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1. Company Snapshot

1.a. Company Description

Canaccord Genuity Group Inc., a full-service financial services company, provides investment products, and investment banking and brokerage services to institutional, corporate, and private 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, merger and acquisition, sales, and trading services.


The Canaccord Genuity Wealth Management segment provides wealth management solutions, and brokerage and financial planning services to individual investors, private clients, charities, and intermediaries.The company operates in North America, the United Kingdom, Europe, Asia, Australia, and the Middle East.Canaccord Genuity Group Inc.


was founded in 1950 and is headquartered in Vancouver, Canada.

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1.b. Last Insights on CF

Canaccord Genuity Group Inc.'s recent performance was positively driven by its acquisition of Wilsons Advisory through its Australian operation, expanding its market presence. The company's first quarter fiscal 2026 results, announced on August 6, 2025, likely contributed to investor optimism. Additionally, the company's decision to pay a dividend of CA$0.085 per share on August 10, 2025, may have boosted investor confidence. Canaccord's analyst price target for Neo Performance Materials also rose, reflecting growing optimism about the company's prospects.

1.c. Company Highlights

2. Canaccord Genuity's Q2 FY2026 Earnings: A Mixed Bag

Canaccord Genuity Group Inc. reported its fiscal 2026 second-quarter results, with consolidated revenue of $530 million, a 24% year-over-year increase and an 18% sequential increase. Adjusted pretax net income was $60 million, up 41% year-over-year, translating to diluted earnings per share of $0.27, beating analyst estimates of $0.2133. However, the company's provision for ongoing U.S. regulatory matters was substantially increased, resulting in an IFRS loss attributable to common shareholders of $204 million and a loss per share of $2.04.

Publication Date: Nov -30

📋 Highlights
  • Revenue Growth:: Consolidated revenue rose to $530 million, up 24% YoY and 18% sequentially.
  • Regulatory Impact:: A $143 million provision for U.S. regulatory matters led to a $204 million IFRS loss and $2.04 loss per share.
  • Wealth Management Strength:: Generated $269 million revenue (24% YoY), with client assets hitting record $49 billion (24% YoY).
  • Capital Markets Performance:: Revenue climbed to $253 million (25% YoY), driven by 76% YoY rise in Investment Banking to $91 million.
  • Goodwill Impairment:: $200 million write-down in U.S. Capital Markets due to unmet growth expectations, despite 5% projected business growth.

Segment Performance

The company's Wealth Management division earned revenue of $269 million, a 24% year-over-year increase, driven by a 25% increase in commissions and fees revenue to $211 million. Client assets reached a record $49 billion, a 24% year-over-year increase and a 10% sequential increase. The Canadian wealth business delivered adjusted pretax net income of $18 million, a 54% year-over-year increase. The Capital Markets business reported revenue of $253 million, a 25% year-over-year increase and a 26% sequential increase, driven by a strong performance in Australia.

Valuation and Outlook

With a P/E Ratio of -22.57 and a P/B Ratio of 1.29, the company's valuation is largely driven by its growth prospects. Analysts estimate next year's revenue growth at 13.7%. The company's dividend yield of 2.88% provides a relatively stable return. The sale of the U.S. market making business and the expected improvement in margins in the U.S. business as they pivot to primarily the ECM and advisory business are positive signs. However, the goodwill impairment due to slower performance in the U.S. Capital Markets business is a concern.

Regulatory Provision and Business Reorientation

The company addressed a regulatory provision in the quarter, setting aside sufficient capital, and thus, has no issue with its balance sheet. The $143 million provision for the regulatory matter has already been funded. The company discussed reorienting the business and changing risk exposures, partly related to the divestment of the trading desk. The sale of the International Equities Group is not expected to have a meaningful impact on earnings profile.

Business Growth Opportunities

The company is confident in its ability to enhance firm-wide profit margins and achieve targeted single-digit growth for the current fiscal year, driven by its organic and inorganic growth initiatives. The Australian business is expected to continue its strong performance, driven by mining deals, with domestic accounts being the primary buyers. The company sees opportunities in the Canadian wealth marketplace rationalization and is focused on organic growth through hiring more advisers.

