Valuation Update With 7 Day Price Move • Mar 31
Investor sentiment improves as stock rises 17% After last week's 17% share price gain to CA$4.28, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 5x in the Software industry in Canada. Total loss to shareholders of 36% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CA$5.57 per share. Bekanntmachung • Mar 25
Computer Modelling Group Ltd. (TSX:CMG) acquired Rose & Associates, LLP for $12.3 million. Computer Modelling Group Ltd. (TSX:CMG) acquired Rose & Associates, LLP for $12.3 million on March 25, 2026. The consideration of $9.8 million consisting of $8.8 million paid in cash at closing, plus an amount equivalent to Rose’s cash on hand immediately prior to closing, with the remainder subject to a customary holdback, and a potential earn-out of up to $2.5 million tied to performance milestones. Following the acquisition, Peter Carragher, currently Managing Partner at Rose, to be appointed as General Manager and Rose & Associates, LLP team would join Computer Modelling Group Ltd.
For the period ending December 31, 2025, Rose & Associates, LLP reported total revenue of $6.8 million.
Computer Modelling Group Ltd. (TSX:CMG) completed the acquisition of Rose & Associates, LLP on March 25, 2026. Upcoming Dividend • Feb 28
Upcoming dividend of CA$0.01 per share Eligible shareholders must have bought the stock before 05 March 2026. Payment date: 13 March 2026. Payout ratio is a comfortable 58% and this is well supported by cash flows. Trailing yield: 1.0%. Lower than top quartile of Canadian dividend payers (5.4%). Higher than average of industry peers (0.3%). Recent Insider Transactions • Feb 20
Independent Director recently bought CA$81k worth of stock On the 18th of February, Peter Kinash bought around 20k shares on-market at roughly CA$4.05 per share. This transaction amounted to 16% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth CA$149k. Insiders have collectively bought CA$415k more in shares than they have sold in the last 12 months. Valuation Update With 7 Day Price Move • Feb 17
Investor sentiment deteriorates as stock falls 15% After last week's 15% share price decline to CA$4.05, the stock trades at a forward P/E ratio of 17x. Average forward P/E is 5x in the Software industry in Canada. Total loss to shareholders of 40% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CA$5.40 per share. Declared Dividend • Feb 13
Third quarter dividend of CA$0.01 announced Shareholders will receive a dividend of CA$0.01. Ex-date: 5th March 2026 Payment date: 13th March 2026 Dividend yield will be 2.0%, which is higher than the industry average of 0.2%. Sustainability & Growth Dividend is covered by both earnings (60% earnings payout ratio) and cash flows (18% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 33% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Feb 12
Third quarter 2026 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2026 results: EPS: CA$0.072 (down from CA$0.12 in 3Q 2025). Revenue: CA$32.7m (down 8.6% from 3Q 2025). Net income: CA$5.96m (down 38% from 3Q 2025). Profit margin: 18% (down from 27% in 3Q 2025). The decrease in margin was primarily driven by lower revenue. Revenue missed analyst estimates by 5.0%. Earnings per share (EPS) exceeded analyst estimates by 1.5%. Revenue is forecast to grow 1.5% p.a. on average during the next 3 years, compared to a 15% growth forecast for the Software industry in Canada. Over the last 3 years on average, earnings per share has fallen by 4% per year but the company’s share price has fallen by 18% per year, which means it is performing significantly worse than earnings. Price Target Changed • Feb 11
Price target decreased by 11% to CA$6.46 Down from CA$7.29, the current price target is an average from 7 analysts. New target price is 66% above last closing price of CA$3.89. Stock is down 57% over the past year. The company is forecast to post earnings per share of CA$0.21 for next year compared to CA$0.27 last year. Buy Or Sell Opportunity • Jan 19
Now 22% undervalued after recent price drop Over the last 90 days, the stock has fallen 11% to CA$5.01. The fair value is estimated to be CA$6.40, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 24% over the last 3 years, while earnings per share has been flat. Revenue is forecast to decline by 0.4% in a year. Earnings are forecast to grow by 0.1% in the next year. Price Target Changed • Dec 16
Price target decreased by 7.1% to CA$7.04 Down from CA$7.58, the current price target is an average from 6 analysts. New target price is 40% above last closing price of CA$5.04. Stock is down 54% over the past year. The company is forecast to post earnings per share of CA$0.21 for next year compared to CA$0.27 last year. Upcoming Dividend • Nov 28
