CVG.TO  Clairvest Group Inc

Exchange

TSX

Sector

Diversified Industries

Industry

Market Cap.

577.22M

Vuru Grade

41.78/100

Current Price

$37.99
-0.01 (-0.03%)

Growth Price

$18.57
Overvalued by 51.12%

Stability Price

$24.27
Overvalued by 36.12%

Company Metrics

  • P/E 8.26
  • P/S 4.65
  • P/B 1.08
  • EPS 4.6
  • Cash ROIC 1.10%
  • Cash Ratio -
  • Dividend 0.1 / 0.26%
  • Avg. Vol. 367.00
  • Shares 15.19M
  • Market Cap. 577.22M

Company Description

Clairvest Group Inc. is a private equity firm specializing in mid market and consolidating industries and add-on acquisitions. It seeks to invest in small and mid-sized casino companies. The firm typically invests in companies based in North America. It seeks to make equity investments between Cd$15 million ($15.03 million) and Cd$50 million ($51.4 million) in its portfolio company with EBITDA bet... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

Clairvest Group Inc. - Strong Insider Ownership And Stellar Management
Seeking Alpha - May 11, 2015
Clairvest Group Inc. (OTC:CVTGF) is a Toronto-based private equity management firm created in 1987. It previously traded on the US exchange under "CVTGF", and currently trades under the TSX as "CVG".
Clairvest Group Inc. Acquires Shares of Discovery Air Inc.
Marketwired (press release) - Dec 22, 2016
TORONTO, ON--(Marketwired - December 22, 2016) - Clairvest Group Inc. (TSX: CVG) ("Clairvest") announced today that it, together with private equity funds it manages, acquired 4,179,122 common shares ("Common Shares") of Discovery Air Inc. (TSX: DA.
BRIEF-Clairvest Group acquires shares of Discovery Air - Reuters
Clairvest backs India gaming platform Head InfoTech
PE Hub (subscription) (blog) - Apr 28, 2017
TORONTO, ON–(Marketwired - April 28, 2017) - Clairvest Group Inc. (TSX: CVG) (“Clairvest”) today announces that it, together with limited partnerships controlled by it, made a US$73.7 million investment in Head InfoTech India Pvt.
Clairvest sells Cieslok Media
PE Hub (subscription) (blog) - Jan 3, 2017
Clairvest Group Inc has sold Toronto-based Cieslok Media Ltd, an out-of-home advertising firm. The buyer was Bell Media Inc. No financial terms were disclosed.
BRIEF-Clairvest Group says Toronto Stock Exchange accepts its notice
Reuters - Mar 2, 2017
LONDON, March 3 European shares slipped in early trading on Friday following some poor company updates, with WPP falling after painting a cautious picture about its outlook and Berendsen plunging following disappointing results.
Clairvest Group Inc
The Globe and Mail - Sep 22, 2015
Clairvest Group Inc closed up Thursday by $0.25 or 0.67% to $37.75 and setting a new 52-week high. Over the last five days, shares have gained 0.35% and 26.89% year to date.
BRIEF-Clairvest announces agreement to sell LSNE
Reuters - Mar 27, 2017
RIYADH, May 20 The world's largest private equity fund, backed by Japan's Softbank Group and Saudi Arabia's main sovereign wealth fund, said on Saturday it had raised over $93 billion to invest in technology sectors such as artificial intelligence and ...
Clairvest Update on Its Investment in Discovery Air Inc.
Marketwired (press release) - Mar 8, 2017
TORONTO, ON--(Marketwired - March 08, 2017) - In light of recent trading activity in the shares of Discovery Air Inc. (TSX: DA.A), Clairvest Group Inc. (TSX: CVG) announced today that certain investment funds managed by it, together with certain other ...
Clairvest exits Lyophilization Services of New England
PE Hub (subscription) (blog) - May 1, 2017
Clairvest Group Inc said April 28 that it has closed the sale of Lyophilization Services of New England Inc to Permira. Lyophilization Services, of Manchester, New Hampshire, is a contract manufacturing organization, providing outsourced lyophilization ...
Clairvest Reports Fiscal 2016 Fourth Quarter and Year-End Results
MarketWatch - Jun 22, 2016
Jun 22, 2016 (Marketwired via COMTEX) -- TORONTO, ON--(Marketwired - June 22, 2016) - Clairvest Group Inc. (CVG) today reported results for the quarter and year ended March 31, 2016.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for CVG.TO to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate CVG.TO's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$37.99 Current Price

