TSX:CGY

Stock Analysis Report

Executive Summary

Calian Group Ltd. provides systems engineering, manufacturing, training, information technology (IT), and healthcare solutions to industries and government in Canada, the United States, Europe, and internationally.

Snowflake

Fundamentals

Excellent balance sheet established dividend payer.

Share Price & News

How has Calian Group's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-1.8%

TSX:CGY

0.3%

CA Commercial Services

-0.2%

CA Market


1 Year Return

7.1%

TSX:CGY

-27.9%

CA Commercial Services

-2.8%

CA Market

CGY outperformed the Commercial Services industry which returned -28.6% over the past year.

CGY outperformed the Market in Canada which returned -2.8% over the past year.


Share holder returns

CGYIndustryMarket
7 Day-1.8%0.3%-0.2%
30 Day-1.0%-1.5%-0.4%
90 Day-1.0%-3.6%-2.3%
1 Year11.1%7.1%-25.5%-27.9%0.7%-2.8%
3 Year67.1%48.5%0.7%-7.4%18.1%7.6%
5 Year112.3%67.6%-33.4%-45.9%16.1%0.05%

Price Volatility Vs. Market

How volatile is Calian Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Calian Group undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Calian Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Calian Group's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Calian Group is good value based on earnings compared to the CA Commercial Services industry average.

Calian Group is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Calian Group is poor value based on expected growth next year.


Price Based on Value of Assets

Calian Group is overvalued based on assets compared to the CA Commercial Services industry average.


Next Steps

Future Growth

How is Calian Group expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Calian Group's revenue is expected to grow by 7.8% yearly, however this is not considered high growth (20% yearly).

Calian Group's earnings are expected to grow by 12.9% yearly, however this is not considered high growth (20% yearly).

Calian Group's revenue growth is expected to exceed the Canada market average.

Calian Group's earnings growth is positive but not above the Canada market average.

Calian Group's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Calian Group will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Calian Group performed over the past 5 years?

10.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Calian Group's year on year earnings growth rate has been positive over the past 5 years.

Calian Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Calian Group's 1-year earnings growth is negative, it can't be compared to the CA Commercial Services industry average.


Return on Equity

Calian Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Calian Group used its assets more efficiently than the CA Commercial Services industry average last year based on Return on Assets.


Return on Capital Employed

Calian Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Calian Group's financial position?


Financial Position Analysis

Calian Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Calian Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Calian Group's level of debt (16.2%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (0% vs 16.2% today).

Debt is well covered by operating cash flow (116.8%, greater than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 116.2x coverage).


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 7.1x debt.


Next Steps

Dividend

What is Calian Group's current dividend yield, its reliability and sustainability?

3.33%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Calian Group's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.07%).

Calian Group's dividend is below the markets top 25% of dividend payers in Canada (5.73%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.8x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.3x coverage).


Next Steps

Management

What is the CEO of Calian Group's salary, the management and board of directors tenure and is there insider trading?

0.5yrs

Average management tenure


CEO

Kevin Ford

4.3yrs

Tenure

CA$858,385

Compensation

Mr. Kevin Ford has been the Chief Executive Officer of Calian Ltd. since April 2015 and serves as its President. Mr. Ford has been the Chief Executive Officer and President of Calian Group Ltd. (alternate  ...


CEO Compensation Analysis

Kevin's remuneration is about average for companies of similar size in Canada.

Kevin's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

0.5yrs

Average Tenure

The average tenure for the Calian Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

6.6yrs

Average Tenure

The tenure for the Calian Group board of directors is about average.


Insider Trading

Calian Group individual insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$7,27227 May 19
Raymond Basler
EntityIndividual
Role
Member of the Board of Directors
Shares214
Max PriceCA$33.98
SellCA$181,25024 May 19
Raymond Basler
EntityIndividual
Role
Member of the Board of Directors
Shares5,400
Max PriceCA$33.62
SellCA$46,48819 Mar 19
Raymond Basler
EntityIndividual
Role
Member of the Board of Directors
Shares1,503
Max PriceCA$30.93
BuyCA$59613 Mar 19
Jacqueline Gauthier
EntityIndividual
Role
Senior Vice-President of Corporate Development
Shares20
Max PriceCA$29.80

Ownership Breakdown


Management Team

  • Jacqueline Gauthier

    Senior Vice-President of Corporate Development

    • Tenure: 0.3yrs
    • Compensation: CA$562.93k
  • Kevin Ford

    President

    • Tenure: 4.3yrs
    • Compensation: CA$858.39k
  • Patrick Thera

    VP & GM of Systems Engineering Division

    • Compensation: CA$494.89k
  • Patrick Houston

    CFO & Corporate Secretary

    • Tenure: 0.3yrs
  • Jerry Johnston

    Chief Information Officer

    • Tenure: 1.3yrs
    • Compensation: CA$411.09k
  • Sue Ivay

    Chief Human Resources Officer

    • Tenure: 0.5yrs

Board Members

  • Ken Loeb

    Chairman of the Board

    • Tenure: 12.7yrs
    • Compensation: CA$80.63k
  • Ray Basler

    Director

    • Tenure: 14.5yrs
    • Compensation: CA$53.75k
  • Rich Vickers

    Director

    • Tenure: 16.4yrs
    • Compensation: CA$53.75k
  • George Weber

    Director

    • Tenure: 6.6yrs
    • Compensation: CA$53.75k
  • Kevin Ford

    President

    • Tenure: 4.5yrs
    • Compensation: CA$858.39k
  • Young Park

    Director

    • Tenure: 1.8yrs
    • Compensation: CA$53.75k
  • Jo-Anne Poirier

    Director

    • Tenure: 3.3yrs
    • Compensation: CA$53.75k

Company Information

Calian Group Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Calian Group Ltd.
  • Ticker: CGY
  • Exchange: TSX
  • Founded: 1982
  • Industry: diversified support services
  • Sector: commercial services
  • Market Cap: CA$265.325m
  • Shares outstanding: 7.88m
  • Website: Click here

Number of Employees


Location

  • Calian Group Ltd.
  • 770 Palladium Drive
  • Suite 400
  • Ottawa
  • Ontario
  • K2V 1C8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CGYTSX (The Toronto Stock Exchange)YesCommon SharesCACADSep 1993
CLNF.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDSep 1993

Biography

Calian Group Ltd. provides systems engineering, manufacturing, training, information technology (IT), and healthcare solutions to industries and government in Canada, the United States, Europe, and interna ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/07/19 00:16
End of Day Share Price2019/07/18 00:00
Earnings2019/03/31
Annual Earnings2018/09/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.