Senvest Capital (SEC) AI Stock Analysis

13 Followers

Senvest Capital

(TSX:SEC)

Select Model

Rating:64Neutral

Price Target:CAD 474.00▲(7.00% Upside)

Action:downgraded

Date:11/10/26

The overall score of 64 reflects a company with a best-in-class balance sheet and seemingly compelling valuation, but whose investment case is significantly undermined by poor earnings quality and cash flow. The primary strength is the zero-debt, high-return-on-equity financial foundation, which provides a substantial margin of safety. The most significant risk is the deeply negative TTM operating cash flow, which contradicts the strong reported net income and suggests profits may not be translating into real cash generation. The moderately bullish technical trend provides some near-term support, but the stock's low P/E ratio is likely a warning sign rather than a pure opportunity, discounting the high unpredictability of future earnings.

Positive Factors

High ProfitabilityExceptionally high reported margins indicate substantial earnings power when portfolio results are favorable. This profitability can support internal capital generation and provide resilience through ordinary operating periods, although market exposure remains an important influence on outcomes.

Negative Factors

Revenue ContractionThe recent revenue decline shows that earnings capacity is not steadily compounding and remains sensitive to portfolio performance. Continued top-line instability could reduce the resources available for reinvestment and make future profitability less predictable over several quarters.

Senvest Capital (SEC) vs. iShares MSCI Canada ETF (EWC)

Market Cap: CAD 1.07B
Dividend Yield: ―
Average Volume (3M): 348
Price to Earnings (P/E): 2.3
Beta (1Y): 0.80
Revenue Growth: -16.55%
EPS Growth: 167.63%
Country: Canada
Employees: 28
Sector: Financial
Sector Strength: 68
Industry: Asset Management

Senvest Capital Business Overview & Revenue Model

Company Description

Senvest Capital Inc. is a privately owned hedge fund sponsor. It was founded in 1968 and is headquartered in Montreal, Quebec, Canada.

How the Company Makes Money

SEC makes money primarily through investment returns generated by its portfolio activities. Key revenue and earnings drivers typically include (1) net gains (realized and unrealized) on investments as the market value of portfolio holdings rises or p...

Senvest Capital Financial Statement Overview

Summary

Financial performance is a tale of extremes. The balance sheet is exceptional with zero debt and a 28.6% TTM return on equity, providing a rock-solid foundation. However, this is offset by highly volatile earnings and a deeply negative TTM operating cash flow of -$298.2M, which diverges sharply from reported profits and signals poor earnings quality. The overall score reflects this tension between a fortress-like capital structure and unreliable cash generation.

Income Statement

62Positive

Balance Sheet

85Very Positive

Cash Flow

35Negative

Financial statement breakdown
Breakdown	TTM	Mar 2026	Dec 2024	Dec 2023	Mar 2023	Dec 2021
Income Statement
Total Revenue	979.77M	599.89M	964.91M	432.30M	-227.92M	1.05B
Gross Profit	927.11M	512.59M	868.70M	330.20M	-279.70M	1.04B
EBITDA	591.85M	178.69M	317.81M	102.54M	-367.14M	837.66M
Net Income	466.39M	149.30M	258.15M	83.61M	-326.08M	732.99M
Balance Sheet
Total Assets	7.31B	6.06B	6.79B	5.13B	5.65B	6.56B
Cash, Cash Equivalents and Short-Term Investments	86.37M	106.11M	66.19M	33.01M	42.53M	52.19M
Total Debt	0	2.68M	3.94M	1.88M	3.30M	3.96M
Total Liabilities	4.74B	3.96B	4.75B	3.49B	4.06B	4.75B
Stockholders Equity	2.53B	2.07B	2.02B	1.62B	1.58B	1.80B
Cash Flow
Free Cash Flow	-298.18M	332.08M	201.23M	84.42M	257.31M	590.30M
Operating Cash Flow	-298.18M	332.08M	201.23M	84.42M	257.31M	590.30M
Investing Cash Flow	512.64M	-59.83M	-17.31M	11.08M	-19.18M	-151.26M
Financing Cash Flow	-211.84M	-230.85M	-155.00M	-104.22M	-250.38M	-398.22M

Senvest Capital Technical Analysis

Technical Analysis SentimentPositive

Last Price442.99

Price Trends

50DMA439.66Positive

100DMA427.19Positive

200DMA397.07Positive

Market Momentum

MACD0.11Positive

RSI54.48Neutral

STOCH59.87Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SEC, the sentiment is Positive. The current price of 442.99 is above the 20-day moving average (MA) of 440.79, above the 50-day MA of 439.66, and above the 200-day MA of 397.07, indicating a bullish trend. The MACD of 0.11 indicates Positive momentum. The RSI at 54.48 is Neutral, neither overbought nor oversold. The STOCH value of 59.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:SEC.

Senvest Capital Peers Comparison

Overall Rating

UnderperformOutperform

Sector (68)

Financial Indicators

TSE:SEC against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TSE:CVG	81Outperform	CAD 1.15B	8.52	11.06%	1.11%	-79.44%	7375.49%
TSE:AGF.B	73Outperform	CAD 952.70M	6.86	11.46%	3.53%	12.19%	26.48%
Sector *	68Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
TSE:SEC	64Neutral	CAD 1.04B	2.30	20.30%	―	-16.55%	167.63%
TSE:FSZ	49Neutral	CAD 236.23M	12.57	8.57%	18.23%	-6.27%	-32.55%

* Financial Sector Average

Performance Comparison

TSE:SEC and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
TSE:SEC	Senvest Capital	442.99	74.08	20.08%
TSE:AGF.B	Agf Management B Nv	15.03	1.72	12.90%
TSE:CVG	Clairvest Group Inc	87.00	16.89	24.08%
TSE:FSZ	Fiera Capital A	2.37	-3.22	-57.57%

Senvest Capital Corporate Events

Financial Disclosures

Senvest Capital Reports Sharp Third-Quarter Earnings Decline

Negative

Nov 6, 2026

Senvest Capital reported net income attributable to common shareholders of $17.6 million, or $7.39 per diluted share, for the third quarter ended September 30, 2026. That compared with $172.8 million, or $70.98 per share, in the year-earlier quarter,...

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.

Date of analysis: Nov 10, 2026

Senvest Capital AI Stock Analysis