Clairvest (CVG) AI Stock Analysis

• Market Cap: C$999.00M
• Dividend Yield: 0.14%
• Average Volume (3M): 475.00
• Price to Earnings (P/E): 7.9
• Beta (1Y): 0.43
• Revenue Growth: 120.44%
• EPS Growth: N/A
• Country: CA
• Employees: 47
• Sector: Financial
• Sector Strength: 87
• Industry: Asset Management
• EPS (TTM): 8.79
• Shares Outstanding: 14,345,242
• 10 Day Avg. Volume: 550
• 30 Day Avg. Volume: 475
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Clairvest's solid financial performance, marked by strong profitability and a debt-free balance sheet, underpins its stock strength. The undervaluation indicated by a low P/E ratio and strategic initiatives like share buybacks provide additional upside potential. Technical indicators suggest a neutral outlook in the near term, while corporate events further strengthen the positive sentiment.

Clairvest Business Overview & Revenue Model

Company Description

Clairvest Group Inc. (CVG) is a private equity management firm based in Toronto, Canada. The company primarily focuses on investing in mid-market companies across a diverse range of sectors including healthcare, industrial services, technology, gaming, and renewable energy. Clairvest partners with entrepreneurs to support the growth and development of businesses by providing strategic, operational, and financial expertise alongside capital investment.

How the Company Makes Money

Clairvest makes money through a combination of management fees, performance fees, and capital gains. The company raises funds from institutional investors and manages these funds by investing in private mid-market companies. Clairvest earns management fees based on a percentage of the assets under management from these investors. Additionally, Clairvest can earn performance fees, known as carried interest, which are a share of the profits generated from the investments when specific return benchmarks are exceeded. The company also generates revenue through capital gains realized when portfolio companies are sold or undergo public offerings, thereby providing a return on investment to both Clairvest and its investors. Significant partnerships with co-investors and strategic partnerships with portfolio companies further contribute to Clairvest’s earnings.

Clairvest Financial Statement Overview

Summary

Clairvest exhibits strong financial health with high profitability margins and a robust balance sheet devoid of debt. Despite notable revenue volatility, the company efficiently manages its expenses and cash flows, suggesting a well-managed financial strategy. The asset management sector's inherent cyclicality could impact future performance, requiring close monitoring.

Income Statement

Clairvest demonstrates strong profitability with a high gross profit margin of 96.59% and net profit margin of 66.09% for TTM (Trailing-Twelve-Months). However, revenue has seen significant fluctuations, with a sharp decline from previous periods. EBIT and EBITDA margins remain robust at 43.05% and 43.86%, respectively, indicating efficient cost management.

Balance Sheet

The company maintains a very strong balance sheet with no debt, leading to a debt-to-equity ratio of 0. The equity ratio is high at 88.36%, reflecting a solid financial position. Return on equity is impressive at 7.02% for TTM, showcasing effective use of equity to generate profits.

Cash Flow

Clairvest's cash flow situation is solid with significant free cash flow growth and an operating cash flow to net income ratio of 1.43. However, past periods indicate volatility in cash flow results, which could pose potential risks.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
29.81M	131.76M	420.35M	181.24M	110.84M
	Gross Profit
24.95M	130.18M	421.06M	177.72M	129.30M
	EBIT
65.00K	62.11M	375.72M	120.72M	79.77M
	EBITDA
65.00K	62.79M	376.86M	121.93M	147.17M
	Net Income Common Stockholders
-3.35M	52.37M	330.21M	104.84M	69.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
205.82M	288.00M	348.80M	279.37M	428.86M
	Total Assets
1.34B	1.43B	1.35B	985.02M	944.88M
	Total Debt
9.71M	2.38M	2.87M	3.33M	3.76M
	Net Debt
-145.14M	-215.49M	-215.55M	-183.47M	-269.18M
	Total Liabilities
165.84M	135.02M	174.06M	127.22M	107.46M
	Stockholders Equity
1.18B	1.22B	1.18B	857.81M	837.41M
Cash Flow		Free Cash Flow
-34.66M	13.18M	40.55M	-1.70M	27.46M
	Operating Cash Flow
-33.80M	13.63M	41.02M	-1.58M	-5.64M
	Investing Cash Flow
-854.00K	-452.00K	-466.00K	-114.00K	432.00K
	Financing Cash Flow
-38.08M	-13.73M	-8.93M	-84.45M	-10.78M

Clairvest Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 69.64
• 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:CVG, the sentiment is Neutral. The current price of 69.64 is above the 20-day moving average (MA) of 68.52, above the 50-day MA of 68.93, and below the 200-day MA of 70.08, indicating a neutral trend. The MACD of 0.47 indicates Negative momentum. The RSI at 53.78 is Neutral, neither overbought nor oversold. The STOCH value of 64.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CVG.

Clairvest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SII	79 Outperform	$1.83B	26.72	15.66%	2.18%	19.98%	18.77%
CVG	77 Outperform	C$999.00M	7.92	10.69%	0.14%	120.44%	―
GCG	77 Outperform	C$994.98M	9.81	7.82%	3.55%	36.20%	―
GCG.A	72 Outperform	C$994.98M	9.33	7.82%	3.74%	36.20%	―
SEC	69 Neutral	C$779.69M	3.04	14.18%	―	-8.45%	211.31%
Sector *	64 Neutral	$12.61B	9.78	8.01%	16985.69%	12.73%	-4.58%
ONEX	60 Neutral	C$7.15B	18.57	3.54%	0.39%	-17.78%	-41.13%

Clairvest Corporate Events

Clairvest Announces New Share Buyback Program

Clairvest Group Inc. announced a new normal course issuer bid (NCIB) approved by the Toronto Stock Exchange, allowing the company to purchase up to 718,192 common shares, approximately 5% of its outstanding shares, over the next 12 months. Clairvest has also renewed its automatic share purchase plan (ASPP) to facilitate share purchases during regulatory or internal trading black-out periods. This move reflects Clairvest’s belief in the attractiveness of its shares as an investment and a strategic use of its funds.

Clairvest Reports Increased Book Value and Strategic Investments in Q3 Fiscal 2025

Clairvest Group Inc. reported a book value increase to $1,234.3 million, driven by net income gains from their investment realization in Chilean Gaming Holdings and currency valuation benefits. The company made a strategic investment in Redstone Food Group, marking the first investment of its latest equity fund, CEP VII, and concluded the CEP III investment program with a successful sale, reflecting its strategic focus on value creation within its existing investments.