Canadian General Inv (CGI) AI Stock Analysis

• Market Cap: N/A
• Dividend Yield: 2.83%
• Average Volume (3M): 5.97K
• Price to Earnings (P/E): 4.6
• Beta (1Y): 0.71
• Revenue Growth: 568.39%
• EPS Growth: -31.96%
• Country: CA
• Employees: N/A
• Sector: Financial
• Sector Strength: 77
• Industry: Asset Management Services
• EPS (TTM): 7.82
• Shares Outstanding: 20,861,141
• 10 Day Avg. Volume: 7,009
• 30 Day Avg. Volume: 5,971
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• Price to Cash Flow (P/CF): N/A
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

Canadian General Inv's strong financial performance with robust profit margins and a solid balance sheet is a key strength. However, volatility in revenue growth and cash flow are concerns. Technically, the stock shows bearish signals, but its low P/E ratio and attractive dividend yield suggest potential undervaluation, providing a balanced outlook.

Canadian General Inv Business Overview & Revenue Model

Company Description

Canadian General Investments, Limited (CGI) is a closed-end equity fund focused on medium to long-term investments in Canadian corporations. Established in 1930, CGI is one of Canada's oldest investment companies and primarily invests in diverse sectors including financials, industrials, and information technology. The company aims to provide capital appreciation and dividends for its shareholders through a well-balanced portfolio of Canadian equities.

How the Company Makes Money

Canadian General Investments, Limited generates revenue primarily through the appreciation of its investment portfolio and the income derived from dividends paid by the companies in which it holds equity investments. The company's revenue streams include capital gains realized from the sale of appreciated securities and dividend income from its holdings. CGI's investment strategy involves selecting a diversified portfolio of Canadian stocks across various sectors to optimize returns. Additionally, the company may engage in strategic partnerships or utilize financial instruments to manage risk and enhance portfolio performance. The overall performance and revenue generation are closely tied to market conditions and the performance of the Canadian economy.

Canadian General Inv Financial Statement Overview

Summary

Canadian General Inv demonstrates strong profitability recovery in 2023 with robust margins in the income statement. The balance sheet is solid with low leverage and high equity. However, volatility in revenue growth and cash flow generation highlights areas for improvement. The company is well-positioned in terms of capital structure but needs to stabilize cash flow.

Income Statement

The company showed a strong recovery in 2023 with a significant improvement in revenue compared to the negative figures in 2022. The gross profit margin for 2023 is high, at 100%, as costs are zero, likely due to the nature of the asset management industry. Net profit margin also reflects a profitable year at 86.9%. However, the revenue growth rate from 2021 to 2022 was negative, indicating volatility. EBIT margin is strong at 91.9% for 2023.

Balance Sheet

The balance sheet shows a solid equity base with an equity ratio of 86.7% in 2023, indicating a strong capital structure. The debt-to-equity ratio remains low at 0.15, suggesting conservative leverage. Return on equity for 2023 is high at 15%, reflecting efficient use of equity. Overall, financial stability is evident with a high level of cash and short-term investments.

Cash Flow

The cash flow statement indicates a decrease in operating cash flow in 2023 compared to previous years. The free cash flow to net income ratio is positive, indicating sufficient cash generation relative to profits. However, the operating cash flow to net income ratio is low, suggesting less conversion of income to cash. The free cash flow growth rate is negative, implying challenges in enhancing cash generation.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
267.29M	200.35M	-252.05M	267.86M	294.39M	193.08M
	Gross Profit
242.62M	200.35M	-266.03M	252.17M	282.80M	182.56M
	EBIT
191.40M	184.10M	-253.64M	263.52M	290.12M	188.67M
	EBITDA
176.22M	0.00	0.00	0.00	0.00	0.00
	Net Income Common Stockholders
167.67M	174.15M	-254.39M	254.79M	289.44M	186.07M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
69.51M	1.34B	3.60M	16.60M	6.93M	21.04M
	Total Assets
752.82M	1.34B	1.16B	1.47B	1.22B	948.23M
	Total Debt
74.97M	175.00M	75.00M	100.00M	99.24M	98.56M
	Net Debt
5.46M	163.82M	71.40M	83.40M	92.31M	77.52M
	Total Liabilities
150.65M	177.65M	151.54M	185.22M	176.33M	176.68M
	Stockholders Equity
602.16M	1.16B	1.01B	1.28B	1.04B	771.55M
Cash Flow		Free Cash Flow
63.44M	11.45M	36.19M	31.63M	7.37M	-50.34M
	Operating Cash Flow
63.44M	11.45M	36.19M	31.63M	7.37M	-50.34M
	Investing Cash Flow
0.00	0.00	0.00	0.00	0.00	0.00
	Financing Cash Flow
-33.21M	-3.87M	-49.19M	-21.96M	-21.48M	1.88M

Canadian General Inv Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CGI, the sentiment is Negative. The current price of 35.84 is below the 20-day moving average (MA) of 38.15, below the 50-day MA of 39.28, and below the 200-day MA of 38.70, indicating a bearish trend. The MACD of -1.06 indicates Positive momentum. The RSI at 33.51 is Neutral, neither overbought nor oversold. The STOCH value of 8.02 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CGI.

Canadian General Inv Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FFH	73 Outperform	$43.79B	8.25	16.48%	1.14%	13.82%	-6.68%
POW	71 Outperform	C$30.88B	14.65	10.36%	4.67%	30.81%	-2.47%
CGI	70 Outperform		4.58	13.23%	2.83%	568.39%	-31.96%
GWO	69 Neutral	C$47.63B	12.46	15.52%	4.34%	-2.40%	42.24%
Sector *	64 Neutral	$13.79B	10.52	9.20%	4.24%	17.25%	-7.60%
ONEX	57 Neutral	C$6.90B	17.93	3.54%	0.41%	-17.78%	-41.13%
BAM	54 Neutral	C$110.33B	45.24	16.87%	3.25%	―	―

Canadian General Inv Corporate Events

Canadian General Investments Reports Strong 2024 Performance

Canadian General Investments reported an unaudited net asset value per share of $69.32 as of December 31, 2024, achieving a one-year NAV return of 26.6%, outperforming the S&P/TSX Composite Index’s return of 21.6%. The company’s leveraging strategy slightly decreased, representing 13.8% of net assets. The share price closed at $40.48, reflecting a 19.6% annual return. CGI’s top investments include major firms like NVIDIA Corporation and Apple Inc., comprising 36.3% of its portfolio.

Canadian General Investments Reports Strong Returns

Canadian General Investments reported impressive gains in its net asset value (NAV) and share price returns for the year, significantly outperforming the S&P/TSX Composite Index. The company’s investment strategy includes leveraging through bank borrowing and focusing on sectors like Information Technology and Industrials.

Canadian General Investments Reports Strong Returns

Canadian General Investments, Limited reported a strong performance with a net asset value per share of $66.42 as of October 31, 2024, showing impressive year-to-date and 12-month returns of 20.9% and 33.5%, respectively, surpassing the S&P/TSX Composite Index. The company strategically leverages bank borrowing to enhance shareholder returns, with its investment portfolio heavily weighted in sectors like Information Technology and Industrials. Meanwhile, their top ten investments, including prominent companies like NVIDIA and Apple, make up 39.3% of their portfolio.