Guardian Capital (GCG) AI Stock Analysis

• Market Cap: C$1.00B
• Dividend Yield: 4.42%
• Average Volume (3M): 547.00
• Price to Earnings (P/E): 14.9
• Beta (1Y): 0.29
• Revenue Growth: 35.78%
• EPS Growth: -24.67%
• Country: CA
• Employees: 600
• Sector: Financial
• Sector Strength: 64
• Industry: Asset Management
• EPS (TTM): -0.30
• Shares Outstanding: 2,738,379
• 10 Day Avg. Volume: 350
• 30 Day Avg. Volume: 547
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$53.00
• Price Target Upside: 20.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 75 Outperform
• Price Target: C$50.00 ▲(13.90% Upside)

The overall stock score of 74.5 reflects Guardian Capital's strong financial position and attractive valuation. The company's robust balance sheet and low leverage are significant strengths. Technical indicators support a positive outlook, although cash flow management needs improvement.

Guardian Capital Business Overview & Revenue Model

Company Description

Guardian Capital (GCG) is a prominent financial services company specializing in investment management and advisory services. The company operates across multiple sectors, including asset management, wealth management, and financial advisory, catering to a diverse clientele that includes institutional investors, corporations, and high-net-worth individuals. Guardian Capital is recognized for its strategic approach to investment, leveraging a combination of in-depth market analysis and client-focused solutions to deliver sustainable financial growth.

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 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: 43.90
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 43.9 is above the 20-day moving average (MA) of 43.76, above the 50-day MA of 42.69, and above the 200-day MA of 42.10, indicating a bullish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 52.99 is Neutral, neither overbought nor oversold. The STOCH value of 16.44 is Positive, 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	C$1.06B	8.62	10.05%	0.14%	120.44%	―
GCG	75 Outperform	C$1.00B	14.91	5.62%	4.42%	35.78%	-24.67%
AGF.B	71 Outperform	$782.90M	7.48	9.24%	3.99%	16.93%	17.52%
SEC	69 Neutral	C$856.58M	2.95	-7.43%	―	-8.45%	211.31%
FSZ	65 Neutral	C$0.00	17.91	13.09%	11.60%	3.59%	-43.99%
Sector *	62 Neutral	C$15.24B	6.93	19.04%	5.61%	33.34%	-34.29%
WED	61 Neutral	$1.01B	12.73	-9.16%	―	100.87%	-110.30%