Guardian Capital Group Limited
Guardian Capital Group Limited Fundamental Analysis
Guardian Capital Group Limited (GCG.TO) shows strong financial fundamentals with a PE ratio of 8.62, profit margin of 47.86%, and ROE of 13.66%. The company generates $0.4B in annual revenue with strong year-over-year growth of 32.63%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 76.2/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze GCG.TO's fundamental strength across five key dimensions:
Efficiency Score
WeakGCG.TO struggles to generate sufficient returns from assets.
Valuation Score
ExcellentGCG.TO trades at attractive valuation levels.
Growth Score
ModerateGCG.TO shows steady but slowing expansion.
Financial Health Score
ModerateGCG.TO shows balanced financial health with some risks.
Profitability Score
ModerateGCG.TO maintains healthy but balanced margins.
Key Financial Metrics
Is GCG.TO Expensive or Cheap?
P/E Ratio
GCG.TO trades at 8.62 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, GCG.TO's PEG of 0.40 indicates potential undervaluation.
Price to Book
The market values Guardian Capital Group Limited at 1.13 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.79 times EBITDA. This is generally considered low.
How Well Does GCG.TO Make Money?
Net Profit Margin
For every $100 in sales, Guardian Capital Group Limited keeps $47.86 as profit after all expenses.
Operating Margin
Core operations generate 5.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $13.66 in profit for every $100 of shareholder equity.
ROA
Guardian Capital Group Limited generates $8.53 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Guardian Capital Group Limited produces operating cash flow of $81.82M, showing steady but balanced cash generation.
Free Cash Flow
Guardian Capital Group Limited generates strong free cash flow of $74.87M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.23 in free cash annually.
FCF Yield
GCG.TO converts 4.51% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
8.62
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.40
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.13
vs 25 benchmark
P/S Ratio
Price to sales ratio
4.37
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.13
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.79
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.14
vs 25 benchmark
ROA
Return on assets percentage
0.09
vs 25 benchmark
ROCE
Return on capital employed
0.01
vs 25 benchmark
How GCG.TO Stacks Against Its Sector Peers
| Metric | GCG.TO Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 8.62 | 18.94 | Better (Cheaper) |
| ROE | 13.66% | 846.00% | Weak |
| Net Margin | 47.86% | 4054.00% | Weak |
| Debt/Equity | 0.13 | 0.89 | Strong (Low Leverage) |
| Current Ratio | 0.79 | 660.05 | Weak Liquidity |
| ROA | 8.53% | -24865.00% (disorted) | Weak |
GCG.TO outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Guardian Capital Group Limited's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
36.09%
Industry Style: Value, Dividend, Cyclical
High GrowthEPS CAGR
-4.42%
Industry Style: Value, Dividend, Cyclical
DecliningFCF CAGR
123.24%
Industry Style: Value, Dividend, Cyclical
High Growth