Calian Group Ltd. (CGY) AI Stock Analysis

• Market Cap: C$491.89M
• Dividend Yield: 2.77%
• Average Volume (3M): 37.93K
• Price to Earnings (P/E): 102.7
• Beta (1Y): 0.85
• Revenue Growth: 9.02%
• EPS Growth: -76.61%
• Country: CA
• Employees: 5,800
• Sector: Industrials
• Sector Strength: 72
• Industry: Corporate Services
• EPS (TTM): 0.39
• Shares Outstanding: 11,711,573
• 10 Day Avg. Volume: 41,881
• 30 Day Avg. Volume: 37,927
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.64
• Price to Cash Flow (P/CF): 27.40
• P/FCF Ratio: 27.40
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$65.00
• Price Target Upside: 54.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

Calian Group Ltd. shows robust revenue and cash flow growth, supported by strategic defense expansions and a solid balance sheet. However, high P/E ratio, declining margins, and bearish technical indicators present challenges. The reaffirmed guidance and strategic corporate events indicate confidence in overcoming these issues, resulting in a moderately positive outlook.

Calian Group Ltd. Business Overview & Revenue Model

Company Description

Calian Group Ltd operates through four segments namely Advanced Technologies, Health, Learning, and Information Technology. It generates maximum revenue from the Health segment. The company serves health, defence, security, aerospace, engineering, AgTech, and IT industries. Its Health segment includes Clinical Services; Nursing Services; Psychological Services and Medical Property Management. The Advanced Technologies segment includes Engineering Solutions and Services; Nuclear and Environmental Services; Satcom; DOCSIS; Electronics Design and Manufacturing and Agricultural Technology.

How the Company Makes Money

Calian Group Ltd. generates revenue through a diverse portfolio of services across its four main divisions. The healthcare segment provides staffing and management services to healthcare facilities, generating income through contracts with government and private sector clients. The IT and cyber solutions division offers consulting, managed services, and cybersecurity solutions, earning revenue from service fees and long-term contracts. The learning division provides custom training and education services for both private and public sector clients, including e-learning and traditional training programs. Lastly, the advanced technologies division focuses on providing engineering solutions and products for sectors like defense, aerospace, and communications, deriving income from product sales and development contracts. Calian's diverse client base and long-term contracts contribute significantly to its stable revenue streams.

Calian Group Ltd. Financial Statement Overview

Summary

Calian Group Ltd. demonstrates strong growth potential with significant revenue and cash flow improvements. However, the decline in profit margins and return on equity reflects areas that need addressing to enhance profitability and investor returns. The financial position is supported by a solid balance sheet with manageable debt levels, providing a stable foundation for future growth.

Income Statement

Calian Group Ltd. shows solid revenue growth with a 28.8% increase from 2022 to 2024 TTM, indicating strong business expansion. Gross profit margin for the TTM stands at 31.1%, reflecting efficient cost management. However, net profit margin decreased to 0.6%, indicating increased expenses or other financial pressures. The EBIT margin of 4.4% and EBITDA margin of 7.8% suggest moderate profitability.

Balance Sheet

The company's debt-to-equity ratio of 0.49 in TTM indicates a balanced approach to leveraging debt, and an equity ratio of 44.8% suggests a strong equity base. However, return on equity has decreased to 1.4%, reflecting potential challenges in generating returns from equity investments.

Cash Flow

Operating cash flow is robust at CAD 74.1 million in TTM, with a healthy free cash flow of CAD 63.5 million. The free cash flow to net income ratio is strong, highlighting effective cash conversion. While free cash flow growth has been positive, the operating cash flow to net income ratio indicates some disparity between cash generation and reported earnings.

Breakdown
TTM	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement		Total Revenue
752.48M	746.61M	658.58M	582.17M	518.40M	432.32M
	Gross Profit
233.69M	254.01M	204.21M	169.23M	126.74M	89.16M
	EBIT
33.20M	43.71M	37.57M	30.46M	28.85M	25.90M
	EBITDA
58.47M	70.78M	59.27M	56.06M	37.59M	38.79M
	Net Income Common Stockholders
4.68M	11.18M	18.89M	13.60M	11.15M	20.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
59.80M	51.79M	33.73M	42.65M	78.61M	24.23M
	Total Assets
726.67M	707.92M	585.72M	547.16M	457.97M	331.05M
	Total Debt
160.73M	129.19M	74.76M	26.54M	17.48M	19.59M
	Net Debt
100.94M	77.41M	41.02M	-16.11M	-61.13M	-4.64M
	Total Liabilities
401.04M	381.17M	257.35M	241.98M	165.61M	130.65M
	Stockholders Equity
325.64M	326.75M	328.37M	305.19M	292.36M	200.41M
Cash Flow		Free Cash Flow
63.53M	75.42M	48.34M	35.82M	38.69M	-8.55M
	Operating Cash Flow
74.06M	87.22M	56.77M	43.14M	46.54M	-2.75M
	Investing Cash Flow
-62.16M	-99.67M	-79.62M	-72.89M	-56.61M	-35.19M
	Financing Cash Flow
-3.13M	30.50M	13.94M	-6.21M	64.44M	45.04M

Calian Group Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 42.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CGY, the sentiment is Neutral. The current price of 42 is above the 20-day moving average (MA) of 41.97, below the 50-day MA of 46.22, and below the 200-day MA of 48.55, indicating a neutral trend. The MACD of -1.66 indicates Negative momentum. The RSI at 43.88 is Neutral, neither overbought nor oversold. The STOCH value of 53.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CGY.

