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Canaccord Genuity (TSE:CF)
TSX:CF
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Canaccord Genuity
(TSX:CF)
64Neutral
Canaccord Genuity (CF) vs. S&P 500 (SPY)
Market Cap
$808.96M
Dividend Yield4.47%
Average Volume (3M)172.39K
Price to Earnings (P/E)164.2
Beta (1Y)0.94
Revenue Growth14.45%
EPS Growth-22.63%
CountryCA
Employees2,892
SectorFinancial
Sector Strength81
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)-0.36
Shares Outstanding102,529,366
10 Day Avg. Volume123,900
30 Day Avg. Volume172,393
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.62
Price to Cash Flow (P/CF)2.00
P/FCF Ratio1.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$11.46Price Target Upside46.71% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
Canaccord Genuity Business Overview & Revenue Model
Company DescriptionCanaccord Genuity Group Inc. is a leading independent, full-service financial services firm, with operations in two principal segments of the securities industry: wealth management and capital markets. The company provides a wide range of financial services, including investment banking, advisory services, institutional sales and trading, research, and wealth management. Canaccord Genuity operates globally with a strong presence in Canada, the United States, the United Kingdom, Europe, Asia, and Australia, catering to a diverse client base that includes individuals, institutions, and corporate clients.
How the Company Makes MoneyCanaccord Genuity generates revenue through its two main business segments: wealth management and capital markets. In the wealth management segment, the company makes money by providing financial advisory services, managing investment portfolios, and earning fees based on assets under management (AUM) and transaction-based commissions. The capital markets segment contributes to the company's revenue through activities like underwriting, advisory services for mergers and acquisitions, institutional sales and trading, and conducting market research. The firm's revenue is further bolstered by its ability to leverage its global network and expertise to serve corporate clients in raising capital and executing strategic financial transactions. Significant partnerships with financial institutions, corporations, and strategic investors also play a role in enhancing its earnings capabilities.
Canaccord Genuity Financial Statement Overview
Summary
Canaccord Genuity's financial performance shows strengths in cash flow management with robust free cash flow and operating cash flow metrics. However, there are significant profitability challenges, as evidenced by negative net profit margins and return on equity. While the balance sheet reflects manageable leverage, the company needs to focus on improving revenue growth and profitability.Income Statement
The income statement shows mixed performance. Gross profit margin is stable at 49.3% TTM, but the net profit margin is negative at -1.3% TTM, indicating profitability challenges. Revenue growth rate is volatile, with a decline of -27.8% in 2023 but a recovery in TTM to 16.1%. EBIT margin remains low at 6.3% TTM, while EBITDA margin is healthier at 15.2% TTM, suggesting some operational efficiency.65
Positive
Balance Sheet
The balance sheet reflects moderate financial stability. Debt-to-equity ratio is reasonable at 1.18 TTM, indicating manageable leverage. Return on equity is negative at -2.4% TTM, highlighting profitability issues. Equity ratio is moderate at 17.7% TTM, suggesting a balanced asset financing structure with room for improvement.72
Positive
Cash Flow
Cash flow performance is relatively strong. Free cash flow growth is positive with a substantial increase from -$38.6M in 2023 to $867M TTM. Operating cash flow to net income ratio is favorable at -41.9 TTM, indicating strong cash flow relative to net income losses. Free cash flow to net income ratio is robust at -37.9 TTM, demonstrating solid cash generation despite income challenges.78
Positive
| Breakdown | |||||