Upcoming dividend of CA$0.01 per share Eligible shareholders must have bought the stock before 05 December 2025. Payment date: 15 December 2025. Payout ratio is a comfortable 64% and this is well supported by cash flows. Trailing yield: 0.8%. Lower than top quartile of Canadian dividend payers (5.9%). Higher than average of industry peers (0.3%). Recent Insider Transactions • Nov 20
Independent Director recently bought CA$99k worth of stock On the 14th of November, Peter Kinash bought around 20k shares on-market at roughly CA$4.97 per share. This transaction amounted to 20% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Despite this recent purchase, insiders have collectively sold CA$6.2m more in shares than they bought in the last 12 months. Major Estimate Revision • Nov 17
Consensus EPS estimates fall by 14%, revenue upgraded The consensus outlook for fiscal year 2026 has been updated. 2026 revenue forecast increased from CA$124.8m to CA$127.4m. EPS estimate fell from CA$0.245 to CA$0.21 per share. Net income forecast to shrink 15% next year vs 36% growth forecast for Software industry in Canada . Consensus price target down from CA$7.58 to CA$7.29. Share price fell 7.0% to CA$4.90 over the past week. Declared Dividend • Nov 14
Second quarter dividend of CA$0.01 announced Shareholders will receive a dividend of CA$0.01. Ex-date: 5th December 2025 Payment date: 15th December 2025 Dividend yield will be 2.4%, which is higher than the industry average of 0.2%. Sustainability & Growth Dividend is well covered by both earnings (40% earnings payout ratio) and cash flows (13% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 7.6% over the next year, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 13
Second quarter 2026 earnings: Revenues exceed analysts expectations while EPS lags behind Second quarter 2026 results: EPS: CA$0.03 (down from CA$0.046 in 2Q 2025). Revenue: CA$30.2m (up 2.5% from 2Q 2025). Net income: CA$2.72m (down 28% from 2Q 2025). Profit margin: 9.0% (down from 13% in 2Q 2025). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 2.8%. Earnings per share (EPS) missed analyst estimates by 14%. Revenue is forecast to stay flat during the next 2 years compared to a 17% growth forecast for the Software industry in Canada. Over the last 3 years on average, earnings per share has increased by 2% per year whereas the company’s share price has remained flat. Board Change • Oct 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Chairman of the Board Andrew Pastor was the last director to join the board, commencing their role in 2025. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Bekanntmachung • Sep 05
Computer Modelling Group Ltd. Announces Board Appointments Computer Modelling Group Ltd. announced that at its AGM held on September 4, 2025, shareholders approved the election of Anuroop Duggal and Andrew Pastor as board of directors. Following the annual meeting, Andrew Pastor was appointed by the Board as the new Chair of the Board of Directors. Upcoming Dividend • Aug 29
Upcoming dividend of CA$0.01 per share Eligible shareholders must have bought the stock before 05 September 2025. Payment date: 15 September 2025. Payout ratio is on the higher end at 76%, however this is supported by cash flows. Trailing yield: 3.2%. Lower than top quartile of Canadian dividend payers (5.9%). Higher than average of industry peers (0.2%). Recent Insider Transactions • Aug 22
President recently bought CA$59k worth of stock On the 14th of August, Pramod Jain bought around 9k shares on-market at roughly CA$6.40 per share. This transaction amounted to 6.3% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth CA$117k. Pramod has been a buyer over the last 12 months, purchasing a net total of CA$903k worth in shares. Recent Insider Transactions • Aug 19
President recently bought CA$59k worth of stock On the 14th of August, Pramod Jain bought around 9k shares on-market at roughly CA$6.40 per share. This transaction amounted to 6.3% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger purchase worth CA$117k. Pramod has been a buyer over the last 12 months, purchasing a net total of CA$903k worth in shares. Declared Dividend • Aug 14
First quarter dividend reduced to CA$0.01 Dividend of CA$0.01 is 80% lower than last year. Ex-date: 5th September 2025 Payment date: 15th September 2025 Dividend yield will be 2.5%, which is higher than the industry average of 0.2%. Sustainability & Growth Dividend is covered by both earnings (76% earnings payout ratio) and cash flows (63% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 6.2% over the next year, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Aug 10
