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Canaccord Genuity (TSE:CF)
TSX:CF
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Canaccord Genuity (CF) AI Stock Analysis

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TSE:CF

Canaccord Genuity

(TSX:CF)

Rating:51Neutral
Price Target:
C$10.00
▼(-1.77% Downside)
The overall stock score reflects significant challenges in financial performance, with profitability and cash flow issues being the most critical concerns. Technical analysis and valuation also indicate potential risks, while the earnings call provides some optimism for future growth in specific segments.

Canaccord Genuity (CF) vs. iShares MSCI Canada ETF (EWC)

Canaccord Genuity Business Overview & Revenue Model

Company DescriptionCanaccord Genuity Group Inc. is a global investment firm that provides a range of financial services including investment banking, wealth management, and capital markets services. The company operates primarily in North America, the UK, and Europe, serving a diverse clientele that includes corporations, institutional investors, and high-net-worth individuals. Canaccord Genuity is known for its expertise in advisory services, equity and debt underwriting, and trading, as well as offering asset management solutions tailored to meet the specific needs of its clients.
How the Company Makes MoneyCanaccord Genuity generates revenue through several key streams. The primary source of income comes from its investment banking activities, which include underwriting and advisory services for public offerings and mergers and acquisitions. Additionally, the firm earns significant revenue from its capital markets operations, which involve trading and brokerage services for equities and fixed income products. Wealth management services also contribute to the company's earnings through fees for asset management, financial planning, and investment advisory services. Strategic partnerships and collaborations with other financial institutions enhance Canaccord Genuity's market reach and service offerings, further supporting its revenue generation. The firm benefits from a diversified client base and a strong presence in various sectors, which helps to stabilize its income across different market conditions.

Canaccord Genuity Earnings Call Summary

Earnings Call Date:Aug 06, 2025
(Q1-2026)
|
% Change Since: |
Next Earnings Date:Nov 07, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with strong growth in Wealth Management and trading offset by significant declines in Advisory revenue and increased expenses. Record client assets and growth in Australia and the U.K. were positive, but challenges in the U.S. and regulatory issues weigh on the outlook.
Q1-2026 Updates
Positive Updates
Record Client Assets in Wealth Management
We ended the quarter with a record $125 billion in client assets, driven by rising market values and complemented by recruiting and organic inflows. The adjusted pretax net income contribution from the division increased by 23% year-over-year.
Strong Performance in Australian Wealth Business
Australian Wealth business generated record revenue of $23 million, increasing 25% year-over-year and 11% sequentially. Client assets grew to a record of $10 billion, an increase of 37% year-over-year and 6% sequentially.
Growth in Principal Trading Revenue
Principal trading revenue increased by 52% year-over-year to $38 million, driven by substantially higher trading volumes during the 3-month period.
Improved EBITDA in U.K. Wealth Business
Normalized EBITDA of GBP 21 million for the 3-month period reflects a year-over-year improvement of 8.5% in the U.K. Wealth business.
Record Growth Conference Attendance
The company will host its largest ever Growth Conference with new records for registration, indicating improving confidence across dynamic growth sectors.
Negative Updates
Decline in Advisory Revenue
Revenue contribution from the Advisory segment fell 27% year-over-year and 46% sequentially, with the sharpest impact observed in U.S. operations.
Increased Non-Compensation Expenses
Firm-wide non-compensation expense increased $6 million or 4% year-over-year to $146 million, primarily due to higher premise and equipment costs and professional fees.
Regulatory Challenges in the U.S.
$2.5 million provision towards ongoing U.S. regulatory matter without significant update on resolution.
Lower Profitability in Capital Markets Division
Adjusted pretax net income from the Capital Markets division amounted to $5.5 million for the quarter compared to $13 million in the same period a year ago, affected by lower advisory revenues and increased trading costs.
Company Guidance
In the first quarter of fiscal year 2026, Canaccord Genuity Group Inc. reported consolidated revenue of $448 million, indicating a 5% increase year-over-year but a 3% decline sequentially. The Wealth Management division contributed 54% of the total revenue, achieving record levels in the U.K. and Australia with client assets reaching $125 billion. The Capital Markets division faced challenges, with advisory revenue falling 27% year-over-year and 46% sequentially, particularly impacting U.S. operations. However, trading revenue saw a 46% year-over-year increase to $37 million, and capital raising activities improved sequentially, completing 93 transactions and raising over $16 billion. The adjusted pretax net income of $33 million marked a 4% sequential improvement, with earnings per share rising by 8%. The firm maintained a compensation ratio of 60% and declared a quarterly dividend of $0.085 per share. Despite the challenges, the company remains optimistic about future growth, expecting continued momentum in Wealth Management and improved advisory activities.

