Executive Summary
Computer Modelling Group Ltd., a computer software technology company, develops and licenses reservoir simulation software in Canada.
Rewards
Risk Analysis
Snowflake Analysis
Flawless balance sheet with acceptable track record.
Share Price & News
How has Computer Modelling Group's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: CMG has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-5.3%
CMG
2.5%
CA Energy Services
0.6%
CA Market
1 Year Return
21.3%
CMG
-32.8%
CA Energy Services
5.8%
CA Market
Return vs Industry: CMG exceeded the Canadian Energy Services industry which returned -32.8% over the past year.
Return vs Market: CMG exceeded the Canadian Market which returned 5.8% over the past year.
Shareholder returns
| CMG | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.3% | 2.5% | 0.6% |
| 30 Day | -4.5% | -3.1% | 0.5% |
| 90 Day | -6.1% | 4.0% | 3.6% |
| 1 Year | 28.5%21.3% | -30.6%-32.8% | 9.1%5.8% |
| 3 Year | -12.1%-24.1% | -54.3%-57.6% | 15.4%5.0% |
| 5 Year | -21.8%-37.4% | -57.5%-62.5% | 33.6%14.0% |
Price Volatility Vs. Market
How volatile is Computer Modelling Group's share price compared to the market and industry in the last 5 years?
Simply Wall St News
3 days ago | Simply Wall St
Earnings Miss: Computer Modelling Group Ltd. Missed EPS By 14% And Analysts Are Revising Their Forecasts1 week ago | Simply Wall St
Is Computer Modelling Group Ltd.'s (TSE:CMG) High P/E Ratio A Problem For Investors?3 weeks ago | Simply Wall St
What Kind Of Shareholder Appears On The Computer Modelling Group Ltd.'s (TSE:CMG) Shareholder Register?Valuation
Is Computer Modelling Group undervalued compared to its fair value and its price relative to the market?
28.2x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: CMG (CA$7.87) is trading above our estimate of fair value (CA$6.59)
Significantly Below Fair Value: CMG is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: CMG is poor value based on its PE Ratio (28.2x) compared to the Energy Services industry average (14.8x).
PE vs Market: CMG is poor value based on its PE Ratio (28.2x) compared to the Canadian market (15.9x).
Price to Earnings Growth Ratio
PEG Ratio: CMG is poor value based on its PEG Ratio (8.9x)
Price to Book Ratio
PB vs Industry: CMG is overvalued based on its PB Ratio (16.1x) compared to the CA Energy Services industry average (0.7x).
Next Steps
Future Growth
How is Computer Modelling Group forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?
3.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CMG's forecast earnings growth (3.2% per year) is above the savings rate (1.4%).
Earnings vs Market: CMG's earnings (3.2% per year) are forecast to grow slower than the Canadian market (10.4% per year).
High Growth Earnings: CMG's earnings are forecast to grow, but not significantly.
Revenue vs Market: CMG's revenue (3.7% per year) is forecast to grow slower than the Canadian market (4.9% per year).
High Growth Revenue: CMG's revenue (3.7% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: CMG's Return on Equity is forecast to be very high in 3 years time (78.7%).
Next Steps
Past Performance
How has Computer Modelling Group performed over the past 5 years?
-9.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CMG has high quality earnings.
Growing Profit Margin: CMG's current net profit margins (28.6%) are lower than last year (30.5%).
Past Earnings Growth Analysis
Earnings Trend: CMG's earnings have declined by -9.2% per year over the past 5 years.
Accelerating Growth: CMG's earnings growth over the past year (0.4%) exceeds its 5-year average (-9.2% per year).
Earnings vs Industry: CMG earnings growth over the past year (0.4%) underperformed the Energy Services industry 26.1%.
Return on Equity
High ROE: CMG's Return on Equity (57.2%) is considered outstanding.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Computer Modelling Group's financial position?
Financial Position Analysis
Short Term Liabilities: CMG's short term assets (CA$50.0M) exceed its short term liabilities (CA$22.9M).
Long Term Liabilities: CMG's short term assets (CA$50.0M) exceed its long term liabilities (CA$41.3M).
Debt to Equity History and Analysis
Debt Level: CMG is debt free.
Reducing Debt: CMG has not had any debt for past 5 years.
Debt Coverage: CMG has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: CMG has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Inventory Level: CMG has a high level of physical assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if CMG's debt is covered by short term assets.
Next Steps
Dividend
What is Computer Modelling Group's current dividend yield, its reliability and sustainability?
5.08%
Current Dividend Yield
Upcoming Dividend Payment
Purchase Computer Modelling Group before the 'Buy Limit' to receive their next dividend payment.
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: CMG's dividend (5.08%) is higher than the bottom 25% of dividend payers in the Canadian market (1.91%).
High Dividend: CMG's dividend (5.08%) is low compared to the top 25% of dividend payers in the Canadian market (5.32%).
