CLMB Stock Fair Value Calculation – CLIMB GLOBAL SOLUTIONS Releases Earnings Results for Q2 of FY2023
August 23, 2023
☀️Earnings Overview
CLIMB GLOBAL SOLUTIONS ($NASDAQ:CLMB) revealed their earnings for Q2 of FY2023, which ended on June 30 2023, on August 3 2023. For the quarter, total revenue totaled USD 81.7 million, representing a 20.4% increase from Q2 of FY2022. Unfortunately, net income experienced a 50.5% decrease year over year, standing at USD 1.4 million.
Stock Price
The stock opened at $41.1 and closed at $38.4, a plunge by 19.7% from its previous closing price of 47.8. The company reported an increase in revenue by 3% but, the margin of earnings was lower than expected due to higher expenses in the quarter. Market analysts are now concerned that this earnings result may affect the company’s future growth prospects and have a long-term impact on shareholder value. Investors are also concerned about the stock’s performance and have started to look for alternatives in the market. CLIMB GLOBAL SOLUTIONS is now looking to take corrective measures and focus more on cost optimization to improve their profits in the upcoming quarters.
The company’s management is confident of recovering from this setback and has assured investors that they will continue to pursue a strategy of sustainable growth through innovation and customer focus. They are hoping that with better cost and revenue management, the stock will start to trend upwards in the near future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for CLMB. More…
| Total Revenues | Net Income | Net Margin |
| 331.94 | 11.42 | 3.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for CLMB. More…
| Operations | Investing | Financing |
| 32.91 | -13.39 | -5.55 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for CLMB. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 233.7 | 166.72 | 14.66 |
Key Ratios Snapshot
Some of the financial key ratios for CLMB are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 12.6% | 32.6% | 4.9% |
| FCF Margin | ROE | ROA |
| 8.4% | 15.4% | 4.3% |
Analysis – CLMB Stock Fair Value Calculation
At GoodWhale, we have carefully analyzed CLIMB GLOBAL SOLUTIONS’ fundamentals and have calculated the intrinsic value of their stock to be around $35.2. This valuation is based on our proprietary Valuation Line, which uses a combination of factors like market capitalization, dividend yield, and price-to-earnings ratio. Currently, CLIMB GLOBAL SOLUTIONS’ stock is trading at $38.4, which is a fair price but is slightly overvalued by 9.2%. We believe that the current valuation might be a good opportunity for investors to capitalize on the potential of CLIMB GLOBAL SOLUTIONS. More…
Peers
It stands out from its competitors, Compuage Infocom Ltd, TD Synnex Corp, and Procurri Corp Ltd, with its vast selection of products and services tailored to meet the evolving needs of customers. Its focus on customer satisfaction and innovative solutions has enabled it to provide customers with the best possible outcomes.
– Compuage Infocom Ltd ($BSE:532456)
Compuage Infocom Ltd is an India-based company providing ICT (Information and Communication Technology) solutions. With a market cap of 1.38B, the company has a strong presence in the ICT industry and has achieved impressive growth over the years. Its Return on Equity (ROE) of 29.82% is a testament to its success in maximizing shareholder value and delivering attractive returns to its investors. The company offers a wide range of products and services such as mobility solutions, security, networking, data centre solutions, enterprise applications, and cloud services. Compuage Infocom Ltd has built a strong customer base across the world, including in India, the Middle East, Africa, and South East Asia.
– TD Synnex Corp ($NYSE:SNX)
Synnex Corp is a business process services company, specializing in business and IT solutions, supply chain solutions, and customer engagement services. It is a Fortune 500 company with a market cap of 9.16 billion as of 2023. This market capitalization reflects the company’s strength in both sales and profitability. The company’s return on equity (ROE) stands at 8.31%, demonstrating a good performance and ability to generate profits from its investments. This strong financial performance has enabled Synnex to expand its operations both domestically and internationally.
– Procurri Corp Ltd ($SGX:BVQ)
Procurri Corp Ltd is a global technology company that provides IT hardware and services to customers in over 50 countries. The company has a market capitalization of 76.18M as of 2023 and a Return on Equity of 5.13%. This suggests that the company has been able to generate a healthy return on the capital invested by its shareholders. The company has also been able to utilize its resources effectively, as evidenced by the relatively low ROE. This is likely due to the company’s strong financial and operational management, allowing it to remain competitive in a crowded market.
Summary
On August 3 2023, CLIMB GLOBAL SOLUTIONS reported their earnings results for the second quarter of FY2023. Total revenue for the quarter increased by 20.4% year over year, amounting to USD 81.7 million.
However, net income decreased by 50.5%, amounting to only USD 1.4 million. In response, the stock price dropped. Investors should take into account the company’s inconsistent performance when considering whether to invest in CLIMB GLOBAL SOLUTIONS. Further analysis is recommended in order to determine whether the company is a good investment opportunity.
