TSX:CF

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Canaccord Genuity Group Inc., a full-service financial services company, provides investment solutions, and brokerage and investment banking services to individual, institutional, corporate, and government clients. More Details


Snowflake Analysis

Adequate balance sheet with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Canaccord Genuity Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CF is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CF's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-0.09%

CF

-0.7%

CA Capital Markets

-0.5%

CA Market


1 Year Return

133.4%

CF

-5.0%

CA Capital Markets

1.6%

CA Market

Return vs Industry: CF exceeded the Canadian Capital Markets industry which returned -5% over the past year.

Return vs Market: CF exceeded the Canadian Market which returned 1.6% over the past year.


Shareholder returns

CFIndustryMarket
7 Day-0.09%-0.7%-0.5%
30 Day13.5%-1.0%3.4%
90 Day62.8%12.0%13.2%
1 Year140.8%133.4%-2.9%-5.0%5.3%1.6%
3 Year96.4%76.8%30.4%21.2%13.1%2.3%
5 Year189.4%154.2%85.6%61.7%66.0%40.5%

Long-Term Price Volatility Vs. Market

How volatile is Canaccord Genuity Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Canaccord Genuity Group undervalued compared to its fair value and its price relative to the market?

11.4x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CF (CA$11.67) is trading above our estimate of fair value (CA$7.57)

Significantly Below Fair Value: CF is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CF is good value based on its PE Ratio (11.4x) compared to the CA Capital Markets industry average (11.5x).

PE vs Market: CF is good value based on its PE Ratio (11.4x) compared to the Canadian market (16.6x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CF is overvalued based on its PB Ratio (1.5x) compared to the CA Capital Markets industry average (1.3x).


Next Steps

Future Growth

How is Canaccord Genuity Group forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

1.2%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CF's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if CF's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CF's revenue (1.2% per year) is forecast to grow slower than the Canadian market (7.9% per year).

High Growth Revenue: CF's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CF's Return on Equity is forecast to be low in 3 years time (15.3%).


Next Steps

Past Performance

How has Canaccord Genuity Group performed over the past 5 years?

74.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CF has high quality earnings.

Growing Profit Margin: CF's current net profit margins (7.2%) are higher than last year (5.3%).


Past Earnings Growth Analysis

Earnings Trend: CF has become profitable over the past 5 years, growing earnings by 74.1% per year.

Accelerating Growth: CF's earnings growth over the past year (55.3%) is below its 5-year average (74.1% per year).

Earnings vs Industry: CF earnings growth over the past year (55.3%) exceeded the Capital Markets industry 20.6%.


Return on Equity

High ROE: CF's Return on Equity (11.8%) is considered low.


Next Steps

Financial Health

How is Canaccord Genuity Group's financial position?


Financial Position Analysis

Short Term Liabilities: CF's short term assets (CA$4.9B) exceed its short term liabilities (CA$4.4B).

Long Term Liabilities: CF's short term assets (CA$4.9B) exceed its long term liabilities (CA$328.0M).


Debt to Equity History and Analysis

Debt Level: CF's debt to equity ratio (23.1%) is considered satisfactory.

Reducing Debt: CF's debt to equity ratio has increased from 3.2% to 23.1% over the past 5 years.

Debt Coverage: CF's debt is well covered by operating cash flow (289.3%).

Interest Coverage: Insufficient data to determine if CF's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is Canaccord Genuity Group current dividend yield, its reliability and sustainability?

1.88%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CF's dividend (1.89%) is higher than the bottom 25% of dividend payers in the Canadian market (1.54%).

High Dividend: CF's dividend (1.89%) is low compared to the top 25% of dividend payers in the Canadian market (5.03%).


Stability and Growth of Payments

Stable Dividend: CF's dividend payments have been volatile in the past 10 years.

