Computer Modelling Group (TSE:CMG – Get Free Report) released its quarterly earnings data on Wednesday. The company reported C$0.02 EPS for the quarter, FiscalAI reports. The firm had revenue of C$27.85 million for the quarter. Computer Modelling Group had a net margin of 13.80% and a return on equity of 20.50%.
Here are the key takeaways from Computer Modelling Group’s conference call:
- Q1 results weakened: total revenue fell to CAD 27.8 million, with organic revenue down 16% and organic recurring revenue down 12%; adjusted EBITDA and free cash flow also declined, with free cash flow at CAD 3.5 million.
- Management expects the organic recurring revenue headwind from a lost contract to end after Q1, forecasting stable organic recurring revenue growth for fiscal 2027, improved full-year free cash flow, and no adjusted EBITDA decline versus fiscal 2026.
- Professional services revenue is expected to decline by CAD 6 million–CAD 7 million for the year, toward the high end of the range, as Bluware’s non-core services wind down faster than anticipated; Q2 is expected to be the weakest services quarter.
- CMG announced a substantial issuer bid funded by up to CAD 20 million from its credit facility, citing a share price below its assessment of intrinsic value, while maintaining its commitment to acquisitions and stating that fiscal 2027 free cash flow should be sufficient to reduce the related leverage.
- Management cited stronger customer interest in enhanced oil recovery, energy security, high-fidelity seismic interpretation, and international markets, while recent acquisitions contributed positively to EBITDA and are creating opportunities for cross-selling and joint proposals.
Computer Modelling Group Stock Performance
Shares of CMG stock traded up C$0.02 on Wednesday, hitting C$3.77. The company’s stock had a trading volume of 133,662 shares, compared to its average volume of 182,874. Computer Modelling Group has a fifty-two week low of C$3.40 and a fifty-two week high of C$6.85. The company has a market capitalization of C$294.04 million, a PE ratio of 17.95, a PEG ratio of 1.97 and a beta of -0.81. The stock’s 50 day moving average is C$3.76 and its 200-day moving average is C$3.99. The company has a debt-to-equity ratio of 55.24, a quick ratio of 2.25 and a current ratio of 1.00.
Computer Modelling Group Announces Dividend
Insiders Place Their Bets
In other Computer Modelling Group news, Director Pramod Jain acquired 12,054 shares of the business’s stock in a transaction on Tuesday, June 30th. The stock was purchased at an average price of C$3.47 per share, with a total value of C$41,827.38. Following the acquisition, the director directly owned 192,897 shares of the company’s stock, valued at approximately C$669,352.59. This trade represents a 6.67% increase in their position. Also, Director Anuroop Duggal bought 25,000 shares of the firm’s stock in a transaction on Tuesday, June 30th. The shares were acquired at an average price of C$3.57 per share, for a total transaction of C$89,250.00. Following the transaction, the director owned 214,134 shares in the company, valued at approximately C$764,458.38. This represents a 13.22% increase in their ownership of the stock. Insiders acquired 138,367 shares of company stock worth $513,818 in the last quarter. 1.03% of the stock is currently owned by corporate insiders.
Analyst Ratings Changes
Several brokerages recently commented on CMG. National Bank Financial reduced their target price on shares of Computer Modelling Group from C$5.00 to C$4.50 and set a “sector perform” rating for the company in a report on Wednesday, May 27th. Raymond James Financial cut their price objective on shares of Computer Modelling Group from C$7.00 to C$6.00 and set an “outperform” rating for the company in a research report on Friday, May 22nd. Two equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company’s stock. According to MarketBeat, Computer Modelling Group has a consensus rating of “Moderate Buy” and a consensus target price of C$5.75.
Get Our Latest Analysis on Computer Modelling Group
About Computer Modelling Group
Computer Modelling Group Ltd is a Canada-based provider of reservoir simulation software for the oil and gas industry. Its capabilities include integrated analysis and optimization, black oil and unconventional simulation, reservoir and production system modelling, post-processor visualization, compositional simulation, thermal processes simulation, and fluid property characterization. The firm has operations in over 60 countries in the Americas, Europe, Middle East, Africa, and Asia-Pacific regions.
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