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CANACCORD GENUITY GROUP INC (CF.CA) Stock Fundamental Analysis

TSX:CF - Toronto Stock Exchange - CA1348011091 - Common Stock - Currency: CAD

8.61  +0.23 (+2.74%)

Fundamental Rating

5

CF gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 82 industry peers in the Capital Markets industry. While CF seems to be doing ok healthwise, there are quite some concerns on its profitability. CF has a decent growth rate and is not valued too expensively. Finally CF also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

In the past year CF was profitable.
CF had a positive operating cash flow in the past year.
In multiple years CF reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: CF reported negative operating cash flow in multiple years.
CF.CA Yearly Net Income VS EBIT VS OCF VS FCFCF.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B

1.2 Ratios

Looking at the Return On Assets, with a value of -0.79%, CF is doing worse than 68.92% of the companies in the same industry.
CF has a worse Return On Equity (-4.44%) than 72.97% of its industry peers.
CF has a Return On Invested Capital of 4.34%. This is in the better half of the industry: CF outperforms 77.03% of its industry peers.
CF had an Average Return On Invested Capital over the past 3 years of 6.81%. This is below the industry average of 9.06%.
Industry RankSector Rank
ROA -0.79%
ROE -4.44%
ROIC 4.34%
ROA(3y)0.42%
ROA(5y)1.09%
ROE(3y)2.68%
ROE(5y)7.29%
ROIC(3y)6.81%
ROIC(5y)8.48%
CF.CA Yearly ROA, ROE, ROICCF.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 -40

1.3 Margins

CF's Operating Margin of 12.94% is on the low side compared to the rest of the industry. CF is outperformed by 62.16% of its industry peers.
CF's Operating Margin has improved in the last couple of years.
CF's Gross Margin of 94.56% is amongst the best of the industry. CF outperforms 87.84% of its industry peers.
CF's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 12.94%
PM (TTM) N/A
GM 94.56%
OM growth 3Y-12.31%
OM growth 5Y2.73%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.13%
GM growth 5Y0.28%
CF.CA Yearly Profit, Operating, Gross MarginsCF.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50

5

2. Health

2.1 Basic Checks

CF has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, CF has less shares outstanding
Compared to 1 year ago, CF has a worse debt to assets ratio.
CF.CA Yearly Shares OutstandingCF.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
CF.CA Yearly Total Debt VS Total AssetsCF.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

2.2 Solvency

Based on the Altman-Z score of 0.73, we must say that CF is in the distress zone and has some risk of bankruptcy.
CF has a Altman-Z score of 0.73. This is comparable to the rest of the industry: CF outperforms 58.11% of its industry peers.
The Debt to FCF ratio of CF is 1.84, which is an excellent value as it means it would take CF, only 1.84 years of fcf income to pay off all of its debts.
CF has a better Debt to FCF ratio (1.84) than 85.14% of its industry peers.
A Debt/Equity ratio of 1.15 is on the high side and indicates that CF has dependencies on debt financing.
CF has a Debt to Equity ratio of 1.15. This is comparable to the rest of the industry: CF outperforms 43.24% of its industry peers.
Even though the debt/equity ratio score it not favorable for CF, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 1.15
Debt/FCF 1.84
Altman-Z 0.73
ROIC/WACCN/A
WACCN/A
CF.CA Yearly LT Debt VS Equity VS FCFCF.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B

2.3 Liquidity

CF has a Current Ratio of 1.23. This is a normal value and indicates that CF is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.23, CF is in the better half of the industry, outperforming 66.22% of the companies in the same industry.
CF has a Quick Ratio of 1.23. This is a normal value and indicates that CF is financially healthy and should not expect problems in meeting its short term obligations.
With a decent Quick ratio value of 1.23, CF is doing good in the industry, outperforming 66.22% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.23
Quick Ratio 1.23
CF.CA Yearly Current Assets VS Current LiabilitesCF.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

5

3. Growth

3.1 Past

The earnings per share for CF have decreased strongly by -28.81% in the last year.
CF shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -12.52% yearly.
CF shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.45%.
CF shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.43% yearly.
EPS 1Y (TTM)-28.81%
EPS 3Y-43.67%
EPS 5Y-12.52%
EPS Q2Q%-260.71%
Revenue 1Y (TTM)14.45%
Revenue growth 3Y-9.69%
Revenue growth 5Y4.43%
Sales Q2Q%15.9%

3.2 Future

The Earnings Per Share is expected to grow by 46.80% on average over the next years. This is a very strong growth
Based on estimates for the next years, CF will show a quite strong growth in Revenue. The Revenue will grow by 10.55% on average per year.
EPS Next Y112.54%
EPS Next 2Y69.39%
EPS Next 3Y46.8%
EPS Next 5YN/A
Revenue Next Year22.86%
Revenue Next 2Y15.58%
Revenue Next 3Y10.55%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
CF.CA Yearly Revenue VS EstimatesCF.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 500M 1B 1.5B 2B
CF.CA Yearly EPS VS EstimatesCF.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.5 1 1.5 2 2.5

6

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 20.50, the valuation of CF can be described as rather expensive.
CF's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 30.19, CF is valued a bit cheaper.
With a Price/Forward Earnings ratio of 7.14, the valuation of CF can be described as very cheap.
66.22% of the companies in the same industry are more expensive than CF, based on the Price/Forward Earnings ratio.
CF is valuated cheaply when we compare the Price/Forward Earnings ratio to 23.58, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 20.5
Fwd PE 7.14
CF.CA Price Earnings VS Forward Price EarningsCF.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