Now 21% overvalued Over the last 90 days, the stock has fallen 21% to CA$6.55. The fair value is estimated to be CA$5.41, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 26% over the last 3 years. Earnings per share has grown by 5.3%. Revenue is forecast to decline by 1.5% in a year. Earnings are forecast to decline by 5.3% in the next year. Reported Earnings • Aug 08
First quarter 2026 earnings: EPS misses analyst expectations First quarter 2026 results: EPS: CA$0.04 (down from CA$0.049 in 1Q 2025). Revenue: CA$29.6m (down 2.9% from 1Q 2025). Net income: CA$3.31m (down 17% from 1Q 2025). Profit margin: 11% (down from 13% in 1Q 2025). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 13%. Revenue is forecast to stay flat during the next 2 years compared to a 16% growth forecast for the Software industry in Canada. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has increased by 13% per year, which means it is tracking significantly ahead of earnings growth. Valuation Update With 7 Day Price Move • Aug 07
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to CA$6.41, the stock trades at a forward P/E ratio of 26x. Average forward P/E is 18x in the Software industry in Canada. Total returns to shareholders of 56% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CA$6.65 per share. Bekanntmachung • Jul 29
Computer Modelling Group Ltd. Announces CFO Changes Computer Modelling Group Ltd. announce the appointment of Vipin Khullar as Chief Financial Officer, effective July 28, 2025 . This leadership addition marks a major step in CMG’s continued evolution, adding key expertise to support the execution of the company’s growth strategy. Mr. Khullar joins CMG from the Perseus Operating Group of Constellation Software Inc., where he most recently served as CFO. During his tenure, he led Perseus’ portfolio of vertical market software businesses, driving acquisitions, integration, financial discipline, and long-term value creation. Prior to Constellation Software Inc., he held various finance leadership positions with IBM Canada. As part of this leadership evolution, Sandra Balic, who has served as CMG’s CFO, will transition to the role of Vice President, Finance. Sandra has been a steady and trusted leader in CMG’s journey, ensuring strong financial controls, compliance, and governance through a complex transformation. She will continue to play a critical leadership role overseeing financial reporting and public company compliance and will work closely with Mr. Khullar as CMG scales its finance capabilities. Mr. Khullar holds a Bachelor of Commerce in Accounting from Toronto Metropolitan University and is a Chartered Professional Accountant. He will be based out of Toronto, Ontario. Recent Insider Transactions • Jul 10
President recently bought CA$187k worth of stock On the 2nd of July, Pramod Jain bought around 26k shares on-market at roughly CA$7.20 per share. This transaction amounted to 20% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Pramod has been a buyer over the last 12 months, purchasing a net total of CA$914k worth in shares. Recent Insider Transactions Derivative • Jul 03
Independent Director exercised options to buy CA$184k worth of stock. On the 26th of June, Peter Kinash exercised options to buy 25k shares at a strike price of around CA$6.86, costing a total of CA$169k. This transaction amounted to 32% of their direct individual holding at the time of the trade. Since September 2024, Peter has owned 77.85k shares directly. Company insiders have collectively sold CA$8.2m more than they bought, via options and on-market transactions in the last 12 months. Bekanntmachung • Jul 02
Computer Modelling Group Ltd., Annual General Meeting, Sep 04, 2025 Computer Modelling Group Ltd., Annual General Meeting, Sep 04, 2025. Recent Insider Transactions • Jun 25
Vice Chairman of the Board recently sold CA$282k worth of stock On the 20th of June, Kenneth Dedeluk sold around 40k shares on-market at roughly CA$7.05 per share. This transaction amounted to 9.3% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Kenneth has been a net seller over the last 12 months, reducing personal holdings by CA$1.3m. Recent Insider Transactions • Jun 13
Vice Chairman of the Board recently sold CA$141k worth of stock On the 5th of June, Kenneth Dedeluk sold around 20k shares on-market at roughly CA$7.05 per share. This transaction amounted to 4.2% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Kenneth has been a net seller over the last 12 months, reducing personal holdings by CA$1.0m. New Risk • Jun 12
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: CA$493k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Significant insider selling over the past 3 months (CA$493k sold). Recent Insider Transactions Derivative • Jun 08
