OTCPK:GCAA.F

Stock Analysis Report

Executive Summary

Guardian Capital Group Limited, together with its subsidiaries, operates as a diversified financial services company in Canada, the United Kingdom, the United States, and the Caribbean.

Rewards

Trading at 37.6% below its fair value

Pays a high and reliable dividend of 2.2%

Risk Analysis

Large one-off items impacting financial results

Profit margins (12.1%) are lower than last year (58.6%)



Snowflake Analysis

Established dividend payer and good value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

GCAA.F

-3.6%

US Capital Markets

-2.7%

US Market


1 Year Return

n/a

GCAA.F

16.4%

US Capital Markets

21.2%

US Market

Return vs Industry: Insufficient data to determine how GCAA.F performed against the US Capital Markets industry.

Return vs Market: Insufficient data to determine how GCAA.F performed against the US Market.


Shareholder returns

GCAA.FIndustryMarket
7 Day0%-3.6%-2.7%
30 Day3.9%0.6%0.09%
90 Day9.1%8.1%6.9%
1 Yearn/a18.7%16.4%23.8%21.2%
3 Yearn/a41.6%33.7%48.1%38.6%
5 Year53.4%40.0%91.2%73.5%72.5%53.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

35.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GCAA.F ($20.04) is trading below our estimate of fair value ($32.13)

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


Price To Earnings Ratio

PE vs Industry: GCAA.F is good value based on its PE Ratio (32.5x) compared to the Capital Markets industry average (36.1x).

PE vs Market: GCAA.F is poor value based on its PE Ratio (32.5x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GCAA.F is good value based on its PB Ratio (1.1x) compared to the US Capital Markets industry average (6.6x).


Next Steps

Future Growth

How is Guardian Capital Group forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

6.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GCAA.F's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if GCAA.F's earnings are forecast to grow faster than the US market

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

Revenue vs Market: GCAA.F's revenue (6.6% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: GCAA.F's revenue (6.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if GCAA.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Guardian Capital Group performed over the past 5 years?

3.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GCAA.F has a large one-off loss of CA$15.5M impacting its September 30 2019 financial results.

Growing Profit Margin: GCAA.F's current net profit margins (12.1%) are lower than last year (58.6%).


Past Earnings Growth Analysis

Earnings Trend: GCAA.F's earnings have grown by 3% per year over the past 5 years.

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

Earnings vs Industry: GCAA.F had negative earnings growth (-77.6%) over the past year, making it difficult to compare to the Capital Markets industry average (20.6%).


Return on Equity

High ROE: GCAA.F's Return on Equity (3.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Guardian Capital Group'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: GCAA.F has a low level of unsold assets or inventory.

Debt Coverage by Assets: GCAA.F's debt is covered by short term assets (assets are 1.5x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

2.14%

Current Dividend Yield


Dividend Yield vs Market

company2.1%marketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years2.4%

Current dividend yield vs market & industry

Notable Dividend: GCAA.F's dividend (2.2%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: GCAA.F's dividend (2.2%) is low compared to the top 25% of dividend payers in the US market (3.66%).


Stability and Growth of Payments

Stable Dividend: GCAA.F's dividends per share have been stable in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.5%), GCAA.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GCAA.F's dividends in 3 years are forecast to be well covered by earnings (46.4% payout ratio).


Next Steps

Management

What is the CEO of Guardian Capital Group's salary, the management and board of directors tenure and is there insider trading?

4.4yrs

Average management tenure


CEO

George Mavroudis 0

8.4yrs

Tenure

CA$2,525,398

Compensation

Mr. George Mavroudis, CA, CFP, serves as the Chief Executive Officer and Director at Guardian Capital LP. Mr. Mavroudis serves as the Chief Executive Officer at Guardian Capital Group Ltd. He has been the  ...


CEO Compensation Analysis

Compensation vs Market: George's total compensation ($USD1.93M) is about average for companies of similar size in the US market ($USD1.70M).

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


Management Age and Tenure

4.4yrs

Average Tenure

Experienced Management: GCAA.F's management team is considered experienced (4.4 years average tenure).


