Guardian Cap Cl A NV (GCG.A) AI Stock Analysis

• Market Cap: C$994.98M
• Dividend Yield: 3.74%
• Average Volume (3M): 3.66K
• Price to Earnings (P/E): 9.3
• Beta (1Y): 0.32
• Revenue Growth: 36.20%
• EPS Growth: N/A
• Country: CA
• Employees: 600
• Sector: Financial
• Sector Strength: 86
• Industry: Asset Management
• EPS (TTM): 2.58
• Shares Outstanding: 21,909,178
• 10 Day Avg. Volume: 3,822
• 30 Day Avg. Volume: 3,663
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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$49.00
• Price Target Upside: 20.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Guardian Capital's strong financial performance, characterized by revenue growth and robust balance sheet, is a major strength. The stock's valuation is attractive, with a low P/E ratio and solid dividend yield. Technical indicators show neutral momentum, suggesting a balanced market sentiment. The absence of recent earnings call data and corporate events means the current assessment heavily weighs on existing financial and technical analysis.

Positive Factors

Acquisition Impact

Guardian completed a transformational acquisition of Sterling Capital, providing the firm with meaningful scale in the U.S. market.

Strategic Growth

Sterling Capital helped fast track ~10 years of organic investments to build a scalable U.S. platform and nearly tripled firm-wide assets.

Valuation and Earnings Potential

The valuation of Guardian's operating businesses is disconnected from earnings potential, providing an attractive risk-reward and upside on the stock.

Negative Factors

Net Outflows

Guardian experienced net outflows in public markets, representing $10.6B in client assets, due to higher outflows from certain equity strategies.

Strategy Underperformance

There are higher outflows from certain equity strategies, particularly GuardCap, due to recent underperformance.

Guardian Cap Cl A NV Business Overview & Revenue Model

Company Description

Guardian Capital Group Limited, together with its subsidiaries, operates as a diversified financial services company in Canada and internationally. The company operates through Investment management, Wealth management, Corporate activities and investment segments. The Investment management segment provides investment management services provided to clients. The Wealth management segment is involved in investment management and advisory services to high and ultra-high net worth clients, commissions on life insurance products, mutual funds ,and other securities. The Corporate Activities and Investments segment comprises of investment of securities holdings, as well as corporate management and development activities. In addition, the company manages institutional assets for pension plans, broker-dealer third-party platforms, insurance company segregated, exchange traded, and mutual funds, endowment funds, and foundations; and provides private wealth management services to high-net-worth families, foundations, and charities. Further, the company offers banking services for international clients and independent platform for financial advisors to clients. Additionally, the company sells life insurance products, mutual funds, and other securities. Guardian Capital Group Limited was incorporated in 1962 and is headquartered in Toronto, Canada.

How the Company Makes Money

Guardian Capital LP generates revenue primarily through management fees associated with their investment services. These fees are typically calculated as a percentage of the assets under management (AUM). The company also earns performance fees, which are contingent upon achieving specific investment benchmarks or performance targets. Additionally, Guardian Capital may derive income from advisory services and strategic partnerships with other financial institutions, which can include sub-advisory agreements and joint ventures. The company's earnings are further supported by the growth in AUM, driven by both market performance and net new client inflows.

Guardian Cap Cl A NV Financial Statement Overview

Summary

Guardian Capital has demonstrated a strong recovery and growth trajectory in recent years, with significant improvements in revenue and profitability. The balance sheet remains robust, supported by low leverage and strong equity growth. Cash flow generation is solid, despite some volatility in investment activities. The company's financial health appears stable and promising, positioning it well for future growth.

Income Statement

Guardian Capital has shown a strong recovery in revenue growth, increasing from CAD 214.3 million in 2022 to CAD 337.6 million in 2024, driven by improved asset management services. Gross profit margins have remained stable around 45%, while net profit margins have improved significantly due to a return to profitability in 2024. However, EBIT and EBITDA margins indicate some operational challenges compared to earlier years.

Balance Sheet

The company's balance sheet reflects a robust equity position, with stockholders' equity rising from CAD 782.9 million in 2022 to CAD 1.317 billion in 2024. The debt-to-equity ratio remains low, highlighting financial stability, and the equity ratio has improved, indicating a strong asset base. Overall, the balance sheet demonstrates a solid financial foundation.

Cash Flow

Operating cash flow has shown an increasing trend, reaching CAD 93.3 million in 2024. Free cash flow has also grown consistently, enhancing the company's liquidity position. The free cash flow to net income ratio is healthy, reflecting efficient capital management. However, fluctuations in investing and financing cash flows suggest potential volatility in future cash flow generation.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
337.60M	254.54M	214.34M	414.91M	325.18M
	Gross Profit
150.89M	131.21M	103.07M	154.53M	117.53M
	EBIT
38.82M	59.85M	44.12M	81.79M	54.84M
	EBITDA
144.26M	135.75M	-44.23M	104.67M	75.02M
	Net Income Common Stockholders
100.10M	562.93M	-59.57M	184.24M	42.36M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
222.58M	139.33M	122.34M	131.59M	84.87M
	Total Assets
1.95B	1.73B	1.36B	1.43B	1.15B
	Total Debt
178.27M	158.65M	157.07M	129.26M	109.16M
	Net Debt
40.80M	86.23M	102.17M	52.18M	67.48M
	Total Liabilities
635.41M	490.07M	581.91M	576.10M	435.86M
	Stockholders Equity
1.32B	1.24B	782.86M	852.58M	717.71M
Cash Flow		Free Cash Flow
89.72M	79.28M	64.51M	87.44M	62.16M
	Operating Cash Flow
93.26M	81.42M	81.23M	102.86M	71.79M
	Investing Cash Flow
-21.85M	124.33M	-45.51M	-88.01M	-37.50M
	Financing Cash Flow
-22.95M	-185.28M	-54.62M	1.88M	-26.66M

Guardian Cap Cl A NV Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 40.50
• 50DMA: Positive
• 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:GCG.A, the sentiment is Positive. The current price of 40.5 is above the 20-day moving average (MA) of 40.06, below the 50-day MA of 40.66, and below the 200-day MA of 41.09, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.07 is Neutral, neither overbought nor oversold. The STOCH value of 55.63 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GCG.A.

Guardian Cap Cl A NV Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AGF.B	80 Outperform	C$683.83M	6.91	8.68%	4.49%	20.65%	-2.36%
CVG	77 Outperform	C$999.00M	7.92	10.69%	0.14%	120.44%	―
GCG	75 Outperform	C$994.98M	9.81	7.82%	3.65%	36.20%	―
GCG.A	72 Outperform	C$994.98M	9.33	7.82%	3.74%	36.20%	―
SEC	69 Neutral	C$779.69M	3.06	14.18%	―	-8.45%	211.31%
Sector *	64 Neutral	$12.52B	9.82	7.95%	16985.69%	12.70%	-4.60%
WED	61 Neutral	C$1.08B	12.73	-3.32%	―	100.87%	-110.30%

Guardian Cap Cl A NV Corporate Events

Guardian Capital Reports 2024 Financial Results with Asset Growth

Guardian Capital Group Limited, a financial services company, reported its 2024 annual operating results, highlighting a significant increase in total client assets to $169.0 billion, primarily due to the acquisitions of Sterling Capital Management LLC and Galibier Capital Management Ltd. Despite a decrease in operating earnings and EBITDA compared to the previous year, the company’s strategic acquisitions have bolstered its market position, indicating a focus on expanding its asset management capabilities.