Independent Director exercised options to buy CA$158k worth of stock. On the 3rd of June, Christopher Fong exercised options to buy 23k shares at a strike price of around CA$6.71, costing a total of CA$152k. This transaction amounted to 39% of their direct individual holding at the time of the trade. Since June 2024, Christopher's direct individual holding has increased from 37.19k shares to 57.67k. Company insiders have collectively sold CA$7.3m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions • Jun 01
Independent Director recently bought CA$78k worth of stock On the 27th of May, Birgit Troy bought around 11k shares on-market at roughly CA$6.99 per share. This transaction increased Birgit's direct individual holding by 6x at the time of the trade. In the last 3 months, there was an even bigger purchase from another insider worth CA$107k. Despite this recent purchase, insiders have collectively sold CA$8.2m more in shares than they bought in the last 12 months. Valuation Update With 7 Day Price Move • May 29
Investor sentiment deteriorates as stock falls 18% After last week's 18% share price decline to CA$6.76, the stock trades at a forward P/E ratio of 25x. Average forward P/E is 21x in the Software industry in Canada. Total returns to shareholders of 49% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CA$7.12 per share. Declared Dividend • May 25
Fourth quarter dividend of CA$0.05 announced Dividend of CA$0.05 is the same as last year. Ex-date: 5th June 2025 Payment date: 13th June 2025 Dividend yield will be 2.9%, which is higher than the industry average of 0.2%. Sustainability & Growth Dividend is covered by both earnings (74% earnings payout ratio) and cash flows (58% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 10% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 23
Full year 2025 earnings: EPS and revenues miss analyst expectations Full year 2025 results: EPS: CA$0.27 (down from CA$0.32 in FY 2024). Revenue: CA$129.4m (up 19% from FY 2024). Net income: CA$22.4m (down 15% from FY 2024). Profit margin: 17% (down from 24% in FY 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 11%. Revenue is forecast to grow 1.5% p.a. on average during the next 2 years, compared to a 15% growth forecast for the Software industry in Canada. Over the last 3 years on average, earnings per share has increased by 8% per year whereas the company’s share price has increased by 13% per year. Price Target Changed • May 23
Price target decreased by 15% to CA$10.57 Down from CA$12.43, the current price target is an average from 7 analysts. New target price is 57% above last closing price of CA$6.75. Stock is down 40% over the past year. Bekanntmachung • May 22
Computer Modelling Group Ltd. Approves Cash Dividend, Payable on June 13, 2025 Computer Modelling Group Ltd. approved a cash dividend of $0.05 per Common Share. The dividend will be paid on June 13, 2025, to shareholders of record at the close of business on June 5, 2025. Valuation Update With 7 Day Price Move • Apr 08
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CA$6.75, the stock trades at a forward P/E ratio of 18x. Average forward P/E is 16x in the Software industry in Canada. Total returns to shareholders of 39% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CA$11.07 per share. Recent Insider Transactions • Apr 06
Vice Chairman of the Board recently sold CA$57k worth of stock On the 31st of March, Kenneth Dedeluk sold around 7k shares on-market at roughly CA$8.00 per share. This transaction amounted to 1.4% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger sale worth CA$207k. Kenneth has been a net seller over the last 12 months, reducing personal holdings by CA$2.6m. Recent Insider Transactions • Mar 16
President recently bought CA$107k worth of stock On the 13th of March, Pramod Jain bought around 14k shares on-market at roughly CA$7.42 per share. This transaction amounted to 14% of their direct individual holding at the time of the trade. This was the largest purchase by an insider in the last 3 months. Pramod has been a buyer over the last 12 months, purchasing a net total of CA$896k worth in shares. Upcoming Dividend • Feb 28
Upcoming dividend of CA$0.05 per share Eligible shareholders must have bought the stock before 06 March 2025. Payment date: 14 March 2025. Payout ratio is a comfortable 67% and this is well supported by cash flows. Trailing yield: 2.5%. Lower than top quartile of Canadian dividend payers (6.4%). Higher than average of industry peers (0.3%). Valuation Update With 7 Day Price Move • Feb 18
Investor sentiment deteriorates as stock falls 19% After last week's 19% share price decline to CA$8.55, the stock trades at a forward P/E ratio of 23x. Average forward P/E is 26x in the Software industry in Canada. Total returns to shareholders of 73% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CA$11.43 per share. Declared Dividend • Feb 14
