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AGF Management B NV (TSE:AGF.B)
TSX:AGF.B
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AGF Management B NV
(TSX:AGF.B)
81Outperform
Positive Factors
Earnings
AGF reported earnings that were significantly ahead of expectations on the back of another quarter of strong earnings contribution from AGF Capital Partners as well as a lower tax rate.
Valuation
Valuation remains compelling: AGF continues to trade well below its historical valuation multiples and, in our view, the market is not giving it enough credit for its sales outperformance.
Negative Factors
Operational Uncertainty
Clarity on U.S. operations is still awaited, suggesting uncertainty in this area.
AGF Management B NV (AGF.B) vs. S&P 500 (SPY)
Market Cap
C$641.73M
Dividend Yield4.68%
Average Volume (3M)80.99K
Price to Earnings (P/E)6.5
Beta (1Y)1.01
Revenue Growth15.80%
EPS Growth12.07%
CountryCA
Employees620
SectorFinancial
Sector Strength81
IndustryAsset Management Services
Share Statistics
EPS (TTM)1.51
Shares Outstanding65,291,560
10 Day Avg. Volume88,693
30 Day Avg. Volume80,987
Financial Highlights & Ratios
PEG Ratio0.54
Price to Book (P/B)N/A
Price to Sales (P/S)1.29
Price to Cash Flow (P/CF)3.10
P/FCF Ratio3.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$13.60Price Target Upside41.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
AGF Management B NV Business Overview & Revenue Model
Company DescriptionAGF Management is a Canadian-based asset manager with operations and investments in Canada, the United States, the United Kingdom, Ireland, and Asia. At the end of August 2020, the firm had CAD 37.0 billion in total assets under management. AGF Management's funds are weighted more heavily toward equities, with just under two thirds of retail AUM being equity related. That said, the company does use fundamental, quantitative and alternative strategies to manages its investment funds. AGF Management has a more meaningful portion of its business tied to institutional clients than its peers, with 32% of AUM derived from institutional and subadvised accounts. The company also derives 16% of its managed assets from high-net-worth clients.
How the Company Makes Moneynull
AGF Management B NV Financial Statement Overview
Summary
AGF Management B NV demonstrates strong financial health with consistent revenue growth and solid profitability margins. The balance sheet is stable with low leverage, and cash flow generation is robust. Despite a decline in EBIT margins, the company's net income and cash management underscore its resilience.Income Statement
AGF Management B NV has shown consistent revenue growth, increasing from $471.8M in 2023 to $508.4M in 2024, a growth rate of approximately 7.75%. The gross profit margin stands at 51.39%, indicating efficient cost management. However, there is a noticeable drop in EBIT and EBITDA margins due to EBIT being zero in 2024. Net profit margin is strong at 19.19%, reflecting solid profitability.78
Positive
Balance Sheet
The company maintains a strong equity position, with an equity ratio of 69.10%. The debt-to-equity ratio is low at 0.08, indicating minimal leverage. Return on equity is healthy at 8.65%, suggesting efficient use of shareholder funds. The balance sheet reflects financial stability and prudent financial management.82
Very Positive
Cash Flow
AGF Management B NV has demonstrated robust cash flow management, with a significant increase in free cash flow from $83.8M in 2023 to $112.4M in 2024, a growth rate of 34.05%. The operating cash flow to net income ratio is 1.17, indicating strong cash generation relative to net income. Free cash flow to net income ratio is 1.15, further highlighting effective cash utilization.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 508.38M | 471.82M | 445.44M | 446.96M | 380.65M | Gross Profit |
| 261.25M | 471.55M | 138.76M | 106.61M | 104.96M | EBIT |
| 0.00 | 129.01M | 71.56M | 38.63M | 41.04M | EBITDA |
| 141.68M | 129.01M | 83.21M | 49.12M | 49.26M | Net Income Common Stockholders |
| 97.57M | 87.70M | 66.65M | 39.30M | 173.91M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 73.13M | 72.64M | 79.30M | 109.56M | 112.18M | Total Assets |
| 1.63B | 1.42B | 1.37B | 1.36B | 1.35B | Total Debt |
| 95.83M | 89.89M | 102.86M | 84.63M | 85.66M | Net Debt |
| 42.88M | 39.43M | 44.24M | -1.85M | -8.35M | Total Liabilities |
| 473.62M | 331.38M | 338.44M | 328.24M | 331.36M | Stockholders Equity |
| 1.13B | 1.09B | 1.03B | 1.03B | 1.02B |
| Cash Flow | Free Cash Flow | |||
| 112.38M | 83.80M | 48.26M | 34.53M | 89.15M | Operating Cash Flow |
| 114.58M | 87.24M | 64.60M | 47.80M | 92.46M | Investing Cash Flow |
| -78.66M | -37.47M | -40.33M | -24.60M | 240.43M | Financing Cash Flow |
| -33.42M | -57.93M | -52.13M | -30.73M | -290.54M |
AGF Management B NV Technical Analysis
Negative
9.63
Price Trends
10.84
Negative
10.78
Negative
9.53
Positive
Market Momentum
-0.30
Positive
30.28
Neutral
2.94
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AGF.B, the sentiment is Negative. The current price of 9.63 is below the 20-day moving average (MA) of 10.95, below the 50-day MA of 10.84, and above the 200-day MA of 9.53, indicating a neutral trend. The MACD of -0.30 indicates Positive momentum. The RSI at 30.28 is Neutral, neither overbought nor oversold. The STOCH value of 2.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:AGF.B.
