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

• Market Cap: C$1.02B
• Dividend Yield: 4.7%
• Average Volume (3M): 2.97K
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.37
• Revenue Growth: 96.56%
• EPS Growth: 158.06%
• Country: CA
• Employees: 600
• Sector: Financial
• Sector Strength: 72
• Industry: Asset Management
• EPS (TTM): 2.28
• Shares Outstanding: 21,826,433
• 10 Day Avg. Volume: 2,343
• 30 Day Avg. Volume: 2,973
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$46.00
• Price Target Upside: 11.43% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: C$46.00 ▲(11.43% Upside)

Guardian Cap Cl A NV is well-positioned with strong financial performance and attractive valuation metrics. The recent corporate events further bolster its financial outlook. However, the neutral technical indicators suggest a lack of strong momentum, which slightly tempers the overall score.

Positive Factors

Business Valuation

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

Client Inflows

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

Strategic Initiatives

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

Negative Factors

Equity Strategy Outflows

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

Equity Strategy Underperformance

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 (i.e., GuardCap, U.S. Equities).

Guardian Cap Cl A NV Business Overview & Revenue Model

Company Description

Guardian Cap Cl A NV (GCG.A) is a company specializing in the development and manufacturing of innovative protective equipment, particularly focusing on headgear designed for athletes. Operating primarily in the sports safety sector, Guardian Cap aims to enhance player safety in contact sports such as football and hockey by providing advanced impact-absorbing technology. The company's core products include their signature Guardian Cap, which is designed to fit over existing helmets to reduce the risk of concussions and other head injuries during gameplay.

How the Company Makes Money

Guardian Cap generates revenue primarily through the direct sale of its protective headgear to sports teams, schools, and individual consumers. The company has established partnerships with various athletic organizations and educational institutions to promote the adoption of its products, which also serve as key distribution channels. In addition to direct sales, Guardian Cap may explore licensing agreements or collaborations with helmet manufacturers to integrate their technology into existing products. The growing awareness of concussion safety in sports and the increasing demand for protective gear contribute significantly to the company's revenue growth.

Guardian Cap Cl A NV Financial Statement Overview

Summary

Guardian Capital Group exhibits a sound financial position with a strong equity backing and minimal leverage. The income statement shows solid profitability but with a decline in net profit margins. Cash flow generation has weakened, indicated by a significant decline in free cash flow growth rate and reduced cash conversion efficiency.

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

Guardian Cap Cl A NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 41.28 is above the 20-day moving average (MA) of 41.18, above the 50-day MA of 41.21, and above the 200-day MA of 41.15, indicating a bullish trend. The MACD of -0.13 indicates Negative momentum. The RSI at 51.28 is Neutral, neither overbought nor oversold. The STOCH value of 88.04 is Negative, 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
CVG	77 Outperform	C$1.05B	8.79	9.77%	0.14%	132.11%	5511.22%
AGF.B	76 Outperform	C$775.48M	7.42	9.24%	4.03%	16.93%	17.52%
GCG	75 Outperform	C$1.02B	6.89	11.80%	4.46%	96.56%	158.06%
GCG.A	74 Outperform	C$1.02B	6.53	11.80%	4.70%	96.56%	158.06%
SEC	69 Neutral	C$856.58M	4.85	9.91%	―	14.62%	―
Sector *	68 Neutral	$17.53B	11.78	10.43%	3.83%	9.94%	1.31%
WED	61 Neutral	C$991.45M	12.73	-9.16%	―	123.83%	-144.99%

Guardian Cap Cl A NV Corporate Events

Guardian Capital Group Reports Strong Q2 2025 Revenue Growth Amid Market Fluctuations

Guardian Capital Group Limited reported a substantial increase in net revenue for the second quarter of 2025, reaching $90 million compared to $64.2 million in the same period last year. This growth was largely driven by contributions from Sterling and Galibier, despite a decrease in total client assets due to currency fluctuations. The company experienced a significant swing to net gains from net losses, resulting in net earnings attributable to shareholders of $55.2 million, up from a net loss of $23.1 million in the previous year. Operating earnings and EBITDA saw declines, impacted by integration costs of Sterling, but the company maintained a stable shareholders’ equity. A quarterly dividend of $0.39 per share was declared, reflecting confidence in ongoing financial stability.

The most recent analyst rating on ($TSE:GCG.A) stock is a Hold with a C$47.00 price target. To see the full list of analyst forecasts on Guardian Cap Cl A NV stock, see the TSE:GCG.A Stock Forecast page.