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Fiera Capital A (TSE:FSZ)
:FSZ

Fiera Capital A (FSZ) AI Stock Analysis

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Fiera Capital A

(TSX:FSZ)

Rating:71Outperform
Price Target:
C$6.50
▲(9.98%Upside)
Fiera Capital A demonstrates strong profitability and cash generation, supported by a high dividend yield. Despite challenges such as increased leverage and reduced AUM, strategic initiatives and leadership changes indicate potential for future growth. Technical indicators suggest caution, but the overall outlook is moderately positive.
Positive Factors
Capital Deployment
The reduced dividend payout provides enhanced capital deployment flexibility.
Leadership
The appointment of Maxime Ménard offers leadership succession with a focus on leveraging Fiera's multi-asset solutions.
Negative Factors
Asset Under Management
Fiera received a termination notice from Canoe regarding funds sub-advised by Fiera and PineStone; Canoe is withdrawing $5.5B in AUM in Q1/25.
Leverage
Financial flexibility is limited, and there is rising leverage in volatile markets.
Net Flows
There remains limited visibility into a sustained improvement of net flows, a key driver of multiple expansion.

Fiera Capital A (FSZ) vs. iShares MSCI Canada ETF (EWC)

Fiera Capital A Business Overview & Revenue Model

Company DescriptionFiera 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 MoneyFiera Capital generates revenue primarily through management fees, which are charged as a percentage of assets under management (AUM). These fees are collected from clients for managing their investment portfolios. The company also earns performance-based fees, which are contingent on achieving specific investment performance benchmarks. Additionally, Fiera Capital benefits from significant partnerships with financial institutions and access to global markets, enhancing its distribution network and enabling revenue growth.

Fiera Capital A Earnings Call Summary

Earnings Call Date:May 09, 2025
(Q1-2025)
|
% Change Since: -8.09%|
Next Earnings Date:Aug 07, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant challenges, such as a decrease in AUM, dividend reduction, and revenue decline, largely attributed to macroeconomic conditions and PineStone outflows. However, there were positive elements like growth in private markets and leadership appointments, indicating strategic positioning for future growth.
Q1-2025 Updates
Positive Updates
Positive Net Organic Growth Excluding PineStone
Excluding PineStone, Fiera Capital experienced positive net organic growth of about $550 million in Q1 2025.
Private Markets Platform Growth
Assets in the private markets platform grew by $1.4 billion or 7% to $21.1 billion during the quarter.
Strong Investment Performance
Most flagship strategies performed well, with Canadian fixed income strategies delivering strong excess returns and the global multi-sector income strategy outperforming its benchmark by more than 70 basis points.
New Leadership Appointments
Maxime Ménard was appointed as Global President and CEO effective July 1, 2025, with Gabriel Castiglio as Global COO, and Lucas Pontillo as Global CFO and Head of Corporate Strategy.
Negative Updates
Decrease in Assets Under Management
Assets under management decreased by $5.5 billion for the quarter, primarily due to outflows from assets subadvised by PineStone.
Dividend Reduction
The quarterly dividend was reduced to $0.108 per share to maintain financial flexibility and support deleveraging.
Challenging Macroeconomic Environment
The macroeconomic environment was challenging, with global equity markets mixed and the S&P 500 declining nearly 5% for the quarter.
Revenue Decline
Total revenues were $163 million, down 3% from $168 million in the same quarter last year.
Company Guidance
During the Fiera Capital earnings call for the first quarter of 2025, the company provided guidance on various financial metrics and strategic directions. The firm's assets under management (AUM) decreased by $5.5 billion to $161.6 billion primarily due to outflows from assets subadvised by PineStone. Excluding these, Fiera experienced positive net organic growth of $550 million. The private markets platform saw a 7% growth, bringing its AUM to $21.1 billion, driven by a new real estate acquisition in the UK. Public markets AUM, excluding PineStone, increased by 1% to over $104 billion. Despite a challenging macroeconomic backdrop, the company's Canadian equity strategy outperformed its benchmark by 240 basis points. On the financial front, total revenues for the quarter were $163 million with base management fees totaling $155 million, up 2% year-over-year. SG&A expenses were $122 million, and the adjusted EBITDA margin remained stable at 26.6%. The company announced a quarterly dividend of $0.108 per share, reflecting a strategic shift to prioritize financial flexibility and growth opportunities.

