RF Capital Group (RCG) AI Stock Analysis

• Market Cap: C$121.75M
• Dividend Yield: N/A
• Average Volume (3M): 4.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.74
• Revenue Growth: 7.39%
• EPS Growth: 49.83%
• Country: CA
• Employees: 843
• Sector: Financial
• Sector Strength: 79
• Industry: Asset Management
• EPS (TTM): -0.33
• Shares Outstanding: 15,722,926
• 10 Day Avg. Volume: 5,353
• 30 Day Avg. Volume: 4,125
• PEG Ratio: 0.35
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.77
• 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$13.25
• Price Target Upside: 57.42% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 55 Neutral
• Price Target: ―

RF Capital Group's overall stock score is moderately low at 55, primarily due to bearish technical signals and unattractive valuation metrics. While the company's financial performance shows a positive turnaround with revenue and profit growth, the stock faces significant technical and valuation challenges. Positive corporate events provide some support but are insufficient to offset the technical and valuation hurdles.

RF Capital Group Business Overview & Revenue Model

Company Description

RF Capital Group (RCG) is a Canadian-based financial services firm primarily focused on wealth management and investment advisory services. The company operates through its subsidiary, Richardson Wealth, catering to high-net-worth individuals and families. RCG aims to deliver a comprehensive suite of financial solutions, including portfolio management, financial planning, and investment strategy guidance.

How the Company Makes Money

RF Capital Group makes money through several revenue streams, primarily driven by its wealth management and investment advisory services. The company's revenue model includes management fees charged based on assets under management (AUM), which fluctuate with the market value of client portfolios. Additionally, RCG earns income from trading commissions, advisory fees, and other service-related charges. Strategic partnerships and collaborations within the financial sector also contribute to its earnings by enhancing its service offerings and expanding its client base.

RF Capital Group Financial Statement Overview

Summary

RF Capital Group's financial performance reflects a positive turnaround with strong revenue and profit growth, improved margins, and a healthier cash flow position. The balance sheet remains stable with moderate leverage, but there is room for enhancing equity returns. Continued focus on operational efficiency and cash flow stability will be crucial for sustaining growth in the asset management industry.

Income Statement

RF Capital Group has demonstrated a strong revenue growth trajectory with a 6.52% increase from 2023 to 2024. Gross profit margin improved from 50.21% in 2023 to 57.69% in 2024, indicating efficient cost management. The net profit margin turned positive at 0.15% in 2024 from a negative 3.43% in 2023, showcasing a turnaround in profitability. However, the EBIT margin was 0%, reflecting challenges in achieving operational efficiency, and the EBITDA margin slightly declined to 15.52% from 14.60% in 2023.

Balance Sheet

The company's balance sheet shows a stable equity base with a debt-to-equity ratio of 0.49, demonstrating moderate leverage. Return on equity improved but remained low at 0.17%, indicating limited profitability relative to equity. The equity ratio decreased to 22.42% from 23.96% in 2023, suggesting a slight increase in leverage. Overall, the balance sheet indicates moderate financial risk with room for improvement in equity utilization.