Third quarter dividend of CA$0.05 announced Dividend of CA$0.05 is the same as last year. Ex-date: 6th March 2025 Payment date: 14th March 2025 Dividend yield will be 2.3%, which is higher than the industry average of 0.2%. Sustainability & Growth Dividend is covered by both earnings (67% earnings payout ratio) and cash flows (48% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 41% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Buy Or Sell Opportunity • Feb 12
Now 21% undervalued after recent price drop Over the last 90 days, the stock has fallen 9.8% to CA$9.12. The fair value is estimated to be CA$11.61, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 26% over the last 3 years. Earnings per share has grown by 10%. Revenue is forecast to grow by 18% in 2 years. Earnings are forecast to grow by 36% in the next 2 years. Bekanntmachung • Feb 12
Computer Modelling Group Ltd. Approves Cash Dividend, Payable on March 14, 2025 Computer Modelling Group Ltd. Board approved a cash dividend of $0.05 per Common Share. The dividend will be paid on March 14, 2025, to shareholders of record at the close of business on March 6, 2025. Recent Insider Transactions • Jan 19
Vice Chairman of the Board recently sold CA$207k worth of stock On the 16th of January, Kenneth Dedeluk sold around 20k shares on-market at roughly CA$10.36 per share. This transaction amounted to 3.6% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth CA$3.1m. Kenneth has been a net seller over the last 12 months, reducing personal holdings by CA$3.0m. Recent Insider Transactions • Jan 08
Insider recently sold CA$539k worth of stock On the 31st of December, Long Nghiem sold around 51k shares on-market at roughly CA$10.63 per share. This transaction amounted to 29% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger sale worth CA$3.1m. Insiders have been net sellers, collectively disposing of CA$14m more than they bought in the last 12 months. Recent Insider Transactions • Dec 15
Insider recently sold CA$504k worth of stock On the 10th of December, Long Nghiem sold around 45k shares on-market at roughly CA$11.16 per share. This transaction amounted to 18% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger sale worth CA$3.1m. Insiders have been net sellers, collectively disposing of CA$14m more than they bought in the last 12 months. Recent Insider Transactions Derivative • Dec 08
VP of Finance & CFO exercised options and sold CA$1.6m worth of stock On the 2nd of December, Sandra Balic exercised options to acquire 148k shares at no cost and sold these for an average price of CA$11.11 per share. This trade did not impact their existing holding. Since December 2023, Sandra's direct individual holding has increased from 80.72k shares to 115.96k. Company insiders have collectively sold CA$12m more than they bought, via options and on-market transactions in the last 12 months. Upcoming Dividend • Nov 29
Upcoming dividend of CA$0.05 per share Eligible shareholders must have bought the stock before 05 December 2024. Payment date: 13 December 2024. Payout ratio is on the higher end at 79%, however this is supported by cash flows. Trailing yield: 1.9%. Lower than top quartile of Canadian dividend payers (6.1%). Higher than average of industry peers (0.3%). Recent Insider Transactions • Nov 21
Insider recently sold CA$153k worth of stock On the 18th of November, Long Nghiem sold around 15k shares on-market at roughly CA$10.20 per share. This transaction amounted to 2.4% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger sale worth CA$322k. Insiders have been net sellers, collectively disposing of CA$12m more than they bought in the last 12 months. Valuation Update With 7 Day Price Move • Nov 19
Investor sentiment deteriorates as stock falls 16% After last week's 16% share price decline to CA$10.13, the stock trades at a forward P/E ratio of 28x. Average trailing P/E is 39x in the Software industry in Canada. Total returns to shareholders of 132% over the past three years. Declared Dividend • Nov 15
Second quarter dividend of CA$0.05 announced Dividend of CA$0.05 is the same as last year. Ex-date: 5th December 2024 Payment date: 13th December 2024 Dividend yield will be 2.1%, which is higher than the industry average of 0.2%. Sustainability & Growth Dividend is covered by both earnings (82% earnings payout ratio) and cash flows (61% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 111% over the next 3 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Nov 14
