Clairvest (CVG) AI Stock Analysis

• Market Cap: C$994.77M
• Dividend Yield: 0.14%
• Average Volume (3M): 642.00
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.42
• Revenue Growth: 132.11%
• EPS Growth: 5511.22%
• Country: CA
• Employees: 47
• Sector: Financial
• Sector Strength: 72
• Industry: Asset Management
• EPS (TTM): 1.51
• Shares Outstanding: 14,165,531
• 10 Day Avg. Volume: 863
• 30 Day Avg. Volume: 642
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 77 Outperform
• Price Target: ―

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. is a private equity firm specializing in mid-market, growth equity investments, growth capital, buyouts, and consolidating industries and add-on acquisitions. It seeks to invest in small and mid-sized gaming and casino, local market gaming, healthcare, equipment rental, facility services, oilfield services, waste management, business services, consumer services, aerospace, automotive aftermarket, collision repair, food, beverage and co-packing, defense, document management, warranty, contact manufacturing, environmental services, rental services, residential HVAC services, healthcare services, multiunit healthcare, insurance services, IT services, logistics and transportation, mining services, packaging, pest control, specialty aviation, education, software (mature), textile rental, utility services, water, building products, government services, industrial distribution and services, information technology and information services, media and marketing, non-destructive testing, renewable energy, property management, and restaurants. The firm typically invests in companies based in North America including United States and Canada. It seeks to make equity investments between CAD$25 million ($19.53 million) and CAD$100 million ($78.14 million) in its portfolio company with EBITDA between CAD$5 million ($3.81 million) and CAD$50 million ($39.07 million). The firm does not require majority stake and takes controlling or minority investments. It invests its own capital and seeks to take a board seat on its portfolio companies. The firm also makes co-investments. The firm typically exits its investments through market share offering, a strategic sale or sale to a financial buyer. Clairvest Group Inc. was founded in 1987 and is based in Toronto, Canada.

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 shows strong profitability with a high net profit margin and impressive revenue growth. The balance sheet is robust with a debt-free position, and cash flow is strong despite some volatility. Overall, financial health is solid with excellent returns on equity.

Income Statement

Clairvest shows strong profitability with a TTM gross profit margin of 98.13% and a significant net profit margin of 75.51%. The revenue growth rate from the previous annual report to TTM is an impressive 465.97%, indicating robust business expansion. However, the EBIT margin of 36.07% and EBITDA margin of 36.48% suggest room for improvement in operational efficiency.

Balance Sheet

Clairvest exhibits excellent financial stability with a debt-free position in the TTM, resulting in a debt-to-equity ratio of 0. The equity ratio is strong at 87.64%, reflecting a solid capital structure. Return on equity is outstanding at 10.32%, showcasing effective use of shareholder funds. The absence of debt minimizes risk, although it may limit leverage opportunities for growth.

Cash Flow

The company demonstrates strong cash generation with a TTM free cash flow of $128.21 million, showing a substantial positive swing from negative free cash flow in the previous period. The operating cash flow to net income ratio is 1.01, indicating efficient cash conversion. However, the free cash flow growth rate is not applicable due to negative values in the prior period, highlighting potential volatility in cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	256.97M	170.77M	29.81M	131.76M	155.13M	175.51M
Gross Profit	260.25M	170.77M	36.65M	130.18M	149.66M	177.72M
EBITDA	134.60M	139.95M	65.00K	63.28M	376.86M	117.99M
Net Income	119.46M	122.04M	-3.35M	52.37M	330.21M	104.84M
Balance Sheet
Total Assets	1.45B	1.43B	1.34B	1.43B	1.35B	985.02M
Cash, Cash Equivalents and Short-Term Investments	165.02M	176.98M	205.82M	288.00M	348.80M	279.37M
Total Debt	0.00	0.00	9.71M	2.38M	2.87M	3.33M
Total Liabilities	187.35M	177.84M	165.84M	211.92M	174.06M	127.22M
Stockholders Equity	1.26B	1.25B	1.18B	1.22B	1.18B	857.81M
Cash Flow
Free Cash Flow	92.59M	78.59M	-34.66M	13.18M	40.55M	-1.70M
Operating Cash Flow	93.14M	79.53M	-33.80M	13.63M	41.02M	-1.58M
Investing Cash Flow	-19.43M	-938.00K	-854.00K	-452.00K	-466.00K	-114.00K
Financing Cash Flow	-45.03M	-46.75M	-38.08M	-13.73M	-8.93M	-84.45M

Clairvest Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 70.22
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CVG, the sentiment is Negative. The current price of 70.22 is below the 20-day moving average (MA) of 73.10, below the 50-day MA of 73.79, and below the 200-day MA of 70.33, indicating a bearish trend. The MACD of -0.88 indicates Positive momentum. The RSI at 39.37 is Neutral, neither overbought nor oversold. The STOCH value of 17.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CVG.

Clairvest Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CVG	77 Outperform	C$994.77M	8.34	9.77%	0.14%	132.11%	5511.22%
ONEX	76 Outperform	C$7.84B	11.25	6.19%	0.34%	-8.63%	-27.09%
GCG.A	74 Outperform	C$1.05B	6.57	11.80%	4.74%	96.56%	158.06%
GCG	72 Outperform	C$1.05B	7.12	11.80%	4.20%	96.56%	158.06%
Sector *	68 Neutral	$17.82B	11.90	10.30%	3.72%	9.69%	0.80%
SEC	64 Neutral	C$802.44M	4.71	9.91%	―	14.62%	―
SII	―	$1.68B	33.42	15.07%	1.85%	―	―

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.