Guardian Capital (GCG) AI Stock Analysis

• Market Cap: C$1.05B
• Dividend Yield: 4.23%
• Average Volume (3M): 332.00
• Price to Earnings (P/E): 7.1
• Beta (1Y): 0.34
• Revenue Growth: 96.56%
• EPS Growth: 158.06%
• Country: CA
• Employees: 600
• Sector: Financial
• Sector Strength: 72
• Industry: Asset Management
• EPS (TTM): 2.38
• Shares Outstanding: 2,738,379
• 10 Day Avg. Volume: 242
• 30 Day Avg. Volume: 332
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 10.39% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 72 Outperform
• Price Target: C$49.00 ▲(6.06% Upside)

Guardian Capital's overall stock score is driven by its strong valuation metrics, including a low P/E ratio and high dividend yield, which suggest potential undervaluation and income opportunities. The financial performance is solid, with strong revenue growth and profitability, though some concerns exist regarding return on equity and cash flow conversion. Technical analysis supports a positive trend, with the stock trading above key moving averages and neutral momentum indicators.

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 presents a strong financial position with stable profitability and a solid balance sheet. While revenue growth is moderate, the company maintains a healthy capital structure with low leverage. Cash flow management shows room for improvement, particularly in enhancing operational cash generation.

Income Statement

Guardian Capital shows a stable income statement with a gross profit margin of 41.3% and a net profit margin of 20% for TTM, indicating strong profitability. However, the revenue growth rate from the previous year is modest at 6.4%, and EBIT and EBITDA margins have decreased slightly, suggesting some operational challenges.

Balance Sheet

The balance sheet is robust with a low debt-to-equity ratio of 0.13, indicating conservative leverage. The equity ratio stands at 69%, reflecting a strong capital structure. Return on equity is solid at 5.5% for TTM, although it has decreased from previous years, suggesting a need for improved profitability.

Cash Flow

Cash flow analysis reveals a decrease in operating cash flow to net income ratio to 0.61, indicating less cash generation from operations relative to net income. Free cash flow growth is negative, reflecting challenges in maintaining cash reserves. However, the company maintains a positive free cash flow, which is a positive indicator.

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: 46.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 46.2 is above the 20-day moving average (MA) of 43.94, above the 50-day MA of 43.39, and above the 200-day MA of 42.44, indicating a bullish trend. The MACD of 0.46 indicates Negative momentum. The RSI at 62.22 is Neutral, neither overbought nor oversold. The STOCH value of 94.29 is Negative, 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$994.77M	8.34	9.77%	0.14%	132.11%	5511.22%
AGF.B	76 Outperform	C$778.73M	7.46	9.24%	4.03%	16.93%	17.52%
GCG	72 Outperform	C$1.05B	7.12	11.80%	4.23%	96.56%	158.06%
Sector *	68 Neutral	$17.82B	11.90	10.30%	3.72%	9.69%	0.80%
FSZ	67 Neutral	C$706.91M	18.71	13.48%	9.76%	-1.64%	-40.68%
SEC	64 Neutral	C$802.44M	4.71	9.91%	―	14.62%	―
WED	61 Neutral	C$957.22M	12.73	-5.18%	―	469.58%	-150.58%