Fiera Capital A Financial Statement Overview

Summary
Fiera Capital A's financial statements show a solid performance with strong profitability and cash generation. The company maintains high margins and a healthy cash flow, though revenue growth is modest. The balance sheet reveals increased leverage, which could pose risks if not managed carefully.
Income Statement
78
Positive
Fiera Capital A has demonstrated a stable revenue trajectory with a slight growth in Total Revenue from $676.2M in 2024 to $677.4M in TTM (Trailing-Twelve-Months), representing a modest revenue growth. The Gross Profit Margin is robust at 98.14% for TTM. However, Net Profit Margin decreased from 3.69% in 2024 to 5.78% in TTM, indicating improved profitability. The EBIT Margin improved significantly in TTM at 53.76%, reflecting operational efficiency. EBITDA Margin also improved to 24.05% in TTM. Overall, the income statement shows positive trends with strong margins, though revenue growth is modest.
Balance Sheet
65
Positive
The Debt-to-Equity Ratio increased from 2.70 in 2024 to 2.80 in TTM, indicating a higher leverage which might pose a risk. The Return on Equity (ROE) is relatively moderate, improving from 8.76% in 2024 to 13.57% in TTM, suggesting better utilization of equity. The Equity Ratio decreased slightly to 22.74% in TTM, pointing to a lower proportion of equity financing. While there is a strong ROE, the increased leverage and lower equity ratio indicate potential financial risks.
Cash Flow
72
Positive
The company shows a positive Free Cash Flow Growth Rate of 5.75% from 2024 to TTM, indicating strong cash generation. The Operating Cash Flow to Net Income Ratio is healthy at 3.62 in TTM, showing effective cash conversion. The Free Cash Flow to Net Income Ratio is exceptionally strong at 3.54, indicating excellent cash profitability. Overall, the cash flow statement reflects strong cash generation and management, despite a slight decrease in cash holdings.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
677.40M676.20M675.53M664.89M737.85M689.48M
Gross Profit
664.79M430.91M444.04M425.29M385.53M340.11M
EBIT
364.19M112.77M139.56M98.29M146.84M108.86M
EBITDA
162.94M149.50M189.96M139.49M199.00M130.09M
Net Income Common Stockholders
39.13M24.99M58.45M25.35M73.53M-3.38M
Balance SheetCash, Cash Equivalents and Short-Term Investments
45.57M44.56M75.22M68.21M111.98M72.37M
Total Assets
1.27B1.25B1.29B1.33B1.47B1.51B
Total Debt
808.39M768.51M732.54M746.30M709.54M767.07M
Net Debt
771.86M733.15M666.94M684.10M606.95M698.22M
Total Liabilities
972.77M957.75M960.74M982.45M1.05B1.04B
Stockholders Equity
288.38M285.06M322.63M341.05M415.31M467.98M
Cash FlowFree Cash Flow
138.52M130.98M135.12M108.39M155.15M133.60M
Operating Cash Flow
141.77M134.00M137.97M113.31M171.29M145.38M
Investing Cash Flow
-2.10M9.39M3.29M-6.34M43.55M-13.42M
Financing Cash Flow
-141.11M-175.23M-137.30M-148.15M-179.35M-159.85M

Fiera Capital A Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price5.91
Price Trends
50DMA
5.95
Negative
100DMA
6.35
Negative
200DMA
7.32
Negative
Market Momentum
MACD
-0.05
Negative
RSI
51.65
Neutral
STOCH
82.41
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:FSZ, the sentiment is Neutral. The current price of 5.91 is above the 20-day moving average (MA) of 5.82, below the 50-day MA of 5.95, and below the 200-day MA of 7.32, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 51.65 is Neutral, neither overbought nor oversold. The STOCH value of 82.41 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:FSZ.

Fiera Capital A Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
C$788.25M7.968.68%4.14%20.65%-2.36%
TSCVG
77
Outperform
C$1.04B8.2410.69%1.10%120.44%
71
Outperform
C$1.04B14.425.62%3.67%35.78%-24.67%
TSFSZ
71
Outperform
C$634.20M16.1313.09%7.37%3.59%-43.99%
TSGCG
70
Neutral
C$1.04B14.275.62%3.71%35.78%-24.67%
TSSEC
69
Neutral
C$730.33M2.95-7.43%-8.45%211.31%
64
Neutral
$12.85B9.817.79%78.20%12.23%-7.93%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:FSZ
Fiera Capital A
5.91
-0.23
-3.75%
TSE:AGF.B
AGF Management B NV
12.11
4.23
53.68%
TSE:CVG
Clairvest
70.00
0.82
1.19%
TSE:GCG
Guardian Capital
42.75
2.21
5.45%
TSE:GCG.A
Guardian Cap Cl A NV
41.76
0.56
1.36%
TSE:SEC
Senvest Capital
300.47
-29.53
-8.95%

Fiera Capital A Corporate Events

Business Operations and Strategy
Fiera Capital to Manage ATB US Large Cap Equity Fund
Positive
Jun 11, 2025

Fiera Capital has been selected by ATB Investment Management Inc. to manage the ATB US Large Cap Equity Fund, highlighting a shared commitment to disciplined, research-driven investment solutions. This partnership aims to enhance client outcomes by leveraging Fiera’s expertise and aligns with Fiera’s strategy to expand its institutional-quality investment platform in intermediary channels.

