Canaccord Genuity (CF) AI Stock Analysis

• Market Cap: C$975.05M
• Dividend Yield: 3.57%
• Average Volume (3M): 96.92K
• Price to Earnings (P/E): 164.2
• Beta (1Y): 1.00
• Revenue Growth: 14.45%
• EPS Growth: -22.63%
• Country: CA
• Employees: 2,892
• Sector: Financial
• Sector Strength: 81
• Industry: Financial - Capital Markets
• EPS (TTM): 0.12
• Shares Outstanding: 102,529,366
• 10 Day Avg. Volume: 177,828
• 30 Day Avg. Volume: 96,922
• PEG Ratio: 0.08
• Price to Book (P/B): 0.92
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.09
• 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$12.12
• Price Target Upside: 27.45% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 67 Neutral
• Price Target: ―

Canaccord Genuity's overall stock score reflects a balance of strong cash flow management and strategic corporate actions against challenges in profitability and valuation concerns. The company's financial stability is supported by positive cash flow and manageable leverage, while recent corporate events enhance its strategic positioning. However, negative net income and a negative P/E ratio underscore the need for improved profitability. The stock's technical indicators suggest stable short-term momentum, and the dividend yield provides a degree of investor appeal.

Canaccord Genuity Business Overview & Revenue Model

Company Description

Canaccord Genuity Group Inc., a full-service financial services company, provides investment products, and investment banking and brokerage services to institutional, corporate, and private clients. It operates in two segments, Canaccord Genuity Capital Markets and Canaccord Genuity Wealth Management. The Canaccord Genuity Capital Markets segment offers investment banking, advisory, research, merger and acquisition, sales, and trading services. The Canaccord Genuity Wealth Management segment provides wealth management solutions, and brokerage and financial planning services to individual investors, private clients, charities, and intermediaries. The company operates in North America, the United Kingdom, Europe, Asia, Australia, and the Middle East. Canaccord Genuity Group Inc. was founded in 1950 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Canaccord Genuity generates revenue primarily through its two main divisions: Wealth Management and Capital Markets. In Wealth Management, the company earns money by providing financial advisory services, investment products, and portfolio management to individual and institutional clients, which generate fees based on assets under management and transactional activities. In Capital Markets, revenue is derived from underwriting services, advisory fees from mergers and acquisitions, and commissions from trading activities. The company's earnings are further supported by strategic partnerships with other financial institutions and a focus on high-growth sectors, which enhance its ability to attract and retain clients globally.

Canaccord Genuity Financial Statement Overview

Summary

Canaccord Genuity's financial performance presents a mixed picture. While cash flow metrics are strong, indicating effective cash management, the company faces profitability challenges, as evidenced by negative net income and low margins. The balance sheet shows manageable leverage, but profitability needs improvement. Continued focus on enhancing revenue growth and margin expansion could improve overall financial health.

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.

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.

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.

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
153.89M	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
1.47B	1.43B	1.72B	2.84B	2.92B	1.93B
	Total Assets
4.45B	6.13B	6.30B	7.25B	7.63B	5.96B
	Total Debt
805.70M	604.75M	433.86M	285.09M	348.83M	334.39M
	Net Debt
257.03M	-250.85M	-574.57M	-1.50B	-1.53B	-662.72M
	Total Liabilities
3.60B	4.77B	4.90B	5.83B	6.52B	5.03B
	Stockholders Equity
851.23M	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

• Technical Analysis Sentiment: Positive
• Last Price: 9.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CF, the sentiment is Positive. The current price of 9.51 is above the 20-day moving average (MA) of 9.35, above the 50-day MA of 8.71, and above the 200-day MA of 9.10, indicating a bullish trend. The MACD of 0.18 indicates Positive momentum. The RSI at 60.26 is Neutral, neither overbought nor oversold. The STOCH value of 66.83 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CF.

Canaccord Genuity Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PNP	85 Outperform	C$179.29M	5.62	44.03%	―	461.24%	82.98%
GLXY	70 Outperform	$9.50B	31.80	-23.34%	―	―	-82.47%
CXI	70 Outperform	C$131.61M	38.82	3.04%	―	6.08%	-73.47%
CF	67 Neutral	C$975.05M	164.20	-1.78%	3.57%	14.45%	-22.63%
Sector *	64 Neutral	$12.86B	9.79	7.78%	16985.65%	12.28%	-7.82%
NDA	56 Neutral	C$186.82M	56.54	5.61%	―	-9.36%	―

Canaccord Genuity Corporate Events

Canaccord Genuity Sells U.S. Market Making Business to Focus on Core Strengths

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.

Canaccord Genuity Completes Strategic Acquisition of Brooks Macdonald Asset Management International

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.

Canaccord Genuity Reports Growth in Q3 Fiscal 2025 with Record Wealth Management Performance

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.