Second quarter 2025 earnings: EPS and revenues miss analyst expectations Second quarter 2025 results: EPS: CA$0.05 (down from CA$0.081 in 2Q 2024). Revenue: CA$29.5m (up 30% from 2Q 2024). Net income: CA$3.76m (down 42% from 2Q 2024). Profit margin: 13% (down from 29% in 2Q 2024). The decrease in margin was driven by higher expenses. Revenue missed analyst estimates by 3.8%. Earnings per share (EPS) also missed analyst estimates by 19%. Revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 16% growth forecast for the Software industry in Canada. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 28% per year, which means it is tracking significantly ahead of earnings growth. Board Change • Oct 01
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Birgit Troy was the last director to join the board, commencing their role in 2024. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Bekanntmachung • Sep 24
Computer Modelling Group Ltd. Launches Focus CCS to Accelerate Validation of CO2 Storage Sites Computer Modelling Group Ltd. announced the launch of Focus CCS, a purpose-driven simulation tool designed to accelerate the preliminary selection and validation process for CO2 storage sites. With its intuitive interface and guided workflows, Focus CCS enables engineers to quickly and accurately evaluate risks, predict safe CO2 storage capacities, and expedite the process leading up to permitting and regulatory approval. Focus CCS supports faster model building which allows users to concentrate on critical analysis for proper site selection and long-term CO2 storage. Key features include: Single solution: guided workflows integrate pre-processing, simulation, and visualization into an intuitive interface, ensuring reliability for new users while offering full customization for advanced users, Risk mitigation: assess containment effectiveness by simulating CO2 spread and stabilization over time, based on well location and injection parameters, ensuring long-term project reliability Optimize storage capacity: assess and optimize operational strategies to achieve maximum storage capacity, Confident business decisions: reliable data and information ensure accurate preliminary evaluation of potential storage sites, critical to the long-term success of a CCS project and avoidance of costly mistakes, Focus CCS is now available worldwide and will make a critical contribution to getting more CCS projects. into operation - supporting the global goal of progressing towards net zero. New Risk • Sep 23
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 1.8% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Profit margins are more than 30% lower than last year (20% net profit margin). Significant insider selling over the past 3 months (CA$1.3m sold). Recent Insider Transactions • Sep 02
Insider recently sold CA$322k worth of stock On the 30th of August, Long Nghiem sold around 25k shares on-market at roughly CA$12.76 per share. This transaction amounted to 3.9% of their direct individual holding at the time of the trade. In the last 3 months, they made an even bigger sale worth CA$703k. Insiders have been net sellers, collectively disposing of CA$15m more than they bought in the last 12 months. Recent Insider Transactions Derivative • Aug 19
Independent Director exercised options to buy CA$278k worth of stock. On the 14th of August, Peter Kinash exercised options to buy 22k shares at a strike price of around CA$6.31, costing a total of CA$138k. This transaction amounted to 39% of their direct individual holding at the time of the trade. Since September 2023, Peter has owned 56.00k shares directly. Company insiders have collectively sold CA$11m more than they bought, via options and on-market transactions in the last 12 months. Declared Dividend • Aug 11
First quarter dividend of CA$0.05 announced Dividend of CA$0.05 is the same as last year. Ex-date: 13th September 2024 Payment date: 5th September 2024 Dividend yield will be 1.6%, which is higher than the industry average of 0.2%. Sustainability & Growth Dividend is covered by both earnings (70% earnings payout ratio) and cash flows (39% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 21% over the next year, which should provide support to the dividend and adequate earnings cover. New Risk • Aug 09
New minor risk - Profit margin trend The company's profit margins are lower than last year and have reduced by more than 30%. Net profit margin: 20% Last year net profit margin: 29% This is considered a minor risk. A large drop in profit margin could indicate the company does not have strong competitive advantages or it is yet to establish itself and its core business. Even if it is a well established business, this may make it a much riskier investment than one that has a combination of proven competitive advantages and a stable or growing profit margin. Currently, the following risks have been identified for the company: Minor Risks Profit margins are more than 30% lower than last year (20% net profit margin). Significant insider selling over the past 3 months (CA$5.8m sold). Bekanntmachung • Aug 08