3. NewsRoom

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How Analyst Shifts and New AI Developments Are Rewriting the Story for Coveo Solutions

Dec -04

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Canaccord Genuity Slashes Redwire Corporation’s (RDW) Price Target To $11, Keeps Buy Rating

Nov -19

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Canaccord Genuity Group (TSE:CF) Is Due To Pay A Dividend Of CA$0.085

Nov -18

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CANACCORD GENUITY GROUP INC. REPORTS SECOND QUARTER FISCAL 2026 RESULTS

Nov -13

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CANACCORD GENUITY GROUP INC. ANNOUNCES INCREASED PROVISION RELATED TO PREVIOUSLY DISCLOSED U.S. REGULATORY ENFORCEMENT MATTERS

Nov -13

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CANACCORD GENUITY GROUP INC. ANNOUNCES TIME CHANGE FOR ITS CONFERENCE CALL TO DISCUSS SECOND QUARTER FISCAL 2026 FINANCIAL RESULTS

Oct -31

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CANACCORD GENUITY GROUP INC. ACCESS TO SECOND QUARTER FISCAL 2026 FINANCIAL RESULTS INFORMATION

Oct -30

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What Catalysts Are Changing the Narrative for i-80 Gold Investors Now

Oct -23

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (13.56%)

6. Segments

Canaccord Genuity Capital Markets

Expected Growth: 15%

Canaccord Genuity Capital Markets' 15% growth driven by strong investment banking activity, increased trading volumes, and expansion into new markets. Additionally, the company's focus on wealth management and advisory services, as well as its strategic acquisitions, have contributed to its growth momentum.

Canaccord Genuity Wealth Management

Expected Growth: 12%

Canaccord Genuity Wealth Management's 12% growth is driven by strategic acquisitions, expansion of advisory teams, and increased market share in the Canadian wealth management space. Additionally, the segment benefits from a strong brand reputation, diversified revenue streams, and a robust platform for advisors, resulting in increased assets under management and administration.

Corporate and Other

Expected Growth: 10%

Canaccord Genuity Group Inc.'s Corporate and Other segment growth of 10% is driven by strategic acquisitions, expansion of wealth management services, and increased investment in digital platforms. Additionally, cost savings initiatives and operational efficiencies have contributed to the segment's growth.

7. Detailed Products

Wealth Management

Canaccord Genuity Group Inc. offers wealth management services to individuals, families, and institutions, providing investment advice, portfolio management, and wealth planning.

Capital Markets

The company provides capital markets services, including equity and debt capital raising, mergers and acquisitions advisory, and restructuring services to corporate clients.

Global Markets

Canaccord Genuity Group Inc. offers global markets services, including sales, trading, and research in equities, fixed income, currencies, and commodities.

Asset Management

The company provides asset management services, including investment management, portfolio management, and fund administration.

Custody and Prime Services

Canaccord Genuity Group Inc. offers custody and prime services, including securities lending, borrowing, and financing.

8. Canaccord Genuity Group Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Canaccord Genuity Group Inc. is medium due to the presence of alternative investment products and services offered by other financial institutions.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Canaccord Genuity Group Inc.'s investment products and services, which limits customers' ability to negotiate prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers of investment products and services, which gives Canaccord Genuity Group Inc. some negotiating power.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the financial services industry, which makes it easier for new companies to enter the market.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of many established players in the financial services industry, which leads to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 29.15%
Debt Cost 7.91%
Equity Weight 70.85%
Equity Cost 12.19%
WACC 10.94%
Leverage 41.14%

11. Quality Control: Canaccord Genuity Group Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Oppenheimer

A-Score: 6.6/10

Value: 8.3

Growth: 4.0

Quality: 6.8

Yield: 4.0

Momentum: 9.0

Volatility: 7.7

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Canaccord Genuity

A-Score: 6.1/10

Value: 8.6

Growth: 4.3

Quality: 4.1

Yield: 7.0

Momentum: 6.5

Volatility: 6.3

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Cohen & Company

A-Score: 6.1/10

Value: 7.5

Growth: 3.9

Quality: 3.2

Yield: 10.0

Momentum: 8.0

Volatility: 4.0

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Virtu Financial

A-Score: 5.9/10

Value: 5.4

Growth: 5.6

Quality: 4.8

Yield: 6.0

Momentum: 6.0

Volatility: 7.7

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Westwood Holdings

A-Score: 5.8/10

Value: 5.3

Growth: 2.6

Quality: 6.2

Yield: 9.0

Momentum: 6.0

Volatility: 5.7

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Donnelley Financial Solutions

A-Score: 3.5/10

Value: 4.2

Growth: 4.6

Quality: 5.3

Yield: 0.0

Momentum: 2.0

Volatility: 4.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

11.45$

Current Price

11.45$

Potential

-0.00%

Expected Cash-Flows