Fiera Capital A (FSZ) AI Stock Analysis

• Market Cap: C$664.87M
• Dividend Yield: 14.73%
• Average Volume (3M): 416.17K
• Price to Earnings (P/E): 26.3
• Beta (1Y): 1.36
• Revenue Growth: 5.64%
• EPS Growth: -57.76%
• Country: CA
• Employees: 863
• Sector: Financial
• Sector Strength: 86
• Industry: Asset Management
• EPS (TTM): 0.23
• Shares Outstanding: 88,696,270
• 10 Day Avg. Volume: 418,861
• 30 Day Avg. Volume: 416,166
• PEG Ratio: 0.06
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.97
• Price to Cash Flow (P/CF): 3.20
• P/FCF Ratio: 3.30
• 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$7.46
• Price Target Upside: 23.51% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6

Fiera Capital's overall stock score reflects a mixed financial performance with stable revenue but declining margins. Technical indicators show bearish trends, but strategic investments in emerging markets and a high dividend yield provide some optimism.

Positive Factors

Dividend Stability

The regular dividend is seen as sustainable with a ~90% payout ratio in 2025.

Dividend Yield

Valuation has normalized to its long-term 11% dividend yield average.

Negative Factors

Asset Under Management

Canoe is withdrawing $5.5B in AUM in Q1/25.

Public Markets Outflows

Fiera experienced modest public markets net outflows in Q4, representing ~$0.5B.

Target Price

Target price decreases to $9.00 on the back of revised AUM forecasts.

Fiera Capital A Business Overview & Revenue Model

Company Description

Fiera Capital Corporation is an employee owned investment manager. The firm primarily provides its services to institutional investors, mutual funds, charitable organizations, and private clients. It manages separate client-focused equity, fixed income, and balanced portfolios. The firm also launches and manages equity, fixed income, and balanced mutual funds and income trusts for its clients. It invests in the public equity and fixed income markets across the globe with a focus on Canada. The firm primarily invests in growth and value stocks of small-cap companies. It also invests in G.A.R.P. and value stocks of large-cap companies. The firm also makes investments in income trusts and preferred shares. It also applies exclusions to be fossil fuel free, integrates environmental, social, and governance considerations, and applies an ethical filter while making its investments. The firm employs fundamental and quantitative analysis along with bottom-up stock picking approach to create its equity portfolios. It employs a top-down macro-economic research to make its fixed income investments. The firm also makes alternative investments, including the use of long/short equity strategy. It benchmarks the performance of its portfolio against the S&P/TSX Index, MSCI ACWI Index, S&P/TSX Composite FFF Index, and S&P 500 indices. The firm conducts in-house research to make its investments. It makes investments in social infrastructure with a focus on affordable housing and community health care facilities and also makes investment in solar and wind power generation, transport, and mid-market assets. It typically invests in Canada. It was formerly known as Fiera Sceptre Inc. Fiera Capital Corporation was founded in 2002 and is based in Montréal, Canada with an additional office in Toronto, Canada, Calgary, Canada, and Vancouver, Canada.

How the Company Makes Money

Fiera Capital A generates revenue primarily through management fees charged on assets under management (AUM). These fees are typically calculated as a percentage of the AUM and vary depending on the type of investment product or service offered. In addition to management fees, the company may earn performance-based fees, which are contingent on meeting specific investment benchmarks or achieving returns above a predetermined threshold. Fiera Capital A leverages strategic partnerships and acquisitions to expand its investment capabilities and increase its market reach, thereby enhancing its revenue potential. The company also benefits from economies of scale as it grows its AUM, improving profitability by spreading fixed costs over a larger base.

Fiera Capital A Financial Statement Overview

Summary

Fiera Capital shows a moderate financial performance with stable revenue but declining profitability. High leverage and reduced equity are concerns, though cash flow generation remains strong.

Income Statement

The income statement shows moderate performance with a slight increase in total revenue from 2023 to 2024, but a notable decline in net income and EBITDA. The gross profit margin remains relatively strong. However, the net profit margin has decreased significantly, raising concerns about profitability sustainability.

Balance Sheet

The balance sheet reflects a stable but leveraged financial structure. The debt-to-equity ratio is quite high, indicating reliance on debt financing, which poses a risk if not managed carefully. Stockholders' equity has decreased, impacting the equity ratio negatively. Return on equity has also dropped, suggesting reduced efficiency in generating returns.

