Canaccord Genuity Group Inc., a full-service financial services company, provides investment solutions, and brokerage and investment banking services to individual, institutional, corporate, and government clients.
The last earnings update was 54 days ago.
Discounted Cash Flow Calculation for TSX:CF.PRA using Excess Returns Model Model
The calculations below outline how an intrinsic value for Canaccord Genuity Group is arrived at using the Excess Return Model. This approach is used for finance firms where free cash flow is difficult to estimate.
In the Excess Return Model the value of a firm can be written as the sum of capital invested currently in the firm and the present value of excess returns that the firm expects to make in the future.
The model is sensitive to the Return on Equity of the company versus the Cost of Equity, how these are calculated is detailed below the main calculation.
Amount off the current price
Canaccord Genuity Group
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
Canaccord Genuity Group
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Canaccord Genuity Group's share price is below the future cash flow value, and at a moderate discount (> 20%).
Canaccord Genuity Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
Canaccord Genuity Group's
is considered below, and whether this is a fair price.
Price based on past earnings
Canaccord Genuity Group's earnings available for a low price, and how does
this compare to other companies in the same industry?
Canaccord Genuity Group's earnings are expected to grow significantly at over 20% yearly.
Canaccord Genuity Group's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Canaccord Genuity Group's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Canaccord Genuity Group
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Canaccord Genuity Group's finances.
The net worth of a company is the difference between its assets and liabilities.
Canaccord Genuity Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Canaccord Genuity Group's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Canaccord Genuity Group's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Debt is covered by short term assets, assets are 16.6x debt.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Mr. Daniel Joseph Daviau, also known as Dan, has been the Chief Executive Officer and President of Canaccord Genuity Group Inc., since Ocotber 1, 2015. Mr. Daviau served as the Chief Executive Officer of North American Capital Markets at Canaccord Genuity Group Inc. Mr. Daviau served as the President at Canaccord Genuity Inc. and Canaccord Genuity Securities LLC at Canaccord Financial Inc. from June 2012 to October 1, 2015. Mr. Daviau oversees all aspects of Canaccord's capital markets businesses in the US. Based in New York, his initial tasks are focused on maximizing Canaccord's position in this important market through highly targeted growth initiatives and broad-based expense management programs. Mr. Daviau served as Managing Director and Head of Canadian Investment Banking at Canaccord Financial Inc. He Co-Founded Genuity Capital Markets in Toronto, Ontario and served as its Principal and Head of Equity Capital Markets. He served as Legal Counsel of DDS Wireless International Inc. since June 2004 He served at CIBC World Markets from 1992 to 2004 as Head of CIBC World Markets' Technology Investment Banking Group in Canada. He served at as Co-Head of Investment Banking at Canaccord Genuity Inc. from 2001 to 2004. from 1999 to 2001. He joined Canaccord in 2010 through the Canaccord Genuity Securities LLC's acquisition of Genuity Capital Markets, which he co-founded in 2005. He served as Co-Head of Investment Banking and Head of Technology, Media and Telecom at CIBC. Mr. Daviau has 24 years of investment banking experience. He served at with CIBC World Markets since 1992. Prior to 1992, he was a Lawyer with Goodmans LLP. Mr. Daviau has a wide range of experience in financial transactions including equity offerings as well as mergers and acquisitions. He has been Director of Canaccord Genuity Limited since November 2, 2016. He has been a Director of Canaccord Genuity Group Inc., since October 01, 2015. He served as a Director of DDS Wireless International Inc. from June 11, 2004 to March 15, 2010. He served as a Director of DDS Wireless International Inc. from June 11, 2004 to March 15, 2010. In 2004, Mr. Daviau was recognized as one of Canada's Top 40 under 40, honoring the top 40 Canadians, who have reached a significant level of success in their respective fields and was a Member of the Young President' Organization. Mr. Daviau holds an MBA from York University, an LL.B from Osgoode Hall/York University and a B.A. in Mathematics and Statistics from the University of Western Ontario.
Dan's compensation has been consistent with company performance over the past year, both up more than 20%.
Dan's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure
Average tenure and age of the
Canaccord Genuity Group
management team in years:
The tenure for the Canaccord Genuity Group management team is about average.
Canaccord Genuity Group Inc., a full-service financial services company, provides investment solutions, and brokerage and investment banking services to individual, institutional, corporate, and government clients. It operates in two segments, Canaccord Genuity Capital Markets and Canaccord Genuity Wealth Management. The Canaccord Genuity Capital Markets segment offers investment banking, advisory, research, and trading services. The Canaccord Genuity Wealth Management segment provides brokerage services and investment advice to retail or institutional clients. The company has operations in Canada, the United Kingdom, Europe, Dubai, Australia, the United States, and internationally. The company was founded in 1950 and is headquartered in Vancouver, Canada.
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