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Canaccord Genuity (TSE:CF)
:CF
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Canaccord Genuity
(OTC:CF)
Rating:67Neutral
Price Target:―
Canaccord Genuity (CF) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$975.05M
Dividend Yield3.57%
Average Volume (3M)96.92K
Price to Earnings (P/E)164.2
Beta (1Y)1.00
Revenue Growth14.45%
EPS Growth-22.63%
CountryCA
Employees2,892
SectorFinancial
Sector Strength81
IndustryFinancial - Capital Markets
Share Statistics
EPS (TTM)0.12
Shares Outstanding102,529,366
10 Day Avg. Volume177,828
30 Day Avg. Volume96,922
Financial Highlights & Ratios
PEG Ratio0.08
Price to Book (P/B)0.92
Price to Sales (P/S)0.00
P/FCF Ratio1.09
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$12.12Price Target Upside27.45% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Canaccord Genuity Business Overview & Revenue Model
Company DescriptionCanaccord 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 MoneyCanaccord 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 Earnings Call Summary
Earnings Call Date:Jun 04, 2025
(Q4-2025)
| % Change Since: 4.39%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strong revenue growth and successful expansion activities, particularly in Wealth Management. However, the company faces challenges with elevated expenses, regulatory matters, and increased debt. The positive revenue and growth achievements are somewhat balanced by these ongoing issues.Q4-2025 Updates
Positive Updates
Record Quarterly Revenue
The company delivered its highest quarterly revenue in the past 11 quarters, driven by strong performance in the Wealth Management division and advisory fee contributions from Capital Markets.
Firm-wide Revenue Growth
Firm-wide revenue reached $1.8 billion for fiscal 2025, a 20% increase compared to the previous year and the strongest result since 2022.
Wealth Management Success
Client assets in Wealth Management grew to a record $120 billion, with new records set in each region. The division's adjusted pretax net income rose 22% year-over-year to $41 million for the fourth quarter.
Capital Markets Advisory Strength
The Advisory segment delivered its strongest quarterly revenue of the fiscal year, helping lift the revenue contribution from Capital Markets to its strongest result in three years.
U.K. Wealth Management Acquisitions
Completed three acquisitions in the U.K. & Crown Dependencies, enhancing financial planning offerings and extending presence across onshore and offshore markets.
Negative Updates
Elevated Non-Compensation Expenses
Firm-wide non-compensation expenses remained high, totaling $149 million for the quarter and $581 million for the year, representing increases of 24% and 19%, respectively.
Regulatory Matter Impact
Profitability in Capital Markets was negatively impacted by elevated non-compensation expenses, primarily due to professional fees and provisions related to a U.S. regulatory matter.
Debt Increase
The company's debt increased quarter-over-quarter, partially due to the Brooks Macdonald acquisition and the convertible debt coming on in fiscal 2024.
Company Guidance
During Canaccord Genuity Group Inc.'s fiscal 2025 fourth quarter results call, the company reported its highest quarterly revenue in the past 11 quarters, achieving firm-wide revenue of $1.8 billion for the fiscal year—a 20% increase compared to the previous year. The Wealth Management division saw client assets grow to a record $120 billion, supported by acquisitions and recruitment. Adjusted pretax net income for the Wealth Management division rose 22% year-over-year to $41 million. The Capital Markets division also reported strong results, with advisory revenue reaching $90 million for the quarter, marking its strongest quarterly performance of the fiscal year. However, firm-wide non-compensation expenses were elevated, totaling $149 million in the fourth quarter. The adjusted diluted earnings per share for the fiscal year was $0.61, a 53% increase year-over-year. The company is focusing on cost discipline and anticipates margin improvements, aiming for single-digit growth in the upcoming fiscal year.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.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 |
| 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
Positive
9.51
Price Trends
8.71
Positive
8.73
Positive
9.10
Positive
Market Momentum
0.18
Positive
60.26
Neutral
66.83
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
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | C$179.29M | 5.62 | 44.03% | ― | 461.24% | 82.98% | |
70 Outperform | $9.50B | 31.80 | -23.34% | ― | ― | -82.47% | |
70 Outperform | C$131.61M | 38.82 | 3.04% | ― | 6.08% | -73.47% | |
67 Neutral | C$975.05M | 164.20 | -1.78% | 3.57% | 14.45% | -22.63% | |
64 Neutral | $12.86B | 9.79 | 7.78% | 16985.65% | 12.28% | -7.82% | |
56 Neutral | C$186.82M | 56.54 | 5.61% | ― | -9.36% | ― |
* Financial Sector Average
Performance Comparison
TSE:CF
Canaccord Genuity
9.22
0.80
9.48%
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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.
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.