Caldwell (CWL) AI Stock Analysis

• Market Cap: C$24.21M
• Dividend Yield: 2.01%
• Average Volume (3M): 6.28K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 0.22
• Revenue Growth: 9.76%
• EPS Growth: N/A
• Country: CA
• Employees: 159
• Sector: Industrials
• Sector Strength: 86
• Industry: Staffing & Employment Services
• EPS (TTM): 0.05
• Shares Outstanding: 29,520,231
• 10 Day Avg. Volume: 5,350
• 30 Day Avg. Volume: 6,283
• PEG Ratio: <0.01
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.14
• 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: 71 Outperform
• Price Target: C$1.00 ▲(21.95%Upside)

Caldwell's stock score is driven by solid financial performance and promising corporate events. The company's technical indicators also show a positive short-term outlook. However, challenges in operational efficiency and market uncertainties warrant a cautious approach.

Caldwell Business Overview & Revenue Model

Company Description

The Caldwell Partners International Inc. provides candidate research and sourcing services in Canada, the United States, and the United Kingdom. It also offers retained executive search and Caldwell analytics solutions, and on-demand talent acquisition augmentation solutions, as well as professional search services. In addition, the company offers Agile talent solutions, such as blockchain, cybersecurity, diversity and inclusion, and value creation advisory. It serves to real estate, consumer, commercial banking, academic, non-profit, social enterprise, culture, retail, e-commerce, financial services, industrial, insurance, life science, healthcare, private equity, venture capital, professional services, and technology sectors. The company was founded in 1970 and is headquartered in Toronto, Canada.

How the Company Makes Money

Caldwell makes money through its executive search services provided to organizations seeking to fill high-level positions. The company's revenue model is primarily based on retainer fees, where clients pay an upfront fee for Caldwell's services, and success fees, which are contingent upon the successful placement of a candidate. Additionally, Caldwell may earn revenue from offering leadership assessment, succession planning, and other human capital advisory services. The firm's earnings are further supported by long-term relationships and partnerships with a diverse range of clients, including large corporations, nonprofit organizations, and government entities, contributing to a steady stream of engagements and repeat business.

Caldwell Financial Statement Overview

Summary

Caldwell shows a recovering financial trajectory with improving revenue growth and cash flow metrics. The income statement reveals profitability with a net profit margin of 1.6%, though operational efficiency is challenged with an EBIT margin of 1.9%. The balance sheet indicates a manageable debt level with a debt-to-equity ratio of 0.19, but declining cash position raises liquidity concerns. A strong free cash flow growth rate is promising, yet historical cash flow volatility suggests caution.

Income Statement

Caldwell's income statement shows a recovering financial performance with a TTM gross profit margin of 21.6% and a net profit margin of 1.6%, indicating profitability. However, the EBIT margin of 1.9% suggests operational efficiency challenges. The revenue growth rate from 2024 to TTM is 10.5%, showing positive momentum but with past fluctuations.

Balance Sheet

The balance sheet reveals a moderate leverage profile with a debt-to-equity ratio of 0.19, indicating manageable debt levels. The equity ratio of 54.1% shows a solid equity base. However, a declining cash position from the previous year raises liquidity concerns.

Cash Flow

Caldwell's cash flow statement indicates improved cash generation with a free cash flow growth rate of 312.3% in the TTM period. The operating cash flow to net income ratio is favorable at 2.32, reflecting a strong cash conversion. However, historical volatility in cash flows presents a potential risk.

Breakdown	TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	96.27M	87.15M	96.93M	156.16M	119.77M	58.19M
Gross Profit	20.79M	17.69M	16.22M	34.65M	29.12M	14.96M
EBITDA	4.60M	9.03M	-10.37M	13.70M	8.30M	5.37M
Net Income	1.53M	4.19M	-11.30M	8.18M	4.52M	2.85M
Balance Sheet
Total Assets	61.97M	68.75M	84.64M	91.29M	87.13M	40.87M
Cash, Cash Equivalents and Short-Term Investments	7.80M	19.63M	22.05M	35.67M	29.21M	14.48M
Total Debt	6.23M	6.50M	21.80M	6.23M	10.60M	8.80M
Total Liabilities	28.46M	36.63M	56.92M	56.22M	61.38M	24.11M
Stockholders Equity	33.51M	32.13M	27.72M	35.06M	25.75M	16.76M
Cash Flow
Free Cash Flow	3.19M	772.00K	-11.39M	6.63M	24.52M	69.00K
Operating Cash Flow	3.55M	1.23M	-11.22M	7.10M	24.88M	1.39M
Investing Cash Flow	-1.83M	-1.67M	-3.60M	-1.92M	-3.92M	3.68M
Financing Cash Flow	-1.72M	-1.91M	664.00K	499.00K	-5.93M	-821.00K

Caldwell Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.82
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CWL, the sentiment is Neutral. The current price of 0.82 is above the 20-day moving average (MA) of 0.78, above the 50-day MA of 0.75, and below the 200-day MA of 0.97, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 61.34 is Neutral, neither overbought nor oversold. The STOCH value of 90.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CWL.

Caldwell Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	71 Outperform	¥254.55B	13.00	8.49%	3.09%	6.31%	12.77%
CWL	71 Outperform	C$24.21M	15.86	4.76%	2.01%	9.76%	―
TLA	70 Outperform	C$21.78M	24.84	5.22%	―	12.31%	―
REKO	49 Neutral	C$20.38M	―	-7.92%	―	-12.65%	-838.74%
CMU	45 Neutral	C$22.60M	―	-5.39%	―	-93.84%	-117.18%
DLTA	31 Underperform	C$12.72M	―	-174.46%	―	―	26.51%
OML		C$18.73M	43.53	1.97%	―	―	―

Caldwell Corporate Events

Caldwell Partners Reports Strong Q2 Growth Amid Market Uncertainties

Caldwell Partners reported a 35% year-over-year increase in professional fees for the second quarter of fiscal 2025, reflecting strong growth at Caldwell and stability at IQTalent. Despite a strategic investment in a firm-wide partner meeting, the company achieved positive operating profit on a consolidated basis. The firm remains optimistic yet cautious about the second half of the fiscal year due to market uncertainties affecting hiring decisions in Canada and certain U.S. sectors. Caldwell continues to focus on disciplined execution and providing agile, insight-driven support to clients. The company also announced a dividend of 0.25 cents per Common Share, payable in June 2025.