98.65% of the companies in the same industry are more expensive than CF, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 1.43
EV/EBITDA -2.39
CF.CA Per share dataCF.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 5 10 15

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
CF's earnings are expected to grow with 46.80% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.18
PEG (5Y)N/A
EPS Next 2Y69.39%
EPS Next 3Y46.8%

7

5. Dividend

5.1 Amount

CF has a Yearly Dividend Yield of 4.06%, which is a nice return.
Compared to an average industry Dividend Yield of 3.19, CF pays a better dividend. On top of this CF pays more dividend than 85.14% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.30, CF pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.06%

5.2 History

On average, the dividend of CF grows each year by 22.53%, which is quite nice.
CF has been paying a dividend for at least 10 years, so it has a reliable track record.
CF has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)22.53%
Div Incr Years0
Div Non Decr Years4
CF.CA Yearly Dividends per shareCF.CA Yearly Dividends per shareYearly Dividends per share 2015 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3

5.3 Sustainability

CF has negative earnings and hence a negative payout ratio. The dividend may be in danger.
CF's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-158.78%
EPS Next 2Y69.39%
EPS Next 3Y46.8%
CF.CA Yearly Income VS Free CF VS DividendCF.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M -500M 1B

CANACCORD GENUITY GROUP INC

TSX:CF (2/14/2025, 7:00:00 PM)

8.61

+0.23 (+2.74%)

Chartmill FA Rating
GICS SectorFinancials
GICS IndustryGroupFinancial Services
GICS IndustryCapital Markets
Earnings (Last)02-04 2025-02-04/amc
Earnings (Next)06-03 2025-06-03/amc
Inst Owners11.9%
Inst Owner ChangeN/A
Ins Owners4.55%
Ins Owner ChangeN/A
Market Cap882.78M
Analysts85.45
Price Target12.75 (48.08%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 4.06%
Yearly Dividend0.75
Dividend Growth(5Y)22.53%
DP-158.78%
Div Incr Years0
Div Non Decr Years4
Ex-Date02-28 2025-02-28 (0.085)
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)48111.6%
Min Revenue beat(2)-2.47%
Max Revenue beat(2)96225.8%
Revenue beat(4)2
Avg Revenue beat(4)48412.8%
Min Revenue beat(4)-5.44%
Max Revenue beat(4)97433.2%
Revenue beat(8)4
Avg Revenue beat(8)24204.3%
Revenue beat(12)5
Avg Revenue beat(12)16134.3%
Revenue beat(16)8
Avg Revenue beat(16)12102.7%
PT rev (1m)0%
PT rev (3m)21.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.71%
EPS NY rev (1m)0%
EPS NY rev (3m)-2.26%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.48%
Valuation
Industry RankSector Rank
PE 20.5
Fwd PE 7.14
P/S 0.51
P/FCF 1.43
P/OCF 1.24
P/B 0.92
P/tB N/A
EV/EBITDA -2.39
EPS(TTM)0.42
EY4.88%
EPS(NY)1.21
Fwd EY14%
FCF(TTM)6.02
FCFY69.94%
OCF(TTM)6.92
OCFY80.39%
SpS16.75
BVpS9.41
TBVpS-0.12
PEG (NY)0.18
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.79%
ROE -4.44%
ROCE 10.1%
ROIC 4.34%
ROICexc 12.21%
ROICexgc N/A
OM 12.94%
PM (TTM) N/A
GM 94.56%
FCFM 35.96%
ROA(3y)0.42%
ROA(5y)1.09%
ROE(3y)2.68%
ROE(5y)7.29%
ROIC(3y)6.81%
ROIC(5y)8.48%
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)13.72%
ROCE(5y)16.7%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3Y-12.31%
OM growth 5Y2.73%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.13%
GM growth 5Y0.28%
F-Score4
Asset Turnover0.31
Health
Industry RankSector Rank
Debt/Equity 1.15
Debt/FCF 1.84
Debt/EBITDA 3.75
Cap/Depr 124.26%
Cap/Sales 5.37%
Interest Coverage 1.79
Cash Conversion 239.37%
Profit Quality N/A
Current Ratio 1.23
Quick Ratio 1.23
Altman-Z 0.73
F-Score4
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)36.01%
Cap/Depr(5y)26.69%
Cap/Sales(3y)1.44%
Cap/Sales(5y)1.04%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-28.81%
EPS 3Y-43.67%
EPS 5Y-12.52%
EPS Q2Q%-260.71%
EPS Next Y112.54%
EPS Next 2Y69.39%
EPS Next 3Y46.8%
EPS Next 5YN/A
Revenue 1Y (TTM)14.45%
Revenue growth 3Y-9.69%
Revenue growth 5Y4.43%
Sales Q2Q%15.9%
Revenue Next Year22.86%
Revenue Next 2Y15.58%
Revenue Next 3Y10.55%
Revenue Next 5YN/A
EBIT growth 1Y21.06%
EBIT growth 3Y-20.81%
EBIT growth 5Y7.28%
EBIT Next Year5.84%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y199.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y220.85%
OCF growth 3YN/A
OCF growth 5YN/A