Guardian Capital (GCG) AI Stock Analysis

• Market Cap: C$1.01B
• Dividend Yield: 3.63%
• Average Volume (3M): 538.00
• Price to Earnings (P/E): 14.6
• Beta (1Y): 0.29
• Revenue Growth: 35.78%
• EPS Growth: -24.67%
• Country: CA
• Employees: 600
• Sector: Financial
• Sector Strength: 81
• Industry: Asset Management
• EPS (TTM): -0.30
• Shares Outstanding: 2,738,379
• 10 Day Avg. Volume: 591
• 30 Day Avg. Volume: 538
• PEG Ratio: -0.48
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 26.12
• 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$49.00
• Price Target Upside: 11.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 71 Outperform
• Price Target: C$47.00 ▲(6.84%Upside)

Guardian Capital's overall stock score reflects a strong valuation and solid financial foundation, offset by mixed technical indicators and declining cash flow. While the company shows robust profitability and a stable balance sheet, strategic improvements in cash management could enhance future performance. The absence of earnings call data and notable corporate events shifts focus to financial and valuation metrics.

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 Group makes money through a combination of management fees, advisory fees, and performance-based fees. The company earns recurring revenue from managing assets on behalf of its clients. In the institutional investment management sector, GCG charges a percentage of assets under management (AUM) as fees for its services. In wealth management, the company generates income through advisory fees charged to high-net-worth individuals and families for customized financial planning and investment strategies. Additionally, GCG may earn performance-based fees, which are contingent on achieving specified investment benchmarks. The company’s earnings are further bolstered by strategic partnerships with financial institutions that expand its distribution network and client base, enhancing potential revenue streams.

Guardian Capital Financial Statement Overview

Summary

Guardian Capital demonstrates a solid financial position with strong margins and a healthy balance sheet. However, declining net income and cash flow metrics suggest the need for strategic improvements in profitability and cash management to maintain its growth trajectory.

Income Statement

Guardian Capital exhibited solid financial performance in its income statement. The gross profit margin for the TTM (Trailing-Twelve-Months) is approximately 41.3%, showcasing effective cost management. However, the net profit margin decreased from previous highs, now at 20% for the TTM due to a decline in net income. Revenue growth is positive, showing a 6.4% increase compared to the last annual report, indicating upward momentum. EBIT and EBITDA margins are robust at 9.3% and 31.2%, respectively, reflecting good operational efficiency.

Balance Sheet

The balance sheet of Guardian Capital shows a strong equity position with an equity ratio of 69%, reflecting a stable financial foundation. The debt-to-equity ratio is low at 0.13, indicating a conservative leverage approach. However, return on equity has decreased to 5.5% from higher levels in previous periods, suggesting a need for improved profitability.

Cash Flow

Cash flow analysis reveals a decline in operating cash flow, which is now lower than its previous annual figures. The free cash flow growth rate is negative, indicating potential cash flow challenges. The operating cash flow to net income ratio is 0.61, which is suboptimal and indicates potential reinvestment constraints. Despite these issues, the company maintains a positive free cash flow, ensuring liquidity.

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 Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 43.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GCG, the sentiment is Positive. The current price of 43.99 is above the 20-day moving average (MA) of 42.54, above the 50-day MA of 42.14, and above the 200-day MA of 41.82, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 57.53 is Neutral, neither overbought nor oversold. The STOCH value of 54.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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$825.85M	7.89	9.24%	3.94%	16.93%	17.52%
CVG	77 Outperform	C$1.10B	9.02	10.05%	0.13%	120.44%	―
GCG	71 Outperform	C$1.01B	14.60	5.62%	3.63%	35.78%	-24.67%
SEC	69 Neutral	C$859.50M	2.95	-7.43%	―	-8.45%	211.31%
Sector *	67 Neutral	$16.86B	11.82	9.77%	3.72%	12.02%	-8.27%
FSZ	65 Neutral	C$720.11M	18.49	13.09%	6.43%	3.59%	-43.99%
WED	61 Neutral	C$1.02B	12.73	-9.16%	―	100.87%	-110.30%