CMG Buys Rose Subsurface Assessment to Deepen Subsurface Risk Capabilities
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Computer Modelling ( (TSE:CMG) ) just unveiled an update.
Computer Modelling Group has acquired Rose Subsurface Assessment, a leading provider of probabilistic subsurface risk analysis and resource assessment software, training, consulting and operator consortium services for the global exploration and production sector. Rose’s flagship Geo Risk Analysis Studio supports risk-informed decisions in oil and gas and carbon capture and storage projects, and the business generates about USD$6.8 million in trailing annual revenue, with more than half from recurring contracts.
The USD$9.8 million deal, which includes cash at closing, a customary holdback and up to USD$2.5 million in performance-based earn-outs, will see Rose managing partner Peter Carragher become general manager within CMG. By integrating Rose’s calibrated risk methodologies, long-standing operator consortiums and deep customer relationships, CMG strengthens its geoscience capabilities and extends its subsurface workflow offering, potentially enhancing its competitive position and recurring revenue base in the exploration and new energy markets.
The most recent analyst rating on (TSE:CMG) stock is a Hold with a C$4.00 price target. To see the full list of analyst forecasts on Computer Modelling stock, see the TSE:CMG Stock Forecast page.
Spark’s Take on CMG Stock
According to Spark, TipRanks’ AI Analyst, CMG is a Neutral.
The score is driven primarily by solid underlying financial quality (high margins and improving leverage) but is held back by a meaningful deterioration in recent fundamentals (slightly negative TTM revenue and sharply lower free cash flow) and a strongly bearish technical setup with the stock trading well below key moving averages and weak momentum indicators. Valuation is moderately supportive with a reasonable P/E and ~3% dividend yield.
To see Spark’s full report on CMG stock, click here.
More about Computer Modelling
Computer Modelling Group Ltd. is a Calgary-based global software and consulting company specializing in science- and technology-driven solutions for complex subsurface and surface challenges in the new energy industry. Its offerings include seismic and reservoir simulation tools used by exploration and production operators worldwide, with a growing focus on workflows that support both traditional oil and gas and emerging low-carbon projects.
Average Trading Volume: 243,402
Technical Sentiment Signal: Sell
Current Market Cap: C$293.3M
See more insights into CMG stock on TipRanks’ Stock Analysis page.