Computer Modelling Group Announces First Quarter Dividend, Payable on September 13, 2024 Computer Modelling Group’s Board approved a cash dividend of $0.05 per Common Share. The dividend will be paid on September 13, 2024, to shareholders of record at the close of business on September 5, 2024. Bekanntmachung • Jul 02
Computer Modelling Group Ltd., Annual General Meeting, Sep 05, 2024 Computer Modelling Group Ltd., Annual General Meeting, Sep 05, 2024. Recent Insider Transactions Derivative • Jun 24
Insider exercised options to buy CA$2.3m worth of stock. On the 20th of June, Long Nghiem exercised options to buy 178k shares at a strike price of around CA$4.66, costing a total of CA$831k. This transaction amounted to 34% of their direct individual holding at the time of the trade. Since September 2023, Long's direct individual holding has decreased from 684.47k shares to 528.04k. Company insiders have collectively sold CA$9.8m more than they bought, via options and on-market transactions in the last 12 months. Recent Insider Transactions Derivative • Jun 20
VP of Finance & CFO exercised options to buy CA$695k worth of stock. On the 13th of June, Sandra Balic exercised options to buy 55k shares at a strike price of around CA$6.31, costing a total of CA$344k. This transaction amounted to 106% of their direct individual holding at the time of the trade. Since September 2023, Sandra's direct individual holding has decreased from 70.86k shares to 51.72k. Company insiders have collectively sold CA$11m more than they bought, via options and on-market transactions in the last 12 months. Price Target Changed • Jun 17
Price target increased by 7.7% to CA$13.14 Up from CA$12.20, the current price target is an average from 7 analysts. New target price is approximately in line with last closing price of CA$12.96. Stock is up 101% over the past year. The company is forecast to post earnings per share of CA$0.36 for next year compared to CA$0.32 last year. Price Target Changed • May 31
Price target increased by 7.5% to CA$12.58 Up from CA$11.70, the current price target is an average from 6 analysts. New target price is 6.8% below last closing price of CA$13.50. Stock is up 92% over the past year. The company is forecast to post earnings per share of CA$0.37 for next year compared to CA$0.32 last year. Valuation Update With 7 Day Price Move • May 29
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to CA$12.81, the stock trades at a forward P/E ratio of 34x. Average trailing P/E is 56x in the Software industry in Canada. Total returns to shareholders of 161% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at CA$14.25 per share. Recent Insider Transactions • May 28
Insider recently sold CA$609k worth of stock On the 27th of May, Robert Hicks sold around 50k shares on-market at roughly CA$12.17 per share. This transaction amounted to 31% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of CA$9.9m more than they bought in the last 12 months. Declared Dividend • May 26
Fourth quarter dividend of CA$0.05 announced Dividend of CA$0.05 is the same as last year. Ex-date: 6th June 2024 Payment date: 14th June 2024 Dividend yield will be 1.6%, which is higher than the industry average of 0.2%. Sustainability & Growth Dividend is covered by both earnings (67% earnings payout ratio) and cash flows (46% cash payout ratio). The dividend has decreased over the past 10 years, indicating a lack of growth and stability in payments. EPS is expected to grow by 30% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • May 23
Full year 2024 earnings released: EPS: CA$0.32 (vs CA$0.25 in FY 2023) Full year 2024 results: EPS: CA$0.32 (up from CA$0.25 in FY 2023). Revenue: CA$108.7m (up 47% from FY 2023). Net income: CA$26.3m (up 33% from FY 2023). Profit margin: 24% (down from 27% in FY 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 18% p.a. on average during the next 2 years, compared to a 18% growth forecast for the Software industry in Canada. Over the last 3 years on average, earnings per share has increased by 10% per year but the company’s share price has increased by 26% per year, which means it is tracking significantly ahead of earnings growth. Recent Insider Transactions • Apr 17
Vice Chairman of the Board recently sold CA$103k worth of stock On the 16th of April, Kenneth Dedeluk sold around 10k shares on-market at roughly CA$10.25 per share. This transaction amounted to 1.5% of their direct individual holding at the time of the trade. In the last 3 months, there was an even bigger sale from another insider worth CA$404k. Kenneth has been a net seller over the last 12 months, reducing personal holdings by CA$4.2m.