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

• Market Cap: C$1.65B
• Dividend Yield: 2.29%
• Average Volume (3M): 35.20K
• Price to Earnings (P/E): 8.8
• Beta (1Y): 0.61
• Revenue Growth: 58.88%
• EPS Growth: 82.03%
• Country: CA
• Employees: 600
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 2.89
• Shares Outstanding: 21,840,935
• 10 Day Avg. Volume: 12,858
• 30 Day Avg. Volume: 35,196
• PEG Ratio: -0.12
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 2.94
• P/FCF Ratio: 10.69
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 4.2
• Revenue Forecast (FY): C$533.81M

• Rating: 81 Outperform
• Price Target: C$78.00 ▲(15.99% Upside)

Guardian Cap Cl A NV's strong financial performance and attractive valuation are the primary drivers of its high score. The technical analysis supports a positive outlook with bullish momentum. The corporate event involving Desjardins adds a layer of potential value realization, though it was not directly weighted in the score calculation.

Positive Factors

Revenue Growth

The company's consistent revenue growth indicates strong market demand and effective sales strategies, supporting long-term business expansion.

Balance Sheet Health

Low leverage enhances financial stability and flexibility, enabling the company to invest in growth opportunities without excessive risk.

Cash Generation

Strong cash generation supports ongoing operations and strategic investments, ensuring the company can sustain growth and weather economic fluctuations.

Negative Factors

Profit Margin Pressure

Decreasing profit margins may indicate rising costs or pricing pressures, which could impact profitability if not managed effectively.

Cash Conversion Efficiency

Low cash conversion efficiency suggests challenges in turning income into cash, potentially affecting liquidity and operational flexibility.

Gross Profit Margin Decline

A declining gross profit margin may signal increased production costs or competitive pricing pressures, which could erode profitability over time.

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 Cap generates revenue primarily through the sale of its protective headgear products to various markets, including youth and professional sports leagues, schools, and industrial clients. The company employs a direct sales model alongside partnerships with sports equipment retailers and distributors to expand its market reach. Key revenue streams include sales of individual helmets and bulk orders for teams and organizations. Additionally, Guardian Cap may enter into sponsorship agreements or collaborations with sports organizations to promote their products, further enhancing brand visibility and sales opportunities.

Guardian Cap Cl A NV Financial Statement Overview

Summary

Guardian Cap Cl A NV demonstrates solid financial health with strong revenue growth and effective cost management. The balance sheet is robust with low leverage, and cash flow generation is strong, though there is room for improvement in cash conversion efficiency. Overall, the company is well-positioned in the asset management industry, with a stable financial foundation and growth potential.

Income Statement

Guardian Cap Cl A NV shows a strong revenue growth rate of 7.4% in the TTM, indicating positive momentum. The gross profit margin is healthy at 41.3%, though slightly lower than the previous year. The net profit margin has decreased to 20.0% from 29.6% in the previous year, suggesting some pressure on profitability. However, the EBIT and EBITDA margins remain robust, reflecting effective cost management.

Balance Sheet

The company maintains a solid balance sheet with a low debt-to-equity ratio of 0.13, indicating prudent leverage management. Return on equity is modest at 5.7%, reflecting stable but not exceptional profitability. The equity ratio is strong, suggesting a solid capital structure with a high proportion of equity financing.

Cash Flow

Free cash flow growth is impressive at 19.0%, indicating strong cash generation capabilities. However, the operating cash flow to net income ratio is relatively low at 0.09, suggesting potential challenges in converting income into cash. The free cash flow to net income ratio is high at 87.5%, highlighting efficient cash utilization.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	385.79M	337.60M	254.54M	214.34M	207.62M	325.18M
Gross Profit	154.29M	150.89M	131.21M	102.26M	102.20M	117.53M
EBITDA	200.21M	144.26M	141.36M	-31.44M	217.26M	73.71M
Net Income	150.26M	100.10M	562.93M	-43.08M	184.24M	42.36M
Balance Sheet
Total Assets	1.90B	1.95B	1.73B	1.36B	1.43B	1.15B
Cash, Cash Equivalents and Short-Term Investments	170.20M	222.58M	139.33M	122.34M	131.59M	84.87M
Total Debt	178.95M	178.27M	158.65M	157.07M	129.26M	109.16M
Total Liabilities	576.96M	635.41M	490.07M	581.91M	576.10M	435.86M
Stockholders Equity	1.32B	1.32B	1.24B	782.86M	852.58M	717.71M
Cash Flow
Free Cash Flow	46.82M	92.82M	79.28M	64.51M	87.44M	62.16M
Operating Cash Flow	53.06M	93.26M	81.42M	81.23M	102.86M	71.79M
Investing Cash Flow	-119.20M	-21.85M	124.33M	-45.51M	-88.01M	-37.50M
Financing Cash Flow	-35.36M	-22.95M	-185.28M	-54.62M	1.88M	-26.66M

