RF Capital Group (GMPXF) AI Stock Analysis

Compare

7 Followers

Top Page

RF Capital Group (GMPXF) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$87.37M

Dividend YieldN/A

Average Volume (3M)73.00

Price to Earnings (P/E)―

Beta (1Y)0.90

Revenue GrowthN/A

EPS GrowthN/A

CountryUS

Employees843

SectorFinancial

Sector Strength82

IndustryAsset Management

Share Statistics

EPS (TTM)-0.24

Shares Outstanding15,722,926

10 Day Avg. Volume110

30 Day Avg. Volume73

Financial Highlights & Ratios

PEG Ratio0.32

Price to Book (P/B)0.37

Price to Sales (P/S)0.00

P/FCF Ratio3.51

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$9.68

Price Target Upside59.21% Upside

Rating ConsensusHold

Number of Analyst Covering1

RF Capital Group Business Overview & Revenue Model

Company DescriptionRF Capital Group Inc., together with its subsidiaries, provides wealth management services to high-net worth and ultra-high-net worth individuals in Canada. The company offers portfolio management and investment advisory services, as well as distributes securities, investment funds, and insurance products. It also provides financial, tax, estate, succession, retirement, risk management, and philanthropic planning services. The company was formerly known as GMP Capital Inc. and changed its name to RF Capital Group Inc. in November 2020. RF Capital Group Inc. was founded in 1995 and is headquartered in Toronto, Canada.

How the Company Makes Money

RF Capital Group Earnings Call Summary

Earnings Call Date:Apr 30, 2025

(Q3-2024)

% Change Since: 2.18%|

Next Earnings Date:Jul 30, 2025

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture, with notable revenue and asset growth, successful recruitment, and positive employee engagement. However, these were offset by significant declines in interest income and adjusted EBITDA, onetime leadership transition costs, and the departure of advisory teams.

Q3-2024 Updates

Positive Updates

Increase in Revenue

For the third quarter of 2024, RF Capital reported $91.9 million in revenue, an increase of 5% compared to the third quarter of 2023.

Growth in Fee Revenue

Fee revenue, the largest component of RF Capital's revenue, increased by 7% compared to Q3 2023, driven by an increase in Assets Under Administration (AUA).

Positive Employee Engagement

For the 7th consecutive year, RF Capital was certified as a great place to work, with 87% of participants expressing pride in their workplace, up from 84% last year.

Strong Recruiting Pipeline

RF Capital's recruiting pipeline stands at over $29 billion, with successful recruitment of several high-profile teams in the last quarter.

Increase in Assets

RF Capital's assets increased by $3.8 billion since the beginning of the year, with an additional $400 million growth in October.

Negative Updates

Decline in Interest Income

Interest income declined by 18% due to lower client cash balances, continuing a trend from the past two quarters.

Decrease in Adjusted EBITDA

Adjusted EBITDA was $12.5 million in Q3 2024, a decrease from $16.9 million in Q3 2023, due to higher operating expenses.

Two Team Departures

Two advisory teams with assets under management of approximately $456 million departed during the quarter.

Onetime Leadership Transition Costs

RF Capital incurred onetime costs related to leadership transitions, impacting operating expenses and resulting in a decrease in cash flow available for growth.

Company Guidance

During the third quarter 2024 earnings call for RF Capital, several key metrics and future guidance were highlighted. The company's assets under management increased by $3.8 billion since the start of the year, with an additional $400 million growth in October alone. Fee-based revenues reached $204.5 million for the nine months ending September 30, 2024, marking a 6% increase compared to the same period last year. However, adjusted EBITDA showed a decline, recording $41.1 million for the nine-month period, down 9% from the previous year. The adjusted net income stood at $6.5 million, up by $2.9 million year-over-year. The recruiting pipeline was robust, with assets over $29 billion in view. Looking ahead, the company expects AUA to align with equity market returns and recruiting activity, while interest revenue is projected to decline with lower benchmark rates. Meanwhile, operating expenses are expected to remain under control, with cash flow primarily directed towards expanding the advisor network.

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

Positive

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

Positive

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

Positive

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.

TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
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
86.75M	90.15M	80.83M	367.85M	518.10M	556.25M
	Total Assets
1.40B	1.46B	1.38B	1.70B	2.22B	2.12B
	Total Debt
128.81M	160.36M	170.60M	142.95M	117.37M	137.66M
	Net Debt
42.07M	71.81M	89.77M	-224.90M	-400.73M	-418.58M
	Total Liabilities
1.08B	1.13B	1.05B	1.35B	1.86B	1.74B
	Stockholders Equity
321.80M	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 Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMPXF		$87.37M	―	-0.71%	―	―	―
Sector *	64 Neutral	$12.87B	9.81	7.76%	16985.65%	12.28%	-7.83%
ASXSF		$7.41M	4.63	17.93%	―	―	―
LPC	73 Outperform	C$120.19M	35.87	25.24%	1.55%	24.60%	66.30%
AIM	58 Neutral	C$272.88M	―	0.37%	―	67.83%	68.03%
PYCFF		$6.92M	7.15	-36.58%	3.37%	―	―
STCK	61 Neutral	C$132.53M	10.61	10.47%	―	-19.24%	―

* Financial Sector Average

Performance Comparison

GMPXF

RF Capital Group

6.08

0.48

8.57%

ASXSF

Elysee Development

0.26

0.02

8.33%

TSE:AIM

Aimia Inc.

2.94

-0.01

-0.34%

TSE:LPC

Lorne Park Capital

2.20

0.98

80.33%

PYCFF

Mount Logan Capital

1.55

0.02

1.31%

TSE:STCK

Stack Capital Group

12.40

2.39

23.88%

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.