GUARDIAN CAPITAL GRP LTD (GCG.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:GCG - CA4013392051 - Common Stock
67.29 CAD
+0.05 (+0.07%)
GCG gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 78 industry peers in the Capital Markets industry. Both the profitability and the financial health of GCG get a neutral evaluation. Nothing too spectacular is happening here. GCG is valied quite expensively at the moment, while it does show a decent growth rate. GCG also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
- In the past year GCG was profitable.
- In the past year GCG had a positive cash flow from operations.
- GCG had positive earnings in 4 of the past 5 years.
- Each year in the past 5 years GCG had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 8.53%, GCG is doing good in the industry, outperforming 69.23% of the companies in the same industry.
- The Return On Equity of GCG (13.12%) is better than 69.23% of its industry peers.
- GCG has a worse Return On Invested Capital (1.16%) than 73.08% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for GCG is significantly below the industry average of 10.50%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.53% | ||
| ROE | 13.12% | ||
| ROIC | 1.16% |
ROA(3y)11.48%
ROA(5y)10.2%
ROE(3y)15.78%
ROE(5y)15.08%
ROIC(3y)3.28%
ROIC(5y)4.19%
1.3 Margins
- GCG has a Profit Margin of 48.39%. This is in the better half of the industry: GCG outperforms 74.36% of its industry peers.
- In the last couple of years the Profit Margin of GCG has declined.
- Looking at the Operating Margin, with a value of 5.74%, GCG is doing worse than 76.92% of the companies in the same industry.
- GCG's Operating Margin has declined in the last couple of years.
- With an excellent Gross Margin value of 97.89%, GCG belongs to the best of the industry, outperforming 96.15% of the companies in the same industry.
- In the last couple of years the Gross Margin of GCG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.74% | ||
| PM (TTM) | 48.39% | ||
| GM | 97.89% |
OM growth 3Y-23.96%
OM growth 5Y-13.96%
PM growth 3Y-31.18%
PM growth 5Y-14.09%
GM growth 3Y-0.76%
GM growth 5Y-0.17%
2. Health
2.1 Basic Checks
- GCG has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for GCG has been reduced compared to 5 years ago.
- The debt/assets ratio for GCG is higher compared to a year ago.
2.2 Solvency
- GCG has an Altman-Z score of 2.34. This is not the best score and indicates that GCG is in the grey zone with still only limited risk for bankruptcy at the moment.
- GCG has a better Altman-Z score (2.34) than 69.23% of its industry peers.
- GCG has a debt to FCF ratio of 2.36. This is a good value and a sign of high solvency as GCG would need 2.36 years to pay back of all of its debts.
- GCG has a Debt to FCF ratio of 2.36. This is in the better half of the industry: GCG outperforms 75.64% of its industry peers.
- GCG has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
- GCG has a Debt to Equity ratio of 0.12. This is in the better half of the industry: GCG outperforms 64.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 2.36 | ||
| Altman-Z | 2.34 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- A Current Ratio of 0.79 indicates that GCG may have some problems paying its short term obligations.
- The Current ratio of GCG (0.79) is worse than 75.64% of its industry peers.
- GCG has a Quick Ratio of 0.79. This is a bad value and indicates that GCG is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.79, GCG is doing worse than 75.64% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.79 | ||
| Quick Ratio | 0.79 |
3. Growth
3.1 Past
- GCG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 80.39%, which is quite impressive.
- The Earnings Per Share has been decreasing by -2.14% on average over the past years.
- The Revenue has grown by 30.91% in the past year. This is a very strong growth!
- The Revenue has been growing by 11.69% on average over the past years. This is quite good.
EPS 1Y (TTM)80.39%
EPS 3Y-16.29%
EPS 5Y-2.14%
EPS Q2Q%82.91%
Revenue 1Y (TTM)30.91%
Revenue growth 3Y18.57%
Revenue growth 5Y11.69%
Sales Q2Q%78.48%
3.2 Future
- GCG is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -26.09% yearly.
- Based on estimates for the next years, GCG will show a quite strong growth in Revenue. The Revenue will grow by 8.15% on average per year.
EPS Next Y-29.71%
EPS Next 2Y-36.65%
EPS Next 3Y-26.09%
EPS Next 5YN/A
Revenue Next Year15.51%
Revenue Next 2Y9.77%
Revenue Next 3Y8.15%
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 decreasing.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 9.03, which indicates a very decent valuation of GCG.
- GCG's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.25, GCG is valued rather cheaply.
- With a Price/Forward Earnings ratio of 41.61, GCG can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Forward Earnings ratio as GCG.
- When comparing the Price/Forward Earnings ratio of GCG to the average of the S&P500 Index (25.98), we can say GCG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.03 | ||
| Fwd PE | 41.61 |
4.2 Price Multiples
- The rest of the industry has a similar Enterprise Value to EBITDA ratio as GCG.
- Based on the Price/Free Cash Flow ratio, GCG is valued a bit cheaper than the industry average as 74.36% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.27 | ||
| EV/EBITDA | 33.39 |
4.3 Compensation for Growth
- GCG's earnings are expected to decrease with -26.09% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-36.65%
EPS Next 3Y-26.09%
5. Dividend
5.1 Amount
- GCG has a Yearly Dividend Yield of 2.32%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 1.74, GCG pays a bit more dividend than its industry peers.
- GCG's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.32% |
5.2 History
- The dividend of GCG is nicely growing with an annual growth rate of 20.86%!
- GCG has been paying a dividend for at least 10 years, so it has a reliable track record.
- GCG has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)20.86%
Div Incr Years10
Div Non Decr Years10
5.3 Sustainability
- 20.46% of the earnings are spent on dividend by GCG. This is a low number and sustainable payout ratio.
DP20.46%
EPS Next 2Y-36.65%
EPS Next 3Y-26.09%
GUARDIAN CAPITAL GRP LTD / GCG.CA FAQ
What is the fundamental rating for GCG stock?
ChartMill assigns a fundamental rating of 4 / 10 to GCG.CA.
What is the valuation status for GCG stock?
ChartMill assigns a valuation rating of 3 / 10 to GUARDIAN CAPITAL GRP LTD (GCG.CA). This can be considered as Overvalued.
What is the profitability of GCG stock?
GUARDIAN CAPITAL GRP LTD (GCG.CA) has a profitability rating of 4 / 10.
What are the PE and PB ratios of GUARDIAN CAPITAL GRP LTD (GCG.CA) stock?
The Price/Earnings (PE) ratio for GUARDIAN CAPITAL GRP LTD (GCG.CA) is 9.03 and the Price/Book (PB) ratio is 1.19.
What is the financial health of GUARDIAN CAPITAL GRP LTD (GCG.CA) stock?
The financial health rating of GUARDIAN CAPITAL GRP LTD (GCG.CA) is 4 / 10.