Canadian General Investments (TSX:CGI) - Share price, News & Analysis

Q: What is the Fair Price of CGI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

CGI (CA$32.62) is trading below our estimate of [[fair value]] (CA$181.9)

CGI fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	2/6
Financial Health	5/6
Dividends	3/6

CGI Stock Overview

Canadian General Investments, Limited is a close ended equity mutual fund launched and managed by Morgan Meighen & Associates Limited.

Canadian General Investments Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Canadian General Investments
Historical stock prices
Current Share Price	CA$32.62
52 Week High	CA$45.60
52 Week Low	CA$31.64
Beta	1.24
1 Month Change	-10.90%
3 Month Change	-22.92%
1 Year Change	-15.60%
3 Year Change	28.68%
5 Year Change	56.15%
Change since IPO	397.37%

Shareholder Returns

	CGI	CA Capital Markets	CA Market
7D	3.1%	1.5%	0.3%
1Y	-15.6%	-17.0%	-3.7%

Return vs Industry: CGI exceeded the Canadian Capital Markets industry which returned -18% over the past year.

Return vs Market: CGI underperformed the Canadian Market which returned -2.9% over the past year.

Price Volatility

Is CGI's price volatile compared to industry and market?
CGI volatility
CGI Average Weekly Movement	4.5%
Capital Markets Industry Average Movement	6.7%
Market Average Movement	10.0%
10% most volatile stocks in CA Market	17.2%
10% least volatile stocks in CA Market	4.4%

Stable Share Price: CGI is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CGI's weekly volatility (4%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1930	n/a	Jonathan Morgan	https://www.mmainvestments.com/cgi.cfm

Canadian General Investments, Limited is a close ended equity mutual fund launched and managed by Morgan Meighen & Associates Limited. It invests in the public equity markets of Canada. The fund seeks to invest in stocks of companies operating across diversified sectors.

Canadian General Investments Fundamentals Summary

How do Canadian General Investments's earnings and revenue compare to its market cap?
CGI fundamental statistics
Market Cap	CA$680.49m
Earnings (TTM)	CA$254.79m
Revenue (TTM)	CA$284.43m

2.7x

P/E Ratio

2.4x

P/S Ratio

Is CGI overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CGI income statement (TTM)
Revenue	CA$284.43m
Cost of Revenue	CA$0
Gross Profit	CA$284.43m
Other Expenses	CA$29.64m
Earnings	CA$254.79m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	12.21
Gross Margin	100.00%
Net Profit Margin	89.58%
Debt/Equity Ratio	13.6%

How did CGI perform over the long term?

See historical performance and comparison

Dividends

2.8%

Current Dividend Yield

7%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is CGI undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for CGI?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for CGI. This is calculated by dividing CGI's market cap by their current preferred multiple.
What is CGI's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	CA$680.49m

CGI key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	n/a
Enterprise Value/EBITDA	n/a
PEG Ratio	n/a

Price to Earnings Ratio vs Peers

How does CGI's PE Ratio compare to its peers?

Insufficient data to calculate this valuation analysis check

CGI PE Ratio vs Peers

The above table shows the PE ratio for CGI vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	n/a
CGI Canadian General Investments	2.7x	n/a	CA$680.5m

Forward PE

Price-To-Earnings vs Peers: Insufficient data to calculate CGI's Price-To-Earnings Ratio vs. peers for valuation analysis.

Price to Earnings Ratio vs Industry

How does CGI's PE Ratio compare vs other companies in the CA Capital Markets Industry?

Price-To-Earnings vs Industry: CGI is good value based on its Price-To-Earnings Ratio (2.7x) compared to the Canadian Capital Markets industry average (8.7x)

Price to Earnings Ratio vs Fair Ratio

What is CGI's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

CGI PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	2.7x
Fair PE Ratio	n/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate CGI's Price-To-Earnings Fair Ratio for valuation analysis.

Share Price vs Fair Value

What is the Fair Price of CGI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: CGI (CA$32.62) is trading below our estimate of fair value (CA$181.9)

Significantly Below Fair Value: CGI is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

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

Discover undervalued companies

Future Growth

How is Canadian General Investments forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

1.4%

Forecasted Diversified Financials industry annual growth in earnings

In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Canadian General Investments has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.

Past Performance

How has Canadian General Investments performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

31.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CGI has high quality earnings.

Growing Profit Margin: CGI's current net profit margins (89.6%) are lower than last year (94%).

Past Earnings Growth Analysis

Earnings Trend: CGI's earnings have grown significantly by 31.5% per year over the past 5 years.

Accelerating Growth: CGI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CGI had negative earnings growth (-12%) over the past year, making it difficult to compare to the Capital Markets industry average (0.2%).

Return on Equity

High ROE: CGI's Return on Equity (19.9%) is considered low.

Financial Health

How is Canadian General Investments's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CGI's short term assets (CA$1.5B) exceed its short term liabilities (CA$110.5M).

Long Term Liabilities: CGI's short term assets (CA$1.5B) exceed its long term liabilities (CA$74.7M).

Debt to Equity History and Analysis

Debt Level: CGI has more cash than its total debt.

Reducing Debt: CGI's debt to equity ratio has reduced from 25.4% to 13.6% over the past 5 years.

Debt Coverage: CGI's debt is not well covered by operating cash flow (18.1%).

Interest Coverage: CGI's interest payments on its debt are well covered by EBIT (63.9x coverage).

Balance Sheet

Dividend

What is Canadian General Investments's current dividend yield, its reliability and sustainability?

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

2.82%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: CGI's dividend (2.82%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: CGI's dividend (2.82%) is low compared to the top 25% of dividend payers in the Canadian market (5.26%).

Stability and Growth of Payments

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

Growing Dividend: CGI's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (7.2%), CGI's dividend payments are thoroughly covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (60.7%), CGI's dividend payments are covered by cash flows.

Management

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

20.9yrs

Average board tenure

CEO

Jonathan Morgan

17.25yrs

Tenure

CA$215,165

Compensation

Mr. Jonathan A. Morgan serves as Principal, Executive Vice President and Chief Operating Officer at Morgan Meighen and Associates Limited. He serves as the Chief Executive Officer, President, and Director...

Board Members

Experienced Board: CGI's board of directors are seasoned and experienced ( 20.9 years average tenure).

Ownership

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

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/06/29 00:00
End of Day Share Price	2022/06/29 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31