- Computer Modelling Group reported earnings per share (EPS) of C$0.030 for the second quarter, falling short of last year’s EPS of C$0.050 and the projected estimate of C$0.040.
- The company’s revenue increased by 2.5% year over year, reaching C$30.2 million, exceeding the estimate of C$28.2 million.
- Adjusted EBITDA was recorded at C$7.56 million, which is a 24% decline compared to the previous year but still above the estimated C$6.69 million.
- Higher revenue is anticipated in the latter half of the year due to the timing of seasonal contract renewals and revenue recognition.
- Analyst ratings indicate 3 buy recommendations and 4 hold recommendations, with no sell recommendations noted.
Computer Modelling on Smartkarma
Analysts on Smartkarma are closely following Computer Modelling Group Ltd (CMG.), with insightful reports from Value Investors Club (VIC). The report highlights CMG’s specialization in unconventional reservoir simulation software for oil and gas, along with its CAD570 million market cap and 65-70% recurring revenue. The company is undergoing a transformation towards a more commercially-focused approach, driven by major shareholder Edgepoint Investment Group and Constellation Software’s influence. Despite recent diversifications through acquisitions and revenue growth surpassing CAD100 million, CMG faced a significant 45% stock value decline in FY2025 due to fluctuating oil prices, as reported in the article published 3 months ago by Value Investors Club.
A look at Computer Modelling Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 2 | |
| OVERALL SMART SCORE | 3.0 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Computer Modelling Group Ltd., an international firm specializing in oil and gas reservoir simulation software, shows a promising outlook based on the Smartkarma Smart Scores. The company receives solid ratings across several key factors including value, dividend, and growth, all scoring at a moderate level. Moreover, its high resilience score indicates a strong ability to weather market fluctuations, which is crucial for long-term success. However, the momentum score lags a bit behind, suggesting some challenges in maintaining investor interest and market traction.
Despite the mixed momentum score, Computer Modelling‘s overall outlook appears stable and poised for growth, thanks to its robust fundamentals highlighted by the Smartkarma Smart Scores. With its focus on developing and licensing cutting-edge software for oil and gas extraction, the firm continues to serve a vital role in helping petroleum companies optimize their reservoirs worldwide. This positions Computer Modelling Group Ltd. as a reputable player in the industry with potential for sustained success in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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