Guardian Capital (GCG) AI Stock Analysis

• Market Cap: C$1.64B
• Dividend Yield: 2.9%
• Average Volume (3M): 1.50K
• Price to Earnings (P/E): 10.6
• Beta (1Y): 0.55
• Revenue Growth: 96.56%
• EPS Growth: 158.06%
• Country: CA
• Employees: 600
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 2.38
• Shares Outstanding: 2,738,379
• 10 Day Avg. Volume: 1,876
• 30 Day Avg. Volume: 1,499
• PEG Ratio: -0.12
• Price to Book (P/B): 0.75
• Price to Sales (P/S): 2.94
• P/FCF Ratio: 10.69
• 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: -23.72% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 69 Neutral
• Price Target: C$73.00 ▲(9.18% Upside)

Guardian Capital's overall stock score is driven by its solid financial performance and attractive valuation. The strong revenue growth and profitability, combined with a low P/E ratio, make it appealing. However, technical indicators suggest the stock is overbought, which could lead to a short-term pullback. The absence of earnings call data and corporate events means these factors do not influence the score.

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 makes money primarily through management fees and performance-based fees associated with its asset and wealth management services. The company charges management fees as a percentage of assets under management (AUM), providing a stable revenue stream. Additionally, Guardian Capital earns performance fees when investment portfolios exceed predefined benchmarks, aligning the company's success with that of its clients. The firm also generates revenue from advisory services, offering tailored financial planning and investment strategies. Key partnerships with financial institutions and investment platforms further enhance its revenue potential by expanding market reach and offering comprehensive financial solutions.

Guardian Capital Financial Statement Overview

Summary

Guardian Capital demonstrates solid financial performance with strong revenue growth and profitability. The balance sheet is stable with low leverage, but the decline in return on equity and operating cash flow conversion are areas to watch. Overall, the company is in a good financial position, but there are some areas that require attention to sustain long-term growth.

Income Statement

Guardian Capital has shown a strong revenue growth rate of 7.4% in the TTM period, indicating positive momentum. The gross profit margin is healthy at 41.3%, and the net profit margin is robust at 20.0%. However, there is a notable decline in EBIT and EBITDA margins compared to the previous year, which could indicate rising operational costs or other inefficiencies.

Balance Sheet

The company's balance sheet is stable with a low debt-to-equity ratio of 0.13, suggesting conservative leverage. The return on equity has decreased to 5.7% in the TTM period, which is a concern compared to previous years. The equity ratio remains strong, indicating a solid capital structure.

Cash Flow

Free cash flow growth is positive at 19.0%, and the free cash flow to net income ratio is high at 87.5%, indicating efficient cash generation relative to earnings. However, the operating cash flow to net income ratio is relatively low at 9.2%, which may suggest challenges in converting earnings into cash.

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 Capital Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 66.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• 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 66.86 is above the 20-day moving average (MA) of 62.49, above the 50-day MA of 51.27, and above the 200-day MA of 44.53, indicating a bullish trend. The MACD of 5.13 indicates Positive momentum. The RSI at 85.92 is Negative, neither overbought nor oversold. The STOCH value of 65.04 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
CVG	77 Outperform	1.01B	8.50	0.00%	0.14%	132.11%	5511.22%
AGF.B	75 Outperform	903.28M	8.65	8.93%	3.36%	16.93%	17.52%
SEC	74 Outperform	884.53M	5.19	9.45%	―	14.62%	0.00%
GCG	69 Neutral	C$1.64B	10.58	11.80%	2.90%	96.56%	158.06%
FSZ	68 Neutral	733.57M	19.53	14.22%	9.47%	-1.64%	-40.68%
WED	61 Neutral	975.34M	-14.64	0.00%	―	469.58%	-150.58%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%