Computer Modelling Group Ltd. (CMG.TO) develops and licenses reservoir simulation software, catering to both Canadian and international markets. The company boasts a strong gross margin of 79.7%, indicating efficient operations, but its net margin of only 4.8% raises concerns about profitability. Additionally, while the current ratio of 1.06 suggests adequate liquidity, the low return on equity (1.7%) and return on assets (0.7%) highlight potential inefficiencies. Overall, CMG's high margins contrast with its subdued valuation, warranting further scrutiny on growth prospects and operational effectiveness.
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No significant red flags identified
This company appears financially healthy on available metrics
Exceptional gross margin of 79.8% indicates strong pricing power and competitive moat.
Operating cash flow of $20.4M exceeds net income by 32%, indicating high-quality earnings with strong cash conversion.
Strong cash flow conversion with 16.4% of revenue converting to operating cash.
Strong balance sheet with net cash position provides cushion for growth investments.
Low debt-to-revenue ratio of 7.3% indicates conservative financial management.
Valuation, risk assessment, competitive positioning, and key insights — all in one report.
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Based on 2027-Q1 (June 30, 2026)