Computer Modelling GroupTSX:CMG -2.70%75 ROE % is 26.21% as of Mar. 2026, which is 36% below its 10-year median of 40.99. GuruFocus rates TSX:CMG with a GF Score™ of 75/100 and a GF Value™ of C$11.03 (Significantly Undervalued). The stock has 5 warning signs investors should review. Among 2,681 Software companies, Computer Modelling Group ranks better than 82.47% on this metric.
The historical rank and industry rank for Computer Modelling Group's ROE % or its related term are showing as below:
TSX:CMG'
s ROE % Range Over the Past 10 Years
Min: 20.46 Med: 40.99 Max: 54.86
Current: 20.46
During the past 13 years, Computer Modelling Group's highest ROE % was 54.86%. The lowest was 20.46%. And the median was 40.99%.
TSX:CMG's ROE % is ranked better than 82.47% of 2681
companies
in the Software industry
Industry Median: 4.73
vs TSX:CMG: 20.46
Computer Modelling Group (TSX:CMG) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Computer Modelling Group's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Computer Modelling Group ROE % vs Software Industry
For the Software industry and Technology sector, Computer Modelling Group's ROE % distribution charts can be found below:
* The bar in red indicates where Computer Modelling Group's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Computer Modelling Group (TSX:CMG) has a ROE % of 26.21% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Computer Modelling Group and its competitors. This is 36% below median its historical median of 40.99. Over the past decade, Computer Modelling Group's ROE % has ranged from 20.46 to 54.86. According to the industry distribution chart, Computer Modelling Group ranks #470 out of 2681 companies in the Software industry, placing it in the top 17.5%.
Is Computer Modelling Group's ROE % too high?
Computer Modelling Group's current ROE % of 26.21% is 36% below median its 10-year median of 40.99. Over the past 10 years, this metric has ranged from a low of 20.46 to a high of 54.86. The Software industry median ROE % is 4.73. Computer Modelling Group's value of 26.21% is 454.1% above this industry median. Based on the distribution chart, Computer Modelling Group ranks #470 out of 2681 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Computer Modelling Group has a GF Score™ of 75/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Computer Modelling Group's ROE % compare to CRM and SHOP?
According to the Software industry distribution chart, Computer Modelling Group ranks #470 out of 2681 companies for ROE %. This places Computer Modelling Group in the top 18% of its industry — outperforming the majority of peers. The industry median ROE % is 4.73. Computer Modelling Group's value of 26.21% is 454.1% above this benchmark. Historically, Computer Modelling Group's own ROE % has ranged from 20.46 to 54.86 over the past decade. While the company's 10-year median is 40.99 vs. the industry median of 4.73, Computer Modelling Group has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Software company?
The median ROE % among Software companies is 4.73, based on 2,681 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Computer Modelling Group's current ROE % of 26.21% is 454.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Computer Modelling Group and its competitors. For the Software industry, the median ROE % is 4.73 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Computer Modelling Group's current ROE % is 26.21%, which is 36% below median its own 10-year median of 40.99. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Computer Modelling Group stock overvalued right now?
Based on GuruFocus' analysis, Computer Modelling Group (TSX:CMG) is currently considered Significantly Undervalued. The stock's GF Value™ is C$11.03, compared to a current price of C$3.61 — trading 67.3% below its estimated fair value. The current ROE % is 26.21%, which is 36% below median its 10-year median of 40.99 and 454.1% above the Software industry median of 4.73. Computer Modelling Group's overall GF Score™ is 75/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Computer Modelling Group (TSX:CMG), the current ROE % is 26.21% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Computer Modelling Group (TSX:CMG) Overvalued in 2026?
Based on GuruFocus' analysis, Computer Modelling Group stock appears to be undervalued.
The current stock price of C$3.61 is trading 67.3% below its estimated GF Value™ of C$11.03.
GuruFocus considers Computer Modelling Group to be Significantly Undervalued.
Key valuation signals for TSX:CMG:
ROE %: 26.21% (36% below median its 10-year median of 40.99)
GF Value™: C$11.03 vs. price of C$3.61 (67.3% below fair value)
Industry Position: 454.1% above the Software median (#470 of 2681)
No single metric tells the full story. See the TSX:CMG stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Computer Modelling Group Ltd is a software and consulting technology company engaged in developing and licensing reservoir simulation and seismic interpretation software. The company also provides professional services consisting of highly specialized support, consulting, training, and contract research activities. The firm has operations in the Americas, Europe, Middle East, Africa, and Asia-Pacific regions.
75GF Score
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