Computer Modelling Group (TSX: CMG and OTCPK: CMDXF) Part 3

Valuation

*** All data were taken from TIKR unless otherwise noted. ***

Revenue

CMG’s revenues since FY 2002 are displayed in the screencaps below.

The revenue CAGR from FY 2002 through FY 2025 was 11.29%. Not white-hot growth, but still very respectable. Top line growth increased noticeably over the previous two fiscal years due to acquisitions. Using FY 2023 as the end of the measurement period would’ve dropped CMG’s revenue CAGR to 9.55%.

A worrying sign from the FY 2025 Annual Report was that organic revenues were down (1%) for the year. That trend continued through Q1 FY 2026 where organic revenues were down (8%). Total revenues decreased (3%) to CA$ 29.6 million in FY 2026 Q1.

Computer Modelling Group trades at <4x FY 2025 revenue given its current market capitalization of CA$ ~500 million.

Balance Sheet

CMG’s balance sheet since FY 2011 is displayed in the screencaps below. I started there because the amount of time between then and now is, in my opinion, a sufficient period to measure business performance. It also fits nicely into a screencap on my monitor. Before you ask, the answer is, “No. I didn’t find anything concerning on the balance sheet before FY 2011 that deserved further analysis.”

CMG has a pristine balance sheet. Its only real form of debt are the capital leases. Intangibles have popped over the last two fiscal years due to acquisitions. Moving on.

Real Free Cash Flow (RFCF)

My RFCF calculations for Computer Modelling Group are shown in the screencaps below. I define RFCF as Operating Cash Flow minus Stock Based Compensation minus CapEx.