Cash Flow

RF Capital Group showed a strong recovery in free cash flow from negative $273.68 million in 2023 to positive $20.91 million in 2024, indicating improved cash generation. The operating cash flow to net income ratio is robust at 41.82, reflecting effective conversion of revenue into cash. The free cash flow to net income ratio of 36.82 highlights efficient cash flow management, though the historical volatility in cash flow remains a concern.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
377.97M	369.33M	346.75M	353.97M	321.79M	80.53M
	Gross Profit
208.06M	213.09M	174.07M	204.22M	179.18M	56.81M
	EBIT
14.16M	31.98M	23.21M	24.95M	-2.17M	47.32M
	EBITDA
51.87M	57.34M	50.62M	53.02M	22.64M	53.06M
	Net Income Common Stockholders
-2.42M	568.00K	-11.89M	-4.80M	-20.15M	28.75M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
518.10M	90.15M	80.83M	367.85M	518.10M	556.25M
	Total Assets
2.22B	1.46B	1.38B	1.70B	2.22B	2.12B
	Total Debt
117.37M	160.36M	170.60M	142.95M	117.37M	137.66M
	Net Debt
-400.73M	71.81M	89.77M	-224.90M	-400.73M	-418.58M
	Total Liabilities
1.86B	1.13B	1.05B	1.35B	1.86B	1.74B
	Stockholders Equity
354.89M	326.98M	330.54M	346.92M	354.89M	379.86M
Cash Flow		Free Cash Flow
34.33M	20.91M	-273.68M	-136.44M	-23.54M	3.04M
	Operating Cash Flow
41.00M	23.75M	-268.50M	-107.40M	-14.21M	5.38M
	Investing Cash Flow
-7.21M	-3.83M	-5.19M	-29.04M	-9.34M	83.89M
	Financing Cash Flow
-13.09M	-13.18M	-13.34M	-13.80M	-14.64M	-50.00M

RF Capital Group Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 8.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RCG, the sentiment is Neutral. The current price of 8.42 is above the 20-day moving average (MA) of 8.06, below the 50-day MA of 8.70, and below the 200-day MA of 8.46, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 51.90 is Neutral, neither overbought nor oversold. The STOCH value of 56.90 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:RCG.

RF Capital Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
LPC	73 Outperform	C$120.19M	35.87	25.24%	1.54%	24.60%	66.30%
Sector *	64 Neutral	$12.83B	9.78	7.78%	16985.64%	12.26%	-7.81%
ELC	64 Neutral	$10.20M	4.44	17.93%	―	-1649.37%	―
STCK	61 Neutral	C$130.92M	10.48	10.47%	―	-19.24%	―
AIM	58 Neutral	C$275.66M	―	0.37%	―	67.83%	68.03%
RCG	55 Neutral	C$121.75M	―	-0.71%	―	7.39%	49.83%

RF Capital Group Corporate Events

RF Capital Group Announces 2025 Annual Meeting Results

RF Capital Group Inc. announced the results of its 2025 annual meeting of shareholders, where all 11 director nominees were elected, and KPMG LLP was re-appointed as the external auditor. The meeting also featured discussions on the company’s 2024 financial highlights and first quarter 2025 results, along with management’s outlook for the year. This announcement reinforces RF Capital’s stable governance and continued focus on delivering strategic wealth management services, which may positively impact its market position and stakeholder confidence.

RF Capital Group Sees Revenue Growth Amid Market Volatility

RF Capital Group reported an 11% increase in revenue for Q1 2025, reaching $99.4 million, driven by a 6% rise in assets under administration (AUA) to $39.2 billion due to strong equity markets and new asset gains. Despite the revenue growth, the company’s EBITDA decreased by 30% to $9.5 million due to increased operating expenses from balance sheet revaluation adjustments. The net loss also increased to $4.1 million, but cash from operating activities improved significantly. The company anticipates market volatility due to new U.S. trade policies and plans to focus on advisor recruitment using free cash flow.

RF Capital Group to Announce Q1 2025 Results and Host Annual Meeting

RF Capital Group Inc. announced it will release its first quarter 2025 financial results on April 30, 2025, and host its annual shareholder meeting on May 1, 2025, in Toronto. The company is promoting electronic delivery of its meeting materials to reduce environmental impact and costs, reflecting its commitment to sustainability. The meeting will include discussions on financial and strategic highlights, with a live webcast available for broader access.

Richardson Wealth Appoints Kevin Shubley to Enhance Advisory Growth

Richardson Wealth Limited, a subsidiary of RF Capital Group Inc., has appointed Kevin Shubley as SVP, Head of Advisory Experience and Growth. With over 20 years of experience, Shubley will oversee various strategic areas to enhance advisory practices and client service. This move aligns with Richardson Wealth’s mission to be a top destination for Canada’s leading advisors and their clients, reinforcing its commitment to operational excellence and superior client advice.