CI Financial (CIX) AI Stock Analysis

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CI Financial

(OTC:CIX)

51Neutral

CI Financial's overall stock score is driven by mixed financial performance, with stable cash flows offsetting high leverage and recent net income losses. Technical analysis shows no definitive market trend, while valuation metrics raise concerns due to negative earnings. The recent debenture offering is a positive development, providing financial flexibility and stability.

CI Financial (CIX) vs. S&P 500 (SPY)

Market Cap

C$4.49B

Dividend Yield2.58%

Average Volume (3M)651.31K

Price to Earnings (P/E)―

Beta (1Y)0.92

Revenue Growth3.21%

EPS Growth-9107.07%

CountryCA

Employees2,390

SectorFinancial

Sector Strength86

IndustryAsset Management Services

Share Statistics

EPS (TTM)-2.86

Shares Outstanding144,219,620

10 Day Avg. Volume458,388

30 Day Avg. Volume651,309

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)2.66

Price to Cash Flow (P/CF)10.50

P/FCF Ratio6.60

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$32.00

Price Target Upside2.83% Upside

Rating ConsensusModerate Sell

Number of Analyst Covering1

CI Financial Business Overview & Revenue Model

Company DescriptionCI Financial Corp. (CIX) is a diversified global asset and wealth management company headquartered in Toronto, Canada. Established in 1965, the company operates in several sectors, including asset management, wealth management, and capital markets. CI Financial provides a wide range of financial products and services, including mutual funds, exchange-traded funds (ETFs), segregated funds, and financial advisory services, catering to both individual and institutional investors.

How the Company Makes MoneyCI Financial makes money through multiple revenue streams primarily derived from its asset management and wealth management operations. In asset management, the company earns revenue by charging management fees and performance fees on the funds it manages, which include mutual funds and ETFs. These fees are typically a percentage of the assets under management (AUM) and can vary based on the type of fund and investment strategy. In wealth management, CI Financial generates revenue by providing financial advisory services, retirement planning, tax planning, and estate planning to its clients. The company charges fees for these services, which can be a flat fee, hourly fee, or a percentage of the assets under advisement. Additionally, CI Financial may earn revenue from investment banking and capital markets activities, including underwriting services and advisory fees from mergers and acquisitions. Strategic partnerships and acquisitions also play a significant role in expanding its client base and enhancing its service offerings, which can contribute to its earnings growth.

CI Financial Financial Statement Overview

Summary

CI Financial's financial health shows mixed results. While gross profit margins remain strong, recent periods have seen net losses and fluctuating profitability margins. The balance sheet reveals high leverage, posing potential risks, but cash flows exhibit stability, offering some financial resilience despite recent earnings challenges.

Income Statement

Neutral

CI Financial has experienced fluctuating revenue growth, with a recent decline in profitability as evidenced by a negative net income in the latest period. The gross profit margin remains robust, but the net profit margin has deteriorated significantly. EBIT and EBITDA margins have also shown volatility, impacting overall profitability.

Balance Sheet

Neutral

The company maintains a high debt-to-equity ratio, indicating significant leverage, which poses potential financial risk. The equity ratio has declined, reflecting reduced shareholder equity relative to total assets. However, the company has historically maintained a reasonable return on equity, though recent losses have impacted this metric.

Cash Flow

Neutral

Operating cash flow remains positive and has shown growth, supporting liquidity. Free cash flow has also been stable, although recent disruptions in net income have affected the free cash flow to net income ratio. Overall, the cash flow statement reflects a stable cash generation capability despite net income fluctuations.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
3.43B	3.17B	2.43B	2.73B	2.05B
	Gross Profit
2.46B	2.28B	2.02B	1.75B	1.04B
	EBIT
0.00	912.19M	798.59M	695.90M	708.19M
	EBITDA
203.13M	767.28M	953.71M	792.66M	751.70M
	Net Income Common Stockholders
-411.05M	5.02M	299.76M	409.33M	475.98M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
204.21M	179.81M	194.07M	362.60M	616.97M
	Total Assets
10.76B	9.98B	9.71B	8.66B	6.36B
	Total Debt
4.39B	3.81B	4.39B	3.95B	2.53B
	Net Debt
4.23B	3.67B	4.24B	3.72B	2.05B
	Total Liabilities
10.35B	8.94B	8.08B	7.04B	4.74B
	Stockholders Equity
409.17M	1.03B	1.61B	1.59B	1.58B
Cash Flow		Free Cash Flow
460.74M	398.24M	448.81M	645.70M	512.85M
	Operating Cash Flow
561.05M	449.41M	478.92M	665.90M	541.97M
	Investing Cash Flow
-662.32M	-524.30M	-508.53M	-1.40B	-598.11M
	Financing Cash Flow
131.85M	58.30M	-47.54M	483.10M	421.38M

CI Financial Technical Analysis

Technical Analysis Sentiment

Positive

Last Price31.12

Price Trends

50DMA

31.06

Positive

100DMA

30.54

Positive

200DMA

24.25

Positive

Market Momentum

MACD

0.02

Negative

RSI

62.27

Neutral

STOCH

-30.08

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CIX, the sentiment is Positive. The current price of 31.12 is above the 20-day moving average (MA) of 31.04, above the 50-day MA of 31.06, and above the 200-day MA of 24.25, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 62.27 is Neutral, neither overbought nor oversold. The STOCH value of -30.08 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CIX.