Guardian Cap Cl A NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 67.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 67.25 is above the 20-day moving average (MA) of 67.24, above the 50-day MA of 67.08, and above the 200-day MA of 51.31, indicating a bullish trend. The MACD of 0.10 indicates Positive momentum. The RSI at 61.20 is Neutral, neither overbought nor oversold. The STOCH value of 51.52 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
GCG.A	81 Outperform	C$1.65B	8.76	13.82%	2.29%	58.88%	82.03%
AGF.B	79 Outperform	C$1.06B	9.41	9.85%	3.01%	11.23%	30.44%
CVG	77 Outperform	C$991.08M	296.99	0.32%	0.14%	-44.78%	-95.84%
GCG	69 Neutral	C$1.65B	8.75	13.82%	2.29%	58.88%	82.03%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
FSZ	61 Neutral	C$655.73M	21.25	11.26%	8.78%	-0.88%	-52.30%
WED	61 Neutral	C$874.94M	-11.08	-6.98%	―	333.02%	-196.36%

Guardian Cap Cl A NV Corporate Events

Guardian Capital Reports Q3 2025 Results Amid Acquisition Developments

Guardian Capital Group Limited reported its third-quarter 2025 financial results, showing a decline in net revenue to $92.0 million from $98.1 million in the previous year. The company experienced an operating loss of $0.2 million, impacted by costs related to the integration of Sterling and a transaction with Desjardins Global Asset Management Inc. Despite these challenges, net gains rose significantly to $83.2 million, reflecting changes in the fair value of its securities portfolio. Additionally, the company received a ‘no-action letter’ from the Commissioner of Competition, advancing its plan for Desjardins to acquire all outstanding shares, a move that could significantly alter its market positioning.

Guardian Capital Group Secures Court Approval for Acquisition by Desjardins

Guardian Capital Group Limited has received final court approval for its plan of arrangement, allowing Desjardins Global Asset Management Inc. to acquire all issued and outstanding shares of Guardian for C$68.00 per share in cash. The transaction, which was overwhelmingly approved by shareholders, is subject to regulatory approvals and other conditions, with an anticipated closing in the first half of 2026. This acquisition is expected to impact Guardian’s operations and industry positioning, as it aligns with Desjardins’ strategic interests in expanding its asset management capabilities.

Guardian Capital Shareholders Approve Acquisition by Desjardins

Guardian Capital Group Limited has announced that its shareholders have approved a plan of arrangement, allowing Desjardins Global Asset Management Inc. to acquire all issued and outstanding shares, excluding those held by specific shareholders with equity rollover agreements, for C$68.00 per share in cash. The arrangement received overwhelming support at a special meeting, with 99.19% of votes in favor, and is subject to final court and regulatory approvals. The transaction is expected to close in the first half of 2026, pending satisfaction of all conditions.

Guardian Capital Gains Proxy Support for Desjardins Arrangement

Guardian Capital Group Limited announced that independent proxy advisory firms ISS and Glass Lewis have recommended shareholders vote in favor of a proposed plan of arrangement with Desjardins Global Asset Management Inc. The arrangement offers shareholders a significant premium on their shares, providing a cash exit and liquidity. The company’s board unanimously supports the arrangement, citing it as fair and in the best interest of shareholders. The special meeting for the vote is scheduled for October 23, 2025, with shareholders encouraged to vote before the deadline.

Guardian Capital Group Receives Strong Support for Arrangement with Desjardins

Guardian Capital Group Limited has announced that independent proxy advisory firms ISS and Glass Lewis have recommended shareholders vote in favor of a proposed plan of arrangement with Desjardins Global Asset Management Inc. This arrangement offers shareholders a significant premium on their shares, providing a cash exit and representing an all-time high for the company’s shares. The board of directors, after receiving legal and financial advice, also unanimously recommends shareholders vote for the arrangement, which is deemed fair and in the best interests of the company.

Guardian Capital Updates Shareholders Amid Postal Strike

Guardian Capital Group Limited has updated its shareholders on the delivery of materials for a special meeting, amidst a national postal strike in Canada. The company has made efforts to ensure shareholders receive the necessary documents through electronic means and courier services. The meeting will address a proposed plan of arrangement where Desjardins Global Asset Management Inc. will acquire all outstanding Guardian shares, excluding those held by certain shareholders, for C$68.00 per share. This transaction could significantly impact Guardian’s market positioning and shareholder value.

Guardian Capital Updates Shareholders Amid Canada Post Strike

Guardian Capital Group Limited, a financial services company, has updated its shareholders on the delivery of materials for a special meeting due to a national labour strike at Canada Post. The meeting is to approve a plan of arrangement where Desjardins Global Asset Management Inc. will acquire all issued and outstanding Guardian Shares at C$68.00 per share. Guardian has taken measures to ensure shareholders receive the necessary materials through electronic means and encourages online or telephone voting to mitigate delays caused by the strike.

Guardian Capital Group Announces Shareholder Meeting for Acquisition Approval

Guardian Capital Group Limited, a financial services company, has announced the filing of its management information circular for a special meeting of shareholders to approve a plan of arrangement. This plan involves Desjardins Global Asset Management acquiring all outstanding Guardian shares, except those owned by certain shareholders, for C$68.00 per share. The board and independent committee unanimously recommend shareholders vote in favor of the transaction, citing compelling value and immediate liquidity, with a significant premium over recent trading prices.