Canaccord Genuity Financial Statement Overview

Summary
Canaccord Genuity's financial statements reflect challenges in profitability and cash flow, with a negative net profit margin and increasing leverage. Despite some operational efficiencies, the negative net income and cash flow volatility are concerning.
Income Statement
45
Neutral
The income statement shows a mixed performance. The company has experienced a slight revenue growth in the TTM, but it is overshadowed by a negative net profit margin, indicating profitability challenges. The gross profit margin is moderate, and the EBIT and EBITDA margins are relatively stable, suggesting operational efficiency. However, the consistent negative net income over recent periods is a concern.
Balance Sheet
50
Neutral
The balance sheet reflects a moderate financial position. The debt-to-equity ratio has increased over time, indicating rising leverage, which could pose risks if not managed carefully. The return on equity is negative, highlighting profitability issues. However, the equity ratio remains stable, suggesting a balanced asset structure.
Cash Flow
40
Negative
Cash flow analysis reveals significant volatility. The free cash flow growth rate is negative in the TTM, and the operating cash flow to net income ratio is low, indicating potential liquidity issues. While the free cash flow to net income ratio is relatively healthy, the overall cash flow position suggests challenges in generating consistent cash.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.79B1.77B1.48B1.51B2.05B2.01B
Gross Profit635.45M634.09M535.65M477.44M694.99M657.64M
EBITDA227.63M260.45M226.46M209.68M468.68M460.66M
Net Income-50.81M-17.50M-13.16M-90.10M246.31M263.79M
Balance Sheet
Total Assets6.87B6.72B6.13B6.30B7.25B7.63B
Cash, Cash Equivalents and Short-Term Investments1.96B1.90B1.43B1.72B2.84B2.92B
Total Debt1.48B770.83M604.75M433.86M285.09M348.83M
Total Liabilities5.57B5.36B4.77B4.90B5.83B6.52B
Stockholders Equity889.00M959.79M995.64M1.05B1.18B1.11B
Cash Flow
Free Cash Flow417.17M396.40M-38.56M-612.77M248.59M1.09B
Operating Cash Flow475.84M475.61M-12.88M-584.42M263.25M1.10B
Investing Cash Flow-121.48M-151.12M-32.79M-288.11M-202.00M-12.53M
Financing Cash Flow-2.16M-9.82M-110.60M71.22M-142.86M-191.23M

Canaccord Genuity Technical Analysis

Technical Analysis Sentiment
Positive
Last Price10.18
Price Trends
50DMA
10.40
Negative
100DMA
9.60
Positive
200DMA
9.36
Positive
Market Momentum
MACD
-0.06
Negative
RSI
52.56
Neutral
STOCH
79.32
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 10.18 is above the 20-day moving average (MA) of 9.99, below the 50-day MA of 10.40, and above the 200-day MA of 9.36, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 52.56 is Neutral, neither overbought nor oversold. The STOCH value of 79.32 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

Overall Rating
UnderperformOutperform
Sector (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
85
Outperform
C$131.61M4.1643.85%254.21%132.59%
69
Neutral
C$139.12M26.125.85%-0.24%-46.22%
68
Neutral
$17.79B11.6410.28%3.76%9.64%1.17%
56
Neutral
C$133.45M60.00-0.89%-20.75%-84.00%
51
Neutral
$1.04B164.20-5.32%3.32%14.43%-584.17%
$3.21M
$8.87B-21.23%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CF
Canaccord Genuity
10.24
2.46
31.62%
TSE:CXI
Currency Exchange International
23.00
-1.56
-6.35%
TSE:PNP
Pinetree Capital
13.35
6.34
90.44%
TSE:NDA
Neptune Digital Assets
1.04
0.80
333.33%
BKBLF
Magnetic North Acquisition
0.05
-0.02
-28.57%
GLXY
Galaxy Digital
24.39
13.79
130.09%

Canaccord Genuity Corporate Events

Shareholder MeetingsBusiness Operations and Strategy
Canaccord Genuity Reports Strong Shareholder Support at AGM
Positive
Aug 8, 2025

Canaccord Genuity Group Inc. announced the results of its annual general meeting, where shareholders approved the appointment of Ernst & Young LLP as auditors, set the number of directors at five, and accepted the executive compensation approach. Additionally, the election of directors proposed by management was overwhelmingly supported, indicating strong shareholder confidence in the current leadership and strategic direction. These decisions are significant for the company’s governance and operational stability, reinforcing its position in the financial services industry.