Board Age and Tenure

8.2yrs

Average Tenure

Experienced Board: GCAA.F's board of directors are considered experienced (8.2 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$2,21923 Dec 19
National Bank of Canada
EntityCompany
Shares110
Max PriceUS$20.18
BuyUS$36,51820 Sep 19
Petros Christodoulou
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,000
Max PriceUS$18.26
BuyUS$50,02413 Sep 19
Petros Christodoulou
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares2,750
Max PriceUS$18.21
SellUS$73,49012 Jun 19
Hans-Georg Rudloff
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,171
Max PriceUS$17.65
SellUS$117,21907 Jun 19
Hans-Georg Rudloff
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,600
Max PriceUS$17.76
BuyUS$16,33716 May 19
Marilyn De Mara
EntityIndividual
Role
Member of the Board of Directors
Director
Shares900
Max PriceUS$18.15
BuyUS$19,82022 Apr 19
Petros Christodoulou
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,150
Max PriceUS$17.24
BuyUS$18,91415 Apr 19
Petros Christodoulou
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,100
Max PriceUS$17.26

Ownership Breakdown

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


Management Team

  • Steve Bates (61yo)

    Chief Investment Officer and Chief Investment Officer of Guardian Capital's UK Investment Business

    • Sri Iyer

      MD & Head of Systematic Strategies

      • George Mavroudis

        President

        • Tenure: 8.4yrs
        • Compensation: CA$2.53m
      • Robin Lacey

        Head of Institutional Asset Management

        • Tenure: 2.3yrs
        • Compensation: CA$806.52k
      • Doce Tomic

        Head of Wealth Management & Head of Technology

        • Tenure: 0.3yrs
      • Donald Yi

        Chief Financial Officer

        • Tenure: 6.4yrs
        • Compensation: CA$656.45k
      • Matt Turner

        Senior VP & Chief Compliance Officer

        • Compensation: CA$680.60k
      • Leslie Lee

        Vice President of Human Resources

        • Angela Shim

          Vice President of Marketing & Corporate Initiatives

          • Rachel Hindson

            Vice President of Legal


            Board Members

            • Hans-Georg Rudloff (79yo)

              Independent Director

              • Tenure: 5.7yrs
              • Compensation: CA$58.37k
            • James Anas

              Independent Chairman of the Board

              • Tenure: 8.2yrs
              • Compensation: CA$112.24k
            • Harold Hillier

              Independent Director

              • Tenure: 8.7yrs
              • Compensation: CA$77.46k
            • Petros Christodoulou (59yo)

              Independent Director

              • Tenure: 3.7yrs
              • Compensation: CA$56.87k
            • Edward McDermott

              Independent Director

              • Tenure: 6.7yrs
              • Compensation: CA$76.46k
            • George Mavroudis

              President

              • Tenure: 8.4yrs
              • Compensation: CA$2.53m
            • Mike Christodoulou

              Senior VP of Strategic Planning & Development and Director

              • Tenure: 8.4yrs
            • Paul Brown

              Chairman of Worldsource Wealth Management Inc.

              • Compensation: CA$883.02k
            • Barry Myers

              Independent Director

              • Tenure: 10.2yrs
              • Compensation: CA$84.06k
            • Marilyn De Mara

              Director

              • Tenure: 0.7yrs

            Company Information

            Guardian Capital Group Limited's company bio, employee growth, exchange listings and data sources


            Key Information

            • Name: Guardian Capital Group Limited
            • Ticker: GCAA.F
            • Exchange: OTCPK
            • Founded: 1962
            • Industry: Asset Management and Custody Banks
            • Sector: Diversified Financials
            • Market Cap: CA$720.722m
            • Listing Market Cap: CA$546.781m
            • Shares outstanding: 25.54m
            • Website: https://www.guardiancapital.com

            Number of Employees


            Location

            • Guardian Capital Group Limited
            • Commerce Court West
            • Suite 3100
            • Toronto
            • Ontario
            • M5L 1E8
            • Canada

            Listings

            TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
            GCGTSX (The Toronto Stock Exchange)Common SharesCACADJan 1976
            GCG.ATSX (The Toronto Stock Exchange)YesClass A SharesCACADAug 1986
            GCAA.FOTCPK (Pink Sheets LLC)YesClass A SharesUSUSDAug 1986

            Biography

            Guardian Capital Group Limited, together with its subsidiaries, operates as a diversified financial services company in Canada, the United Kingdom, the United States, and the Caribbean. It manages institutional assets for pension plans, insurers, foundations, endowments, third-party mutual funds, and ETFs; and provides private wealth management services to individuals, families, and charitable organizations. The company also offers trust and corporate administration, investment management, and banking services for international clients; and an integrated wealth management platform for financial advisors to deliver professional advice on mutual funds, securities, and insurance. In addition, it engages in the sale of life insurance products, mutual funds, and other securities. Guardian Capital Group Limited was founded in 1962 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 Analysis2020/01/28 00:35
            End of Day Share Price2020/01/21 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.