Computer Modelling Group (TSE:CMG) Announces Quarterly Earnings Results

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

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 Up 0.5%

Shares of CMG stock traded up C$0.02 on Friday, hitting C$3.80. The stock had a trading volume of 103,276 shares, compared to its average volume of 179,847. The business has a 50 day moving average of C$3.84 and a 200 day moving average of C$3.89. The stock has a market cap of C$296.38 million, a price-to-earnings ratio of 20.00, a price-to-earnings-growth ratio of 1.97 and a beta of -0.61. The company has a debt-to-equity ratio of 54.99, a current ratio of 1.06 and a quick ratio of 2.25. Computer Modelling Group has a 12-month low of C$3.40 and a 12-month high of C$6.85.

Computer Modelling Group Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 15th. Stockholders of record on Tuesday, September 15th will be paid a $0.01 dividend. The ex-dividend date is Friday, September 4th. This represents a $0.04 annualized dividend and a dividend yield of 1.1%. Computer Modelling Group’s dividend payout ratio is presently 21.05%.

Analyst Upgrades and Downgrades

A number of brokerages have recently issued reports on CMG. Raymond James Financial reduced 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 report on Friday, May 22nd. National Bank Financial lowered their target price on shares of Computer Modelling Group from C$5.00 to C$4.50 and set a “sector perform” rating on the stock in a report on Wednesday, May 27th. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of C$5.75.

Insider Activity at Computer Modelling Group

In other news, Director Pramod Jain acquired 12,054 shares of the firm’s stock in a transaction on Tuesday, June 30th. The stock was purchased at an average price of C$3.47 per share, for a total transaction of C$41,827.38. Following the purchase, the director owned 192,897 shares in the company, valued at approximately C$669,352.59. This represents a 6.67% increase in their position. Also, Director Anuroop Duggal acquired 25,000 shares of the firm’s stock in a transaction on Tuesday, June 30th. The stock was purchased at an average price of C$3.57 per share, with a total value of C$89,250.00. Following the purchase, the director owned 214,134 shares in the company, valued at approximately C$764,458.38. The trade was a 13.22% increase in their position. Insiders have bought 88,367 shares of company stock valued at $325,533 over the last ninety days. Corporate insiders own 1.03% of the company’s stock.

Computer Modelling Group Company Profile

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.