Computer Modelling Group Ltd.

I own this stock of Computer Modelling Group Ltd. (TSX-CMG, OTC-CMDXF). I first bought this stock in July 2008. I was looking for something to buy. This company is a dividend paying growth stock that would also be considered to be a small cap with a capitalization of around $115 million. Insiders are currently buying this stock. It has great growth and it is in information technology, a favourite sector of mine.

Not only has this stock given out special dividends each year, usually around $0.03 per share, they have also increased their dividends over the past 5 and 9 years at the rate of 23% and 38% per year. They are also paying out over 100% of the earnings and 100% of the cash flow between the regular and special dividends.

The thing is they are selling software. Once the software is built they can sell it over and over again to different companies. They are basically given out in dividends all that they can.

Since I initially bought this stock I have made a return of 38.92% per year with 33.13% per year from capital gains and 5.79% per year from dividends. The total return over the past 5 and 10 years is at 36.44% per year and 46.52% per year. The portion of these returns attributable to dividends is at 5.20% and 8.17% per year and the portion of these returns attributable to capital gains is at 31.24% and 38.35% per year.

The outstanding shares have increased by 2.6% and 2.3% per year over the past 5 and 10 years. Shares have increased due to Stock Options and they have decreased due to Buy Backs. Growth in revenue, earnings and cash flow has been good, especially over the past 10 years.

Revenue per Share is up by 8.34% and 16.96% per year over the past 5 and 10 years. EPS are up by 8.1% and 23.8% per year over the past 5 and 10 years. Cash Flow per Share has increased by 5.75% and 19.9% per year over the past 5 and 10 years.

The 5 year grown is low because exactly 5 years ago was a year of very good growth for the company. If you look at 5 year running averages, the 5 year growth is much better. For example, using 5 year running averages the Cash Flow per Share is at 19.4% and 25.8% per year over the past 5 and 10 years.

Ever since the company started to earn profits in 2001, the Return on Equity has been over 10% each year. The ROE for the financial year ending on March 31, 2014 is 43.7%. The 5 year median is 48%. The comprehensive income is the same as the net income.

All the debt ratios are very good. The Liquidity Ratio is 2.73. The Debt Ratios is 2.70. The Leverage and Debt/Equity Ratios are 1.59 and 0.59.

I have done very well in this stock. It has just recently done another 2 for 1 stock split. This is a tech stock, so I sold half my shares in 2011 to lock in my profit. Sound bit for Twitter and StockTwits is: Company is a dividend growth tech stock. See my spreadsheet at hse.htm.

This is the first of two parts. The second part will be posted on Wednesday, July 16, 2014 and will be available here. The first part talks about the stock and the second part talks about the stock price.

Computer Modelling Group Ltd. is a computer software technology and consulting company serving the oil and gas industry. CMG is the leading supplier of advanced processes reservoir modelling software in the world with a blue chip client base of international oil companies and technology centers in approximately 50 countries. Its web site is here Computer Modelling Group.

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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