Cash Flow

Cash flow statements indicate strong operational cash generation, albeit with a slight decline from the previous year. The free cash flow remains positive, providing a buffer. However, the significant decrease in free cash flow growth rate and the operating cash flow to net income ratio highlight potential challenges in maintaining cash flow strength.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
676.20M	675.53M	664.89M	737.85M	689.48M
	Gross Profit
430.91M	444.04M	425.29M	385.53M	291.42M
	EBIT
0.00	139.56M	98.29M	146.84M	108.86M
	EBITDA
149.50M	189.96M	155.91M	214.47M	191.00M
	Net Income Common Stockholders
24.99M	58.45M	25.35M	73.53M	2.03M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
44.56M	75.22M	68.21M	111.98M	72.37M
	Total Assets
1.25B	1.29B	1.33B	1.47B	1.51B
	Total Debt
768.51M	732.54M	746.30M	709.54M	751.43M
	Net Debt
733.15M	666.94M	684.10M	606.95M	682.57M
	Total Liabilities
957.75M	960.74M	982.45M	1.05B	1.04B
	Stockholders Equity
285.06M	322.63M	341.05M	415.31M	467.98M
Cash Flow		Free Cash Flow
130.98M	135.12M	108.39M	155.15M	133.87M
	Operating Cash Flow
134.00M	137.97M	113.31M	171.29M	145.64M
	Investing Cash Flow
9.39M	3.29M	-6.34M	43.55M	-13.69M
	Financing Cash Flow
-175.23M	-137.30M	-148.15M	-179.35M	-159.85M

Fiera Capital A Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.04
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FSZ, the sentiment is Negative. The current price of 6.04 is below the 20-day moving average (MA) of 6.07, below the 50-day MA of 6.48, and below the 200-day MA of 7.73, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 40.05 is Neutral, neither overbought nor oversold. The STOCH value of 34.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:FSZ.

Fiera Capital A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GWO	73 Outperform	C$48.77B	12.54	15.52%	4.41%	-2.40%	42.24%
IAG	70 Outperform	C$11.22B	12.26	13.26%	2.86%	-17.69%	29.19%
Sector *	64 Neutral	$13.21B	9.26	9.39%	4.87%	16.14%	-8.87%
FSZ	59 Neutral	C$664.87M	26.35	8.22%	14.73%	5.64%	-57.76%

Fiera Capital A Corporate Events

Fiera Capital Sees AUM Growth Amidst Market Strength in 2024

Fiera Capital reported its financial results for the fourth quarter and fiscal year 2024, highlighting a significant increase in assets under management (AUM) by $5.4 billion, ending the year at $167.1 billion. Despite a strong year for financial markets and growth in base management fees due to a shift towards higher-fee strategies, the company faced a reduction in performance fees, resulting in lower total revenues and an adjusted EBITDA margin of 28.4% for 2024. The Private Markets platform showed robust returns and contributed to AUM growth, reflecting sustained interest in Fiera Capital’s competitive strategies.

Fiera Capital’s $100 Million Investment Fuels Emerging Market Expansion

Fiera Capital announced a $100 million seed investment into the Oaks EM Select strategy, aimed at bolstering its investments in emerging markets such as Saudi Arabia, Greece, Vietnam, Mexico, Indonesia, and the Philippines. This investment, sourced from a significant U.S. pension plan, enhances the strategy’s financial capability and aligns with Fiera’s goal of expanding its reach in high-growth markets often overlooked by mainstream investors, aiming to offer diversified investment opportunities beyond traditional emerging markets.

Fiera Capital Reports Increased Assets Under Management and Upcoming Q4 Results

Fiera Capital Corporation announced a preliminary estimate of its assets under management (AUM) at C$167.1 billion as of December 31, 2024, marking a 1.0% increase from the previous quarter and a 3.4% rise year-over-year. The growth was largely driven by strong equity market performance and favorable foreign exchange rates. Public markets AUM, excluding those sub-advised by PineStone, saw a 1.9% quarterly increase, while private markets AUM grew by 1.3% in the quarter. The company plans to release its Q4 2024 financial results on February 26, 2025, with a conference call scheduled for the same day.