AGF Management B NV (AGF.B) AI Stock Analysis

• Market Cap: C$871.91M
• Dividend Yield: 3.9%
• Average Volume (3M): 60.77K
• Price to Earnings (P/E): 8.5
• Beta (1Y): 1.17
• Revenue Growth: 20.65%
• EPS Growth: -2.36%
• Country: CA
• Employees: 634
• Sector: Financial
• Sector Strength: 80
• Industry: Asset Management
• EPS (TTM): 0.39
• Shares Outstanding: 65,303,080
• 10 Day Avg. Volume: 71,119
• 30 Day Avg. Volume: 60,769
• PEG Ratio: 0.09
• Price to Book (P/B): 0.45
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 9.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$13.83
• Price Target Upside: 8.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 78 Outperform
• Price Target: C$14.50 ▲(13.28%Upside)

AGF Management B NV's strong financial performance and attractive valuation are the most significant factors driving the overall score. Technical analysis supports a positive outlook, though nearing overbought conditions. The earnings call provided a cautiously optimistic outlook despite some challenges, reinforcing the company’s strategic positioning.

Positive Factors

Financial performance

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.

Stock rating upgrade

The stock is upgraded to a BUY rating, indicating a positive outlook for the company.

Valuation and growth potential

Valuation upside is likely driven by AGF Capital Partners, suggesting potential growth in the company's value.

Negative Factors

Asset under management (AUM)

Total Q2/25 mutual fund AUM was down 1% compared to an expected increase, due to weaker equity markets.

Market scale challenges

AGF's $53B AUM lacks scale in a business that demands significantly more scale, especially given fee pressures.

Net retail inflows

Net retail inflows are expected to decline significantly, reflective of seasonality and a weakening flow environment in the mutual fund industry.

AGF Management B NV Business Overview & Revenue Model

Company Description

AGF Management Limited is a publicly owned asset management holding company. Through its subsidiaries, the firm provides its services to public and corporate DB pension plans, endowments and foundations, sovereign wealth funds, corporate plans, insurance companies, and sub-advised mandates. Through its subsidiaries, it manages separate client-focused equity, fixed income, and balanced mutual funds along with separate client-focused equity, fixed income, and balanced portfolios. Through its subsidiaries, the firm invests in the public equity and fixed income markets across the globe. For its equity portion, it invests in growth stocks of companies. The firm employs fundamental analysis to make its investments. AGF Management Limited was founded in 1957 and is based in Toronto, Canada.

How the Company Makes Money

AGF Management B NV generates revenue primarily through management fees and performance fees associated with its investment products. Management fees are charged as a percentage of the assets under management (AUM) and represent a steady source of income, as they are collected regardless of the investment performance. In addition to management fees, the company earns performance fees when its investment products meet or exceed specified performance benchmarks. AGF Management B NV may also engage in strategic partnerships and joint ventures to broaden its product offerings and expand its client base, contributing to its revenue growth. Furthermore, the company invests in marketing and distribution channels to enhance its market presence and attract new investors.

AGF Management B NV Financial Statement Overview

Summary

AGF Management B NV shows strong financial health with consistent revenue growth and profitability. The company has a robust income statement, stable balance sheet with low leverage, and solid cash flow management. There is potential to enhance asset utilization and leverage for more aggressive growth.

Income Statement

AGF Management B NV has demonstrated strong revenue growth over the years, particularly with a notable increase of 5.56% from the previous annual report to the TTM period. The company maintains a healthy gross profit margin of 59.2% and a robust net profit margin of 18.26% in the TTM period. The EBIT and EBITDA margins also reflect operational efficiency, standing at 20.59% and 26.43%, respectively. These metrics indicate a well-managed income statement with consistent profitability and growth trajectories.

Balance Sheet

The company's balance sheet shows a strong equity position with an equity ratio of 67.91%. Debt-to-equity is manageable at 0.15, indicating low leverage risk. Return on equity is strong at 8.54% in the TTM period, reflecting efficient use of equity to generate profits. Overall, the balance sheet is stable with a good balance of debt and equity, although there is room for improvement in leveraging assets for higher returns.

Cash Flow

AGF Management B NV displays solid cash flow management with a free cash flow growth rate of 1.33% in the latest TTM period. The operating cash flow to net income ratio is healthy at 1.19, indicating good cash generation relative to reported profits. Free cash flow to net income ratio stands at 1.16, suggesting efficient conversion of net income to free cash flow. The company's cash flow performance underscores its ability to support operations and growth initiatives.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	536.63M	508.38M	471.82M	445.44M	446.96M	380.65M
Gross Profit	317.69M	261.25M	471.55M	138.76M	106.61M	104.96M
EBITDA	141.84M	141.68M	129.01M	83.21M	49.12M	49.26M
Net Income	97.97M	97.57M	87.70M	66.65M	39.30M	173.91M
Balance Sheet
Total Assets	1.69B	1.63B	1.42B	1.37B	1.36B	1.35B
Cash, Cash Equivalents and Short-Term Investments	55.19M	73.13M	72.64M	79.30M	109.56M	112.18M
Total Debt	171.27M	95.83M	89.89M	102.86M	84.63M	85.66M
Total Liabilities	512.71M	473.62M	331.38M	338.44M	328.24M	331.36M
Stockholders Equity	1.15B	1.13B	1.09B	1.03B	1.03B	1.02B
Cash Flow
Free Cash Flow	113.88M	112.38M	83.80M	48.26M	34.53M	89.15M
Operating Cash Flow	116.41M	114.58M	87.24M	64.60M	47.80M	92.46M
Investing Cash Flow	-108.59M	-78.66M	-37.47M	-40.33M	-24.60M	240.43M
Financing Cash Flow	5.93M	-33.42M	-57.93M	-52.13M	-30.73M	-290.54M

AGF Management B NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AGF.B, the sentiment is Positive. The current price of 12.8 is above the 20-day moving average (MA) of 12.20, above the 50-day MA of 11.24, and above the 200-day MA of 10.46, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 63.55 is Neutral, neither overbought nor oversold. The STOCH value of 84.09 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AGF.B.

AGF Management B NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGF.B	78 Outperform	C$871.91M	8.46	8.68%	3.90%	20.65%	-2.36%
FSZ	72 Outperform	C$654.76M	16.65	13.09%	9.25%	3.59%	-43.99%
GCG.A	69 Neutral	C$1.03B	13.86	5.62%	3.74%	35.78%	-24.67%
SEC	69 Neutral	C$789.82M	2.95	-7.43%	―	-8.45%	211.31%
GCG	68 Neutral	C$1.02B	14.18	5.62%	3.74%	35.78%	-24.67%
Sector *	67 Neutral	$16.47B	11.30	9.71%	3.94%	11.97%	-10.51%
AIM	58 Neutral	C$263.60M	―	0.37%	―	67.83%	68.03%