earnings (P/E): 19.7
• Beta (1Y): 0.99
• Revenue Growth: 8.53%
• EPS Growth: -8.25%
• Country: CA
• Employees: 320
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.04
• Shares Outstanding: 82,727,410
• 10 Day Avg. Volume: 239,715
• 30 Day Avg. Volume: 246,827
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$6.50
• Price Target Upside: 26.21% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 60 Neutral
• Price Target: C$6.00 ▲(16.50% Upside)

The overall stock score of 60 reflects strong financial performance but is weighed down by bearish technical indicators and a valuation that doesn't fully compensate for recent negative revenue growth. The lack of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Strong Profitability

High return on equity indicates effective management and strong profitability, which supports long-term financial health and shareholder value.

Healthy Margins

Sustained high margins demonstrate operational efficiency and pricing power, providing a buffer against market fluctuations and supporting profitability.

Improved Leverage

Improved leverage management reduces financial risk and enhances the company's ability to invest in growth opportunities, supporting long-term stability.

Negative Factors

Negative Revenue Growth

Declining revenue growth can signal weakening demand or competitive pressures, which may impact future profitability and market position if not addressed.

Decline in Free Cash Flow

Negative free cash flow growth could constrain the company's ability to fund operations and investments, potentially affecting long-term growth and financial flexibility.

Earnings Decline

A decline in earnings per share suggests potential challenges in maintaining profitability, which could impact investor confidence and future capital raising capabilities.

Computer Modelling Business Overview & Revenue Model

Company Description

Computer Modelling Group (CMG) is a leading provider of advanced software solutions for reservoir modeling and simulation in the oil and gas industry. Founded in 1978 and headquartered in Calgary, Canada, CMG specializes in developing innovative software tools that help energy companies optimize their exploration and production processes. The company's core products include reservoir simulation software for various applications such as enhanced oil recovery, unconventional resources, and field development planning.

How the Company Makes Money

CMG generates revenue primarily through the sale of software licenses and related services. The company offers different licensing models, including perpetual licenses and subscription-based services, which allow clients to access its advanced simulation software. Additionally, CMG earns income through professional services, such as training, consulting, and technical support, which help clients effectively implement and utilize their software solutions. Significant partnerships with major oil and gas companies enhance CMG's market presence and contribute to its revenue streams by fostering long-term relationships and enabling collaborative projects. Furthermore, the company invests in research and development to continuously innovate its offerings, ensuring it meets the evolving needs of the industry and maintains a competitive edge.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
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: Negative
• Last Price: 5.15
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CMG, the sentiment is Negative. The current price of 5.15 is below the 20-day moving average (MA) of 5.54, below the 50-day MA of 5.98, and below the 200-day MA of 7.27, indicating a bearish trend. The MACD of -0.25 indicates Positive momentum. The RSI at 26.88 is Positive, neither overbought nor oversold. The STOCH value of 17.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CMG.

Computer Modelling Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KXS	71 Outperform	C$4.72B	136.84	8.24%	―	15.11%	75.40%
ENGH	71 Outperform	$1.15B	15.38	12.56%	6.27%	0.03%	-10.21%
TCS	70 Outperform	C$522.13M	118.10	6.45%	0.97%	4.03%	199.20%
BLN	66 Neutral	C$598.10M	-73.93	-11.83%	―	20.78%	58.71%
DCBO	65 Neutral	$1.02B	34.83	55.53%	―	18.51%	32.49%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CMG	60 Neutral	C$429.36M	19.68	27.95%	3.11%	8.53%	-8.25%

Computer Modelling Corporate Events

CMG Announces New Board Chair and Election Results

Computer Modelling Group Ltd. announced the election of its board of directors at the recent annual shareholders’ meeting, with all nominees being successfully elected. Andrew Pastor was appointed as the new Chair of the Board of Directors, and all other resolutions were passed, indicating a smooth transition and continued stability in the company’s governance.

The most recent analyst rating on (TSE:CMG) stock is a Hold with a C$6.50 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 Q1 2026 Results Amid Market Challenges

Computer Modelling Group Ltd. reported a 3% decrease in total revenue for the first quarter of 2026, attributed to a 15% organic decline offset by 12% growth from acquisitions. The company experienced a 26% drop in adjusted EBITDA and a 20% decrease in earnings per share, reflecting market uncertainties and challenges in the energy sector. Despite these setbacks, CMG continues to pursue acquisitions to bolster its capabilities and has reduced its quarterly dividend to $0.01 per share to retain capital for future growth.

The most recent analyst rating on (TSE:CMG) stock is a Buy with a C$13.00 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 Revenue Decline and Announces Dividend

Computer Modelling Group Ltd. reported a 3% decrease in total revenue for the first quarter of 2026, attributed to a 15% organic decline offset by 12% growth from acquisitions. The company faced challenges due to market uncertainties in the energy sector, impacting sales cycles and procurement processes. Despite a 7% increase in recurring revenue, the company’s adjusted EBITDA fell by 26%, and free cash flow decreased by 22%. The board approved a quarterly dividend of $0.01 per share, reflecting a strategic move to retain capital for future acquisitions.

The most recent analyst rating on (TSE:CMG) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Computer Modelling stock, see the TSE:CMG Stock Forecast page.

CMG Acquires SeisWare to Enhance Seismic Solutions

Computer Modelling Group Ltd. (CMG) has announced the acquisition of SeisWare International Inc., a company known for its geoscience solutions, to enhance its seismic interpretation capabilities. This strategic acquisition, valued at approximately US$6.6 million, is expected to bolster CMG’s offerings in the energy sector, integrating SeisWare’s expertise and team into its operations, with Herman Nieuwoudt taking on a leadership role to oversee seismic technologies.

The most recent analyst rating on (TSE:CMG) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Computer Modelling stock, see the TSE:CMG Stock Forecast page.

CMG to Participate in Canaccord Genuity Annual Growth Conference

Computer Modelling Group Ltd. announced its participation in the Canaccord Genuity 45th Annual Growth Conference in Boston, where its CEO and CFO will host meetings and present. This participation highlights CMG’s active engagement with investors and stakeholders, potentially enhancing its visibility and influence in the new energy industry.

The most recent analyst rating on (TSE:CMG) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Computer Modelling stock, see the TSE:CMG Stock Forecast page.

CMG Appoints New CFO to Drive Growth Strategy

Computer Modelling Group Ltd. has appointed Vipin Khullar as its new Chief Financial Officer, a strategic move aimed at bolstering the company’s growth strategy. Khullar, who brings a wealth of experience from his previous roles at Constellation Software Inc. and IBM Canada, is expected to play a crucial role in CMG’s ambitious plans for scaling and acquisitions, ensuring disciplined execution and long-term value creation. The transition also sees Sandra Balic moving to Vice President, Finance, continuing her leadership in financial reporting and compliance.

The most recent analyst rating on (TSE:CMG) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Computer Modelling stock, see the TSE:CMG Stock Forecast page.

CMG Appoints New CFO to Drive Strategic Growth

Computer Modelling Group Ltd. (CMG) has appointed Vipin Khullar as its new Chief Financial Officer, highlighting a strategic move to bolster its growth strategy through acquisitions and financial discipline. This leadership change is expected to enhance CMG’s operational capabilities and support its ambitious CMG 4.0 strategy, with Khullar’s experience in financial leadership and acquisitions playing a crucial role in the company’s future development.

The most recent analyst rating on (TSE:CMG) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Computer Modelling stock, see the TSE:CMG Stock Forecast page.