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

• Market Cap: C$1.03B
• Dividend Yield: 3.74%
• Average Volume (3M): 4.64K
• Price to Earnings (P/E): 14.2
• Beta (1Y): 0.37
• Revenue Growth: 35.78%
• EPS Growth: -24.67%
• Country: CA
• Employees: 600
• Sector: Financial
• Sector Strength: 77
• Industry: Asset Management
• EPS (TTM): -0.30
• Shares Outstanding: 21,835,733
• 10 Day Avg. Volume: 3,368
• 30 Day Avg. Volume: 4,644
• 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: 27.47% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: C$44.00 ▲(9.97%Upside)

Guardian Capital Group scores moderately well across several areas. Financial performance is stable, with strong equity backing, but there are concerns regarding cash flow generation and declining profit margins. Technical analysis indicates neutral momentum, while the valuation metrics are fair, with a reasonable P/E ratio and attractive dividend yield. The positive corporate events add a slight boost to the overall score, highlighting strong governance and operational stability.

Positive Factors

Client Inflows

Guardian notes positive client inflows in the firm's quantitative, AI-driven equities strategies and fixed income.

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 Strategies

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

Net Flows

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

Guardian Cap Cl A NV Business Overview & Revenue Model

Company Description

Guardian Capital Group Limited (GCG.A) is a diversified financial services company based in Canada. The company operates in the asset management and financial advisory sectors, providing a wide range of investment solutions and wealth management services to institutional and retail clients. Guardian Capital Group is known for its expertise in managing equity, fixed income, and balanced portfolios, offering tailored solutions to meet the distinct needs of its clients.

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
	EBIT
33.56M	38.82M	59.85M	44.12M	81.79M	54.84M
	EBITDA
112.01M	144.26M	135.75M	-44.23M	104.67M	75.02M
	Net Income Common Stockholders
71.88M	100.10M	562.93M	-59.57M	184.24M	42.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
210.57M	222.58M	139.33M	122.34M	131.59M	84.87M
	Total Assets
1.89B	1.95B	1.73B	1.36B	1.43B	1.15B
	Total Debt
172.98M	178.27M	158.65M	157.07M	129.26M	109.16M
	Net Debt
103.28M	40.80M	86.23M	102.17M	52.18M	67.48M
	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: Negative
• Last Price: 40.01
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 Negative. The current price of 40.01 is below the 20-day moving average (MA) of 41.73, below the 50-day MA of 40.74, and below the 200-day MA of 41.06, indicating a bearish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 43.11 is Neutral, neither overbought nor oversold. The STOCH value of 47.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	80 Outperform	C$791.52M	8.00	8.68%	4.13%	20.65%	-2.36%
CVG	77 Outperform	C$1.00B	7.96	10.69%	1.13%	120.44%	―
GCG.A	71 Outperform	C$1.03B	14.19	5.62%	3.74%	35.78%	-24.67%
SEC	69 Neutral	C$730.33M	2.95	-7.43%	―	-8.45%	211.31%
Sector *	65 Neutral	$12.93B	9.81	7.84%	78.03%	12.20%	-7.74%
GCG	64 Neutral	C$1.03B	14.52	5.62%	3.65%	35.78%	-24.67%
WED	61 Neutral	C$1.07B	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.