Calian Group Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDA	79 Outperform	C$3.41B	42.37	7.09%	―	33.74%	61.09%
CGY	69 Neutral	C$491.89M	102.71	1.43%	2.77%	9.02%	-76.61%
Sector *	61 Neutral	$8.21B	13.22	1.07%	3.07%	3.78%	-16.88%

Calian Group Ltd. Corporate Events

Calian Group Ltd. Boosts Share Repurchase Strategy Amid Market Undervaluation

Calian Group Ltd. announced plans to increase its share repurchases through block trades, aiming to buy back approximately 250,000 shares worth around $10 million. This decision comes as the company experiences a share price at five-year lows despite consecutive record years of revenue and adjusted EBITDA. Calian’s CEO, Kevin Ford, emphasized the company’s growth potential and the market’s underestimation of its opportunities in defense, space, and healthcare sectors. The move is part of Calian’s strategy to enhance shareholder value and align with its M&A agenda, which remains a top priority for capital allocation.

Calian Group Ltd. Announces Director Election Results

Calian Group Ltd. announced the results of the election of directors during their Annual Meeting of Shareholders held on February 13, 2025. The voting results showed strong support for the nominees, with Josh Blair, Kevin Ford, and other directors receiving high approval ratings. This announcement underscores Calian’s commitment to maintaining a robust leadership team, which is crucial for its strategic operations and market positioning.

Calian Group Reports Record Q1 Revenue Amid Strategic Expansion

Calian Group Ltd. reported a 3% increase in first-quarter revenue to $185 million, marking its highest first-quarter revenue on record. Despite this growth, adjusted EBITDA fell by 17% to $18 million, influenced by changes in revenue mix and increased sales and delivery investments. The company also announced the formation of a new U.S. subsidiary to focus on government and defense sectors, highlighting its strategic focus on expanding its footprint in these areas amidst rising global defense demands.

Calian Group Hits Record Q1 Revenue Amid Global Defence Demand

Calian Group Ltd. reported its highest first-quarter revenue on record with a 3% increase to $185 million, despite a decline in organic growth offset by acquisitions. The company faces a reduction in profitability due to increased operational expenses and amortization charges, but remains optimistic about its future prospects, driven by global demand for defence solutions and potential increased military investment in Canada.

Calian Group Secures Over $50M in Defense Contracts for 2025

Calian Group Ltd. announced securing over $50 million in new and renewed multi-year defense contracts in Q1 of fiscal 2025, reflecting the increasing demand for global security and operational readiness solutions. The contracts include providing operational readiness training for NATO, highlighting Calian’s role in enhancing military preparedness and strengthening its industry positioning, thereby reinforcing its commitment to delivering mission-critical solutions for military forces worldwide.

Calian Group Ltd. Schedules Conference Call for Q1 FY 2025 Results

Calian Group Ltd. announced it will hold a conference call on February 13, 2025, to discuss its first quarter FY 2025 results, covering the period ending December 31, 2024. The call is open to financial and media participants, and highlights the company’s ongoing commitment to transparency and stakeholder engagement.

Calian Group Expands Defence Leadership with Strategic Appointment

Calian Group Ltd. has appointed Major-General (Ret.) Roch Pelletier as Regional Vice President of Global Defence & Security for Europe, the U.K., and NATO. This strategic move aims to enhance Calian’s defence business by leveraging increased global military spending and the demand for advanced technologies, strengthening partnerships, and enhancing operational support. Major-General Pelletier’s extensive experience in national defence strategy and international collaboration is expected to advance Calian’s IT, cybersecurity, and advanced training capabilities, aligning with global priorities on defence modernization and NATO collaboration.

Calian US Expands Leadership to Boost Communication Solutions

Calian US, Inc. has strengthened its leadership team by appointing Tony Rayner as Chief Operating Officer and Paul Attner as Senior Vice President of U.S. Government Services. These strategic additions aim to bolster Calian US’s capabilities in providing cutting-edge communication solutions, particularly to the U.S. government, leveraging the expertise and resources of its parent company, Calian Group Ltd. The company is also set to introduce innovative products like a ‘monitoring-as-a-service’ product for RF signal management, further enhancing its service offerings.