Brompton Splt Banc A (SBC) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 8.06%
• Average Volume (3M): 34.79K
• Price to Earnings (P/E): 2.4
• Beta (1Y): 0.95
• Revenue Growth: 19.17%
• EPS Growth: 544.30%
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 1.63
• Shares Outstanding: 31,783,760
• 10 Day Avg. Volume: 59,057
• 30 Day Avg. Volume: 34,786
• PEG Ratio: <0.01
• Price to Book (P/B): 0.65
• Price to Sales (P/S): 8.51
• P/FCF Ratio: 50.82
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: C$14.50 ▲(7.33% Upside)
• Action: Downgraded Date: 12/30/25
• Date: Action: Downgraded 12/30/25

The score is held back primarily by weak and inconsistent cash generation versus reported earnings and overall financial volatility, despite improved leverage and a strong 2024 rebound. Valuation is a clear positive (very low P/E and high yield), while technicals show an uptrend but appear overbought. Recent financing and distribution-related corporate actions are supportive but secondary to cash-flow/earnings-quality risk.

Positive Factors

Dividend Reinvestment Plans

Offering reinvestment plans encourages shareholder loyalty and potential compound growth, aligning with long-term investor interests and enhancing capital retention.

Cash Flow Improvement

Improved operating cash flow in 2024 enhances liquidity and the company's ability to fund operations and distributions, crucial for sustaining investor confidence.

Profitability

Strong profitability in 2024 indicates effective cost management and robust earnings from investments, supporting long-term financial stability.

Negative Factors

Cash Flow Volatility

Volatile cash flow management can impact operational funding and distribution capabilities, requiring strategic oversight to ensure financial resilience.

Rising Debt Levels

Increasing debt levels may strain financial resources and limit flexibility, necessitating careful management to avoid potential financial distress.

Revenue Volatility

Inconsistent revenue patterns can undermine financial predictability and investor confidence, posing risks to sustainable growth and strategic planning.

Brompton Splt Banc A Business Overview & Revenue Model

Company Description

Brompton Split Banc Corp. is a close-ended equity mutual fund launched and managed by Brompton Funds Limited. The fund invests in the public equity markets of Canada. It seeks to invest in stocks of companies primarily engaged in the banking sector. The fund benchmarks the performance of its portfolio against the S&P/TSX Capped Financials Index. Brompton Split Banc Corp. was formed on September 14, 2005 and is domiciled in Canada.

How the Company Makes Money

Brompton Split Banc Corp. makes money through its structured investment model, which involves issuing two types of shares: Class A shares and Preferred shares. The company generates revenue through the dividends received from its investments in Canadian bank stocks. These dividends are used to pay monthly distributions to Preferred shareholders, while Class A shareholders receive the remaining net income and potential capital gains. The company's earnings are also influenced by the performance of the underlying bank stocks in its portfolio, as well as the general market conditions affecting the financial services sector.

Brompton Splt Banc A Financial Statement Overview

Summary

Income statement shows a sharp 2024 rebound, but profitability is extremely volatile and likely influenced by non-recurring/mark-to-market effects. Balance sheet leverage improved (debt-to-equity ~0.93) and ROE recovered, yet returns have not been durable. Cash flow is the major weakness: multi-year negative operating cash flow and very low cash conversion in 2024 (OCF ~1.3% of net income) raise earnings-quality risk.

Income Statement

Results are volatile but recently improved. Revenue rebounded sharply in 2024 (+67.8% YoY) after a loss-making 2022 (negative revenue and net income). Profitability appears very strong on paper in 2024 (net margin ~413%, EBIT margin ~490%), but the extreme margin swings across years suggest earnings are heavily influenced by non-recurring items or mark-to-market effects rather than steady operating performance.

Balance Sheet

Leverage is meaningful but not alarming for the profile: debt-to-equity improved to ~0.93 in 2024 from ~1.16 in 2023, and equity grew to ~239M. Returns improved materially in 2024 (return on equity ~31.7%) after weaker 2023 (~7.6%) and negative 2022, highlighting that shareholder returns are not consistently durable through cycles.