| TTM | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 | Mar 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 1.72B | 1.48B | 1.51B | 2.05B | 2.01B | 1.22B | Gross Profit |
| 846.42M | 535.65M | 477.44M | 694.99M | 657.64M | 401.59M | EBIT |
| 108.67M | 282.38M | 141.71M | 417.19M | 409.46M | 135.71M | EBITDA |
| 261.03M | 226.46M | 209.68M | 468.68M | 460.66M | 191.16M | Net Income Common Stockholders |
| -22.89M | -13.16M | -90.10M | 246.31M | 263.79M | 86.49M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 1.72B | 1.43B | 1.72B | 2.84B | 2.92B | 1.93B | Total Assets |
| 5.46B | 6.13B | 6.30B | 7.25B | 7.63B | 5.96B | Total Debt |
| 1.14B | 604.75M | 433.86M | 285.09M | 348.83M | 334.39M | Net Debt |
| -41.56M | -250.85M | -574.57M | -1.50B | -1.53B | -662.72M | Total Liabilities |
| 4.11B | 4.77B | 4.90B | 5.83B | 6.52B | 5.03B | Stockholders Equity |
| 964.46M | 995.64M | 1.05B | 1.18B | 1.11B | 928.62M |
| Cash Flow | Free Cash Flow | ||||
| 867.03M | -38.56M | -612.77M | 248.59M | 1.09B | 358.89M | Operating Cash Flow |
| 959.30M | -12.88M | -584.42M | 263.25M | 1.10B | 365.25M | Investing Cash Flow |
| -135.18M | -32.79M | -288.11M | -202.00M | -12.53M | -49.92M | Financing Cash Flow |
| -16.21M | -110.60M | 71.22M | -142.86M | -191.23M | -143.92M |
Canaccord Genuity Technical Analysis
Negative
7.81
Price Trends
8.61
Negative
9.34
Negative
9.02
Negative
Market Momentum
-0.03
Negative
45.45
Neutral
17.34
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CF, the sentiment is Negative. The current price of 7.81 is below the 20-day moving average (MA) of 8.45, below the 50-day MA of 8.61, and below the 200-day MA of 9.02, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 45.45 is Neutral, neither overbought nor oversold. The STOCH value of 17.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CF.
Canaccord Genuity Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$68.07B | 13.85 | 11.03% | 4.25% | 7.64% | 9.22% | |
68 Neutral | C$494.45M | 9.79 | 9.58% | 8.72% | -1.56% | -9.70% | |
64 Neutral | $808.96M | 164.20 | -2.30% | 4.47% | 14.45% | -22.63% | |
63 Neutral | $12.88B | 9.21 | 9.18% | 4.78% | 16.30% | -8.66% | |
58 Neutral | C$600.34M | 37.65 | -161.09% | 1.57% | 29.59% | -297875.00% | |
56 Neutral | C$6.58B | 16.87 | 3.54% | 0.43% | -17.78% | -41.13% | |
51 Neutral | $4.46B | ― | -55.59% | 2.65% | 3.21% | -9107.07% |
* Financial Sector Average
Performance Comparison
TSE:CF
Canaccord Genuity
7.81
-0.56
-6.74%
TSE:MFC
Manulife Financial
39.07
6.99
21.77%
TSE:CIX
CI Financial
30.68
14.54
90.10%
TSE:DLCG
Dominion Lending Centres, Inc. (Canada) Class A
7.33
4.21
134.94%
TSE:AI
Atrium Mortgage Invest
10.23
-0.38
-3.58%
TSE:ONEX
ONEX Corporation
90.33
-8.62
-8.71%
Canaccord Genuity Earnings Call Summary
Earnings Call Date: Feb 5, 2025 | % Change Since: -17.96% | Next Earnings Date: Jun 4, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook with strong growth in wealth management and corporate financing, especially in the UK, Australia, and North America. However, challenges remain in the US market due to compliance costs and advisory revenue declines. Overall, the sentiment leans toward cautious optimism with growth potential despite some setbacks.Highlights
Wealth Management Growth
Firmwide client assets reached a new record of $115 billion, a 16% year-over-year increase. North American wealth management revenue increased by 25% year-over-year to $96 million.
Record UK & Crown Dependencies Revenue
The UK & Crown Dependencies division achieved record quarterly revenue of $116 million, up 14% year-over-year, with client assets reaching £36 billion, a 7% increase year-over-year.
Australian Wealth Management Success
Australian wealth management business earned record quarterly revenue of $21 million, a 31% increase year-over-year, with managed client assets growing 33% to $8 billion.
Increased Corporate Financing Revenue
Corporate financing revenue increased by 46% year-over-year to $58 million, with year-to-date revenue up 75% compared to the same period last year.
