Guardian Capital (GCG) AI Stock Analysis

• Market Cap: C$1.02B
• Dividend Yield: 3.54%
• Average Volume (3M): 562.00
• Price to Earnings (P/E): 9.7
• Beta (1Y): 0.33
• Revenue Growth: 36.20%
• EPS Growth: N/A
• Country: CA
• Employees: 600
• Sector: Financial
• Sector Strength: 78
• Industry: Asset Management
• EPS (TTM): 4.15
• Shares Outstanding: 2,738,379
• 10 Day Avg. Volume: 681
• 30 Day Avg. Volume: 562
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.15
• Price to Cash Flow (P/CF): 5.40
• P/FCF Ratio: 5.30
• 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: 22.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Guardian Capital's strong financial performance, marked by revenue and cash flow growth, is a significant strength. The attractive valuation with a low P/E ratio and reasonable dividend yield further enhances the stock's appeal. However, mixed technical indicators suggest caution due to potential short-term weakness.

Guardian Capital 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 generates revenue primarily through management fees and performance-based fees from its investment management services. The company earns management fees by charging a percentage of the assets under management (AUM) across its client portfolios. Performance-based fees are also collected when the investments outperform predefined benchmarks. Additionally, Guardian Capital may receive consulting and advisory fees from its wealth management and institutional advisory services. Strategic partnerships with financial institutions and continuous innovation in investment products contribute to broadening its revenue streams.

Guardian Capital Financial Statement Overview

Summary

Guardian Capital exhibits strong financial performance, highlighted by solid revenue and cash flow growth. While profitability and leverage are well-managed, some operational efficiency concerns are noted. Overall, the company is on a positive trajectory with a stable financial position.

Income Statement

Guardian Capital has demonstrated solid revenue growth over the years, with a significant increase from 2023 to 2024. The gross profit margin is robust, and the net profit margin improved substantially in 2024, indicating increased profitability. However, the EBIT margin declined, suggesting some operational efficiency challenges.

Balance Sheet

The company maintains a healthy equity ratio, reflecting strong capitalization. The debt-to-equity ratio is manageable, indicating moderate leverage. Return on Equity (ROE) is positive and improving, driven by rising net income, though the previous years showed fluctuations in equity growth.

Cash Flow

Free cash flow has shown consistent growth, with a significant increase from 2023 to 2024. The operating cash flow to net income ratio is strong, indicating solid cash generation from operations. The company effectively converts its earnings into cash, which is a positive indicator of financial health.

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
	EBIT
38.82M	59.85M	44.12M	81.79M	54.84M
	EBITDA
144.26M	135.75M	-44.23M	104.67M	75.02M
	Net Income Common Stockholders
100.10M	562.93M	-59.57M	184.24M	42.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
222.58M	139.33M	122.34M	131.59M	84.87M
	Total Assets
1.95B	1.73B	1.36B	1.43B	1.15B
	Total Debt
178.27M	158.65M	157.07M	129.26M	109.16M
	Net Debt
40.80M	86.23M	102.17M	52.18M	67.48M
	Total Liabilities
635.41M	490.07M	581.91M	576.10M	435.86M
	Stockholders Equity
1.32B	1.24B	782.86M	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 Capital Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 41.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GCG, the sentiment is Neutral. The current price of 41.75 is above the 20-day moving average (MA) of 40.54, below the 50-day MA of 41.84, and below the 200-day MA of 41.83, indicating a neutral trend. The MACD of -0.14 indicates Negative momentum. The RSI at 54.55 is Neutral, neither overbought nor oversold. The STOCH value of 81.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:GCG.

Guardian Capital Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGF.B	77 Outperform	C$602.11M	6.08	8.68%	4.99%	20.65%	-2.36%
GCG	73 Outperform	C$1.02B	9.70	7.82%	3.54%	36.20%	―
TCL.A	71 Outperform	C$1.48B	9.25	8.50%	5.08%	-4.75%	68.04%
IAG	70 Outperform	C$11.82B	12.92	13.26%	2.71%	-17.69%	29.19%
Sector *	63 Neutral	$12.00B	9.27	8.14%	79.61%	12.85%	-5.12%