CI Financial (CIX) AI Stock Analysis

• Market Cap: C$4.56B
• Dividend Yield: 2.53%
• Average Volume (3M): 469.07K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.88
• Revenue Growth: 7.92%
• EPS Growth: -60.24%
• Country: CA
• Employees: 2,416
• Sector: Financial
• Sector Strength: 80
• Industry: Asset Management
• EPS (TTM): 0.96
• Shares Outstanding: 144,228,740
• 10 Day Avg. Volume: 517,450
• 30 Day Avg. Volume: 469,070
• PEG Ratio: -0.39
• Price to Book (P/B): 1.59
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.69
• 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$32.00
• Price Target Upside: 1.10% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 51 Neutral
• Price Target: ―

CI Financial's overall stock score is driven by mixed financial performance, with stable cash flows offsetting high leverage and recent net income losses. Technical analysis shows no definitive market trend, while valuation metrics raise concerns due to negative earnings. The recent debenture offering is a positive development, providing financial flexibility and stability.

CI Financial Business Overview & Revenue Model

Company Description

CI Financial Corp. (CIX) is a diversified wealth management and investment advisory firm headquartered in Toronto, Canada. The company operates in the financial services sector, offering a broad range of asset management and wealth management services to individuals, advisors, and institutions. CI Financial provides its clients with access to a wide variety of investment products, including mutual funds, exchange-traded funds (ETFs), and alternative investments, as well as comprehensive financial planning and advisory services.

How the Company Makes Money

CI Financial makes money primarily through management fees and advisory fees associated with its asset management and wealth management services. The company's revenue model is centered on earning a percentage of the assets under management (AUM) or assets under advisement (AUA). This fee structure allows CI Financial to generate consistent revenue streams as long as it maintains or grows its AUM/AUA. Additionally, the company benefits from performance fees for certain investment products that exceed predefined benchmarks. CI Financial has also expanded its revenue base through strategic acquisitions and partnerships that enhance its service offerings and geographic reach, contributing to its overall earnings growth.

CI Financial Financial Statement Overview

Summary

CI Financial's financial health shows mixed results. While gross profit margins remain strong, recent periods have seen net losses and fluctuating profitability margins. The balance sheet reveals high leverage, posing potential risks, but cash flows exhibit stability, offering some financial resilience despite recent earnings challenges.

Income Statement

CI Financial has experienced fluctuating revenue growth, with a recent decline in profitability as evidenced by a negative net income in the latest period. The gross profit margin remains robust, but the net profit margin has deteriorated significantly. EBIT and EBITDA margins have also shown volatility, impacting overall profitability.

Balance Sheet

The company maintains a high debt-to-equity ratio, indicating significant leverage, which poses potential financial risk. The equity ratio has declined, reflecting reduced shareholder equity relative to total assets. However, the company has historically maintained a reasonable return on equity, though recent losses have impacted this metric.

Cash Flow

Operating cash flow remains positive and has shown growth, supporting liquidity. Free cash flow has also been stable, although recent disruptions in net income have affected the free cash flow to net income ratio. Overall, the cash flow statement reflects a stable cash generation capability despite net income fluctuations.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.43B	3.17B	2.43B	2.73B	2.05B
Gross Profit	2.46B	2.28B	2.02B	1.75B	1.04B
EBITDA	203.13M	767.28M	953.71M	792.66M	751.70M
Net Income	-411.05M	5.02M	299.76M	409.33M	475.98M
Balance Sheet
Total Assets	10.76B	9.98B	9.71B	8.66B	6.36B
Cash, Cash Equivalents and Short-Term Investments	204.21M	179.81M	194.07M	362.60M	616.97M
Total Debt	4.39B	3.81B	4.39B	3.95B	2.53B
Total Liabilities	10.35B	8.94B	8.08B	7.04B	4.74B
Stockholders Equity	409.17M	1.03B	1.61B	1.59B	1.58B
Cash Flow
Free Cash Flow	460.74M	398.24M	448.81M	645.70M	512.85M
Operating Cash Flow	561.05M	449.41M	478.92M	665.90M	541.97M
Investing Cash Flow	-662.32M	-524.30M	-508.53M	-1.40B	-598.11M
Financing Cash Flow	131.85M	58.30M	-47.54M	483.10M	421.38M

CI Financial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 31.65
• 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:CIX, the sentiment is Positive. The current price of 31.65 is above the 20-day moving average (MA) of 31.54, above the 50-day MA of 31.43, and above the 200-day MA of 28.32, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 69.87 is Neutral, neither overbought nor oversold. The STOCH value of 85.61 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CIX.

CI Financial 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%
IGM	76 Outperform	C$10.20B	10.85	12.84%	5.19%	-3.85%	-4.41%
ONEX	72 Outperform	C$7.45B	12.48	5.40%	0.36%	-10.83%	-34.83%
FSZ	72 Outperform	C$654.76M	16.65	13.09%	9.69%	3.59%	-43.99%
Sector *	60 Neutral	C$14.39B	5.28	20.17%	6.14%	26.91%	-38.39%
BBUC	52 Neutral	C$3.98B	―	-247.20%	0.80%	-11.38%	-259.72%
CIX	51 Neutral	C$4.56B	―	-40.34%	2.53%	7.92%	-60.24%

CI Financial Corporate Events

CI Financial Reports Improved Q1 Results Amid Privatization Plans

CI Financial reported a first-quarter net loss of $8.5 million, a significant improvement from the previous quarter’s $405.4 million loss. Despite a slight decline in adjusted net income and revenues, the company saw a substantial increase in total assets, reaching $546.1 billion, driven by acquisitions in the U.S. wealth management sector. The company is undergoing a significant transition as it moves towards privatization through an arrangement with Mubadala Capital, expected to close in the third quarter of 2025. This strategic shift is likely to impact its operational dynamics and shareholder engagements, as evidenced by the exemption from holding an annual meeting.

The most recent analyst rating on (TSE:CIX) stock is a Hold with a C$17.00 price target. To see the full list of analyst forecasts on CI Financial stock, see the TSE:CIX Stock Forecast page.

CI Financial Announces $500 Million Debenture Offering for Debt Refinancing

CI Financial Corp. has announced a debenture offering of $500 million with a 4.75% interest rate, maturing in 2028, to refinance existing debt and for general corporate purposes. This move, led by major financial institutions, is expected to maintain the company’s stable credit rating and enhance its financial flexibility, potentially impacting its market positioning and stakeholder interests positively.