$18.57 Growth Price (DCF)

Overvalued by 51.12%


Growth Rate Assumed by Market: 500.00%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


CVG.TO's most recent year of (normalized) free cash flow is negative. This is the base number for forward projections. This means that if you increase the growth rate, the amount of negative FCF grows, thereby decreasing the price.

Show Free Cash Flow numbers

$24.27 Stability Price (EPV)

Overvalued by 36.12%


Discount Rate: 15.0%

$27.97 Book Price

Overvalued by 26.37%


Poor Cash Return on Invested Capital over the past 5 years

CVG.TO has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

CVG.TO has only created $1.10 of cash for every $100 invested.
Figures in CAD. Fiscal year ends in March
20122013201420152016
Free Cash Flow -86,000.00 2.50M 3.29M 50.62M -31.26M
divided by
Invested Capital 338.42M 378.94M 411.77M 531.21M 570.19M
Cash ROIC -0.03% 0.66% 0.80% 9.53% -5.48%

Poor Return on Equity over the past 5 years

CVG.TO has shown an inability to deliver strong results for shareholders. This could be due to poor management, CVG.TO operating in a highly competitive industry, or having a weak business in general.

CVG.TO has only generated $9.06 of Earnings for every $100 of Shareholders' Equity.
Figures in CAD. Fiscal year ends in March
20122013201420152016
Net Income 22.42M 35.76M 30.75M 52.01M 39.97M
divided by
Stockholders' Equity 316.43M 349.69M 377.15M 447.69M 485.52M
Return on Equity 7.08% 10.23% 8.15% 11.62% 8.23%

Mediocre Business Performance over the past 10 years

CVG.TO isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

CVG.TO has been unable to consistently create value for shareholders.
Figures in CAD. Fiscal year ends in March
2007200820092010201120122013201420152016
Free Cash Flow 5.08M 7.98M -13.61M -20.24M 10.55M -86,000.00 2.50M 3.29M 50.62M -31.26M

Good Balance Sheet

CVG.TO's Total Assets double Total Liabilities. Its financial position is adequate. Remember to check Shareholders' Equity to see if it's stable or growing. It's one of the best measures of whether a company is creating value for shareholders.
Figures in CAD. Fiscal year ends in March
2007200820092010201120122013201420152016
Cash - - - - - - - - - -
Current Assets - - - - - - - - - -
Total Assets 314.61M 398.55M 308.00M 305.36M 318.86M 338.42M 378.94M 411.77M 531.21M 570.19M
Current Liabilities - - - - - - - - - -
Total Liabilities 81.03M 127.77M 22.62M 13.08M 16.46M 22.00M 29.25M 34.63M 83.51M 84.67M
Stockholder' Equity 233.58M 270.78M 285.38M 292.29M 302.40M 316.43M 349.69M 377.15M 447.69M 485.52M
Current Ratio - - - - - - - - - -
TL-to-TA 0.26 0.32 0.07 0.04 0.05 0.06 0.08 0.08 0.16 0.15

