CI Financial Corp (CIX.CA) Stock Fundamental Analysis
Canada - Toronto Stock Exchange - TSX:CIX - CA1254911003 - Common Stock
31.99 CAD
0 (0%)
CIX gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 78 industry peers in the Capital Markets industry. There are concerns on the financial health of CIX while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on CIX.
1. Profitability
1.1 Basic Checks
- In the past year CIX was profitable.
- CIX had a positive operating cash flow in the past year.
- Of the past 5 years CIX 4 years were profitable.
- CIX had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- CIX has a worse Return On Assets (-2.72%) than 76.83% of its industry peers.
- CIX has a worse Return On Equity (-62.17%) than 86.59% of its industry peers.
- CIX's Return On Invested Capital of 9.20% is amongst the best of the industry. CIX outperforms 82.93% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CIX is below the industry average of 10.50%.
- The last Return On Invested Capital (9.20%) for CIX is above the 3 year average (7.66%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -2.72% | ||
| ROE | -62.17% | ||
| ROIC | 9.2% |
ROA(3y)-0.23%
ROA(5y)2.31%
ROE(3y)-27.12%
ROE(5y)-5.1%
ROIC(3y)7.66%
ROIC(5y)8.88%
1.3 Margins
- CIX has a Operating Margin (20.24%) which is in line with its industry peers.
- In the last couple of years the Operating Margin of CIX has declined.
- Looking at the Gross Margin, with a value of 82.50%, CIX belongs to the top of the industry, outperforming 82.93% of the companies in the same industry.
- In the last couple of years the Gross Margin of CIX has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.24% | ||
| PM (TTM) | N/A | ||
| GM | 82.5% |
OM growth 3Y-26.25%
OM growth 5Y-17.67%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y0.37%
GM growth 5Y-1.76%
2. Health
2.1 Basic Checks
- CIX has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for CIX has been reduced compared to 5 years ago.
- Compared to 1 year ago, CIX has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 0.17, we must say that CIX is in the distress zone and has some risk of bankruptcy.
- Looking at the Altman-Z score, with a value of 0.17, CIX is doing worse than 78.05% of the companies in the same industry.
- The Debt to FCF ratio of CIX is 9.62, which is on the high side as it means it would take CIX, 9.62 years of fcf income to pay off all of its debts.
- CIX's Debt to FCF ratio of 9.62 is fine compared to the rest of the industry. CIX outperforms 63.41% of its industry peers.
- CIX has a Debt/Equity ratio of 7.95. This is a high value indicating a heavy dependency on external financing.
- Looking at the Debt to Equity ratio, with a value of 7.95, CIX is doing worse than 87.80% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 7.95 | ||
| Debt/FCF | 9.62 | ||
| Altman-Z | 0.17 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
- CIX has a Current Ratio of 0.33. This is a bad value and indicates that CIX is not financially healthy enough and could expect problems in meeting its short term obligations.
- The Current ratio of CIX (0.33) is worse than 84.15% of its industry peers.
- CIX has a Quick Ratio of 0.33. This is a bad value and indicates that CIX is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 0.33, CIX is doing worse than 84.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.33 | ||
| Quick Ratio | 0.33 |
3. Growth
3.1 Past
- CIX shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 14.79%, which is quite good.
- Measured over the past years, CIX shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.48% on average per year.
- Looking at the last year, CIX shows a quite strong growth in Revenue. The Revenue has grown by 12.99% in the last year.
- CIX shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.96% yearly.
EPS 1Y (TTM)14.79%
EPS 3Y6.7%
EPS 5Y9.48%
EPS Q2Q%-1.11%
Revenue 1Y (TTM)12.99%
Revenue growth 3Y11.06%
Revenue growth 5Y6.96%
Sales Q2Q%-8.84%
3.2 Future
- Based on estimates for the next years, CIX will show a small growth in Earnings Per Share. The EPS will grow by 5.59% on average per year.
- CIX is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.39% yearly.
EPS Next Y11.35%
EPS Next 2Y10.02%
EPS Next 3Y4.73%
EPS Next 5Y5.59%
Revenue Next Year2.26%
Revenue Next 2Y2.39%
Revenue Next 3Y-3.24%
Revenue Next 5Y3.39%
3.3 Evolution
- The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 8.24, the valuation of CIX can be described as very reasonable.
- Compared to the rest of the industry, the Price/Earnings ratio of CIX is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 28.87. CIX is valued rather cheaply when compared to this.
- With a Price/Forward Earnings ratio of 6.97, the valuation of CIX can be described as very cheap.
- Based on the Price/Forward Earnings ratio, CIX is valued a bit cheaper than the industry average as 69.51% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.96, CIX is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.24 | ||
| Fwd PE | 6.97 |
4.2 Price Multiples
- CIX's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. CIX is cheaper than 62.20% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, CIX is valued cheaper than 81.71% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 9.97 | ||
| EV/EBITDA | 9.92 |
4.3 Compensation for Growth
- CIX's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
PEG (NY)0.73
PEG (5Y)0.87
EPS Next 2Y10.02%
EPS Next 3Y4.73%
5. Dividend
5.1 Amount
- CIX has a Yearly Dividend Yield of 2.50%.
- Compared to an average industry Dividend Yield of 1.74, CIX pays a bit more dividend than its industry peers.
- CIX's Dividend Yield is a higher than the S&P500 average which is at 1.82.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.5% |
5.2 History
- The dividend of CIX has a limited annual growth rate of 1.95%.
- CIX has paid a dividend for at least 10 years, which is a reliable track record.
- The dividend of CIX decreased recently.
Dividend Growth(5Y)1.95%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
- CIX has negative earnings and hence a negative payout ratio. The dividend may be in danger.
- CIX's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP-38.71%
EPS Next 2Y10.02%
EPS Next 3Y4.73%
CI Financial Corp / CIX.CA FAQ
What is the fundamental rating for CIX stock?
ChartMill assigns a fundamental rating of 4 / 10 to CIX.CA.
Can you provide the valuation status for CI Financial Corp?
ChartMill assigns a valuation rating of 6 / 10 to CI Financial Corp (CIX.CA). This can be considered as Fairly Valued.
Can you provide the profitability details for CI Financial Corp?
CI Financial Corp (CIX.CA) has a profitability rating of 4 / 10.
How financially healthy is CI Financial Corp?
The financial health rating of CI Financial Corp (CIX.CA) is 2 / 10.
How sustainable is the dividend of CI Financial Corp (CIX.CA) stock?
The dividend rating of CI Financial Corp (CIX.CA) is 4 / 10 and the dividend payout ratio is -38.71%.