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

Computer Modelling Group (TSE:CMG) posted its earnings results on Wednesday. The company reported C$0.02 earnings per share (EPS) for the quarter, FiscalAI reports. The firm had revenue of C$27.85 million for the quarter. Computer Modelling Group had a return on equity of 20.50% and a net margin of 13.80%.

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 opened at C$4.00 on Thursday. The company has a debt-to-equity ratio of 55.24, a quick ratio of 2.25 and a current ratio of 1.00. The company has a market capitalization of C$311.98 million, a price-to-earnings ratio of 19.05, a PEG ratio of 1.97 and a beta of -0.81. The company’s 50 day simple moving average is C$3.77 and its 200 day simple moving average is C$3.99. Computer Modelling Group has a 1 year low of C$3.40 and a 1 year high of C$6.85.

Computer Modelling Group Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Monday, June 15th. Stockholders of record on Monday, June 15th were given a $0.01 dividend. This represents a $0.04 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend was Friday, June 5th. Computer Modelling Group’s payout ratio is currently 38.10%.

Analyst Ratings Changes

Several equities analysts have weighed in on the company. Raymond James Financial dropped their price target on 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. National Bank Financial reduced their price objective on Computer Modelling Group from C$5.00 to C$4.50 and set a “sector perform” rating on the stock in a research 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 company. Based on data from MarketBeat.com, Computer Modelling Group has an average rating of “Moderate Buy” and an average target price of C$5.75.

Insiders Place Their Bets

In other Computer Modelling Group news, Director Pramod Jain purchased 12,054 shares of Computer Modelling Group stock in a transaction on Tuesday, June 30th. The shares were bought 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 in the company, valued at C$669,352.59. This trade represents a 6.67% increase in their position. Also, Director Anuroop Duggal purchased 25,000 shares of Computer Modelling Group stock in a transaction on Tuesday, June 30th. The shares were acquired at an average cost of C$3.57 per share, for a total transaction of C$89,250.00. Following the purchase, the director owned 214,134 shares in the company, valued at approximately C$764,458.38. This trade represents a 13.22% increase in their ownership of the stock. In the last three months, insiders bought 138,367 shares of company stock valued at $513,818. Company 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.