RF Capital Group (RCG) AI Stock Analysis

• Market Cap: C$285.84M
• Dividend Yield: N/A
• Average Volume (3M): 62.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.16
• Revenue Growth: 6.40%
• EPS Growth: -90.40%
• Country: CA
• Employees: 843
• Sector: Financial
• Sector Strength: 72
• Industry: Asset Management
• EPS (TTM): -0.21
• Shares Outstanding: 15,722,926
• 10 Day Avg. Volume: 70,495
• 30 Day Avg. Volume: 62,017
• PEG Ratio: -2.64
• Price to Book (P/B): 0.35
• Price to Sales (P/S): 0.31
• P/FCF Ratio: 5.54
• 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$21.52
• Price Target Upside: 9.06% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 71 Outperform
• Price Target: C$21.50 ▲(8.97% Upside)

RF Capital Group's stock score is driven by strong technical indicators and positive corporate developments, such as the acquisition by iA Financial Corporation, which is expected to create synergies and enhance market presence. However, the stock is hindered by a poor valuation due to negative profitability metrics. Financial performance is improving but still faces challenges with profitability and operational efficiency.

RF Capital Group Business Overview & Revenue Model

Company Description

RF Capital Group (RCG) is a diversified financial services firm that operates in various sectors, including investment banking, asset management, and wealth management. The company offers a range of core products and services, such as financial advisory, capital raising solutions, portfolio management, and investment strategies tailored to meet the needs of individual and institutional clients. RCG is committed to delivering innovative financial solutions and building long-term relationships with its clients.

How the Company Makes Money

RCG generates revenue through multiple streams, primarily including fees for advisory services in investment banking, commissions from asset management, and management fees from its wealth management services. The company charges clients for financial consulting and advisory services during mergers and acquisitions, which is a significant revenue source. Additionally, RCG earns income from performance fees based on the investment returns of managed assets. Strategic partnerships with institutional investors and other financial entities further enhance its revenue potential by expanding its service offerings and client base.

RF Capital Group Financial Statement Overview

Summary

RF Capital Group has shown strong revenue growth and improved margins, indicating a positive turnaround. Profitability remains a challenge with a low net profit margin and zero EBIT margin, but cash flow has significantly improved, reflecting effective cash management.

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	377.41M	369.33M	346.75M	353.97M	321.79M	80.53M
Gross Profit	211.52M	213.09M	174.07M	204.22M	179.18M	56.81M
EBITDA	48.88M	57.34M	50.62M	53.02M	22.64M	53.06M
Net Income	-7.24M	568.00K	-11.89M	-4.80M	-20.15M	28.75M
Balance Sheet
Total Assets	1.38B	1.46B	1.38B	1.70B	2.22B	2.12B
Cash, Cash Equivalents and Short-Term Investments	86.52M	90.15M	80.83M	367.85M	518.10M	556.25M
Total Debt	129.52M	160.36M	170.60M	142.95M	117.37M	137.66M
Total Liabilities	1.06B	1.13B	1.05B	1.35B	1.86B	1.74B
Stockholders Equity	318.63M	326.98M	330.54M	346.92M	354.89M	379.86M
Cash Flow
Free Cash Flow	32.98M	20.91M	-273.68M	-136.44M	-23.54M	3.04M
Operating Cash Flow	41.34M	23.75M	-268.50M	-107.40M	-14.21M	5.38M
Investing Cash Flow	-8.84M	-2.85M	-5.19M	-29.04M	-9.34M	83.89M
Financing Cash Flow	-13.00M	-13.18M	-13.34M	-13.80M	-14.64M	-50.00M

RF Capital Group Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 19.73
• 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:RCG, the sentiment is Positive. The current price of 19.73 is above the 20-day moving average (MA) of 16.80, above the 50-day MA of 12.16, and above the 200-day MA of 9.62, indicating a bullish trend. The MACD of 2.53 indicates Positive momentum. The RSI at 85.60 is Negative, neither overbought nor oversold. The STOCH value of 64.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	75 Outperform	C$121.33M	37.95	24.51%	1.63%	21.95%	76.74%
RCG	71 Outperform	C$285.84M	―	-2.17%	―	6.40%	-90.40%
ELC	64 Neutral	$11.40M	3.17	27.26%	―	―	―
Sector *	62 Neutral	C$15.64B	6.64	13.72%	5.97%	22.30%	-10.12%
STCK	61 Neutral	C$177.19M	4.16	26.91%	―	350.79%	3577.03%
AIM	58 Neutral	C$289.59M	―	0.07%	―	23.63%	95.09%

RF Capital Group Corporate Events

RF Capital Group Reports Q2 2025 Results and Announces Acquisition Agreement

RF Capital Group reported a 2% decrease in revenue for Q2 2025 compared to the previous year, primarily due to a decline in non-commissionable revenue, including a significant drop in interest income affected by lower Canadian interest rates. Despite this, the company’s AUA increased by 9% to $40.4 billion, driven by strong equity markets and advisor recruitment. The company also announced a definitive agreement for acquisition by iA Financial Corporation, which is expected to impact its strategic direction and market positioning.

The most recent analyst rating on (TSE:RCG) stock is a Hold with a C$13.25 price target. To see the full list of analyst forecasts on RF Capital Group stock, see the TSE:RCG Stock Forecast page.

iA Financial Corporation Acquires RF Capital Group to Boost Wealth Management Presence

iA Financial Corporation has announced its acquisition of RF Capital Group Inc. for $597 million, a strategic move to strengthen its position in the Canadian independent wealth management sector. This acquisition will expand iA’s national footprint and enhance its presence in the high-net-worth segment, adding over $40 billion in assets under administration. The transaction is expected to be neutral to core earnings in the first year and accretive to core EPS by at least $0.15 in the second year. The deal will unlock synergy opportunities across technology, operations, and products, while maintaining RF Capital’s independent operations under the Richardson Wealth brand. This move is anticipated to create scale advantages and accelerate growth, benefiting both clients and advisors.

The most recent analyst rating on (TSE:RCG) stock is a Hold with a C$13.25 price target. To see the full list of analyst forecasts on RF Capital Group stock, see the TSE:RCG Stock Forecast page.