Clairvest (CVG) AI Stock Analysis

• Market Cap: C$1.03B
• Dividend Yield: 1.1%
• Average Volume (3M): 297.00
• Price to Earnings (P/E): 8.3
• Beta (1Y): 0.45
• Revenue Growth: 120.44%
• EPS Growth: N/A
• Country: CA
• Employees: 47
• Sector: Financial
• Sector Strength: 80
• Industry: Asset Management
• EPS (TTM): 1.46
• Shares Outstanding: 14,345,242
• 10 Day Avg. Volume: 751
• 30 Day Avg. Volume: 297
• PEG Ratio: -1.75
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.57
• 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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	172.00M	29.81M	131.76M	155.13M	175.51M	129.30M
Gross Profit	179.10M	36.65M	130.18M	149.66M	177.72M	105.50M
EBITDA	153.04M	65.00K	63.28M	376.86M	117.99M	80.99M
Net Income	127.42M	-3.35M	52.37M	330.21M	104.84M	69.50M
Balance Sheet
Total Assets	1.41B	1.34B	1.43B	1.35B	985.02M	944.88M
Cash, Cash Equivalents and Short-Term Investments	206.56M	205.82M	288.00M	348.80M	279.37M	428.86M
Total Debt	0.00	9.71M	2.38M	2.87M	3.33M	3.76M
Total Liabilities	174.31M	165.84M	211.92M	174.06M	127.22M	107.46M
Stockholders Equity	1.23B	1.18B	1.22B	1.18B	857.81M	837.41M
Cash Flow
Free Cash Flow	97.58M	-34.66M	13.18M	40.55M	-1.70M	-5.64M
Operating Cash Flow	98.29M	-33.80M	13.63M	41.02M	-1.58M	-5.64M
Investing Cash Flow	-710.00K	-854.00K	-452.00K	-466.00K	-114.00K	432.00K
Financing Cash Flow	-43.34M	-38.08M	-13.73M	-8.93M	-84.45M	-10.78M

Clairvest Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 72.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 Positive. The current price of 72 is above the 20-day moving average (MA) of 71.85, above the 50-day MA of 70.80, and above the 200-day MA of 70.11, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 52.51 is Neutral, neither overbought nor oversold. The STOCH value of 73.11 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$1.03B	8.25	10.69%	1.10%	120.44%	―
ONEX	72 Outperform	C$7.63B	12.79	5.40%	0.36%	-10.83%	-34.83%
GCG.A	69 Neutral	C$1.02B	14.18	5.62%	3.74%	35.78%	-24.67%
SEC	69 Neutral	C$810.99M	2.95	-7.43%	―	-8.45%	211.31%
GCG	68 Neutral	C$1.02B	14.18	5.62%	3.74%	35.78%	-24.67%
Sector *	60 Neutral	C$14.43B	5.29	20.17%	6.11%	26.91%	-38.39%
SII		$1.75B	33.29	15.69%	1.86%	―	―

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.