Consistent Reinvestment of Profits over the past 10 years

CVG.TO has consistently retained profits. This may put CVG.TO in a strong position to invest for the future, by buying new machinery, investing in R&D or a number of other options. By effectively using these earnings, CVG.TO can greatly improve their long-term economic picture.
Figures in CAD. Fiscal year ends in March
2007200820092010201120122013201420152016
Retained Earnings 151.42M 188.07M 202.56M 209.46M 222.49M 237.99M 270.59M 297.83M 368.38M 403.86M
Retained Earnings Growth - 24.20% 7.71% 3.41% 6.22% 6.97% 13.70% 10.07% 23.69% 9.63%

Varying Competitive Advantage over the past 10 years

CVG.TO likely has a competitive advantage which prevents other companies from entering or competing in their industry. However, there is a substantial variation in their Net Profit Margins from year-to-year, which indicates inconsistent performance. Look at reasons for this inconsistency to determine the likelihood of future sustainability.

$54.98 of every $100 of Revenue have been pure profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in March
2007200820092010201120122013201420152016
Net Income 18.27M 38.24M 26.09M 8.50M 19.56M 22.42M 35.76M 30.75M 52.01M 39.97M
divided by
Revenue 29.64M 68.81M 45.43M 24.75M 37.77M 43.97M 46.07M 54.27M 104.33M 74.09M
Net Profit Margin 61.63% 55.58% 57.42% 34.34% 51.80% 50.98% 77.63% 56.65% 49.85% 53.94%

Weak Pricing Power over the past 10 years

CVG.TO is likely in a highly competitive industry, due to low barriers to entry. It's because of this, that CVG.TO has been unable to raise prices and increase their profitability. This puts them in a poor position if inflation becomes an issue, as they would struggle to pass higher costs onto consumers.

Only $- of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in CAD. Fiscal year ends in March
2007200820092010201120122013201420152016
Gross Profit - - - - - - - - - -
divided by
Revenue 29.64M 68.81M 45.43M 24.75M 37.77M 43.97M 46.07M 54.27M 104.33M 74.09M
Gross Margin - - - - - - - - - -

Low Capital Intensity over the past 10 years

CVG.TO has consistently used a small portion of their Net Income buying new equipment or investing in new facilities. This indicates that CVG.TO may require minimal investment to stay competitive. This leaves them with extra money to spend on growing their business and potentially buying back stock.

-% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in CAD. Fiscal year ends in March
2007200820092010201120122013201420152016
Capital Expenditure - - - - - - - - - -
divided by
Net Income 18.27M 38.24M 26.09M 8.50M 19.56M 22.42M 35.76M 30.75M 52.01M 39.97M
Capital Expenditure Ratio - - - - - - - - - -

Very Strong Dividend History over the past 10 years

CVG.TO has consistently distributed a dividend for at least the past 10 years. Such a long dividend history suggests CVG.TO is very established in its market and that its dividend distribution is likely to continue for a significant period of time.
Figures in CAD. Fiscal year ends in March
2007200820092010201120122013201420152016
Dividend Paid 1.59M 1.59M 11.59M 1.60M 1.60M 3.03M 3.17M 3.50M 3.77M 4.49M
divided by
Shares Outstanding 16.45M 16.34M 16.39M 16.29M 16.26M 15.68M 15.40M 15.43M 15.13M 15.18M
Dividend Paid Per Share 0.10 0.10 0.70 0.10 0.10 0.19 0.20 0.23 0.25 0.29
Price at Year End 14.08 12.87 11.84 13.20 15.40 19.98 23.01 26.98 28.26 29.75
Dividend Yield 0.68% 0.75% 5.93% 0.74% 0.63% 0.96% 0.89% 0.83% 0.87% 0.99%

Strong History of Stock Buybacks over the past 10 years

CVG.TO has a strong history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in CAD. Fiscal year ends in March
2007200820092010201120122013201420152016
Shares Outstanding 16.45M 16.34M 16.39M 16.29M 16.26M 15.68M 15.40M 15.43M 15.13M 15.18M
Stock Bought Back - 0.68% -0.26% 0.62% 0.14% 3.74% 1.76% -0.15% 1.94% -0.30%
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