Cash Flow

Cash generation is the key weak spot. Operating cash flow was negative in multiple years (notably 2020–2023) and only modestly positive in 2024 (~3.1M), despite very strong reported net income in 2024. The cash conversion is thin (operating cash flow to net income ~1.3% in 2024), and free cash flow growth is highly erratic, pointing to elevated variability in underlying cash earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	51.65M	18.33M	16.55M	-41.69M	101.56M	12.04M
Gross Profit	50.40M	15.95M	32.27M	-41.69M	99.75M	10.79M
EBITDA	83.74M	89.74M	0.00	0.00	0.00	8.05M
Net Income	113.60M	75.69M	13.80M	-54.06M	93.81M	2.15M
Balance Sheet
Total Assets	507.43M	467.72M	400.73M	350.94M	369.57M	282.18M
Cash, Cash Equivalents and Short-Term Investments	225.22K	465.91M	398.94M	349.43M	367.56M	280.85M
Total Debt	231.00M	222.89M	211.65M	181.31M	158.10M	135.17M
Total Liabilities	237.75M	228.81M	218.02M	186.13M	161.80M	138.38M
Stockholders Equity	269.68M	238.90M	182.70M	164.81M	207.66M	143.80M
Cash Flow
Free Cash Flow	-3.02M	3.07M	-23.23M	-34.61M	7.21M	-83.42M
Operating Cash Flow	-3.02M	3.07M	-23.23M	-34.61M	7.21M	-83.42M
Investing Cash Flow	-10.80M	0.00	0.00	-35.16M	3.67M	0.00
Financing Cash Flow	-429.62K	-8.28M	29.93M	34.49M	-6.68M	83.19M

Brompton Splt Banc A Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 13.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SBC, the sentiment is Positive. The current price of 13.51 is above the 20-day moving average (MA) of 12.01, above the 50-day MA of 11.37, and above the 200-day MA of 9.05, indicating a bullish trend. The MACD of 0.37 indicates Negative momentum. The RSI at 60.10 is Neutral, neither overbought nor oversold. The STOCH value of 43.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SBC.

Brompton Splt Banc A Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PWI	70 Outperform	C$41.85M	5.00	32.64%	10.21%	818.69%	-12.12%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
PDV	66 Neutral	C$6.57M	3.68	42.23%	7.52%	-54.61%	273.14%
SBC	65 Neutral	―	2.43	51.41%	8.06%	19.17%	544.30%
RS	56 Neutral	C$113.30M	7.67	15.77%	17.81%	―	―
BNK	54 Neutral	C$23.77M	3.91	46.99%	8.54%	126.51%	10525.53%
QCA	48 Neutral	C$4.21M	-0.98	-37.19%	―	26.42%	-1217.14%

Brompton Splt Banc A Corporate Events

Brompton Split Banc Corp. Completes $38.2 Million Preferred Share Offering

Brompton Split Banc Corp. has successfully completed a treasury offering of preferred shares, raising approximately $38.2 million. These preferred shares, which will yield 6.0%, are now trading on the Toronto Stock Exchange under the symbol SBC.PR.A. The offering was managed by a syndicate of agents led by major Canadian financial institutions. This move is expected to strengthen the company’s financial position and provide additional capital for investment in its diversified portfolio, potentially enhancing returns for stakeholders.

Brompton Split Banc Corp. Announces Successful $38.2 Million Preferred Share Offering

Brompton Split Banc Corp. has announced a successful offering of preferred shares, expected to generate gross proceeds of approximately $38.2 million. The offering, priced at $10.40 per share with a 6.0% yield, is anticipated to close around December 10, 2025, subject to certain conditions. The syndicate of agents leading the offering includes major financial institutions such as RBC Capital Markets and CIBC Capital Markets. This move is likely to strengthen Brompton’s financial position and enhance its investment capabilities in the Canadian banking sector.

Brompton Split Banc Corp. Announces New Preferred Share Offering

Brompton Split Banc Corp. has announced a treasury offering of preferred shares priced at $10.40 each, with an expected yield of 6.0%. The offering, led by RBC Capital Markets, is set to close on December 10, 2025, subject to TSX approval. The preferred shares aim to provide fixed cumulative quarterly cash distributions and return the original issue price by November 29, 2027. The shares have a Morningstar DBRS rating of Pfd-3 and offer downside protection from a 57% decline in the fund’s portfolio value. This strategic move is likely to reinforce Brompton’s position in the financial market by attracting investors seeking stable returns.

Brompton Funds Declares December 2025 Split Share Distributions

Brompton Funds has announced distributions for several of its split share funds, payable on December 12, 2025, to shareholders of record as of November 28, 2025. The announcement includes specific distribution amounts for both class A and preferred shareholders across various funds. Notably, the distributions for Brompton Energy Split Corp.’s class A shares are contingent on the net asset value per unit remaining above $15.00, ensuring financial stability before payouts. Additionally, Brompton offers a distribution reinvestment plan (DRIP) for class A shareholders, allowing them to reinvest distributions commission-free, promoting compound growth.

Brompton Funds Declares November Distributions for Split Share Funds

Brompton Funds has announced distributions for several of its split share funds, payable on November 14, 2025, to shareholders of record as of October 31, 2025. The announcement includes details on distribution amounts per share for various funds, such as Dividend Growth Split Corp. and Global Dividend Growth Split Corp. Additionally, Brompton offers a distribution reinvestment plan (DRIP) for class A shareholders, allowing them to reinvest distributions commission-free, potentially enhancing long-term growth through compounding. This move underscores Brompton’s commitment to providing attractive income solutions to its investors.