Computer Modelling Group (TSE:CMG) Issues Earnings Results

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

TSE CMG opened at C$3.98 on Friday. The firm has a 50-day moving average of C$3.77 and a 200-day moving average of C$3.98. 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 stock has a market cap of C$310.42 million, a PE ratio of 18.95, a P/E/G ratio of 1.97 and a beta of -0.81. Computer Modelling Group has a 52-week low of C$3.40 and a 52-week high of C$6.85.

Computer Modelling Group Dividend Announcement

The business 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. The ex-dividend date of this dividend was Friday, June 5th. This represents a $0.04 annualized dividend and a dividend yield of 1.0%. Computer Modelling Group’s dividend payout ratio is presently 38.10%.

Insider Buying and Selling

In related news, Director Alexander Davern purchased 40,000 shares of the stock in a transaction on Monday, June 15th. The shares were purchased at an average cost of C$3.88 per share, with a total value of C$155,200.00. Following the acquisition, the director directly owned 175,000 shares in the company, valued at C$679,000. The trade was a 29.63% increase in their ownership of the stock. Also, Director Anuroop Duggal acquired 25,000 shares of the business’s stock in a transaction on Tuesday, June 30th. The shares were bought at an average price of C$3.57 per share, with a total value of C$89,250.00. Following the completion of the transaction, the director directly owned 214,134 shares of the company’s stock, valued at approximately C$764,458.38. The trade was a 13.22% increase in their ownership of the stock. In the last 90 days, insiders purchased 138,367 shares of company stock valued at $513,818. Company insiders own 1.03% of the company’s stock.

Analyst Ratings Changes

CMG has been the topic of several recent analyst reports. National Bank Financial lowered their price objective 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 research note on Wednesday, May 27th. Raymond James Financial reduced 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 report on Friday, May 22nd. Two equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of C$5.75.

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.