Stability and Growth of Payments
Stable Dividend: CMG's dividend payments have been volatile in the past 10 years.
Growing Dividend: CMG's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: With its high payout ratio (143.3%), CMG's dividend payments are not well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
5.5yrs
Average management tenure
CEO
Ryan Schneider (42yo)
1.6yrs
Tenure
CA$900,112
Compensation
Mr. Ryan N. Schneider has been President, Chief Executive Officer and Director of Computer Modelling Group Ltd., since July 12, 2018. Mr. Schneider served as the Chief Operating Officer at Computer Modelli ...
CEO Compensation Analysis
Compensation vs Market: Ryan's total compensation ($USD679.22K) is about average for companies of similar size in the Canadian market ($USD963.71K).
Compensation vs Earnings: Ryan's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.6yrs | CA$900.11k | 0.034% CA$213.8k | |
| VP of Finance & CFO | 6.4yrs | CA$478.86k | 0.078% CA$493.4k | |
| CTO and VP of Research & Development | 1yrs | CA$586.46k | 0.98% CA$6.2m | |
| Vice President of USA & Latin America | 11.7yrs | CA$646.07k | 0.080% CA$504.5k | |
| Vice President of Eastern Hemisphere | 6.8yrs | CA$573.22k | 0.37% CA$2.3m | |
| Manager of Administration & Compliance | 0yrs | no data | no data | |
| Vice President of Engineering Solutions & Marketing | 4.6yrs | no data | 0.086% CA$544.8k | |
| Corporate Secretary | 0yrs | no data | no data |
5.5yrs
Average Tenure
Experienced Management: CMG's management team is seasoned and experienced (5.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 1.6yrs | CA$900.11k | 0.034% CA$213.8k | |
| Chairman of the Board | 2.6yrs | CA$146.72k | 0.13% CA$822.4k | |
| Independent Director | 15.7yrs | CA$122.15k | 0.057% CA$362.0k | |
| Vice Chairman of the Board | 1.6yrs | CA$760.62k | 2.09% CA$13.2m | |
| Independent Director | 21.5yrs | CA$117.42k | 0.028% CA$177.1k | |
| Director | 0.3yrs | no data | no data | |
| Independent Director | 12.8yrs | CA$112.42k | 0.015% CA$93.5k | |
| Independent Director | 2.6yrs | CA$103.15k | 0.017% CA$109.6k | |
| Independent Director | 8yrs | CA$105.15k | 0.024% CA$149.6k |
2.6yrs
Average Tenure
67yo
Average Age
Experienced Board: CMG's board of directors are not considered experienced ( 2.6 years average tenure), which suggests a new board.
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: CMG insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Computer Modelling Group Ltd.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Computer Modelling Group Ltd.
- Ticker: CMG
- Exchange: TSX
- Founded: 1978
- Industry: Oil and Gas Equipment and Services
- Sector: Energy
- Market Cap: CA$631.558m
- Shares outstanding: 80.25m
- Website: https://www.cmgl.ca
Number of Employees
Location
- Computer Modelling Group Ltd.
- 3710 33 Street NW
- Calgary
- Alberta
- T2L 2M1
- Canada
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CMG | TSX (The Toronto Stock Exchange) | Yes | Common Shares | CA | CAD | Apr 1997 |
| 5TJ | DB (Deutsche Boerse AG) | Yes | Common Shares | DE | EUR | Apr 1997 |
| CMDX.F | OTCPK (Pink Sheets LLC) | Yes | Common Shares | US | USD | Apr 1997 |
Biography
Computer Modelling Group Ltd., a computer software technology company, develops and licenses reservoir simulation software in Canada. The company offers CMOST AI, an intelligent optimization and analysis tool that offers solution for its reservoir by combining statistical analysis, machine learning, and non-biased data interpretation; IMEX, a black oil simulator that is used to model primary and secondary oil recovery processes in conventional and unconventional oil/gas reservoirs; GEM, an equation-of-state reservoir simulator for compositional, chemical, and unconventional reservoir modelling; STARS, a thermal and processes reservoir simulator for the modelling of steam, solvents, air, and chemical recovery processes; and CoFlow, a reservoir and production system modelling software that allows reservoir and production engineers to collaborate on the same asset. It also provides Builder, a pre-processor that simplifies the creation of simulation models by providing a framework for data integration and workflow management between various data sources; Results, a post-processor that helps in enhancing understanding and insight into recovery processes and reservoir performance; and WinProp, a fluid property characterization tool, as well as Autotune artificial intelligence solutions. In addition, the company provides professional services comprising support, consulting, training, and contract research services. It also sells its products and services in approximately 60 countries. Computer Modelling Group Ltd. was founded in 1978 and is headquartered in Calgary, Canada.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/16 23:55 |
| End of Day Share Price | 2020/02/14 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.