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

• Market Cap: C$1.64B
• Dividend Yield: 2.9%
• Average Volume (3M): 55.62K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.52
• Revenue Growth: 96.56%
• EPS Growth: 158.06%
• Country: CA
• Employees: 600
• Sector: Financial
• Sector Strength: 71
• Industry: Asset Management
• EPS (TTM): 2.28
• Shares Outstanding: 21,826,433
• 10 Day Avg. Volume: 161,208
• 30 Day Avg. Volume: 55,616
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$75.00
• Price Target Upside: 12.19% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: C$75.00 ▲(12.19% Upside)

Guardian Cap Cl A NV's overall stock score is driven by its solid financial performance and attractive valuation. The company's strong revenue growth and effective cost management contribute positively, while the low P/E ratio suggests potential undervaluation. Technical analysis shows bullish momentum, although the high RSI indicates overbought conditions, which could lead to short-term volatility.

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 build-out of 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 Outflows

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.

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 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 Cap Cl A NV demonstrates solid financial health with strong profitability margins and a stable balance sheet. While revenue growth is moderate, the company maintains low leverage and efficient equity utilization. Cash flow metrics indicate sufficient cash generation, although the decline in free cash flow growth warrants monitoring.

Income Statement

The company shows a strong gross profit margin of 41.3% and a solid net profit margin of 20.0% for TTM, indicating efficient cost management and profitability. However, the revenue growth rate is modest at 6.4% compared to the previous year, and EBIT margin has decreased to 9.3% from 11.5% in the prior year, suggesting some pressure on operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.13, indicating low financial leverage. The return on equity is strong at 5.5%, reflecting effective use of equity to generate profits. The equity ratio stands at 69.0%, showcasing a stable financial structure with a significant portion of assets financed by equity.

Cash Flow

Free cash flow has decreased by 56.9% compared to the previous year, which could impact future investments. However, the operating cash flow to net income ratio of 0.61 suggests adequate cash generation relative to net income. The free cash flow to net income ratio is 0.54, indicating a reasonable conversion of income into cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	385.79M	337.60M	254.54M	214.34M	414.91M	325.18M
Gross Profit	154.29M	150.89M	131.21M	103.07M	154.53M	117.53M
EBITDA	200.21M	144.26M	135.75M	-44.23M	104.67M	75.02M
Net Income	150.26M	100.10M	562.93M	-59.57M	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	767.86M	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: 66.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 66.85 is above the 20-day moving average (MA) of 48.94, above the 50-day MA of 44.46, and above the 200-day MA of 42.04, indicating a bullish trend. The MACD of 6.74 indicates Negative momentum. The RSI at 89.30 is Negative, neither overbought nor oversold. The STOCH value of 99.17 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$988.90M	8.36	9.77%	0.14%	132.11%	5511.22%
AGF.B	75 Outperform	C$830.73M	7.95	9.24%	3.76%	16.93%	17.52%
GCG.A	74 Outperform	C$1.64B	10.59	11.80%	2.90%	96.56%	158.06%
SEC	71 Outperform	C$870.56M	5.32	9.91%	―	14.62%	―
GCG	69 Neutral	C$1.64B	10.57	11.80%	2.90%	96.56%	158.06%
Sector *	68 Neutral	$17.78B	11.94	9.89%	3.74%	9.69%	1.17%
WED	61 Neutral	C$954.54M	12.73	-5.18%	―	469.58%	-150.58%

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.