CI Financial Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SLF	75 Outperform	C$43.50B	14.42	12.87%	4.37%	-12.72%	-0.16%
MFC	75 Outperform	$70.82B	14.41	11.03%	4.32%	7.64%	9.22%
GWO	73 Outperform	C$48.77B	12.54	15.52%	4.41%	-2.40%	42.24%
IGM	71 Outperform	$10.06B	10.80	13.00%	5.37%	-9.41%	-18.55%
Sector *	64 Neutral	$13.21B	9.26	9.39%	4.87%	16.14%	-8.80%
FSZ	59 Neutral	C$664.87M	26.35	8.22%	14.73%	5.64%	-57.76%
CIX	51 Neutral	C$4.49B	―	-55.59%	2.58%	3.21%	-9107.07%

* Financial Sector Average

Performance Comparison

TSE:CIX

CI Financial

31.10

15.09

94.21%

TSE:SLF

Sun Life Financial

76.98

9.75

14.50%

TSE:MFC

Manulife Financial

38.95

8.31

27.10%

TSE:IGM

IGM Financial

41.17

9.13

28.50%

TSE:FSZ

Fiera Capital A

6.04

-0.81

-11.82%

TSE:GWO

Great-West Lifeco

51.00

12.55

32.64%

CI Financial Earnings Call Summary

Earnings Call Date: Feb 28, 2025 | % Change Since: -0.19% | Next Earnings Date: May 8, 2025

Earnings Call Sentiment Positive

The earnings call highlighted a strong financial performance with record-breaking metrics in EPS and EBITDA, supported by successful acquisitions and organic growth. Despite challenges related to increased debt and ongoing integration efforts, the positive aspects of revenue growth and strategic achievements in wealth management indicate a generally optimistic outlook.

Highlights

Record-Breaking Financial Performance

Adjusted EPS grew 8% sequentially to a record $0.97, and adjusted EBITDA per share increased 10% from Q2 to a record of $1.85. Free cash flow also reached a record of $1.32 per share.

Strong Organic and M&A Growth

CI Financial completed acquisitions adding over $10 billion in client assets, contributing to an 8% sequential increase in adjusted EBITDA for the wealth management segment.

Awards and Recognition

CI Financial was recognized with 16 Lipper awards, marking the second consecutive year as the most awarded fund manager in Canada.

Positive Flows in Wealth Management

Both Canadian and U.S. wealth management businesses generated positive flows, indicating quality and resiliency.

Lowlights

Increased Debt and Interest Expenses

Net debt increased to $3.6 billion, partly due to new bond issuance, with interest expenses expected to rise to $59-$60 million in Q4.

Integration Challenges

Ongoing integration efforts in real estate and technology for the U.S. Wealth segment, with the unification of the portfolio accounting solution expected to continue through 2025.

Company Guidance

During the CI Financial Q3 2024 earnings call, the company reported several record-breaking metrics. Adjusted EPS increased by 8% sequentially to $0.97, and adjusted EBITDA per share rose by 10% from Q2, reaching $1.85. Free cash flow per share also hit a record at $1.32. CI Financial allocated $164 million towards mergers and acquisitions and continued active share repurchases, including buying back 5 million shares and 680,000 shares through its NCIB. The company reduced its debt by repurchasing $16 million of 2051 notes. The Canadian retail channel experienced positive net flows, while both Canadian and U.S. wealth businesses generated positive flows. The U.S. segment's EBITDA rose by 24% compared to the previous year, with margins expanding to 44%. Global assets ended the quarter up 6% to $518 billion. The company anticipates Q4 interest and lease finance expenses to range between $59 million to $60 million. Net debt increased to $3.6 billion, with a net leverage of 3.3x. CI Financial completed acquisitions adding over $10 billion in client assets to Corient, contributing to an 8% sequential increase in adjusted EBITDA for the segment.

CI Financial Corporate Events

Private Placements and Financing

CI Financial Announces $500 Million Debenture Offering for Debt Refinancing

Positive

Mar 27, 2025

CI Financial Corp. has announced a debenture offering of $500 million with a 4.75% interest rate, maturing in 2028, to refinance existing debt and for general corporate purposes. This move, led by major financial institutions, is expected to maintain the company’s stable credit rating and enhance its financial flexibility, potentially impacting its market positioning and stakeholder interests positively.

M&A TransactionsShareholder MeetingsBusiness Operations and StrategyFinancial Disclosures

CI Financial’s Q4 2024 Results Reflect Take-Private Transaction Impact

Neutral

Feb 28, 2025

CI Financial reported its financial results for the fourth quarter of 2024, highlighting the impact of its take-private transaction on its accounting figures. The company experienced a significant net loss of $405.4 million due to revaluation of liabilities, increased stock-based compensation, and deal-related costs. However, adjusted net income rose by 9% to $153.9 million, driven by strong capital markets and performance fees. Total assets grew by 19% year-over-year to $529.4 billion, and shareholders approved a Plan of Arrangement with Mubadala Capital, indicating strategic shifts in the company’s operations.

M&A TransactionsShareholder Meetings

CI Financial Shareholders Approve Mubadala Acquisition Plan

Neutral

Feb 12, 2025

CI Financial Corp. announced that its shareholders have overwhelmingly approved the plan of arrangement for Mubadala Capital to acquire all of CI’s common shares. This approval marks a significant step in the transaction, which is pending final court approval and regulatory clearances, and is expected to finalize in the second quarter of 2025. The arrangement reflects strategic repositioning within the asset and wealth management industry, potentially impacting CI’s market operations and stakeholder interests.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.