CI Financial (CIX) AI Stock Analysis

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CI Financial

(TSX:CIX)

Rating:51Neutral

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 (CIX) vs. iShares MSCI Canada ETF (EWC)

Market Cap

$4.54B

Dividend Yield2.51%

Average Volume (3M)469.09K

Price to Earnings (P/E)―

Beta (1Y)0.87

Revenue Growth7.92%

EPS Growth-60.24%

CountryCA

Employees2,416

SectorFinancial

Sector Strength83

IndustryAsset Management

Share Statistics

EPS (TTM)0.96

Shares Outstanding144,228,740

10 Day Avg. Volume384,050

30 Day Avg. Volume469,092

Financial Highlights & Ratios

PEG Ratio0.02

Price to Book (P/B)11.00

Price to Sales (P/S)0.00

P/FCF Ratio10.77

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$32.00

Price Target Upside1.58% Upside

Rating ConsensusModerate Sell

Number of Analyst Covering0

CI Financial Business Overview & Revenue Model

Company DescriptionCI Financial Corp. is a publicly owned asset management holding company. Through its subsidiaries, the firm manages separate client focused equity, fixed income, and alternative investments portfolios. It also manages mutual funds, hedge funds, and fund of funds for its clients through its subsidiaries. The firm was founded in 1965 and is based in Toronto, Canada with additional offices in Vancouver, Canada; Calgary, Canada; and Montreal, Canada.

How the Company Makes MoneyCI 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 Earnings Call Summary

Earnings Call Date:May 14, 2025

(Q3-2024)

% Change Since: -0.41%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Positive

The earnings call highlighted a strong financial performance with record-breaking metrics in EPS and EBITDA, supported by successful acquisitions and organic growth. Despite challenges related to increased debt and ongoing integration efforts, the positive aspects of revenue growth and strategic achievements in wealth management indicate a generally optimistic outlook.

Q3-2024 Updates

Positive Updates

Record-Breaking Financial Performance

Adjusted EPS grew 8% sequentially to a record $0.97, and adjusted EBITDA per share increased 10% from Q2 to a record of $1.85. Free cash flow also reached a record of $1.32 per share.

Strong Organic and M&A Growth

CI Financial completed acquisitions adding over $10 billion in client assets, contributing to an 8% sequential increase in adjusted EBITDA for the wealth management segment.

Awards and Recognition

CI Financial was recognized with 16 Lipper awards, marking the second consecutive year as the most awarded fund manager in Canada.

Positive Flows in Wealth Management

Both Canadian and U.S. wealth management businesses generated positive flows, indicating quality and resiliency.

Negative Updates

Increased Debt and Interest Expenses

Net debt increased to $3.6 billion, partly due to new bond issuance, with interest expenses expected to rise to $59-$60 million in Q4.

Integration Challenges

Ongoing integration efforts in real estate and technology for the U.S. Wealth segment, with the unification of the portfolio accounting solution expected to continue through 2025.

Company Guidance

During the CI Financial Q3 2024 earnings call, the company reported several record-breaking metrics. Adjusted EPS increased by 8% sequentially to $0.97, and adjusted EBITDA per share rose by 10% from Q2, reaching $1.85. Free cash flow per share also hit a record at $1.32. CI Financial allocated $164 million towards mergers and acquisitions and continued active share repurchases, including buying back 5 million shares and 680,000 shares through its NCIB. The company reduced its debt by repurchasing $16 million of 2051 notes. The Canadian retail channel experienced positive net flows, while both Canadian and U.S. wealth businesses generated positive flows. The U.S. segment's EBITDA rose by 24% compared to the previous year, with margins expanding to 44%. Global assets ended the quarter up 6% to $518 billion. The company anticipates Q4 interest and lease finance expenses to range between $59 million to $60 million. Net debt increased to $3.6 billion, with a net leverage of 3.3x. CI Financial completed acquisitions adding over $10 billion in client assets to Corient, contributing to an 8% sequential increase in adjusted EBITDA for the segment.

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

Neutral

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

Neutral

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

Neutral

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.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
	EBIT
0.00	912.19M	798.59M	695.90M	708.19M
	EBITDA
203.13M	767.28M	953.71M	792.66M	751.70M
	Net Income Common Stockholders
-411.05M	5.02M	299.76M	409.33M	475.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
204.21M	179.81M	194.07M	362.60M	616.97M
	Total Assets
10.76B	9.98B	9.71B	8.66B	6.36B
	Total Debt
4.39B	3.81B	4.39B	3.95B	2.53B
	Net Debt
4.23B	3.67B	4.24B	3.72B	2.05B
	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 Price31.50

Price Trends

50DMA

31.27

Positive

100DMA

31.14

Positive

200DMA

27.13

Positive

Market Momentum

MACD

0.05

Positive

RSI

56.12

Neutral

STOCH

49.21

Neutral

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 31.5 is above the 20-day moving average (MA) of 31.47, above the 50-day MA of 31.27, and above the 200-day MA of 27.13, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 56.12 is Neutral, neither overbought nor oversold. The STOCH value of 49.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CIX.

CI Financial Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGF.B	80 Outperform	C$791.78M	8.01	8.68%	3.87%	20.65%	-2.36%
ONEX	72 Outperform	C$7.30B	12.10	5.40%	0.38%	-10.83%	-34.83%
FSZ	65 Neutral	C$619.05M	15.74	13.09%	13.20%	3.59%	-43.99%
Sector *	64 Neutral	$12.80B	9.71	7.59%	16985.66%	12.07%	-7.53%
CIX	51 Neutral	$4.54B	―	-40.34%	2.51%	7.92%	-60.24%
IGIFF		$7.67B	11.31	12.84%	5.00%	―	―
BBUC		$2.81B	―	-247.20%	0.86%	―	―

* Financial Sector Average

Performance Comparison

TSE:CIX

CI Financial

31.50

17.28

121.49%

IGIFF

IGM Financial

32.34

6.36

24.48%

TSE:AGF.B

AGF Management B NV

12.04

4.15

52.60%

TSE:FSZ

Fiera Capital A

5.79

-0.41

-6.61%

TSE:ONEX

ONEX Corporation

105.51

7.29

7.42%

BBUC

Brookfield Business Corp. Class A

28.95

9.21

46.66%

CI Financial Corporate Events

Business Operations and StrategyFinancial Disclosures

CI Financial Reports Improved Q1 Results Amid Privatization Plans

Neutral

May 14, 2025

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.

Private Placements and Financing

CI Financial Announces $500 Million Debenture Offering for Debt Refinancing

Positive

Mar 27, 2025

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.

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.