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Canaccord Genuity Group (TSX:CF) Reports Record Results And Lifts Dividend, Is It A Bargain?

Simply Wall St · 1d ago

Canaccord Genuity Group (TSX:CF) is back in focus after reporting record fiscal 2026 results, with revenue excluding significant items of CA$2.21b and adjusted net income of CA$193.7m, along with a higher quarterly dividend.

At a share price of CA$14.80, Canaccord Genuity Group has logged a 33.57% year to date share price return, while the 1-year total shareholder return of 30.28% and 3-year total shareholder return of 125.52% point to momentum that has built over time rather than suddenly appearing around the recent dividend increase and discussions about a potential sale of the UK wealth arm.

Compare Canaccord Genuity Group's recent momentum and dividend story with a hand picked 5 high quality undervalued stocks that currently pair solid fundamentals with potentially mispriced share prices.

After a record year, a 33% year to date share price gain, and a 17% discount to analyst targets, is Canaccord Genuity Group attractively priced, or is the market rightly cautious about its risks and recent loss?

Preferred Price-to-Sales of 0.7x for Canaccord Genuity Group: Is it justified?

On a simple snapshot, Canaccord Genuity Group trades on a P/S ratio of 0.7x, which is low relative to peers despite the CA$14.80 share price and recent share price strength.

The P/S multiple measures how much investors are paying for each dollar of revenue. For capital markets and wealth management groups, this lens can be useful when earnings are volatile or when the business is currently reporting a loss, as is the case here with a net loss of CA$104.82m.

Canaccord Genuity Group is described as trading at good value versus both its direct peer set and the wider Canadian Capital Markets industry on this metric. The stock changes hands at 0.7x sales, against a peer average of 4.3x and an industry average of 2.8x, so the gap is wide. Against an estimated fair P/S ratio of 4.7x, the current market multiple is also far lower. This points to a level investors could potentially move towards if sentiment or profitability were to improve over time.

Explore the SWS fair ratio for Canaccord Genuity Group.

Result: Price-to-sales ratio of 0.7x (UNDERVALUED)

Still, the recent net loss of CA$104.82m and the possibility of a sale of the UK wealth arm could reshape expectations for Canaccord Genuity Group.

Find out about the key risks to this Canaccord Genuity Group narrative.

Next Steps

Mixed feelings about Canaccord Genuity Group after a record year and a reported loss. If you want to move fast and build your own take on both the upside and the downside, start with the 2 key rewards and 2 important warning signs.

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