TSX:GMP

Stock Analysis Report

Executive Summary

GMP Capital Inc., an independent diversified financial services company, provides various financial products and services to corporate clients, institutional investors, and high-net-worth individuals in Canada, the United States, and internationally.


Snowflake Analysis

Acceptable track record and slightly overvalued.


Similar Companies

Share Price & News

How has GMP Capital's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.6%

GMP

-1.4%

CA Capital Markets

-1.5%

CA Market


1 Year Return

-29.0%

GMP

15.7%

CA Capital Markets

2.5%

CA Market

Return vs Industry: GMP underperformed the Canadian Capital Markets industry which returned 15.7% over the past year.

Return vs Market: GMP underperformed the Canadian Market which returned 2.5% over the past year.


Shareholder returns

GMPIndustryMarket
7 Day-2.6%-1.4%-1.5%
30 Day-7.1%-1.4%-0.7%
90 Day-8.0%3.7%1.8%
1 Year-14.5%-29.0%21.0%15.7%5.7%2.5%
3 Year-40.6%-54.5%28.1%11.8%16.8%6.2%
5 Year-51.8%-64.6%43.0%12.6%32.0%12.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is GMP Capital undervalued compared to its fair value and its price relative to the market?

10.47x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate GMP's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate GMP's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: GMP is good value based on its PE Ratio (10.5x) compared to the Capital Markets industry average (13x).

PE vs Market: GMP is good value based on its PE Ratio (10.5x) compared to the Canadian market (16x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GMP is overvalued based on its PB Ratio (1.1x) compared to the CA Capital Markets industry average (0.9x).


Next Steps

Future Growth

How is GMP Capital forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

8.7%

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 GMP Capital 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.


Next Steps

Past Performance

How has GMP Capital performed over the past 5 years?

0.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GMP has high quality earnings.

Growing Profit Margin: GMP became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: GMP has become profitable over the past 5 years, growing earnings by 0.9% per year.

Accelerating Growth: GMP has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: GMP has become profitable in the last year, making it difficult to compare its past year earnings growth to the Capital Markets industry (-13.4%).


Return on Equity

High ROE: GMP's Return on Equity (7.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is GMP Capital's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: GMP has a low level of unsold assets or inventory.

Debt Coverage by Assets: GMP's debt is covered by short term assets (assets are 95.5x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: GMP is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: GMP is profitable, therefore cash runway is not a concern.


Financial Institutions Analysis

Asset Level: GMP's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if GMP has a sufficient allowance for bad loans.

Low Risk Liabilities: GMP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if GMP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: GMP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if GMP has an appropriate level of bad loans.


Next Steps

Dividend

What is GMP Capital's current dividend yield, its reliability and sustainability?

5.43%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%2.0%markettop25%5.6%industryaverage4.4%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: GMP's dividend (5.43%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: GMP's dividend (5.43%) is low compared to the top 25% of dividend payers in the Canadian market (5.6%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.9%), GMP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Kish Kapoor (62yo)

0.5yrs

Tenure

CA$76,377

Compensation

Mr. Kishore K. Kapoor, also known as Kish, CPA, CA has been Interim President and Chief Executive Officer at GMP Capital Inc. since August 2019 and has been its Director since June 18, 2018. Mr. Kapoor is  ...


Leadership Team

NamePositionTenureCompensationOwnership
Kishore Kapoor
Interim President0.5yrsCA$76.38kno data
Eugene McBurney
Director11.8yrsCA$1.73m1.3% CA$1.8m
Deborah Starkman
CFO & Corporate Secretary7.4yrsCA$900.00k0.17% CA$238.5k
Chris Bond
Vice Chairman & Head of Institutional Trading of GMP Securities0yrsCA$1.33mno data
Robert Weir
Vice Chairman & Head of Institutional Equity Sales of GMP Securities4.1yrsCA$1.71mno data
Rocco Colella
Director of Investor Relations0yrsno datano data
Christopher Hill
Chief Compliance Officer0yrsno datano data
John Chambers
Vice Chairman & President of GMP FirstEnergy3.3yrsno datano data
Daryl Rudichuk
Managing Director0yrsno datano data
Trent Boehm
Vice Chairman & Co-Head of Energy Sales and Trading of GMP FirstEnergy0yrsno datano data

3.7yrs

Average Tenure

Experienced Management: GMP's management team is considered experienced (3.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kishore Kapoor
Interim President0.5yrsCA$76.38kno data
Eugene McBurney
Director11.8yrsCA$1.73m1.3% CA$1.8m
David Ferguson
Independent Director5.5yrsCA$188.50k0.072% CA$98.8k
David Brown
Independent Director5.8yrsCA$125.00k0.032% CA$44.6k
Kevin Sullivan
Deputy Chairman9.3yrsCA$1.22m4.02% CA$5.6m
Donald Wright
Independent Chairman of the Board0yrsCA$244.00k0.13% CA$172.9k
Fiona Macdonald
Independent Director6.5yrsCA$162.83k0.055% CA$76.0k
Julie A. Lassonde
Independent Director1.4yrsCA$52.01kno data

5.8yrs

Average Tenure

63yo

Average Age

Experienced Board: GMP's board of directors are considered experienced (5.8 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.1%.


Top Shareholders

Company Information

GMP Capital Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: GMP Capital Inc.
  • Ticker: GMP
  • Exchange: TSX
  • Founded: 1995
  • Industry: Investment Banking and Brokerage
  • Sector: Diversified Financials
  • Market Cap: CA$138.148m
  • Shares outstanding: 72.71m
  • Website: https://www.gmpcapital.com

Number of Employees


Location

  • GMP Capital Inc.
  • 145 King Street West
  • Suite 300
  • Toronto
  • Ontario
  • M5H 1J8
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GMPTSX (The Toronto Stock Exchange)YesCommon StockCACADDec 2003
G04DB (Deutsche Boerse AG)YesCommon StockDEEURDec 2003
GMPX.FOTCPK (Pink Sheets LLC)YesCommon StockUSUSDDec 2003
GMP.PRBTSX (The Toronto Stock Exchange)PFD-B 5YR RESTCACADFeb 2011

Biography

GMP Capital Inc., an independent diversified financial services company, provides various financial products and services to corporate clients, institutional investors, and high-net-worth individuals in Canada, the United States, and internationally. It operates in two segments, Capital Markets and Wealth Management. The Capital Markets segment offers investment banking services, including advisory and underwriting services, institutional research and sales, and trading services. The Wealth Management segment provides wealth management and investment services. GMP Capital Inc. was founded in 1995 and is headquartered in Toronto, Canada. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 01:06
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.