Lowlights
Decline in Pre-tax Net Income
Firmwide pre-tax net income for the three-month period was $40 million, a decrease of 11% year-over-year, impacted by elevated non-compensation expenses.
US Business Challenges
The US business faced ongoing enforcement matters leading to increased provisions and compliance-related spending, affecting profitability.
Advisory Revenue Decline
Advisory revenue in the US declined by 28% year-over-year to $31 million in the third quarter due to deal completion timing.
Increased Expenses in Canadian Wealth Management
Canadian wealth management business faced higher premise and equipment costs due to new headquarters and elevated client-related expenses.
Company Guidance
During the third fiscal quarter of 2025, Canaccord Genuity Group Inc. reported firmwide revenue of $451 million, marking a 16% increase year-over-year, and fiscal year-to-date revenue of $1.3 billion, a 22% rise from the previous year. Despite the revenue growth, adjusted pre-tax net income for the quarter fell by 11% year-over-year to $40 million, translating to an adjusted diluted earnings per share of $0.17. The company's wealth management division remained a strong contributor, with client assets reaching a record $115 billion, up 16% year-over-year. The division contributed 76% of adjusted EPS for the quarter and 82% for the year-to-date. The UK wealth management business reported record quarterly revenue of £116 million, while the Australian division achieved a 31% increase in quarterly revenue to $21 million. The capital markets division earned revenue of $211 million for the quarter, with a notable 46% year-over-year rise in corporate financing revenue to $58 million. However, profitability in this division was impacted by ongoing regulatory expenses in the U.S. The company announced a dividend of $0.085 per common share and expressed optimism for improving market conditions and strong future performance.Canaccord Genuity Corporate Events
M&A TransactionsBusiness Operations and Strategy
Canaccord Genuity Sells U.S. Market Making Business to Focus on Core Strengths
Positive
Apr 1, 2025
Canaccord Genuity Group Inc. announced the sale of its U.S. wholesale market making business to Cantor, a move that aligns its U.S. operations with its global capital markets strategy. This transaction allows Canaccord to focus on its core strengths in advisory and ECM-led investment banking, particularly in high-growth sectors like technology, healthcare, sustainability, and consumer markets. The sale is expected to streamline Canaccord’s operations and enhance its market positioning, while Cantor plans to expand the acquired business to offer a more diversified range of products to clients.
M&A TransactionsBusiness Operations and Strategy
Canaccord Genuity Completes Strategic Acquisition of Brooks Macdonald Asset Management International
Positive
Feb 24, 2025
Canaccord Genuity Group Inc. has successfully completed the acquisition of Brooks Macdonald Asset Management (International) Limited through its UK & Crown Dependencies wealth management business. This strategic acquisition enhances Canaccord’s presence in Guernsey, the Isle of Man, and Jersey, positioning them to better serve international clients with complex needs and ambitions. The integration promises to offer BMI’s professionals and clients deeper resources and a stronger commitment to long-term growth, aligning with Canaccord’s goal to become the best integrated wealth manager in the region by performance and service.
Business Operations and StrategyFinancial Disclosures
Canaccord Genuity Reports Growth in Q3 Fiscal 2025 with Record Wealth Management Performance
Positive
Feb 5, 2025
Canaccord Genuity Group Inc. reported strong revenue growth in its third fiscal quarter of 2025, driven by record performances in its wealth management division and improved corporate financing activities across most geographies. Despite this growth, the company’s profitability was impacted by non-compensation expenses, which are anticipated to decrease. The company remains cautiously optimistic about the fiscal year’s outlook, expecting stronger performance supported by a favorable capital markets environment and continued contributions from wealth management.
Financial Disclosures
Canaccord Genuity Group Inc. to Announce Q3 Fiscal 2025 Financial Results
Neutral
Jan 22, 2025
Canaccord Genuity Group Inc. has announced it will release its third quarter fiscal 2025 financial results on February 4, 2025, after the Canadian markets close. A conference call and webcast discussing these results will follow on February 5, providing insights into the company’s financial performance and allowing stakeholders to engage with the company’s leadership about future prospects.
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.