Growing Dividend: CF's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (20.5%), CF's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CF's dividends in 3 years are forecast to be well covered by earnings (22.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.6yrs

Average management tenure


CEO

Dan Daviau (55 yo)

5.25yrs

Tenure

CA$7,658,925

Compensation

Mr. Daniel Joseph Daviau, also known as Dan, has been the Chief Executive Officer and President of Canaccord Genuity Group Inc., since Ocotber 1, 2015. Mr. Daviau served as the Chief Executive Officer of N...


CEO Compensation Analysis

Compensation vs Market: Dan's total compensation ($USD6.01M) is above average for companies of similar size in the Canadian market ($USD1.16M).

Compensation vs Earnings: Dan's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
David Kassie
Executive Chairman8.75yrsCA$3.47m4.87%
CA$ 56.1m
Daniel Daviau
CEO, President & Director5.25yrsCA$7.66m3.05%
CA$ 35.1m
Donald MacFayden
Executive VP & CFO3.92yrsCA$1.54m0.19%
CA$ 2.2m
Jeffrey Barlow
President of Canaccord Genuity LLC (U.S.)5.25yrsCA$4.62m0.35%
CA$ 4.1m
David Esfandi
Chief Executive Officer of Canaccord Genuity Wealth Management (UK & Europe)3.75yrsCA$3.09m0.23%
CA$ 2.6m
Michel Perera
Chief Investment Officer3.67yrsno datano data
Edward Hirst
Managing Director Investment Bankingno dataCA$3.60mno data
Gregory Sourd
Directorno datano datano data
Dimitri Prouvost
Vice Presidentno datano datano data
Olivier Dardel
Head of Paris Officeno datano datano data
George Henry Garnett
Director of Corporate Financeno datano datano data
Stuart Raftus
Executive VP & Chief Administrative Officer5.25yrsCA$3.27m0.35%
CA$ 4.0m

4.6yrs

Average Tenure

57yo

Average Age

Experienced Management: CF's management team is considered experienced (4.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Kassie
Executive Chairman8.75yrsCA$3.47m4.87%
CA$ 56.1m
Daniel Daviau
CEO, President & Director5.25yrsCA$7.66m3.05%
CA$ 35.1m
Charles Bralver
Independent Director10.92yrsCA$173.03k0.061%
CA$ 706.0k
Terrence Lyons
Lead Independent Directorno dataCA$417.21k0.058%
CA$ 667.1k
Stephen Massey
Chairman of the Canaccord Genuity Wealth - UKno datano datano data
Michael Harris
Independent Director17yrsCA$167.55k0.026%
CA$ 303.5k
Eric Rosenfeld
Director0.42yrno data1.37%
CA$ 15.8m
Dipesh Shah
Independent Director9yrsCA$172.76kno data
Sally Tennant
Independent Director1.42yrsCA$126.13kno data
Merri Jones
Independent Director2.42yrsCA$169.26k0.0046%
CA$ 52.5k
Gillian Denham
Director0.42yrno datano data

5.3yrs

Average Tenure

64yo

Average Age

Experienced Board: CF's board of directors are considered experienced (5.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CF insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Canaccord Genuity Group Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Canaccord Genuity Group Inc.
  • Ticker: CF
  • Exchange: TSX
  • Founded: 1950
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: CA$1.151b
  • Shares outstanding: 98.61m
  • Website: https://www.canaccordgenuity.com

Number of Employees


Location

  • Canaccord Genuity Group Inc.
  • Pacific Centre
  • Suite 2200
  • Vancouver
  • British Columbia
  • V7Y 1H2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CFTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 2004
0RLVLSE (London Stock Exchange)YesCommon SharesGBEURJun 2004
C6UDB (Deutsche Boerse AG)YesCommon SharesDEEURJun 2004
CCOR.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 2004
CF.PRATSX (The Toronto Stock Exchange)CUM5YR 1ST PFD ACACADJun 2011
CF.PRCTSX (The Toronto Stock Exchange)CUM5YR 1ST PFD-CCACADApr 2012

Biography

Canaccord Genuity Group Inc., a full-service financial services company, provides investment solutions, and brokerage and investment banking services to individual, institutional, corporate, and government...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/18 00:08
End of Day Share Price2021/01/15 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.