Guardian Capital (GCG) AI Stock Analysis

• Market Cap: C$1.00B
• Dividend Yield: 3.59%
• Average Volume (3M): 747.00
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.36
• Revenue Growth: 36.20%
• EPS Growth: N/A
• Country: CA
• Employees: 359
• Sector: Financial
• Sector Strength: 77
• Industry: Asset Management Services
• EPS (TTM): 4.15
• Shares Outstanding: 2,738,379
• 10 Day Avg. Volume: 1,730
• 30 Day Avg. Volume: 747
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.64
• Price to Cash Flow (P/CF): 6.30
• P/FCF Ratio: 6.00
• 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$51.00
• Price Target Upside: 23.79% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Guardian Capital's overall stock score is driven by its strong financial performance and attractive valuation, offset by bearish technical indicators. The company's robust revenue and cash flow growth underpin its stable financial position, while the low P/E ratio and solid dividend yield enhance its appeal. However, negative technical momentum could pose short-term risks.

Guardian Capital Business Overview & Revenue Model

Company Description

Guardian Capital Group Ltd is a financial service company. The company is engaged in providing investment management services to private wealth clients pension plan sponsors, broker dealer third-party platforms, closed-end funds, Exchange Traded Funds and mutual funds, endowment funds, and foundations. It also provides financial advisory services to an insurance managing general agency, a mutual fund dealer, and a securities dealer. The company manages its business in three segments namely investment management, financial advisory, and corporate activities. It generates a majority of its revenue from the Financial Advisory segment. Geographically, it generates maximum revenue from 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 shows strong profitability with high profit margins and a solid equity ratio, indicating financial stability. However, declining EBIT margin and reduced free cash flow growth rate highlight potential operational inefficiencies and cash flow sustainability concerns.

Income Statement

Guardian Capital shows a healthy gross profit margin of 52.34% and a high net profit margin of 37.41% for TTM, indicating strong profitability. Despite a moderate revenue growth rate of 8.53% from the previous year, the decline in EBIT margin from 23.51% in 2021 to 8.68% TTM suggests some operational inefficiencies. However, the EBITDA margin of 46.48% remains robust, highlighting effective cost management.

Balance Sheet

The company maintains a solid equity ratio of 67.72% TTM, reflecting a strong equity position. The debt-to-equity ratio is stable at 0.14, indicating prudent leverage management. However, the return on equity has decreased significantly to 8.30% TTM from 45.38% in 2023, suggesting declining efficiency in generating returns from shareholders' equity.

Cash Flow

Operating cash flow to net income ratio is 0.65 TTM, indicating efficient cash generation relative to net income. However, the free cash flow growth rate shows a decline of 18.62% from the previous period, signaling potential challenges in sustaining free cash flows. The free cash flow to net income ratio of 0.62 TTM suggests a balanced cash flow position.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
276.23M	254.54M	214.34M	414.91M	325.18M	291.62M
	Gross Profit
144.63M	131.21M	103.07M	154.53M	117.53M	106.04M
	EBIT
23.98M	59.85M	44.12M	81.79M	54.84M	48.90M
	EBITDA
128.41M	135.75M	-44.23M	104.67M	75.02M	67.03M
	Net Income Common Stockholders
103.35M	562.93M	-59.57M	184.24M	42.36M	123.12M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
148.40M	139.33M	122.34M	131.59M	84.87M	141.45M
	Total Assets
1.41B	1.73B	1.36B	1.43B	1.15B	1.13B
	Total Debt
153.09M	158.65M	157.07M	129.26M	109.16M	128.79M
	Net Debt
71.43M	86.23M	102.17M	52.18M	67.48M	94.59M
	Total Liabilities
565.17M	490.07M	581.91M	576.10M	435.86M	435.76M
	Stockholders Equity
840.85M	1.24B	782.86M	852.58M	717.71M	694.20M
Cash Flow		Free Cash Flow
64.52M	79.28M	64.51M	87.44M	62.16M	35.34M
	Operating Cash Flow
67.59M	81.42M	81.23M	102.86M	71.79M	49.11M
	Investing Cash Flow
-108.56M	124.33M	-45.51M	-88.01M	-37.50M	7.51M
	Financing Cash Flow
-57.19M	-185.28M	-54.62M	1.88M	-26.66M	-61.12M

Guardian Capital Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 41.20
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GCG, the sentiment is Negative. The current price of 41.2 is below the 20-day moving average (MA) of 43.20, below the 50-day MA of 44.55, and below the 200-day MA of 42.42, indicating a bearish trend. The MACD of -1.02 indicates Positive momentum. The RSI at 38.86 is Neutral, neither overbought nor oversold. The STOCH value of 11.04 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	81 Outperform	C$638.46M	6.46	8.80%	4.68%	15.80%	12.07%
GCG	70 Outperform	C$1.00B	9.33	7.82%	3.59%	36.20%	―
TCL.A	67 Neutral	C$1.43B	12.22	6.37%	4.89%	-4.34%	42.86%
IAG	66 Neutral	C$11.56B	12.62	13.26%	2.72%	-17.69%	29.19%
Sector *	64 Neutral	$13.79B	10.52	9.20%	4.24%	17.25%	-7.60%