AGF Management B NV Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | C$641.73M | 6.49 | 8.80% | 4.68% | 15.80% | 12.07% | |
69 Neutral | C$47.63B | 12.23 | 15.52% | 4.34% | -2.40% | 42.24% | |
66 Neutral | C$11.79B | 12.88 | 13.26% | 2.72% | -17.69% | 29.19% | |
63 Neutral | $13.85B | 10.47 | 9.22% | 4.23% | 17.31% | -7.79% |
* Financial Sector Average
Performance Comparison
TSE:AGF.B
AGF Management B NV
9.63
1.92
24.90%
MFC
Manulife Financial
28.41
5.20
22.40%
SLF
Sun Life Financial
54.30
2.03
3.88%
TSE:GWO
Great-West Lifeco
51.46
10.37
25.24%
TSE:IAG
iA Financial Corporation Inc
124.25
40.01
47.50%
CIXXF
CI Financial
21.75
9.87
83.08%
AGF Management B NV Earnings Call Summary
Earnings Call Date: Jan 22, 2025 | % Change Since: -11.81% | Next Earnings Date: Apr 8, 2025
Earnings Call Sentiment Positive
AGF Management Limited had a strong year with significant growth in AUM, adjusted EBITDA, and EPS. Strategic investments were made to enhance future growth. However, SG&A expenses exceeded guidance, and mutual fund sales were flat at the beginning of the next fiscal year. Overall, the positives outweigh the negatives, indicating robust company performance and strategic direction.Highlights
Significant Growth in AUM
AGF Management Limited concluded the year with approximately $54 billion in AUM and fee-earning assets, a 27% increase from the previous year.
Record Adjusted EBITDA and EPS
Adjusted EBITDA for the year was $166 million, 26% higher than the prior year. Adjusted diluted EPS was $1.67 for the full year, a 25% increase compared to the prior year.
Strong Performance in ETF and SMA Segments
ETF and SMA AUM increased by 73% year-over-year, showing consistent growth and momentum in these segments across the U.S., Canada, and Asia.
Strategic Investments and Strong Financial Position
AGF made strategic investments in New Holland Capital and acquired a 51% stake in Kensington Capital Partners. The company maintained a strong financial position with net cash of $38 million and $235 million available on its credit facility.
Lowlights
Higher SG&A Expenses
SG&A expenses exceeded guidance, reaching $239 million due to higher performance-based compensation and timing of non-compensation expenses.
Flat Mutual Fund Sales at Start of Fiscal Q1
Fiscal year-to-date mutual fund sales were flat, with anticipation of stronger performance during the RSP season.
Company Guidance
During AGF Management Limited's Fourth Quarter 2024 earnings call, guidance was provided that highlighted significant growth and strong financial performance. The company reported a robust 27% increase in assets under management (AUM) and fee-earning assets, totaling approximately $54 billion. Net sales for Canadian retail mutual funds were reported at $14 million for the quarter, marking a second consecutive quarter of positive net sales. AGF's adjusted EBITDA for the year was $166 million, a 26% increase from the previous year, while adjusted diluted EPS reached $1.67, up 25% year-over-year. The company maintained a strong capital position with $38 million in net cash and $235 million available on its credit facility. Additionally, AGF's mutual fund AUM grew by 25% year-over-year, and its ETF and SMA AUM saw a 73% increase, demonstrating strong investment performance and distribution channel penetration. The guidance also emphasized a focus on maintaining sales momentum, building a diversified private capital and alternatives business, and adhering to core expense guidance while investing in key growth areas for 2025.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.