Climb Global Solutions, Inc. Fundamental Analysis
Climb Global Solutions, Inc. (CLMB) shows weak financial fundamentals with a PE ratio of 19.72, profit margin of 3.01%, and ROE of 18.67%. The company generates $0.7B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 60.2/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CLMB's fundamental strength across five key dimensions:
Efficiency Score
WeakCLMB struggles to generate sufficient returns from assets.
Valuation Score
ModerateCLMB shows balanced valuation metrics.
Growth Score
ModerateCLMB shows steady but slowing expansion.
Financial Health Score
ExcellentCLMB maintains a strong and stable balance sheet.
Profitability Score
ModerateCLMB maintains healthy but balanced margins.
Key Financial Metrics
Is CLMB Expensive or Cheap?
P/E Ratio
CLMB trades at 19.72 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, CLMB's PEG of 2.64 indicates potential overvaluation.
Price to Book
The market values Climb Global Solutions, Inc. at 3.49 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 12.77 times EBITDA. This signals the market has high growth expectations.
How Well Does CLMB Make Money?
Net Profit Margin
For every $100 in sales, Climb Global Solutions, Inc. keeps $3.01 as profit after all expenses.
Operating Margin
Core operations generate 4.06 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $18.67 in profit for every $100 of shareholder equity.
ROA
Climb Global Solutions, Inc. generates $4.57 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Climb Global Solutions, Inc. generates limited operating cash flow of $25.50M, signaling weaker underlying cash strength.
Free Cash Flow
Climb Global Solutions, Inc. produces free cash flow of $23.72M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.28 in free cash annually.
FCF Yield
CLMB converts 5.50% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.72
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.64
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.49
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.10
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.19
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.22
vs 25 benchmark
How CLMB Stacks Against Its Sector Peers
| Metric | CLMB Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.72 | 42.39 | Better (Cheaper) |
| ROE | 18.67% | 787.00% | Weak |
| Net Margin | 3.01% | 10847498347.00% | Weak |
| Debt/Equity | 0.02 | 0.45 | Strong (Low Leverage) |
| Current Ratio | 1.10 | 5.31 | Neutral |
| ROA | 4.57% | 132.00% | Weak |
CLMB outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Climb Global Solutions, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta