Guardian Cap Cl A NV (GCG.A) AI Stock Analysis

• Market Cap: C$1.04B
• Dividend Yield: 5.07%
• Average Volume (3M): 2.89K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.35
• Revenue Growth: 35.78%
• EPS Growth: -24.67%
• Country: CA
• Employees: 600
• Sector: Financial
• Sector Strength: 82
• Industry: Asset Management
• EPS (TTM): -0.30
• Shares Outstanding: 21,835,733
• 10 Day Avg. Volume: 2,677
• 30 Day Avg. Volume: 2,891
• PEG Ratio: 0.12
• Price to Book (P/B): 1.21
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.70
• 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$51.00
• Price Target Upside: 20.91% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: C$46.00 ▲(9.06%Upside)

Guardian Capital Group's overall stock score reflects its strong financial stability and reasonable valuation. The company benefits from a solid equity position and governance, but needs to address cash flow challenges and sustain profit margins for improved performance. Technical analysis shows neutral market sentiment, indicating a balanced outlook.

Positive Factors

Acquisition Impact

Guardian completed a transformational acquisition of Sterling Capital, providing the firm with meaningful scale in the U.S. market.

Strategic Initiatives

Guardian continues to make progress on key strategic initiatives including the Sterling integration, scaling of GSIM, and building out a larger presence in the Canadian retail market.

Valuation

The valuation of Guardian's operating businesses is disconnected from earnings potential, providing an attractive risk-reward and upside on the stock.

Negative Factors

Equity Strategy Performance

There are higher outflows from certain equity strategies, particularly GuardCap, due to recent underperformance.

Net Flows

Q1 net flows remained challenged with Guardian experiencing negative net flows related to some equity mandates.

Outflows

In 2024, Guardian experienced net outflows in public markets, representing $10.6B in client assets, due to higher outflows from certain equity strategies.

Guardian Cap Cl A NV Business Overview & Revenue Model

Company Description

Guardian Capital Group Limited, together with its subsidiaries, operates as a diversified financial services company in Canada and internationally. The company operates through Investment management, Wealth management, Corporate activities and investment segments. The Investment management segment provides investment management services provided to clients. The Wealth management segment is involved in investment management and advisory services to high and ultra-high net worth clients, commissions on life insurance products, mutual funds ,and other securities. The Corporate Activities and Investments segment comprises of investment of securities holdings, as well as corporate management and development activities. In addition, the company manages institutional assets for pension plans, broker-dealer third-party platforms, insurance company segregated, exchange traded, and mutual funds, endowment funds, and foundations; and provides private wealth management services to high-net-worth families, foundations, and charities. Further, the company offers banking services for international clients and independent platform for financial advisors to clients. Additionally, the company sells life insurance products, mutual funds, and other securities. Guardian Capital Group Limited was incorporated in 1962 and is headquartered in Toronto, Canada.

How the Company Makes Money

Guardian Capital Group makes money primarily through management fees charged on assets under management (AUM). Revenue is generated from investment management services provided to institutions, such as pension funds, endowments, and foundations, as well as to private clients through its wealth management division. The company also earns performance fees based on the investment returns generated for clients, which can significantly contribute to earnings during periods of strong market performance. Additionally, Guardian Capital Group benefits from strategic partnerships with other financial institutions, expanding its service offerings and market reach. These partnerships can also lead to cross-selling opportunities and enhanced revenue streams.

Guardian Cap Cl A NV Financial Statement Overview

Summary

Guardian Cap Cl A NV exhibits a sound financial position with strong equity backing and minimal leverage. While profitability metrics remain healthy, there is a notable decline in cash flow generation and profit margins. Revenue growth is positive, but improvement in cash conversion and maintaining margin stability are needed.

Income Statement

The income statement reveals a mixed performance. The gross profit margin stands at 41.3% for TTM, indicating solid profitability. However, the net profit margin of 20.0% has decreased from the previous year's 29.6%. Revenue growth is positive at 6.4% for TTM, showing a recovery from the previous year, but still below historical highs. EBIT and EBITDA margins are at 9.3% and 31.2% respectively, demonstrating operational efficiency but have shown a slight decline over the period.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of 69.0% for TTM, reflecting financial stability. The debt-to-equity ratio is low at 0.13, indicating minimal leverage risk. ROE is 5.5% for TTM, which is moderate but impacted by the lower net income. Overall, the company maintains a healthy financial structure with ample equity backing.

Cash Flow

Cash flow analysis presents some challenges. The free cash flow growth rate has declined by 56.9% in TTM, indicating reduced cash generation capability. The operating cash flow to net income ratio is 0.61, and the free cash flow to net income ratio is 0.54, both reflecting a decrease from previous levels, pointing to weakened cash conversion efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	359.19M	337.60M	254.54M	214.34M	414.91M	325.18M
Gross Profit	148.40M	150.89M	131.21M	103.07M	154.53M	117.53M
EBITDA	112.01M	144.26M	135.75M	-44.23M	104.67M	75.02M
Net Income	71.88M	100.10M	562.93M	-59.57M	184.24M	42.36M
Balance Sheet
Total Assets	1.89B	1.95B	1.73B	1.36B	1.43B	1.15B
Cash, Cash Equivalents and Short-Term Investments	210.57M	222.58M	139.33M	122.34M	131.59M	84.87M
Total Debt	172.98M	178.27M	158.65M	157.07M	129.26M	109.16M
Total Liabilities	584.86M	635.41M	490.07M	581.91M	576.10M	435.86M
Stockholders Equity	1.30B	1.32B	1.24B	767.86M	852.58M	717.71M
Cash Flow
Free Cash Flow	38.66M	89.72M	79.28M	64.51M	87.44M	62.16M
Operating Cash Flow	44.19M	93.26M	81.42M	81.23M	102.86M	71.79M
Investing Cash Flow	5.60M	-21.85M	124.33M	-45.51M	-88.01M	-37.50M
Financing Cash Flow	-64.58M	-22.95M	-185.28M	-54.62M	1.88M	-26.66M

Guardian Cap Cl A NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 42.18
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GCG.A, the sentiment is Positive. The current price of 42.18 is above the 20-day moving average (MA) of 41.38, above the 50-day MA of 41.24, and above the 200-day MA of 41.20, indicating a bullish trend. The MACD of 0.25 indicates Negative momentum. The RSI at 53.71 is Neutral, neither overbought nor oversold. The STOCH value of 60.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GCG.A.

Guardian Cap Cl A NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGF.B	78 Outperform	C$829.43M	7.89	9.24%	3.80%	16.93%	17.52%
CVG	77 Outperform	C$1.10B	9.03	10.05%	1.04%	120.44%	―
GCG	71 Outperform	C$1.04B	14.95	5.62%	4.94%	35.78%	-24.67%
GCG.A	71 Outperform	C$1.04B	14.34	5.62%	5.07%	35.78%	-24.67%
SEC	69 Neutral	C$804.40M	2.95	-7.43%	―	-8.45%	211.31%
Sector *	62 Neutral	AU$9.88B	7.94	10.79%	5.20%	32.02%	38.31%
WED	61 Neutral	C$1.05B	12.73	-9.16%	―	100.87%	-110.30%

Guardian Cap Cl A NV Corporate Events

Guardian Capital Group Reports Successful Shareholder Meeting Outcomes

Guardian Capital Group Limited announced the results of its annual meeting of shareholders, where all director nominees were elected with overwhelming support. Additionally, shareholders appointed KPMG LLP as the auditor and approved an amendment to the company’s by-laws. These decisions reflect Guardian’s continued focus on governance and operational stability, reinforcing its position in the investment management industry.

Guardian Capital Reports Q1 2025 Results with Revenue Boost from Sterling Acquisition

Guardian Capital Group Limited, a financial services company, reported its first-quarter 2025 operating results, highlighting a significant increase in net revenue to $95.2 million, largely due to the acquisition of Sterling. However, the company faced net losses of $15.7 million, attributed to changes in the fair value of its securities portfolio and costs associated with the Sterling acquisition. Total client assets decreased slightly from the previous quarter but showed a substantial year-over-year increase due to the acquisition. The Board declared a quarterly dividend of $0.39 per share.

Guardian Capital Group Reports First Quarter 2025 Financial Results

Guardian Capital Group Limited, a financial services company, reported a challenging first quarter of 2025 with a net revenue of $95.2 million, significantly up from $62.5 million in the previous year, largely due to the acquisition of Sterling. However, the company faced net losses of $15.7 million compared to net gains of $12.7 million in the same quarter of the prior year, primarily due to changes in the fair values of its securities portfolio. The company’s total client assets decreased slightly by 1% from the previous quarter but showed a substantial increase of 172.7% year-over-year, attributed to the acquisition of Sterling. Despite these challenges, the board declared a quarterly dividend, reflecting confidence in the company’s long-term prospects.