Computer Modelling Group (TSE:CMG) Announces Earnings Results

Computer Modelling Group (TSE:CMG) announced its earnings results on Wednesday, August 12th. The company reported C$0.02 earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of C$27.85 million during the quarter. Computer Modelling Group had a return on equity of 18.44% and a net margin of 12.41%.

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 Computer Modelling Group stock traded up C$0.06 on Friday, reaching C$4.06. 64,744 shares of the company traded hands, compared to its average volume of 179,229. The company has a debt-to-equity ratio of 54.99, a current ratio of 1.06 and a quick ratio of 2.25. The firm has a market capitalization of C$316.66 million, a PE ratio of 21.37, a PEG ratio of 1.97 and a beta of -0.61. The company has a 50 day moving average of C$3.86 and a 200 day moving average of C$3.88. Computer Modelling Group has a 52 week low of C$3.40 and a 52 week high of C$6.38.

Computer Modelling Group Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 15th. Shareholders of record on Tuesday, September 15th were paid a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a yield of 1.0%. The ex-dividend date was Friday, September 4th. Computer Modelling Group’s payout ratio is presently 21.05%.

Insider Buying and Selling at Computer Modelling Group

In other Computer Modelling Group news, Director Anuroop Duggal acquired 25,000 shares of the company’s stock in a transaction on Tuesday, June 30th. The shares were acquired at an average cost of C$3.57 per share, with a total value of C$89,250.00. Following the completion of the acquisition, the director directly owned 214,134 shares in the company, valued at C$764,458.38. This trade represents a 13.22% increase in their ownership of the stock. Also, Director Pramod Jain bought 12,054 shares of Computer Modelling Group stock in a transaction dated Tuesday, June 30th. The stock was acquired at an average price of C$3.47 per share, with a total value of C$41,827.38. Following the purchase, the director directly owned 192,897 shares of the company’s stock, valued at approximately C$669,352.59. This represents a 6.67% increase in their ownership of the stock. Insiders have bought a total of 48,367 shares of company stock valued at $170,333 in the last quarter. 1.03% of the stock is owned by corporate insiders.

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.