TSX:CIX

Stock Analysis Report

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Executive Summary

CI Financial Corp. is a publicly owned asset management holding company. More Details


Snowflake Analysis

Good value with acceptable track record.


Similar Companies

Share Price & News

How has CI Financial's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CIX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.6%

CIX

-3.6%

CA Capital Markets

-2.3%

CA Market


1 Year Return

-11.2%

CIX

-8.9%

CA Capital Markets

-8.6%

CA Market

Return vs Industry: CIX underperformed the Canadian Capital Markets industry which returned -8.9% over the past year.

Return vs Market: CIX underperformed the Canadian Market which returned -8.6% over the past year.


Shareholder returns

CIXIndustryMarket
7 Day-4.6%-3.6%-2.3%
30 Day-9.7%-5.9%-4.5%
90 Day1.5%-2.0%5.7%
1 Year-8.2%-11.2%-7.1%-8.9%-5.5%-8.6%
3 Year-28.7%-36.9%21.9%13.7%5.8%-4.4%
5 Year-29.0%-43.2%53.6%34.2%38.3%17.1%

Price Volatility Vs. Market

How volatile is CI Financial's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CI Financial undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CIX (CA$17.21) is trading below our estimate of fair value (CA$35.91)

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


Price To Earnings Ratio

PE vs Industry: CIX is good value based on its PE Ratio (7.3x) compared to the CA Capital Markets industry average (8x).

PE vs Market: CIX is good value based on its PE Ratio (7.3x) compared to the Canadian market (16.1x).


Price to Earnings Growth Ratio

PEG Ratio: CIX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CIX is overvalued based on its PB Ratio (2.4x) compared to the CA Capital Markets industry average (1x).


Next Steps

Future Growth

How is CI Financial forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIX's earnings are forecast to decline over the next 3 years (-0.4% per year).

Earnings vs Market: CIX's earnings are forecast to decline over the next 3 years (-0.4% per year).

High Growth Earnings: CIX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CIX's revenue (2.5% per year) is forecast to grow slower than the Canadian market (5.2% per year).

High Growth Revenue: CIX's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CIX's Return on Equity is forecast to be high in 3 years time (24.9%)


Next Steps

Past Performance

How has CI Financial performed over the past 5 years?

0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIX has high quality earnings.

Growing Profit Margin: CIX's current net profit margins (25.9%) are higher than last year (25.5%).


Past Earnings Growth Analysis

Earnings Trend: CIX's earnings have grown by 0.7% per year over the past 5 years.

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

Earnings vs Industry: CIX had negative earnings growth (-4.2%) over the past year, making it difficult to compare to the Capital Markets industry average (31.4%).


Return on Equity

High ROE: Whilst CIX's Return on Equity (33.98%) is high, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is CI Financial's financial position?


Financial Position Analysis

Short Term Liabilities: CIX's short term assets (CA$1.3B) exceed its short term liabilities (CA$1.3B).

Long Term Liabilities: CIX's short term assets (CA$1.3B) do not cover its long term liabilities (CA$2.1B).


Debt to Equity History and Analysis

Debt Level: CIX's debt to equity ratio (128.5%) is considered high.

Reducing Debt: CIX's debt to equity ratio has increased from 20.3% to 128.5% over the past 5 years.

Debt Coverage: CIX's debt is well covered by operating cash flow (30.6%).

Interest Coverage: CIX's interest payments on its debt are well covered by EBIT (13.2x coverage).


Balance Sheet


Next Steps

Dividend

What is CI Financial current dividend yield, its reliability and sustainability?

4.18%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CIX's dividend (4.18%) is higher than the bottom 25% of dividend payers in the Canadian market (1.74%).

High Dividend: CIX's dividend (4.18%) is low compared to the top 25% of dividend payers in the Canadian market (5.98%).


Stability and Growth of Payments

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

Growing Dividend: CIX's dividend payments have not increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.5%), CIX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CIX's dividends in 3 years are forecast to be well covered by earnings (29.8% payout ratio).


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

Kurt MacAlpine (38 yo)

1

Tenure

CA$5,209,169

Compensation

Mr. Kurt MacAlpine serves as Chief Executive Officer and Director of CI Financial Corp. since September 1, 2019. Mr. MacAlpine served as an Executive Vice President and Global Head of Distribution at Wisdo ...


CEO Compensation Analysis

Compensation vs Market: Kurt's total compensation ($USD3.88M) is about average for companies of similar size in the Canadian market ($USD3.04M).

Compensation vs Earnings: Insufficient data to compare Kurt's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Kurt MacAlpine
CEO & Director1yrCA$5.21m0.030%
CA$ 1.1m
Darie Urbanky
President & COO1.25yrsCA$1.23m0.022%
CA$ 789.6k
Douglas Jamieson
Executive VP & CFO11.75yrsCA$750.00k0.035%
CA$ 1.3m
Roy Ratnavel
Executive VP & Head of Distribution for CI Investmentsno dataCA$700.00k0.076%
CA$ 2.8m
Edward Kelterborn
Chief Legal Officer1.58yrsno data0.0014%
CA$ 52.0k
Murray Oxby
Vice President of Communicationsno datano datano data
Lorraine Blair
Executive VP & Chief Talent Officerno datano data0.0095%
CA$ 347.2k
Sean Etherington
President of Assante Wealth Management (Canada) Limited2.67yrsno datano data
James Ross
President of CI Private Counsel2.67yrsno datano data
Eric Bushell
Chief Investment Officer of Signature Global Advisorsno datano datano data
Patrick LeFrancois
Senior Vice President of CI Investments Incno datano datano data
Kambiz Vatan-Abadi
Chief Innovation Officer of CI Investments1yrno datano data

1.6yrs

Average Tenure

Experienced Management: CIX's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kurt MacAlpine
CEO & Director1yrCA$5.21m0.030%
CA$ 1.1m
David Miller
Independent Director6.92yrsCA$170.00k0.0040%
CA$ 146.4k
Thomas Muir
Independent Lead Director2.25yrsCA$195.00k0.019%
CA$ 695.2k
William Holland
Chairman of the Board10yrsCA$750.00k3.81%
CA$ 139.5m
Paul Perrow
Independent Director2.25yrsCA$140.00k0.18%
CA$ 6.6m
Sheila Murray
Director2.25yrsCA$2.27m0.040%
CA$ 1.5m
William Butt
Independent Director1.5yrsCA$105.00k0.012%
CA$ 430.3k
Brigette Chang-Addorisio
Independent Director2.25yrsCA$140.00k0.22%
CA$ 8.1m

2.3yrs

Average Tenure

57yo

Average Age

Experienced Board: CIX's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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.


Top Shareholders

Company Information

CI Financial Corp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CI Financial Corp
  • Ticker: CIX
  • Exchange: TSX
  • Founded: 1965
  • Industry: Asset Management and Custody Banks
  • Sector: Diversified Financials
  • Market Cap: CA$3.659b
  • Shares outstanding: 212.60m
  • Website: https://www.cifinancial.com

Number of Employees


Location

  • CI Financial Corp
  • 2 Queen Street East
  • Twentieth Floor
  • Toronto
  • Ontario
  • M5C 3G7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CIXTSX (The Toronto Stock Exchange)YesCommon SharesCACADJun 1994
CF7DB (Deutsche Boerse AG)YesCommon SharesDEEURJun 1994
CIFA.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDJun 1994

Biography

CI Financial Corp. is a publicly owned asset management holding company. Through its subsidiaries, the firm manages separate client focused equity, fixed income, and alternative investments portfolios. It ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/26 06:07
End of Day Share Price2020/09/25 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.