The most recent analyst rating on (TSE:FSZ) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on Fiera Capital A stock, see the TSE:FSZ Stock Forecast page.

Private Placements and Financing
Fiera Capital Expands Debenture Offering by $10 Million
Positive
Jun 6, 2025

Fiera Capital Corporation has announced the successful issuance of an additional $10 million in senior subordinated unsecured debentures, following the exercise of an over-allotment option related to a previous public offering. The proceeds from this issuance will be used to redeem existing debentures and reduce indebtedness, which may enhance the company’s financial flexibility and market positioning.

The most recent analyst rating on (TSE:FSZ) stock is a Hold with a C$8.00 price target. To see the full list of analyst forecasts on Fiera Capital A stock, see the TSE:FSZ Stock Forecast page.

Product-Related AnnouncementsBusiness Operations and Strategy
Fiera Capital Chosen to Manage New Canadian Equities Strategy
Positive
Jun 5, 2025

Fiera Capital Corporation has been selected by Independent Advisor Solutions Inc., a subsidiary of Wellington-Altus Financial Inc., to manage its new MiBLOX strategy, Canadian High Conviction Equities. This collaboration will provide Wellington-Altus advisors and their clients access to Fiera’s Canadian Equity strategy, focusing on high-quality Canadian companies. The partnership underscores Fiera Capital’s commitment to expanding access to institutional-quality strategies through independent wealth channels, potentially enhancing its industry positioning and offering significant benefits to stakeholders.

The most recent analyst rating on (TSE:FSZ) stock is a Hold with a C$6.25 price target. To see the full list of analyst forecasts on Fiera Capital A stock, see the TSE:FSZ Stock Forecast page.

Private Placements and Financing
Fiera Capital Completes $70 Million Debenture Offering
Positive
Jun 3, 2025

Fiera Capital Corporation has successfully completed a $70 million public offering of 7.75% senior subordinated unsecured debentures, which will trade on the Toronto Stock Exchange. The proceeds from this offering will be used to redeem the company’s existing 8.25% debentures due in 2026 and for general corporate purposes, enhancing Fiera Capital’s financial flexibility and positioning within the industry.

The most recent analyst rating on (TSE:FSZ) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on Fiera Capital A stock, see the TSE:FSZ Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Fiera Capital Files Prospectus for $70 Million Debenture Offering
Positive
May 29, 2025

Fiera Capital Corporation, a Montreal-based company, has announced the filing of a final short form prospectus for its $70 million public offering of 7.75% senior subordinated unsecured debentures due in 2030. This offering, expected to close around June 3, 2025, is part of Fiera Capital’s strategy to strengthen its financial position and expand its market presence. The debentures are not registered under the U.S. Securities Act, and the offering is limited to Canadian provinces, highlighting the company’s focus on the Canadian market.

The most recent analyst rating on (TSE:FSZ) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on Fiera Capital A stock, see the TSE:FSZ Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Fiera Capital Files Prospectus for $70 Million Debenture Offering
Positive
May 28, 2025

Fiera Capital Corporation has announced the filing of a final short form prospectus for its $70 million public offering of 7.75% senior subordinated unsecured debentures, expected to close on June 3, 2025. This move is part of the company’s strategy to strengthen its financial position and enhance its market offerings, potentially impacting its operations and stakeholder interests positively.

The most recent analyst rating on (TSE:FSZ) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on Fiera Capital A stock, see the TSE:FSZ Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Fiera Capital Elects New Board of Directors
Neutral
May 22, 2025

Fiera Capital Corporation announced the election of its board of directors during the annual and special meeting of shareholders held on May 22, 2025. All nominees listed in the management information circular were successfully elected, with class A directors receiving a majority of votes from class A subordinate voting shareholders, and class B directors being elected unanimously by the sole holder of class B special voting shares. This election reinforces Fiera Capital’s governance structure and supports its strategic objectives in the asset management industry.

The most recent analyst rating on (TSE:FSZ) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on Fiera Capital A stock, see the TSE:FSZ Stock Forecast page.