The most recent analyst rating on (TSE:CF) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Canaccord Genuity stock, see the TSE:CF Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Canaccord Genuity Reports Strong Q1 2026 Results with Record Wealth Management Revenue
Positive
Aug 6, 2025

Canaccord Genuity Group Inc. reported its financial results for the first fiscal quarter of 2026, highlighting a solid performance driven by record contributions from its wealth management division. Despite a decline in advisory completions due to trade and policy uncertainties affecting smaller-cap companies, the company achieved a 4.5% increase in revenue compared to the previous year. The wealth management division saw a 12.5% year-over-year revenue increase, contributing significantly to the firm’s overall results. However, the global capital markets division experienced a 2.7% revenue decline, primarily due to decreased advisory completions. The company remains confident in its ability to improve firm-wide results and profit margins amid improving business conditions.

The most recent analyst rating on (TSE:CF) stock is a Buy with a C$11.25 price target. To see the full list of analyst forecasts on Canaccord Genuity stock, see the TSE:CF Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Canaccord Genuity Reports Strong Q1 2026 Results Driven by Wealth Management
Positive
Aug 6, 2025

Canaccord Genuity Group Inc. reported its first fiscal quarter results for 2026, highlighting a solid performance driven by record contributions from its wealth management division. Despite a decline in advisory completions due to trade and policy uncertainties affecting smaller-cap companies, the company achieved a 4.5% increase in revenue compared to the previous year. The wealth management division saw a 12.5% increase in revenue, contributing significantly to the firm’s overall performance, while global client assets reached a new high. However, the capital markets revenue declined slightly due to reduced advisory completions, though this was partially offset by increased trading and commissions.

The most recent analyst rating on (TSE:CF) stock is a Buy with a C$11.25 price target. To see the full list of analyst forecasts on Canaccord Genuity stock, see the TSE:CF Stock Forecast page.

Financial Disclosures
Canaccord Genuity to Announce Q1 Fiscal 2026 Financial Results
Neutral
Jul 25, 2025

Canaccord Genuity Group Inc. announced it will release its first quarter fiscal 2026 financial results on August 6, 2025, following the close of Canadian markets. A conference call to discuss these results will be held on August 7, 2025, providing stakeholders an opportunity to gain insights into the company’s financial performance and strategic direction. This announcement is significant as it provides investors and analysts with crucial information to assess the company’s market position and future prospects.

The most recent analyst rating on (TSE:CF) stock is a Buy with a C$11.25 price target. To see the full list of analyst forecasts on Canaccord Genuity stock, see the TSE:CF Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Canaccord Genuity Reports Strong Fiscal 2025 Results with Record Revenue Growth
Positive
Jun 4, 2025

Canaccord Genuity Group Inc. reported strong financial results for the fourth quarter and fiscal year 2025, with notable revenue growth in wealth management and capital markets. Despite a decrease in net income before taxes in the fourth quarter, the company achieved a significant year-over-year increase in fiscal 2025 revenue, driven by record performances in its global wealth management operations. The company remains optimistic about improving activity levels in capital markets and aims to enhance operating margins through cost-efficiency efforts.

The most recent analyst rating on (TSE:CF) stock is a Buy with a C$13.00 price target. To see the full list of analyst forecasts on Canaccord Genuity stock, see the TSE:CF Stock Forecast page.

Financial Disclosures
Canaccord Genuity to Release Q4 and Fiscal 2025 Results
Neutral
May 22, 2025

Canaccord Genuity Group Inc. announced it will release its fourth quarter and fiscal 2025 financial results after the Canadian markets close on June 4, 2025. A conference call to discuss these results is scheduled for June 5, 2025, and will be accessible via live webcast and telephone. This announcement provides stakeholders with an opportunity to gain insights into the company’s financial performance and strategic direction, potentially impacting investor decisions and market perceptions.

The most recent analyst rating on (TSE:CF) stock is a Buy with a C$11.25 price target. To see the full list of analyst forecasts on Canaccord Genuity stock, see the TSE:CF Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Aug 30, 2025