# Computer Modelling Group Ltd. (CMG.TO) fundamentals

Data as of 2026-09-08. TSX, Canada. Sector: Technology / Software. Price C$3.79, market value C$315 million.

## Valuation
- **P/E (trailing): 19.9×** (5-yr avg 26.0×, 3-yr avg 26.8×). Computer Modelling Group Ltd. trades at 19.9× trailing earnings, well below its own five-year average of 26.0×: cheap by its own standards. The Technology median in the September 2026 study was 32.1×. Forward P/E is 12.2×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 2.5×**. Each dollar of revenue is priced at 2.5×.
- **Price / book: 3.7×**. The shares trade at 3.7× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 9.2×**. Enterprise value is 9.2× operating earnings before depreciation, the multiple that ignores how the company is financed.
- **Free-cash-flow yield: 5.8%** (5-yr avg 5.6%). Free cash flow equals 5.8% of the market value, in line with its five-year average of 5.6%. Above 5% is generally attractive.
- **Earnings yield: 5.0%**. The inverse of the P/E: 5.0% of the price is earned each year.

## Profitability
- **Gross margin: 77.9%**. Computer Modelling Group Ltd. keeps 77.9% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 20.6%**. 20.6% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 13.8%**. 13.8% of each dollar of sales reaches the bottom line.
- **Return on equity: 22.2%**. 22.2% on shareholders' equity is excellent if it is not driven by leverage; sustained above 20% usually signals a competitive advantage.
- **Return on invested capital: 18.9%**. Return on all capital, debt included, is 18.9%: comfortably above what that capital costs.
- **Return on assets: 7.8%**. Each dollar of assets produces 7.8% of profit.

## Growth
- **Revenue growth (1 yr): -2.5%** (3-yr 19.6%/yr, 5-yr 13.4%/yr). Revenue fell 2.5% over the last year, against 13.4% a year compounded over five years: growth is slowing.
- **EPS growth (1 yr): -22.2%** (3-yr -4.4%/yr, 5-yr -3.4%/yr). Earnings per share fell 22.2%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): 6.4%/yr**. Free cash flow has compounded at 6.4% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 0.55**. Debt is 0.55 times equity, moderate leverage.
- **Net debt / EBITDA: 0.4×**. It would take 0.4 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 11.3×**. Operating profit covers interest 11.3× over, a safe margin.
- **Current ratio: 1.00** (quick 1.00). Current assets cover the next year's liabilities 1.00 times.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.06%** (C$0.04 per share, trailing). Computer Modelling Group Ltd. yields 1.06%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 38%** (18% of free cash flow). 38% of earnings goes out as dividends, leaving room to keep raising it.
- **Dividend growth (5 yr): -13.7%/yr** (1-yr -40.0%). The dividend has not grown over five years.
- **Shareholder yield: 8.2%**. Dividends plus net buybacks return 8.2% of the market value a year.

## Price and momentum
- **Total return (1 yr): -38.0%** (YTD -27.0%, 3-mo 0.8%). The shares are down 38.0% over twelve months including dividends.
- **From 52-week high: -44.7%** (11.5% above the low). Trading 45% below its 52-week high, deep in a drawdown.
- **200-day average: below**. The price sits below its 200-day moving average, the usual definition of a downtrend.
- **RSI (14-day): 45**. An RSI of 45 is neutral.
- **Beta (1 yr): 0.75** (volatility 39%). Beta of 0.75 against the S&P/TSX Composite: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=CMG.TO · Page: https://foliofundamentals.com/stocks/cmg.to

Not investment advice.