Shareholder Meetings
Fiera Capital Announces Upcoming Shareholder Meeting in Montreal
Neutral
May 16, 2025

Fiera Capital Corporation has announced its Annual and Special Meeting of Shareholders, scheduled for May 22, 2025, in Montreal. The meeting will be held in person and is open to the public on a listen-only basis. This event is significant for stakeholders as it provides an opportunity for shareholders to engage with the company’s leadership and discuss strategic directions, potentially impacting Fiera Capital’s operations and market positioning.

The most recent analyst rating on (TSE:FSZ) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on Fiera Capital A stock, see the TSE:FSZ Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Fiera Capital Upsizes Debenture Offering to $70 Million Amid Strong Demand
Positive
May 14, 2025

Fiera Capital Corporation has increased its previously announced offering of 7.75% senior subordinated unsecured debentures to $70 million due to strong demand. The proceeds from this offering will be used to redeem the company’s existing 8.25% debentures due in 2026 and for general corporate purposes, reflecting a strategic move to manage its debt obligations and optimize its financial structure.

The most recent analyst rating on (TSE:FSZ) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on Fiera Capital A stock, see the TSE:FSZ Stock Forecast page.

Private Placements and FinancingBusiness Operations and Strategy
Fiera Capital Announces $60 Million Debenture Offering
Positive
May 14, 2025

Fiera Capital Corporation has announced a $60 million bought deal offering of 7.75% senior subordinated unsecured debentures due June 30, 2030. The offering, led by a syndicate of underwriters, is expected to close on or about June 3, 2025. The proceeds will be used to fund the redemption of the company’s existing 8.25% debentures due December 31, 2026, and for general corporate purposes. This strategic financial move aims to optimize Fiera Capital’s debt structure by replacing higher interest debt with lower interest obligations, potentially improving the company’s financial flexibility and cost of capital.

The most recent analyst rating on (TSE:FSZ) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on Fiera Capital A stock, see the TSE:FSZ Stock Forecast page.

DividendsBusiness Operations and StrategyFinancial Disclosures
Fiera Capital Reports Q1 2025 Results with Strategic Adjustments
Neutral
May 9, 2025

Fiera Capital reported a decrease in Assets Under Management (AUM) by $5.5 billion or 3.3% for the first quarter of 2025, primarily due to negative net organic growth in public markets. Despite this, the company achieved positive net organic growth in its public markets excluding PineStone-related assets and increased its private markets AUM by $1.4 billion, driven by strategic acquisitions and favorable market impacts. The company has also decided to reduce its quarterly dividend to maintain financial flexibility for strategic growth initiatives and operational efficiency improvements.

Executive/Board ChangesBusiness Operations and Strategy
Fiera Capital Announces Leadership Transition to Drive Global Growth
Positive
May 8, 2025

Fiera Capital has announced a leadership transition with Maxime Ménard appointed as Global President and CEO, effective July 1, 2025. This change is part of the firm’s ongoing transformation into a regionally empowered organization, aiming to enhance investment capabilities and operational discipline. The leadership changes, including the appointments of Gabriel Castiglio as Global COO and Lucas Pontillo as Head of Corporate Strategy, are expected to strengthen Fiera Capital’s strategic direction and growth potential, reinforcing its commitment to delivering long-term value for clients and shareholders.

Product-Related AnnouncementsBusiness Operations and Strategy
Fiera Capital to Wind Down Canadian Equity Strategies
Neutral
Apr 25, 2025

Fiera Capital announced the wind down of its Canadian Equity Small Capitalization and Canadian Equity Microcap Opportunity strategies, which together managed approximately C$1.2 billion in assets. The decision aligns with the company’s strategic goals and is not expected to significantly impact its financial standing. Fiera Capital continues to focus on high-conviction strategies and reported preliminary assets under management of approximately C$161.6 billion as of March 31, 2025.

Business Operations and StrategyFinancial Disclosures
Fiera Capital Reports Decline in Q1 2025 Assets Under Management
Negative
Apr 23, 2025

Fiera Capital Corporation announced a decrease in its assets under management (AUM) to approximately C$161.6 billion as of March 31, 2025, down from C$167.1 billion at the end of 2024. This decline was primarily due to previously announced outflows of C$5.7 billion in equity mandates by Canoe Financial LP, which transferred to PineStone. Despite this, the company reported net organic growth in both public markets (excluding PineStone) and private markets, with the latter showing consistent growth driven by new subscriptions and acquisitions. The company’s Q1 2025 financial results will be released on May 9, 2025.

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.